International Monetary Fund. Secretary's Department
Published Date:
November 1955
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Resolution No. 10–11 Financial Statements, Report on Audit and Administrative Budget2


That the Board of Governors of the Fund considers the Report on Audit for the Fiscal Year ended April 30, 1955, the Financial Statements contained therein,3 and the Administrative Budget for the Fiscal Year ending April 30, 1956,4 as fulfilling the requirements of Article XII, Section 7, of the Articles of Agreement and Section 20 of the By-Laws.

Resolution No. 10–2 Amendments to Rules and Regulations2


That the Board of Governors of the Fund hereby notifies the Executive Directors that it has reviewed the amendments5 to Rules F-4, 1–2 and I-4(f) of the Rules and Regulations adopted by the Executive Board since the Ninth Annual Meeting and has no changes to suggest.

Resolution No. 10–3 Place and Date of Eleventh Annual Meeting1


That the Chairman shall convene the Eleventh Annual Meeting of the Board of Governors of the International Monetary Fund in Washington, D. C, preferably in the second half of September 1956.

Resolution No. 10–4 Officers of Board of Governors1


That the Governor for Mexico is hereby elected Chairman and the Governors for China, France, India, the United Kingdom, and the United States are hereby elected Vice-Chairmen of the Board of Governors of the International Monetary Fund to hold their respective offices until the election of officers of the International Monetary Fund takes place at the close of the next Annual Meeting.

Resolution No. 10–5 Composition of Procedures Committee1


That a Procedures Committee be hereby established, to be available after the termination of this Meeting and until the election of officers of the International Monetary Fund takes place at the next Annual Meeting, for consultation at the discretion of the Chairman normally by correspondence and also if occasion requires by convening immediately before the Annual Meeting of the Board. The Procedures Committee shall consist of the Governors for the following members: Australia, Bolivia, Burma, China, Denmark, France, Greece, India, Iraq, Mexico, the United Kingdom, and the United States.

The Chairman, Vice-Chairman and Reporting Member shall be the Governors for Mexico, Iraq and Denmark, respectively.

Resolution No. 10–6 Appreciation1


That the Governors of the International Bank for Reconstruction and Development and the International Monetary Fund express their sincere appreciation to the Government and people of Turkey for their gracious hospitality; and

That they express their particular appreciation to the Governor and Alternate Governors for Turkey and their assistants for their outstanding contributions to the success of this Tenth Annual Meeting.

The numerical prefix indicates the Annual Meeting at which the Resolution was adopted.

Recommended by the Committee on Finance and Organization and adopted by the Board of Governors at Session No. 4, September 16, 1955.

Fund Document No. 2 and Appendix X of the Tenth Annual Report.

Appendix IX of the Tenth Annual Report.

Recommended by the Procedures Committee (Report No. 2) and adopted by the Board of Governors at the Closing Session (Session No. 5), September 16,1955.

Moved by J. van de Kieft, Governor of the International Bank for Reconstruction and Development for the Netherlands, and adopted by the Boards of Governors at the Closing Session (Session No. 5), September 16, 1955.

Appendix I. Amendments to the Rules and Regulations

Washington, D. C.

September 1, 1955

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 October 15, 1954, Rule F-4 was amended to increase the prescribed margin for gold transactions. As adopted on October 15, 1954, the amendment was effective until November 15, 1954. On November 5, 1954, the Executive Directors removed this time limitation.

On December 15, 1954, Rules 1–2 and I-4(f) were amended to extend until December 31,1955, the then prevailing service charge on transactions and charges on Fund holdings of member currencies in excess of quotas.

Rules F-4,1–2, and I-4(f) as last amended are set forth in Annex I. A proposed Resolution for consideration by the Board of Governors is attached as Annex II.1

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

Very truly yours,
Ivar Rooth
Managing Director
Chairman of the Executive Board

Chairman of the Board of Governors

Tenth Annual Meeting

International Monetary Fund

Annex I: Amendments to the Rules and Regulations Since the Ninth Annual Meeting

Rule F-4. Amendment adopted on October 15, 1954, and extended on November 5, 1954:

For transactions in gold by a member the margin above and below par value shall be, at the option of the member, either:

  • 1. One quarter of one per cent plus the following charges:

    • (a) The actual or computed cost of converting the gold transferred into good delivery bars at the normal center for dealing in gold of either the buying member or the member whose currency is exchanged for the gold;

    • (b) The actual or computed cost of transporting the gold transferred to the normal center for dealing in gold of either the buying member or the member whose currency is exchanged for the gold;

    • (c) Any charges made by the custodian of the gold transferred for effecting the transfer; or

  • 2. One per cent, which one per cent shall be taken to include all of the charges set forth in 1 above.

    [Former text as adopted June 10, 1947:

    For transactions in gold by a member, the margin above and below par value shall be ¼ of 1 per cent exclusive of the following charges:

    • (a) The actual or computed cost of converting the gold transferred into good delivery bars at the normal center for dealing in gold of either the buying member or the member whose currency is exchanged for the gold;

    • (b) The actual or computed cost of transporting the gold transferred to the normal center for dealing in gold of either the buying member or the member whose currency is exchanged for the gold;

    • (c) Any charges made by the custodian of the gold transferred for effecting the transfer.]

Rule I–2. Text as amended on December 15, 1954 (the part affected by the amendment 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, 1954] December 31, 1955, 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, and December 23, 1953]

Rule I-4(f). Text as amended on December 15, 1954 (the part affected by the amendment 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, 1954] December 31, 1955:

  • (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]

Appendix II. Selected Addresses Delivered During the Opening Ceremonies1 and at the Closing Session2

Address by the Governor for the United States1George M. Humphrey

On behalf of the U.S. Delegation, I should like to express our great pleasure at being in this vigorous and interesting country with its roots deep in history and its sturdy people building for an even brighter future. We are sincerely grateful to the Turkish Government for inviting the Bank and the Fund to Istanbul for this Tenth Annual Meeting. We are also indebted to the Rector and the faculties of the University for the arrangements they have made for us.

This Tenth Annual Meeting—to which we are pleased to welcome Afghanistan and the Republic of Korea as new members—provides a suitable opportunity for reviewing the work and accomplishments of the Fund and the Bank, and for considering the problems that lie ahead. Both institutions have come to occupy an increasingly significant role in the world. They have played an important part in facilitating investment of capital in sound reconstruction and development and in fostering a more realistic and freer system of international payments and mutually beneficial trade.

The Bank has steadily increased its lending activities, attracted a growing volume of private capital participation, and provided valuable technical assistance and advice to its members. With the past record year during which $410 million of loans were authorized, the Bank’s total loan commitments for the reconstruction and the economic development of its members for higher standards of living have reached more than $2.3 billion. While the major responsibility for economic development necessarily rests with the member countries, the Bank’s lending and advisory activities have supplemented and stimulated a great volume of constructive and balanced investment in better living for hundreds of millions of people. The Directors and management of the Bank are to be congratulated for their successful work of the past and we offer them our best wishes for the future.

Perhaps the most interesting development in this year of the Bank’s history has been the drafting and submission to governments of the Articles of Agreement for the proposed International Finance Corporation. When this project was first broached a few years ago, my Government entertained doubts about some aspects of the proposal then being discussed, particularly the suggestion that the Corporation be authorized to invest in stocks and possibly to manage enterprises. With the amendments to the proposal which were suggested last fall to eliminate these stock and management features, my Government was happily able to resolve its doubts and lend its support to the drafting of the Articles of Agreement.

The President and Executive Directors have since produced a Charter which offers a workable scheme by which private investment in productive private enterprises can be stimulated, particularly in the less developed countries, in a way which can be beneficial to all concerned. Although we view the International Finance Corporation as an experiment, we believe it is a very hopeful experiment in getting private investors to join as partners in providing an enlarged flow of venture capital to private enterprises in the member countries.

I am very happy to report that the U.S. Government has completed all the steps necessary to authorize its acceptance of the Articles of Agreement and membership in the International Finance Corporation. It is our hope that other member countries of the Bank will take action as soon as possible so that the Corporation can begin its useful work within the next few months.

Significant progress has also been made during these last ten years—and during this last year—toward the objectives of the International Monetary Fund. The period since World War II has not been an easy one. We have had our ups and downs. But anyone looking objectively at present conditions must be impressed with what has been achieved in these ten years. Business activity is at record levels throughout most of the world. World trade is at a high and healthier volume. Prices are more stable. The gold and dollar assets of other countries are substantially higher. Currencies of the world have become stronger. With the quiet and effective work of the Fund in its annual consultations with members, there has been a sharp reduction in governmentally imposed barriers to financial and trade transactions. Genuine progress has thus been made during these ten years toward the Fund’s objectives of strengthening economies, removing restrictions, and promoting a more realistic and freer system of healthy exchange and trade.

The past year has been marked by further progress. We all have our problems and it is natural we should all proceed with prudence and with due regard for our individual domestic interests. But progress has been made and the momentum carries forward. In the United States, we have enacted a three-year extension of the Reciprocal Trade Agreements program, permitting a gradual and realistic approach to increasing mutually beneficial trade. Further steps to reduce unnecessary restrictions have been taken in our customs practices. Most important of all, we have strengthened and increased the high level of economic activity in the United States and thus provided an increased and high level of demand for the world’s goods.

Thus, the value of our total imports of goods in 1954 was more than 60 per cent above the 1947–49 level, and in 1955 our imports are still higher. The proportion of our total imports represented by finished manufactures has been rising in each year since 1950. Moreover, the over-all supply of dollars to foreign countries from our imports of goods and services, capital exports and remittances, and U.S. Government transactions amounted to nearly $20 billion in 1954. This supply of dollars has for six years exceeded the spending of dollars by foreign countries, permitting them to build up their gold and dollar assets by very large amounts. During the last year, for example, the increase in these assets from transactions with the United States was $1.7 billion. In short, the United States has been paying out large net amounts of dollars in addition to the aid which we have supplied in the form of goods. With continuing U.S. Government expenditures abroad and high and growing levels of activity in our economy providing a rising demand for foreign goods, the over-all prospect is that the dollars available to foreign countries should provide a basis for a continued growth in mutually beneficial international trade. It is the policy of the U.S. Government to further the healthy development of trade in every reasonable way.

We look forward to the further steps which the other nations of the free world take toward currency convertibility and the freer system of payments and trade which are the aims of the Fund. During the past year, many restrictions have been removed and discrimination has been reduced. The further steps may be gradual, as they have been to date. But we are confident of the determination of the leadership in all our countries to continue to strengthen their economies and to make further progress in removing governmental controls and restrictions as rapidly as their own conditions permit.

Again let me say how pleased we are to be here as guests of this dynamic country. Our deliberations in the coming Meetings and the opportunity to extend acquaintance and renew old friendships will be most beneficial in creating better understanding of each other’s problems for the benefit of all. We are looking forward to the next few days together with enthusiasm.

Address by the Governor for France1Pierre Pflimlin2

I wish to express my satisfaction at taking part in the work of the Tenth Annual Meeting of the Fund and the Bank and thus renewing acquaintance with many friends, among whom you will permit me to mention Mr. Black and Mr. Rooth.

Let me, first of all, express my pleasure at meeting them again this year in Istanbul, in this land steeped in history. Turkey is making a particularly intensive effort at economic recovery; the energy which she is devoting to it, her avowed determination to rapidly become a nation endowed with a modern economy, deserve our admiration. Her example will, I am sure, be a fertile source of inspiration for our labors. The French Delegation, as you know, takes great interest in this work. The role of the Fund and of the Bank in the world economy, the bond which they establish among more than 50 countries, the evolution to which they are contributing toward a peaceful world in which wealth would be allied with freedom, merit our unstinted admiration.

But here, better perhaps than elsewhere, we must realize that this world is complex. We are on the European shore of the Bosphorus, but on the borders of Asia. This meeting point between two continents invites us to recognize the diversity of the situations we must encounter and, at the same time, the diversity of solutions which they demand.

From the European point of view, Turkey symbolizes the Continent’s solidarity; a member of the Organization for European Economic Co-operation and of the Council of Europe, she loyally practices European cooperation.

We ourselves set great store by this European cooperation to which we attribute great value and which, moreover, we consider very well founded. Far from being incompatible with the commitments which we must assume on the international level, we believe that it is their necessary complement. If we wish the member countries of the Fund to enjoy a vigorous economy which will protect them from the hazards of the over-all economic situation and from the monetary difficulties which may arise from it, it seems that we ought to encourage this form of mutual assistance that institutions of a regional nature, like the European Payments Union, have been and continue to be.

If we turn now toward Asia, we must think of a very different problem—that of economic underdevelopment. It is not peculiar to that Continent, by the way, and because of its vastness considerable funds must be devoted to it to deal with it effectively.

It seems to us that construction of the peace will be possible only if action in favor of economic development permits the lessening of differences of situation and mitigation of inequalities which are a deep-seated cause of disequilibrium in the world. We must realize that the easing of the tension, which we are seeking to attain, cannot be achieved by psychological measures alone but entails a substantial effort in favor of the underdeveloped countries.

We must recognize the importance of the Bank’s contribution in this field and we must congratulate ourselves on the creation of the International Finance Corporation which will further its efforts in the near future. We shall, I am sure, have other opportunities to return to this problem in the discussion of the Bank’s activities.

However, right now I wish to pay homage to this enterprise, as a representative of a country which, aware of its responsibilities toward underdeveloped countries, has by itself made a great effort, the weight of which it has borne, in the field of development of resources, technical development, and social progress.

These are a few of the reasons why the French Delegation approaches the work of the present Session with keen interest.

Address by the Governor for Brazil1Eugenio Gudin

I wish to join in the expressions of gratitude for the cordiality and kindness of the reception we have received and are enjoying in this great country.

Approaching the tenth anniversary of the foundation of our two institutions, I think we have no reason to regret having embarked upon these two entirely new international ventures. During these years, experience has been teaching us in various ways how we should gradually adopt the original structures to the actual needs of international economics. I would venture to say that the main teaching of experience on this has been: first, that contrary to the forecasts largely prevailing at Bretton Woods there was no important depression in the economic leading country of the world—the United States—and that even the mild recession that took place in the United States had no important repercussion upon the rest of the world; second, that it is not as easy to get rid, in the short transition period, of exchange restrictions as we thought, and not as easy to re-establish convertibility as was foreseen; third, that monetary and fiscal policies remain one of the principal weapons to re-establish balance of payments equilibrium; fourth, that international flow of goods has developed more than international flow of capital and that, therefore, some international device ought to be found to foster the latter flow; and fifth, that economic development ought to be viewed from the broader standpoint of statesmanship, as well as of banking.

We think that we can face the future with confidence in our ability continually to improve the efficiency and power of our institutions, and in the achievement of the objects which dictated their organization.

Address by the Temporary Alternate Governor for Korea1Yu Talk Kim

It is indeed a great privilege for me to be here representing the Republic of Korea in these highly important Meetings. I extend my deep appreciation to the Chairman for his kind words of welcome, and I should like to inform all of you that my Government is most gratified to have been admitted as a member to both the Bank and the Fund. On behalf of my Government, I wish to express our sincere gratitude to the staffs of the Fund and of the Bank and to those countries which have been responsible in some way or other for enabling us to participate in the two organizations. I would also like to thank our host country for the excellent facilities and warm hospitality extended to my Delegation. I avail myself of this opportunity to convey to the people of Turkey the profound friendship and respect with which the Korean people regard them. We will never forget the courage and distinguished performance of the Turkish soldiers in the Korean war in helping us to repel the communist aggressors.

It is often said that Korea is a testing ground for the struggle between democracy and communism. Apart from the physical warfare provoked by communist aggression, warfare still continues in terms of economic reconstruction and rehabilitation. The people of the Republic of Korea, with an unflinching and invincible spirit, are determined to survive this economic struggle as they did the physical struggle.

I trust I am not too optimistic in saying that the present fiscal year commencing in July last will mark a new phase in our economic rehabilitation program. Vigorous efforts are being made to attain economic stability. With economic stability foreseeable in the near future, my Government has recently decided to employ a system of a single foreign exchange rate, consistent with the course desired by the Fund. We are not ignorant of the fact that to maintain a fixed single exchange rate for any considerable length of period in an under-developed country such as Korea is difficult, and we would welcome expert advice from the Fund in this connection.

It is my belief that in underdeveloped countries financial stability must not be an end in itself. Stability must be achieved and supported through the full use of all available economic resources. There are in Korea rich deposits in minerals and abundant marine resources around the peninsula. Above all, there are labor forces waiting to be mobilized. But Korea lacks capital to develop these resources and to employ profitably the available manpower.

At present, reconstruction is largely financed by the funds of the International Cooperation Administration of the United States and by the United Nations Korean Reconstruction Agency. However, we do not wish to rely on the largesse of the United States and the United Nations indefinitely. We realize the burden we are inflicting on the U.S. taxpayer. Thus we are not only willing but firmly determined to make our economy viable in the shortest possible time, whatever austerity may be involved. We especially wish to encourage private foreign capital investment in Korea. Right now my country is formulating the necessary measures to provide full and adequate safeguards for foreign business enterprises so that an atmosphere conducive to large foreign investment can be created.

We are also looking to the Fund and the Bank for guidance and possible future technical and other assistance. Just as the United Nations came to our rescue when the Korean people were about to fall into the greedy communist trap, now the Fund and the Bank may be able to come to our rescue in overcoming the obstacles that lie in the path of our full economic rehabilitation and development.

I feel certain the discussion to take place here during the next few days will prove both stimulating and enlightening to us and will prove valuable in the furtherance of the lofty ideals of international cooperation in economic fields.

Address by the Governor for the Philippines1Miguel Cuaderno, Sr.

I would like to join my distinguished colleagues in expressing my sincere and deep appreciation to the Government and the people of Turkey for the splendid reception accorded us on the occasion of this Meeting. Considering that we are in a land where East and West meet, I recall Rudyard Kipling’s line that “East is East, and West is West, and never the twain shall meet,” and I realize that the fair city in which we are holding our deliberations gives the lie to that distinction.

It reminds me, however, of another distinction, namely, that between developed and underdeveloped countries, and I wonder if this distinction cannot be wiped out by eliminating differences in economic conditions between the countries referred to by those respective terms in the same way that the distinction between East and West disappears in Istanbul. It is this that has impelled me to avail myself of the privilege of making a statement at this Closing Session of the Tenth Annual Meeting of the Bank and the Fund.

The past ten years have indeed been significant years in the life of the Bank and the Fund. I fully agree with the remark made by the distinguished Governor for the United States on the opening day of this year’s Meeting that the two institutions have come to occupy a significantly increasing role in the world. But it is equally significant that, in this Tenth Annual Meeting, almost everyone who has spoken before me has had something to say about the problems of the under-developed countries which continue to press for a solution. I am persuaded to believe that the ten-year experience of the Bank and the Fund indicates one important thing, namely, the sad fact that in spite of the attention now being given by the Bank to the needs of the underdeveloped countries, in spite of the sympathetic and determined efforts of the Fund to help such countries establish and maintain monetary stability, the call for attention of the Governors representing such countries in these latter years to the pressing problems of their countries represents the main theme of their statements at these Annual Meetings. At this Meeting, hardly a statement was made, from Chairman Saad down to the last speaker, without mention of the underdeveloped countries.

The past Annual Reports, as well as those presented this year, mention continuing improvements in the economic position of many countries, with one significant exception, namely, the underdeveloped countries. In this past year, according to the Fund’s Annual Report, the balances of payments of the primary producing countries deteriorated significantly.

Three years ago, the Report of the Fund pinpointed certain policies of some countries which, despite their great competitive power, continued to create difficulties and to embarrass the less developed countries. The Fund’s Report this year again mentions these policies, which shows how far we still have to travel along the road to freer trade. And the distinguished Governor for Australia, at this Meeting, gave us an eloquent and penetrating analysis of the situation faced by the primary producing countries, again pinpointing protective policies and also subsidy or price-support programs in the more advanced countries as sources of trouble for the underdeveloped countries.

No one can deny, I submit, that excessive protection and widespread price-support programs, instead of promoting high levels of commodity trade, are tantamount to exporting unemployment to other countries. They pose an especially serious problem to those primary producing countries burdened with lopsided economies and high rates of population growth.

Time and again, we of the underdeveloped countries are told of the vital importance of sound monetary and fiscal policies in maintaining economic stability, which is a precondition to economic progress. I do not believe that any of my colleagues in this Meeting does not realize this to be a fact. And yet, as I have said before in previous Meetings of the Bank and the Fund, the maintenance of economic stability and the resort to classical methods of balancing external payments in the underdeveloped countries is rendered difficult by the very fact of their condition of underdevelopment, which renders their economies vulnerable not only to internal but also to external factors. Two years ago in Washington, in a symposium conducted by the Fund on The Revival of Monetary Policy,1 I pointed out that despite the merits of monetary measures in arresting inflation, they could not, because of their over-all, across-the-board nature, be applied in underdeveloped economies without selective safeguards. At this year’s Meeting, the distinguished Governor for Thailand made an analogous observation with reference to an even broader complex of policy measures.

Until the underdeveloped countries achieve a more desirable pattern of economy, it would be visionary to expect them to depend solely on classical methods to solve their economic difficulties and to lift selective controls and restrictions. Insufficient attention has been paid to the qualitative differences between the economies of the underdeveloped countries and those of the more economically advanced nations of the world. These differences are perhaps epitomized by the case of monetary policy, which I have already mentioned. With only limited credit systems to service their financial needs and in the absence of a developed securities market, it would be imprudent to rely solely on such measures as manipulating the bank rate or engaging in open market operations to counter undesirable economic trends.

There are even more fundamental considerations involved. Many underdeveloped countries are what some economists have called dual societies or dual economies. There is a simultaneous coexistence (in the original meaning of this word) of a subsistence sector and a capitalistic or market sector. The former is often of great but statistically indeterminable importance. The qualitative problem is to expand the developed or market sector vis-á-vis the subsistence sector; the quantitative problem is to expand it at a rapid enough rate so that population growth does not outpace the rise in production, and so that the legitimate aspirations of the people for higher levels of living may be fulfilled. The quantitative problem has come in for extensive discussion, but I fear that not enough emphasis has been placed on the qualitative problem and on its implications with respect to economic policy. In an economy with features such as those I have just mentioned, there may not only be a lack of vertical integration in the structure of national production, but there may also be a lack of horizontal integration as between the various geographic regions of a country. Water seeks its own level, and in a fully developed economy there will, so to speak, probably be only one water level; but, to push the metaphor a little further, in an underdeveloped economy there will be many different water levels.

This being the case, the application of classical measures will probably affect first of all the developed sector, but, due to the lack of economic integration which I have mentioned, before its effectivity is felt in other sectors of the economy, it may show itself in the country’s balance of payments because of the developed sector’s connections with trading centers in the outside world. Until there is an expansion of the internal market sector in the underdeveloped countries and a greater integration of their respective national economies, they cannot abandon resort to selective and quantitative controls. When we go on to consider their problems of unemployment and underemployment which are aggravated by an increasing gap between production and population increase, the problems faced by the underdeveloped countries assume staggering proportions.

I am sure that the officials of the Bank and the Fund are now fully cognizant of these facts. As President Black stated the other day, the peoples of the underdeveloped countries will continue to press more strongly for better ways of life. It is the significance of this pressure to the economic and political stability of the underdeveloped countries that I should like to call to your attention at this particular Meeting.

Such political and social pressure is causing deep concern to the governments of the underdeveloped areas, to the extent of forcing them to resort to the adoption of measures which, although designed to speed up the pace of economic development, in reality deter development. The monetary authorities of those countries realize this, but they are under mounting pressure from all sides to accede to economic gadgeteering. Unless they can point to suitable and attractive alternatives, they may not be able to hold out against these pressures. In view of this, the problem which cries out for solution now is not only convertibility but also the acceleration of economic development. The Fund and the Bank should exert every effort to see that this is achieved as soon as possible.

The International Bank does not seem to be in a position to meet the special requirements of the underdeveloped countries, and its sponsorship of the establishment of the International Finance Corporation seems to confirm that fact. It should be clear to many of us that, considering the nature of the assistance which this new organization is intended to give to the underdeveloped countries, the effectiveness of such help would not be immediately felt. While I favor the establishment of the International Finance Corporation, I would have preferred, as I am sure many of my colleagues from the underdeveloped countries would have, the establishment of such an institution as the late lamented proposal for a Special United Nations Fund for Economic Development (SUNFED). Such an institution, as it was designed by the special committee of the United Nations, could, I am sure, be of more positive help in speeding the pace of economic development of the underdeveloped countries of the world.

I would like to offer, if I may, another suggestion. It is in connection with the review of the members’ quotas which the Executive Board is scheduled to make next year. I hope the Executive Board will take into consideration the fact that the quotas originally fixed for some of the member countries, such as my country, were too small, even on the basis adopted at the time of the establishment of the Fund. Moreover, I would earnestly suggest that, if any increase of the quota of any member is to be approved, the country concerned be not required to increase its quota with the Bank. The financial resources of the underdeveloped countries are too limited for them to shoulder this additional burden.

The hour grows late. An understandable impatience is stirring the underdeveloped countries. With the experience gained in the last decade, we of the underdeveloped countries hope that in the years to come the Bank and the Fund will be more effective in bringing about the elimination of invidious distinction between developed and underdeveloped countries.

Address by the Governor for Turkey1Hasan Polatkan

I should like to express once again our happiness for having the Tenth Annual Meeting of the Bank and the Fund in our beautiful and historic city of Istanbul. It is indeed a pleasant duty for me to convey our thanks and gratitude to the honorable Chairmen and the Governors for the sincere interest they have shown and the complimentary and kind words they have spoken about my country. We are deply honored by the resolution2 unanimously adopted by the Boards of Governors upon the kind proposal of the Governor for the Netherlands.

This country of ours, located at a very important strategic point of the world, with an old civilization and a past extending back many centuries, is now in the midst of a large economic development. Turkey, a country endowed with enormous economic resources, offers foreign investment every opportunity toward the development of her production and industry with guarantees provided under the law for the encouragement of foreign investment.

It is a cause of further pleasure to us that the distinguished guests who have honored our country on this occasion have had the opportunity of observing closely our vigorous efforts toward economic development.

We will always remember with great pleasure this Tenth Annual Meeting and the days we have had together. We hope that our distinguished guests will carry with them happy memories of our country.

With the hope that we will see you and entertain you again on many other happy occasions in our country, I respectfully greet you all on behalf of our Nation, Government, and the Turkish Delegation to the Tenth Annual Meeting.

Appendix III. Discussion of the Tenth Annual Report of the International Bank for Reconstruction and Development

The following excerpt from a statement which was presented in Session No. 3 of the Board of Governors of the Bank on September 13, 1955, by Ludwig Erhard, Governor for the Federal Republic of Germany, is reproduced as bearing on certain aspects of Fund policy.

… This Meeting will, at least as a side line, touch upon problems of convertibility. While I do not believe that we will in our present situation arrive at decisions regarding the time and the procedures for the establishment of that order, I do feel that some consideration of the problems of convertibility, quite apart from the question of the right time for this great switch, is, even at this stage, of importance for the clarification of the principles according to which we are to cooperate. It is the highly developed industrial countries which are at present faced with the task of keeping the boom from overheating, in order to avoid dangerous developments which may have undesirable effects upon their balance of payments. There seems to be quite a body of public opinion to the effect that the present phase of business activity is not suitable for a transition to convertibility. In reply, I would at least ask whether it is not rather in this very phase of a boom that a transition to convertibility would check certain political forces which still think in terms of an isolated national development of business activity or think such an isolation can be kept up. In contrast, a system of convertible currencies on a wide basis would very much sooner and much more quickly show the limits of purely national policies for the maintenance of business activity.

In this connection, I also wish to speak up against those misgivings expressed in some countries according to which a powerful expansion of business must of necessity be accompanied by a general rise in prices. I realize that this is at present the case in a number of countries, but I think, nevertheless, that it should be possible, with the support of those international organizations which are, as it were, on guard for the sake of an international monetary policy, to establish those conditions which will make it possible, in the interest of all income-earners and savers, to combine a rising and balanced prosperity with the highest possible degree of price stability. Though the experience of the past may have frequently been different, I see no reason to slow down our efforts to pursue a responsible currency, credit, and monetary policy, and an orderly economic and fiscal policy, to lay a sound foundation of stable prices for a further expansion. As instability also implies political unrest, it will only be on this basis that governmental policy will succeed in continuing economic development in a steady and harmonious way. It is, therefore, dangerous theorizing to assume that only a continuous, though slight, softening up of the currency will give rise to those impulses which make for economic expansion. An institution like the International Bank, which takes up and lends capital, must be most eager, for compelling economic and social reasons, to have an international system of stable currencies maintained. In the last ten years, real life has overcome many false ideologies and dogmas, both in theory and in practice; so it seems to me that it is time to get rid of this last dangerous illusion, too.

The fate of so many countries has made it clear that a sound economic order, an increase in well-being, and social progress will prosper only on the basis of self-control within national frontiers; at the same time, just as many examples have shown that an inflationary policy is the worst prescription for the health of economic, political, and social life. For this reason, the International Bank and the International Monetary Fund should always link their economic aid to underdeveloped countries with the achievement of these aims. The Bank and the Fund rely on the application of common principles to which we have all agreed to adhere. These principles should also govern these commitments under which we stand and under which we must and will lend each other a helping hand. Any living together requires confidence and the sureness that all governments are ready and willing to do their bit in order to keep this confidence, the basis of all credit, from being disappointed.

Appendix IV

Members of Delegations

  • Afghanistan

    • Governor

      • Abdul Malik

    • Alternate Governor

      • Mohammad Sarwar

    • Advisers

      • Mohammad Nasim

      • Abdul H. Tabibi

  • Australia

    • Governor

      • Sir Arthur Fadden

    • Alternate Governor

      • L. H. E. Bury

    • Advisers

      • B. B. Callaghan

      • Roy Daniel

      • Donald Hunter

      • H. R. Woodrow

  • Austria

    • Governor

      • Eugen Margaretha

    • Alternate Governor

      • Franz Stoeger-Marenpach

    • Advisers

      • Hans Kloss

      • Eduard Schmidt

  • Belgium

    • Governor

      • Maurice Frere

    • Alternate Governor

      • Joseph Vanheurck

    • Advisers

      • Thomas Basyn

      • Cecil de Strycker

      • Maurice Toussaint

      • Andre van Campenhout

  • Bolivia

    • Governor

      • Franklin Antezana Paz

    • Alternate Governor

      • Guillermo A. Mac Lean

  • Brazil

    • Governor

      • Eugenio Gudin

    • Alternate Governor

      • Octavio Paranagua

    • Temporary Alternate Governor

      • Casimiro Antonio Ribeiro

    • Adviser

      • J. C. Gouvea, Fo.

  • Burma

    • Governor

      • U Kyaw Nyein

    • Temporary Alternate Governor

      • U Tin Maung

  • Canada

    • Alternate Governor

      • Louis Rasminsky

    • Advisers

      • Ross Campbell

      • D. J. R. Humphreys

      • J. H. Warren

  • Ceylon

    • Governor

      • M. D. H. Jayawardene

    • Alternate Governor

      • Sir Arthur Ranasinha

    • Advisers

      • Peter P. Abeysekera

      • Gamani Corea

      • Ponna Wignaraja

  • Chile

    • Alternate Governor

      • Felipe Herrera

  • China

    • Governor

      • Tse-Kai Chang

    • Alternate Governor

      • Pao-hsu Ho

    • Advisers

      • Ching-Yao Hsieh

      • K. H. King

      • Kan Lee

      • C. P. Liu

      • Beue Tann

  • Colombia

    • Governor

      • Carlos Villaveces

    • Alternate Governor

      • Gabriel Betancur

    • Adviser

      • Jorge Mejia-Palacio

  • Costa Rica

    • Alternate Governor

      • Mario Fernandez

    • Temporary Alternate Governor

      • Jose Antonio Castro

  • Cuba

    • Alternate Governor

      • Bernardo Figueredo Antunez

    • Adviser

      • Luis Machado

  • Denmark

    • Governor

      • Svend Nielsen

    • Alternate Governor

      • Einar Dige

    • Temporary Alternate Governor

      • S. Hartogsohn

    • Adviser

      • Torben Friis

  • Dominican Republic

    • Governor

      • J. J. Gomez

  • Ecuador

    • Governor

      • Guillermo Perez-Chiriboga

    • Temporary Alternate Governor

      • Jose C. Cardenas

  • Egypt

    • Governor

      • Abdel Moneim El Kaissouni

    • Alternate Governor

      • Ahmed Nabih Younis

    • Advisers

      • Hamed A. El-Sayeh

      • Hussein Fahmy

      • Albert Mansour

  • El Salvador

    • Governor

      • J. Mauricio Duke

    • Alternate Governor

      • Manuel Melendez-Valle

    • Adviser

      • Jorge Sol

  • Ethiopia

    • Alternate Governor

      • Stanislaw Kirkor

  • Finland

    • Governor

      • R. v. Fieandt

    • Alternate Governor

      • Reino Rossi

  • France

    • Governor

      • Pierre Mendes-France

    • Alternate Governor

      • Wilfrid Baumgartner

    • Advisers

      • Joseph Pierre Barre

      • Jean Cottier

      • Daniel Dommel

      • Jean Gibert

      • Roger Hoppenot

      • Julien Pierre Koszul

      • Jean de Largentaye

      • Rene J. Larre

      • Guy de Lavergne

      • Maurice Perouse

      • Jean Sadrin

      • Hubert Saint-Bris

      • Jean Saltes

      • Pierre-Paul Schweitzer

  • Federal Republic of Germany

    • Governor

      • Wilhelm Vocke

    • Alternate Governor

      • Hans Karl von Mangoldt-

      • Reiboldt

    • Advisers

      • Otto Dormer

      • Karl-Heinz Drechsler

      • Otmar Emminger

      • Kurt Erbstoesser

      • Graf Hardenberg

      • Heinrich Hartlieb

      • Alfred Mueller-Armack

      • Hans Rannow

      • Dankmar Seibt

      • Fritz Stedtfeld

  • Greece

    • Temporary Alternate Governor

      • Byron Theodoropoulos

  • Guatemala

    • Governor

      • Gustavo Miron

    • Alternate Governor

      • Gabriel Orellana

    • Adviser

      • Mario Asturias

  • Haiti

    • Temporary Alternate Governor

      • Arthur M. Herres

    • Adviser

      • Joseph Chatelain

  • Honduras

    • Governor

      • Pedro Pineda Madrid

    • Alternate Governor

      • Roberto Ramirez

  • Iceland

    • Governor

      • Bjorn Olafsson

    • Alternate Governor

      • Thor Thors

    • Advisers

      • Svanbjorn Frimannsson

      • Vilhjalmur Thor

  • India

    • Alternate Governor

      • Shri B. Rama Rau

    • Temporary Alternate Governor

      • H. M. Patel

    • Advisers

      • G. R. Kamat

      • P. N. Kaul

      • V. G. Pendharkar

      • P. S. Narayan Prasad

  • Indonesia

    • Governor

      • Sjafruddin Prawiranegara

    • Alternate Governor

      • R. Soegiarto

    • Advisers

      • Bian Tie Khouw

      • Soetikno Slamet

  • Iran

    • Governor

      • Ali Asghar Nasser

    • Temporary Alternate Governor

      • Mohammad Mehdi Samii

    • Adviser

      • Ali Akbar Khosropur

  • Iraq

    • Governor

      • Abdulilah Hafidh

    • Alternate Governor

      • Salih Kubba

  • Israel

    • Governor

      • David Horowitz

    • Advisers

      • U. Bassan

      • M.Galli

  • Italy

    • Governor

      • Ezio Vanoni

    • Alternate Governor

      • Ugo La Malfa

    • Advisers

      • Paolo Baffi

      • Attilio Cattani

      • Alfredo Di Cristina

      • Carlo Gragnani

      • Luigi A. Jaschi

      • Felice Pick

  • Japan

    • Governor

      • Hisato Ichimada

    • Temporary Alternate Governors

      • Gengo Suzuki

      • Takeo Takanashi

      • Takeshi Watanabe

    • Advisers

      • Tokusaburo Fujisawa

      • Kazuo Ichihashi

      • Shichiro Murai

      • Naokado Nishihara

      • Hikoichi Shiojiri

      • Kiyoshi Suganuma

      • Takeo Yumoto

  • Jordan

    • Governor

      • Izz Eddin Mufti

    • Alternate Governor

      • Abdul Karim Humud

    • Adviser

      • J. C. Deeks

  • Korea

    • Temporary Alternate Governor

      • Yu Taik Kim

    • Advisers

      • Chi Yong Lee

      • Byong Hyun Shin

  • Lebanon

    • Alternate Governor

      • Farid Solh

    • Advisers

      • Paul Klat

      • Charles Marchal

  • Luxembourg

    • Governor

      • Pierre Werner

    • Alternate Governor

      • Hugues Le Gallais

  • Mexico

    • Governor

      • Antonio Carrillo Flores

    • Alternate Governor

      • Rodrigo Gomez

    • Advisers

      • Adolfo Crespo

      • Adrian Lajous

      • Jose Luna-Guerra

      • Javier Marquez

  • Netherlands

    • Governor

      • M. W. Holtrop

    • Alternate Governor

      • E. van Lennep

    • Advisers

      • D. Crena de Iongh

      • Miss G. A. Koen

      • H. M. H. A. van der Valk

  • Nicaragua

    • Alternate Governor

      • Jorge Alberto Montealegre

  • Norway

    • Governor

      • Erik Brofoss

    • Alternate Governor

      • Christian Brinch

    • Advisers

      • Johan Z. Cappelen

      • Alf Eriksen

      • Gabriel Kielland

      • Bjorn Syvertsen

  • Pakistan

    • Alternate Governor

      • Abdul Qadir

    • Temporary Alternate Governors

      • Mian Aminuddin

      • Mohammad Shoaib

    • Advisers

      • J. G. Kharas

      • M. Mirza

  • Panama

    • Alternate Governor

      • Jose D. Crespo

  • Paraguay

    • Governor

      • Epifanio Mendez

  • Peru

    • Governor

      • Andres F. Dasso

    • Alternate Governor

      • Emilio G. Barreto

    • Advisers

      • Enrique Bellido

      • Luis Dibos

      • Carlos Gibson

  • Philippines

    • Governor

      • Miguel Cuaderno, Sr.

    • Temporary Alternate Governor

      • Augusto Francisco

    • Advisers

      • Francisco Dalupan

      • Benito Legarda

      • Nicanor Tomas

      • Conrado Vicente

  • Sweden

    • Governor

      • Per Asbrink

    • Temporary Alternate Governor

      • Leif Belfrage

    • Adviser

      • S. T. G. Akermalm

  • Syria

    • Governor

      • Rafic Sioufi

    • Alternate Governor

      • Awad Barakat

  • Thailand

    • Governor

      • H. H. Prince Viwat

    • Advisers

      • Pipat Krairiksh

      • Bua Sajisevi

      • Boonma Wongswan

  • Turkey

    • Governor

      • Hasan Polatkan

    • Alternate Governor

      • Burhan Ulutan

    • Advisers

      • Taha Carim

      • Fikri Diker

      • Nail Gidel

      • Kemal Kurdas

      • Munir Mostar

      • Fadil Hakki Sur

      • Orhan Utkan

  • Union of South Africa

    • Governor

      • Eric H. Louw

    • Alternate Governor

      • D. H. Steyn

    • Adviser

      • H. W. J. Jacobs

  • United Kingdom

    • Governor

      • R. A. Butler

    • Alternate Governor

      • Sir George Bolton

    • Temporary Alternate Governor

      • Sir Edward Boyle

    • Advisers

      • D. A. V. Allen

      • R. H. Belcher

      • T. H. Caulcott

      • Sir Edgar Cohen

      • C. W. Fogarty

      • A. W. France

      • Viscount Harcourt

      • C. E. Loombe

      • L. Petch

      • A. M. Stamp

  • United States

    • Governor

      • George M. Humphrey

    • Alternate Governor

      • Samuel C. Waugh

    • Temporary Alternate Governors

      • W. Randolph Burgess

      • Andrew N. Overby

      • Frank A. Southard, Jr.

    • Advisers

      • Elting Arnold

      • Henry J. Bitterman

      • Homer E. Capehart

      • Jack C. Corbett

      • Joseph M. Dodge

      • Glen E. Edgerton

      • J. Allen Frear, Jr.

      • Gabriel Hauge

      • John H. Hollister

      • John S. Hooker

      • Nils A. Lennartson

      • William McChesney Martin, Jr.

      • Avra M. Warren

      • George H. Willis

  • Uruguay

    • Temporary Alternate Governor

      • Nilo Berchesi

  • Venezuela

    • Governor

      • J. J. Gonzalez Gorrondona

    • Advisers

      • Hernan Avendano

      • Felix Miralles

      • Ernesto Peltzer

  • Yugoslavia

    • Governor

      • Nenad D. Popovic

    • Alternate Governor

      • Janko Smolej

    • Adviser

      • Sveta Petrovic


  • Bank for International Settlements

    • Roger Auboin

  • Contracting Parties to the General Agreement on Tariffs and Trade

    • Jean Royer

  • Food and Agriculture Organization

    • Paul Kohn

    • V. Marrama

  • International Labour Organisation

    • Campbell Ballantyne

  • Organization for European Economic Co-operation

    • R. T. Guerra

    • H. J. B. Lintott

    • Rene Sergent

    • E. P. Waters

  • Technical Assistance Board

    • Charles Weitz

  • United Nations

    • Henry Bloch

    • Simon S. Korle

Board of Executive Directors

Executive DirectorsAlternate Executive Directors
Frank A. Southard, Jr.John S. Hooker
Viscount HarcourtP. J. Keogh
Beue TannChing-Yao Hsieh
Jean de LargentayeDaniel Dommel
P. S. Narayan PrasadV. G. Pendharkar
Octavio ParanaguaJ. C. Gouvea, Fo.
Ahmed Zaki SaadAlbert Mansour
Jose Luna-GuerraJorge Sol
Andre van CampenhoutMaurice Toussaint
D. Crena de IonghH. M. H. A. van der Valk
Carlo GragnaniCosta P. Caranicas
Takeo YumotoBoonma Wongswan
S. T. G. AkermalmTorben Friis
Otmar EmmingerOtto Dormer
L. H. E. BuryB. B. Callaghan
Louis RasminskyJ. H. Warren

Resolution No. 10–2.

Session No. 1, September 12, 1955.

Session No. 5, September 16, 1955.

Delivered in French, Session No. 1, September 12, 1955.

Mr. Pflimlin is Governor of the International Bank for Reconstruction and Development for France.

Session No. 1, September 12, 1955.

Session No. 1, September 12, 1955.

Session No. 5, September 16, 1955.

Eighth Annual Meeting, September 11, 1953.

Delivered by Munir Mostar, Session No. 5, September 16, 1955.

Resolution No. 10–6.

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