Abstract

Letter of Transmittal

Letter of Transmittal

Financial Statements of International Monetary Fund

Memorandum by the Audit Committee

Exhibit A—Balance Sheet as at April 30, 1965.

Exhibit B—Statement of Income and Expenditure for the Year Ended April 30, 1965

Exhibit C—Statement of Reserves for the Year Ended April 30, 1965 ____

Financial Statements of Staff Retirement Fund

Memorandum by the Audit Committee

Exhibit I—Balance Sheet as at April 30, 1965

Appendix VI. Financial Statements of International Monetary Fund and Staff Retirement Fund

Letter of Transmittal

July 2, 1965

My dear Mr. Chairman:

In accordance with Section 20(b) of the By-Laws of the Fund, I have the honor to submit for the consideration of the Board of Governors the audited financial statements of the International Monetary Fund, and the Staff Retirement Fund, for the year ended April 30, 1965, together with two memoranda from the Audit Committee, which include the audit certificates.

In conformity with the By-Laws, the external audit of the Fund has been performed by an Audit Committee consisting of auditors nominated by three member countries. At the Fund’s request, El Salvador, Thailand, and the United Kingdom nominated auditors to serve on this Committee. They respectively nominated Mr. Juan Samuel Quinteros, Superintendent, Superintendency of Banks and Other Financial Institutions, Central Bank of El Salvador; Mr. Panas Simasathien, Chief of Accounting and Fiscal Systems Division, Comptroller General’s Department, Ministry of Finance, Thailand; and Mr. Ronald William Tizard, Deputy Director of Audit, Exchequer and Audit Department, United Kingdom. The Auditors thus nominated were confirmed by the Executive Directors.

It will be noted that, in the period under review, ordinary income amounted to $47,749,062 and expenditure amounted to $22,204,292, resulting in a net income of $25,544,770, which has been transferred provisionally to General Reserve pending Board of Governors’ action. In addition, income of $30,750,435 from the Fund’s investment program has been transferred to the Special Reserve.

The detailed report of the Audit Committee is being submitted separately to the Board of Governors.

Yours sincerely,

/s/

P.-P. Schweitzer

Chairman of the Executive Board

Chairman of the Board of Governors

International Monetary Fund

Memorandum by the Audit Committee

June 22, 1965

To the Managing Director

and the Executive Directors

International Monetary Fund

The report of the Audit Committee, dated June 22, 1965, submitted through you to the Board of Governors, on the audit of the financial records and transactions of the Fund for the fiscal year ended April 30, 1965, includes the following paragraphs relating to the scope of the audit conducted, and the audit certificate given:

Scope of the Audit

The Audit Committee, in the conduct of its audit, took cognizance of the requirements of Section 20(b) of the By-Laws that the audit be comprehensive with respect to the examination of the financial records of the Fund; that it extend, insofar as practicable, to the ascertainment that financial transactions consummated during the period under review were supported by the necessary authority; and that it determine that there was adequate and faithful accounting for the assets of the Fund. In determining the authority for financial transactions, reference was made to the Articles of Agreement, the By-Laws and Rules and Regulations of the Fund, the minutes of the Executive Board and the General Administrative Orders of the Fund. The Committee applied such tests to the accounting and other financial records as it considered necessary to provide a thorough review of the adequacy of the system of accounting and internal control operated by the Fund. In determining its program of test examination, due regard was paid to the work performed by the Internal Auditor, as reported by him to the Committee, and to the standard of his work performance as surveyed by the Committee.

Audit Certificate

We have made an independent examination of the Balance Sheet of the International Monetary Fund as at April 30, 1965, of the Statements of Income and Expenditure and of Reserves for the fiscal year then ended and of the schedules related to such financial statements. We have obtained from the officers and staff of the Fund all such information and representations as we have required in the conduct of our audit.

As the result of our examination, we report that, in our opinion, such Balance Sheet and related Statement of Income and Expenditure, together with the notes appearing thereon, present fairly the financial position of the International Monetary Fund as at April 30, 1965, and the results of its operations for the fiscal year then ended, and have been prepared in conformity with generally accepted accounting principles applied on a basis consistent with that of previous fiscal years.

Audit Committee:

/s/ Juan Samuel Quinteros, Chairman (El Salvador)

/s/ Panas Simasathien (Thailand)

/s/ R. W. Tizard (United Kingdom)

Exhibit A

Balance

as at April

Values expressed in U.S. dollars on the

Notes :

With the exception of the following currencies which, for bookkeeping purposes, are computed at the following provisional rates per U.S. dollar:

Excludes 10,597.227 fine ounces earmarked for members.

Made with the proceeds of the sale of 22,856,900.312 fine ounces of gold. Upon termination of the investment, the same quantity of gold can be reacquired.

The assets and liabilities of the Staff Retirement Fund are not included in this Balance Sheet.

A stand-by charge has, under certain circumstances, to be credited against the service charge for a drawing under the stand-by arrangement; the maximum amount on April 30, 1965 is $868,959. A portion of the stand-by charge is refundable to a member if the arrangement is canceled; the maximum amount on April 30, 1965 is $661,264.

Sheet

30, 1965

basis of established parities (See Note 1)

Capital, Reserves, and Liabilities

article image

/s/ P.-P. Schweitzer

Managing Director

/s/ Y. C. Koo

Treasurer

/s/ C. M. Powell

Comptroller and Assistant Treasurer

Exhibit B

Statement of Income and Expenditure

for the year ended April 30,1965

article image
Notes:

Excludes income from investments amounting to $30,750,435, transferred to Special Reserve (Exhibit C).

After deduction of $64,182 for sales of Fund’s publications.

After deduction of $115,069 for food service sales.

Exhibit C

Statement of Reserves

for the year ended April 30, 1965

article image
Note:Represents income from investments in U.S. Government securities from November 1, 1957.

Staff Retirement Fund Memorandum by the Audit Committee

June 22, 1965

To the Managing Director

and the Executive Directors International Monetary Fund

The report of the Audit Committee, dated June 22, 1965, submitted through you to the Board of Governors, on the audit of the financial records and transactions of the International Monetary Fund for the fiscal year ended April 30, 1965, includes the following paragraphs relating to the scope of the audit conducted, the audit certificate given and the investments held with respect to the Staff Retirement Fund:

Scope of the Audit

The Audit Committee has examined the separate accounts and financial statements relating to the Staff Retirement Fund for the fiscal year ended April 30, 1965. In the course of the examination, the Committee referred to the Articles of the Staff Retirement Plan and to the decisions of the Pension, Administration and Investment Committees created under the Plan. The Audit Committee made what it considered an adequate test check of the various classes of transactions, taking into account the audit coverage made by the Internal Auditor, as reported by him to the Committee. The report of the Internal Auditor, among other audit activities conducted by his staff, showed that a detailed examination had been made of the Participants’ Accounts.

Audit Certificate

As the result of our examination, we report that in our opinion the accompanying Balance Sheet, Statement of Source and Application of Funds, and the related Schedules of Participants’ Account, Accumulation Account, Retirement Reserve Account, and Reserve Against Investments present fairly the financial position of the Staff Retirement Fund as at April 30, 1965 and the results of its operations for the fiscal year then ended, in conformity with generally accepted accounting principles applied on a basis consistent with that of previous fiscal years.

Investments

Two amendments of the General Rules on Investment were made by the Pension Committee during the fiscal year 1965. On March 22, 1965 the Pension Committee adopted the Investment Committee’s recommendation that the ceiling on corporate stocks held in the Staff Retirement Plan portfolio be raised from 35 per cent to 40 per cent of the original investment. And on April 12, 1965 the Pension Committee approved the bonds of the Inter-American Development Bank as securities eligible for investment.

A confirmation was received by the Audit Committee directly from the depository concerning the investments it held, as at April 30, 1965, as custodian for the Staff Retirement Fund of the International Monetary Fund. The Audit Committee confirmed that the holdings of the various classes of investments were within the limiting percentages prescribed by the Pension Committee, as follows:

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Audit Committee:

/s/ Juan Samuel Quinteros, Chairman (El Salvador)

/s/ Panas Simasathien (Thailand)

/s/ R. W. Tizard (United Kingdom)

Staff Retirement Fund

Balance Sheet

as at April 30, 1965

article image

/s/ P.-P. Schweitzer

Managing Director

/s/ Y. C. Koo

Treasurer

/s/ C. M. Powell

Comptroller and Assistant Treasurer

INDEX

Numbers refer to pages. An asterisk (*) denotes a table, a daggar (†) denotes a chart.

Afghanistan—Fund quota, proposed increase in, 129*; transaction with Fund, 108*

African Countries—debt servicing problems, 24*, 25*, 26† personal taxes, 23; see also individual countries

Algeria—Fund quota, proposed increase in, 129*

Argentina—balance of payments and reserves, 67*, 74*, 75, 76*; debt servicing problems, 26†, 29, 75; devaluation of currency, 75; exchange controls, 75; Fund quota, proposed increase in, 129*; gold policy, 102; inflation, 78; monetary policies, 78; public enterprises, 23; transaction with Fund, 112*

Asia, East—debt servicing problems, 24*, 25*, 26†

Australia—balance of payments and reserves, 59, 67*, 73, 74*, 76*, 91; capital movements, 50, 91; currency used in Fund transactions, 35, 113; economic expansion, 91; exports and export markets, 53; Fund Article VIII, acceptance of, 31, 107; Fund quota, proposed increase in, 129*; gold production, 96*, 97, 102; gold subsidy program, 103; monetary policy, 91; prices, 91; unemployment, 91

Austria—balance of payments and reserves, 63*, 67*; currency purchased by Fund with gold, 108*; currency used in Fund transactions, 35, 113*; exports and export markets, 57, 58*; Fund Article VIII, acceptance of, 107*; Fund holding of currency, 112; Fund quota, proposed increases in, 32*, 129*; gold purchases from U.S., 99*

Balances of Payments—4-6, 63-68; industrial countries, 79-90; primary producing countries, 71-78, 91-95

Bank for International Settlements—Fund relations with, 117; gold holdings, 69, 97, 99*; support for sterling, 4

Bankssee Interest Rates; Monetary Policy

Belgium—currency purchased by Fund with gold, 108*; currency used in Fund transactions, 113; fiscal policy, 47; Fund Article VIII, acceptance of, 107*; Fund quota, proposed increase in, 129*; General Arrangements to Borrow, 108*; gold prices, 101*; gold purchases from U.S., 99*; industrial production, 42† interest rates, 45, 46; monetary policy, 46; see also Belgium-Luxembourg

Belgium-Luxembourg—balance of payments and reserves, 62*, 65, 67*; exports and export markets, 57, 58*; prices, 57

Bolivia—balance of payments and reserves, 76*; debt servicing problems, 26† Fund quota, proposed increase in, 129*; gold production, 97; transactions with Fund, 109*, 111, 112*

Brazil—balance of payments and reserves, 67*, 74*, 76*, 91-92; budget deficit, 78; capital movements, 92; debt servicing problems, 23, 26†, 29, 30, 92; Fund quota, proposed increase in, 129*; gold sales to U.S., 99*; inflation, 78, 91, 110; monetary policies, 78, 92; public enterprises, 23, 92; transactions with Fund, 7, 108*, 109*, 110, 112*

Burma—balance of payments and reserves, 76*; Fund quota, proposed increase in, 129*

Burundi—Fund quota, proposed increase in, 129*; initial par value agreed, 107*, 110; stabilization measures, 78, 110; transactions with Fund, 35, 108*, 109*, 110

Cameroon—Fund quota, proposed increase in, 129*

Canada—balance of payments and reserves, 59, 67*, 74*, 76*, 82-83; capital movements, 50, 61, 82-83; currency purchased by Fund with gold, 108*; currency used in Fund transactions, 35, 113*, 114*; exports and export markets, 53, 59, 71; Fund Article VIII, acceptance of, 107*; Fund holding of dollars, 112; Fund quota, proposed increases in, 32*, 129*; General Arrangements to Borrow, 108*; gold production, 96*, 97; gold subsidy program, 102; gross national product, increases in, 42*; industrial production, 43*; interest rates, 45-46, 49; prices, 43-44, 53*; transactions with Fund, 20, 112, 113*; unemployment, 3; wages, 43

Capital Markets—12-13, 50-52; in developing countries, 21

Capital Movements—6, 12-13, 60-63; see also balance of payments of individual countries

Central African Republic—Fund quota, proposed increase in, 129*

Ceylon—balance of payments and reserves, 71, 74*, 76*; Fund quota, increase in, 107, 108*; Fund quota, proposed increase in, 129*; public enterprises, 23; transactions with Fund, 108*, 112*

Chad—Fund quota, proposed increase in, 129*

Chile—balance of payments and reserves, 71, 74*, 76*; debt servicing problems, 26†, 29; Fund quota, proposed increase in, 129*; inflation, 78; monetary policies, 78; transactions with Fund, 108*, 109*, 111, 112*

China, Republic of—balance of payments and reserves, 75, 76*; Fund quota, proposed increase in, 129*

Cocoa—71, 72†, 92-93

Coffee—71, 72†, 74*

Colombia—balance of payments and reserves, 71, 74*, 76*; debt servicing problems, 26†; Fund quota, proposed increase in, 129*; gold production, 96; transactions with Fund, 108*, 109*, 112*

Congo (Brazzaville)—Fund quota, proposed increase in, 129*

Congo, Democratic Republic of—Fund quota, proposed increase in, 129*; Fund technical assistance, 36; gold production, 96

Copper—72†

Costa Rica—balance of payments and reserves, 76*; Fund Article VIII, acceptance of, 31, 107, 110; Fund quota, increase in, 107, 108*; Fund quota, proposed increase in, 129*; transactions with Fund, 108*, 109*, 110, 112*

Cotton—71, 72†

Cyprus—balance of payments and reserves, 76*; Fund quota, proposed increase in, 129*; transaction with Fund, 35, 108*

Dahomey—Fund quota, proposed increase in, 129*

Debt Management—industrial countries, 45-46

Debt Servicing Problems—in primary producing countries, 7, 23-30; renegotiation, 26-30; repayment schedules, 24-25; role of Fund, 29-30

Denmark—balance of payments and reserves, 63*, 67*; capital movements, 51*; currency purchased by Fund with gold, 108*; exports and export markets, 58*; Fund quota, proposed increase in, 129*; interest rates, 45, 46; monetary policy, 46

Developing Countriessee Primary Producing Countries

Dominican Republic—balance of payments and reserves, 76*; economic policies, 110; Fund Article VIII, acceptance of, 107*; Fund quota, proposed increase in, 129*; transactions with Fund, 108*, 109*, 110

Drawingssee Fund Transactions: currency purchases

Ecuador—balance of payments and reserves, 76*; Fund quota, proposed increase in, 129*; tax reform, 23; transactions with Fund, 108*, 109*, 111, 112*

El Salvador—balance of payments and reserves, 76*; Fund Article VIII, acceptance of, 107*; Fund quota, proposed increase in, 129*; transaction with Fund, 109*

Ethiopia—balance of payments and reserves, 76*; Fund quota, proposed increase in, 129*

Euro-Dollar Market—12, 50, 60

Europe—balance of payments and reserves, 12, 67*; capital markets, 50; capital movements, 12, 51*, 61; debt servicing problems in southern Europe, 24*, 25*, 26†; economic expansion, 4; exports and export markets, 56*, 59; prices, 6, 44; unemployment, 11; wages, 44; see also individual countries

European Economic Community—balance of payments and reserves, 4, 59†, 60†, 62*, 63, 64†, 65, 66, 67-68; capital movements, 61; exports and export markets, 54, 55, 56, 57*, 58, 59; industrial production, 41†, 42; prices, 44, 53*; wages, 43†; see also individual member countries

European Free Trade Association—balance of payments and reserves, 59†; prices, 53*; see also individual member countries

European Fund—gold holdings, 69, 97, 99*

Exchange Rates—11, 36, 47

Exchange Reserves—creation of additional, 16, acceptability, 16-17, criteria, 16, distribution, 17-18, institution for, 18, and transfer of real resources, 18, transferability, 16-17, through the Fund, 18-19; reserve center currencies, 9, 10, 13-14; see also Reserves, Gold and Foreign Exchange

Export Pricessee Prices

Exports—performance of manufacturing countries, 53-60; performance of primary producing countries, 71

Exports and Export Markets—54-58

Financial Policies—industrial countries, 45-46

Finland—balance of payments and reserves, 67*, 71, 73, 74*, 76*; capital movements, 51*; Fund quota, proposed increases in, 32*, 129*

Fiscal Systems—improvements, 22-23, budgetary control, 22, public enterprises, 23, tax administration, 23, tax reform, 22-23; in primary producing countries, 21-23

Foreign Exchange Markets—50

Foreign Exchange Reservessee Exchange Reserves; Reserves, Gold and Foreign Exchange

Foreign Tradesee balance of payments of individual countries and World Trade

France—balance of payments and reserves, 62*, 64†, 67*, 85-88; capital market, 51*, 52; capital movements, 85-88; currency purchased by Fund with gold, 108*; currency used in Fund transactions, 35, 113, 114*; currency used in international transactions, 9; economic expansion, 42; economic policies, 3, 42; exchange rate, 47†; exports and export markets, 58*; fiscal situation and policy, 47; Fund Article VIII, acceptance of, 107*; Fund quota, proposed increase in, 129*; General Arrangements to Borrow, 108*; gold and foreign exchange reserves, 88, 100; gold prices, 101*, 102; gold purchases from U.S., 88, 99*; industrial production, 3, 42, 43*; inflation, 42, 85, 86; interest rates, 45†, 49; monetary policy, 46; prices, 3, 42, 57; transactions with Fund, 20; wages, 43†

Fund Administrative Budget and Expenditure—119, 138

Fund Articles of Agreement—9, 10, 12, 15; Article I, 20; Article III, Section 4, 33; Article V, Section 3, 33, 35; Article V, Section 4, waivers under, 111; Article V, Section 7, 35, 111-12, 113, 114; Article V, Section 8, 116; Article VII, Section 2, 34; Article VIII, 12, 31, 107*, 110, 117; Article XIV, 116-17

Fund Audit Committee—members, 119

Fund Balance Sheet—146-47

Fund Charges—116

Fund Consultations with Members—116-17

Fund Cooperation with Other International Organizations—7, 8, 36, 117-18

Fund Departments—Central Banking Service, 8, 36; Exchange and Trade Relations Department, 118; Fiscal Affairs Department, 8, 22, 36; IMF Institute, 37

Fund Executive Board—election of additional Director, 31; membership and voting power, 133-39

Fund Executive Board Decisions—Article VIII and Article XIV, 116-17; compensatory financing of export fluctuations, 7, 32, 33, 107, 108; currencies to be used in transactions, 34, 35; gold subscriptions, 8, 33-34; procedure for drawings in the gold tranche, 10, 35, 119; reporting of monetary reserves data, 113; use of Fund’s resources and repurchases, 10, 33, 112

Fund Financial Statements—119, 140-52

Fund Gold Holdings—investment of, 119, 146

Fund Gold Transactions—5, 34, 35, 48, 69, 99*, 113*

Fund Members—acceptance of obligations of Article VIII, 31, 107*; applications to become, 31; convertibility of currencies, 12; gold tranche positions, 10, 18, 33, 68*; number of, 31; par values, 107; reporting of monetary reserves data, 113-14; repurchase obligations, 35, 113-14

Fund Publications—118-19

Fund Quotas—increases in, 8, 14-15, 31-33, 107-108, 124-32, and alleviations of gold payments, 8, 33-34, and installment facility, 33, and special drawing facility, 33; new members, 31

Fund Resources—compensatory financing facility, 7, 32, 33, 107, 108; conditional liquidity, 10, 14-15, 18; creation of international liquidity, 15, 17, 18-19; debt renegotiations, 29; use of, see Fund Transactions

Fund Staff—118

Fund Technical Assistance to Memberssee Fund Departments Fund Training Program—37

Fund Transactions—amounts outstanding, 115†; as reserve transfers, 17; before establishment of par value, 36; currencies used, 35, 112-13; currency purchases by members, 7, 20, 34-36, 108*, 109, 112*, 113*; currency purchases by Fund, 5, 34-35, 97*, 108*; currency repurchases by members, 111-16; gold tranche drawings, 10, 35; stand-by arrangements, 7, 34-36, 109-11, 115†; stand-by arrangements and debt renegotiation, 29-30; summary, 114-16; see also General Arrangements to Borrow

Gabon—Fund quota, proposed increase in, 129*

General Agreement on Tariffs and Trade—9, 12; Fund cooperation with, 117, 118

General Arrangements to Borrow—borrowings under, 4-5, 8, 34, 35, 48, 108*, 109; charges paid by Fund, 116; constitutes reserves, 10, 17, 19, 68*, 69

Germany, Federal Republic of—balance of payments and reserves, 59, 60†, 62*, 64†, 65, 67*, 68, 85, 86*; capital market, 50, 51*, 52; capital movements, 85, 86*; currency purchased by Fund with gold, 108*; currency used in Fund transactions, 35, 113*, 114*; economic expansion, 3, 4, 42, 85; exchange rate, 47†; exports and export markets, 54, 57, 58*; fiscal policy, 51-52, 85; Fund Article VIII, acceptance of, 107*; Fund holdings of deutsche mark, 112; Fund quota, proposed increases in, 32*, 129*; General Arrangements to Borrow, 108*; gold purchases from U.S., 99*; gross national product, increases in, 42*; industrial production, 42†, 43*; interest rates, 45, 49; monetary policy, 46; prices, 3, 57; productivity, 43; wages, 43

Ghana—balance of payments and reserves, 76*, 92-93; budget, 92-93; capital movements, 93; cocoa pro-, duction, 92-93; Fund quota, increase in, 107, 108*; Fund quota, proposed increase in, 129*; gold and foreign exchange reserves, 93; gold production, 96*, 97; prices, 93; wages, 93

Gold—absorption by private holders, industry, and arts, 8, 98†, 99; coins, prices of, 101*; Fund’s holdings, 97, 99, 146; markets and prices, 99-102; national policies affecting, 96, 100-101, 102-103; pool, 9-10, 99, 100, 101, 102; price as basis for monetary system, 10, 15, 99; production, 69, 96-97, 98†; reserves, 68*, 69, 98†, 99*; Soviet production, reserves, and sales, 69, 981, 99*; subsidy programs, 102-103; transactions service of Fund, 102; used in Fund transactions, 5, 34-35, 99*, 108*, 113*, 114*

Gold Exchange Standard—14, 15

Gold Standard—11

Greece—balance of payments and reserves, 76*; Fund quota, proposed increases in, 32*, 129*; monetary policies, 78

Guatemala—balance of payments and reserves, 76*; Fund Article VIII, acceptance of, 107*; Fund quota, increase in, 107, 108; Fund quota, proposed increase in, 129*

Guinea—Fund quota, proposed increase in, 129*

Haiti—balance of payments and reserves, 76*; Fund Article VIII, acceptance of, 107*; Fund quota, proposed increase in, 129*; transactions with Fund, 108*, 109*, 111

Honduras—balance of payments and reserves, 76*; Fund Article VIII, acceptance of, 107*; Fund quota, proposed increase in, 129*; transactions with Fund, 108*, 109*, 111, 112*

Hong Kong—balance of payments and reserves, 71, 74*; gold prices, 101*, 102

Iceland—balance of payments and reserves, 76*; Fund quota, proposed increase in, 129*

Incomes Policies—11, 44-45; see also individual countries

India—balance of payments and reserves, 74*, 76*, 93-94; capital movements, 94; debt servicing problems, 94; economic policies, 78, 94, 110; Fund quota, proposed increase in, 129*; gold prices, 101-102; gold production, 96, 97; interest rates, 94; prices, 78, 93; ratio of taxes to national income, 22; surcharge on imports, 94, 110; transactions with Fund, 7, 94, 108*, 109*, 112*

Indonesia—balance of payments and reserves, 74*, 76*; debt servicing problems, 29; Fund quota, proposed increase in, 129*; inflation, 78; monetary policies, 78; transaction with Fund, 109*

Industrial Countries—3-4, 41-52; balance of payments and reserves, 4, 62*, 63-69; economic progress, 1950-64, 11; employment, 11; fiscal policies, 46-47; industrial production, 3, 41-44

Industrial Production—3-4; industrial countries, 41-44

Inter-American Development Bank—Fund cooperation with, 117

Interest Rates—41, 45, 46, 47, 48t, 49, 50; see also individual countries

International and Regional Organizations—Fund cooperation with, 117-18

International Bank For Reconstruction and Development—Fund cooperation with, 7, 8, 30, 117

International Capital Movements—4-6, 12-13, 50-52, 81; discouragement of, 5, 13, 46, 49, 52, 81, 85

International Indebtednesssee Debt Servicing Problems

International Liquidity—14-19; conditional liquidity, 10, 14-15, 18-19; criteria for additional, 16; distribution of additions to, 17-18; and the Fund, 18-19; methods of creation, 16; potential insufficiency of, 8, 15; transferability, 16-17; unconditional liquidity, 14-15; see also Exchange Reserves; International Monetary System

International Monetary Fund—see Fund

International Monetary System—8, 9-14; finance for deficits, 10; need for evolution, 15; place of gold, 15; swaps, 10, 14, 16, 46; see also Gold Exchange Standard; Gold Standard; Reserve Center Currencies

International Tradesee World Trade

Iran—balance of payments and reserves, 75, 76*; economic expansion, 75; Fund quota, proposed increases in, 32*, 129*; monetary policies, 78; transaction with Fund, 35, 108*

Iraq—balance of payments and reserves, 75, 76*; Fund quota, increase in, 107, 108; Fund quota, proposed increase in, 129*; loan from Kuwait, 75

Ireland—balance of payments and reserves, 76*; Fund Article VIII, acceptance of, 107*; Fund quota, proposed increases in, 32*, 129*; transaction with Fund, 112*

Israel—balance of payments and reserves, 76*; Fund quota, proposed increases in, 32*, 129*; monetary policies, 78; transactions with Fund, 35, 108*, 112*

Italy—balance of payments and reserves, 3, 4, 42, 46, 60†, 64†, 65, 66, 67*, 68, 88-89; borrowing abroad, 46, 89; capital market, 51*, 52; capital movements, 61, 88*, 89; currency purchased by Fund with gold, 108*; currency used in Fund transactions, 112, 113*; economic expansion, 42; economic policies, 3, 89; exchange rate, 47†; exports and export markets, 42, 54, 58; fiscal policy, 47; Fund Article VIII, acceptance of, 107*; Fund quota, increase in, 108*; Fund quota, proposed increase in, 129*; General Arrangements to Borrow, 108*; gold and foreign exchange reserves, 69; gold prices, 58*; gold sales to U.S., 81, 99*; gross national product, increases in, 42*; industrial production, 3, 42, 43*; inflation, 85, 89; interest rates, 45, 49; monetary policy, 3, 46, 49, 89; prices, 3, 44, 57; transactions with Fund, 46, 112, 113*; wages, 3, 43

Ivory Coast—exports, 71; Fund quota, proposed increase in, 129*

Jamaica—Fund Article VIII, acceptance of, 107*; Fund quota, proposed increase in, 129*; transactions with Fund, 109*, 112*

Japan—balance of payments and reserves, 3, 60†, 64†, 65, 67*, 89-90; capital movements, 50, 60, 61*, 90; currency purchased by Fund with gold, 108*; currency used in Fund transactions, 35, 113; economic expansion, 3; economic policies, 3, 89; exports and export markets, 53, 55, 57, 58; Fund Article VIII, acceptance of, 107*; Fund quota, proposed increases in, 32*, 129*; General Arrangements to Borrow, 108*; gold production, 96; industrial production, 3, 41†, 42; interest rates, 45, 46, 49; monetary policy, 3, 46, 49; prices, 44, 53*, 57; productivity, 43; transactions with Fund, 20, 109*; wages, 43†, 44

Jordan—balance of payments and reserves, 76*; Fund quota, increase in, 107, 108; Fund quota, proposed increase in, 129*; transaction with Fund, 112*

Kenya—Fund quota, proposed increase in, 129*

Korea—balance of payments and reserves, 76*; exchange rate, 36; Fund quota, proposed increase in, 129*; inflation, 78; monetary policies, 78: transaction with Fund, 35, 36, 109*, 110

Kuwait—balance of payments and reserves, 73, 74*; Fund Article VIII, acceptance of, 107*; Fund quota, proposed increase in, 129*; loan to Iraq, 75

Laos—Fund quota, proposed increase in, 129*

Latin America—balance of payments and reserves, 67*, 71†, 75, 76*; debt servicing problems, 24*, 25, 26*; tax reforms, 22; see also individual countries

Lead—72†

Lebanon—Fund quota, proposed increase in, 129*; gold prices, 101*

Liberia—debt servicing problems, 29; Fund quota, proposed increase in, 129*; transaction with Fund, 108*, 109*, 111

Libya—balance of payments and reserves, 76*; Fund quota, proposed increase in, 129*

Liquiditysee International Liquidity

Luxembourg—capital market, 51; Fund Article VIII, acceptance of, 107*; Fund quota, increase in, 107, 108*; Fund quota, proposed increase in, 129*; see also Belgium-Luxembourg

Malagasy Republic—Fund quota, proposed increase in, 129*

Malawi—membership in Fund, application for, 31

Malaya—balance of payments and reserves, 74*; see also Malaysia

Malaysia—balance of payments and reserves, 75, 76*; Fund quota, increase in, 107, 108*; Fund quota, proposed increase in, 129*; transaction with Fund, 112*

Mali—exchange rate, 36; Fund quota, proposed increase in, 129*; monetary policies, 78; transactions with Fund, 35, 36, 108*, 109*, 110

Manufacturing Countries—balance of payments and reserves, 63*, 67*; exports, 53-60; see also Industrial Countries

Mauritania—Fund quota, proposed increase in, 129*; monetary policies, 78

Mexico—balance of payments and reserves, 67*, 74*, 76*, 94*, 95; capital movements, 94-95; currency used in Fund transactions, 35, 113; Fund Article VIII, acceptance of, 107*; Fund quota, proposed increases in, 32*, 129*; gold production, 96*, 97; gross national product, 95; prices, 95; public enterprises, 22-23

Monetary Policy—industrial countries, 45-46, 48-49; problems of, 12; successes of, 12

Monetary Reserves—of Fund members, reporting of and repurchases, 113-14; see also Reserves, Gold and Foreign Exchange

Morocco—balance of payments and reserves, 74*, 76*; Fund quota, proposed increase in, 129*; transaction with Fund, 35, 108*

Nepal—Fund quota, proposed increase in, 129*

Netherlands—balance of payments and reserves, 62*, 65, 67*; capital market, 51*; currency purchased by Fund with gold, 108*; currency used in Fund transactions, 35, 113; exports and export markets, 58; fiscal policy, 47; Fund Article VIII, acceptance of, 107*; Fund quota, proposed increase in, 129*; General Arrangements to Borrow, 108*; gold purchases from U.S., 99*; interest rates, 45, 46, 49†; monetary policy, 46; prices, 44, 57*; wages, 43, 44

Netherlands Antilles—balance of payments and reserves, 76*

New Zealand—balance of payments and reserves, 59, 67*, 74*, 76*; exports and export markets, 59, 71; Fund quota, proposed increase in, 129*

Nicaragua—balance of payments and reserves, 76*; Fund Article VIII, acceptance of, 31, 107; Fund quota, proposed increase in, 129*; gold production, 97; transactions with Fund, 108*, 109*, 112*

Niger—Fund quota, proposed increase in, 129*

Nigeria—balance of payments and reserves, 71, 74*, 76*; Fund quota, proposed increase in, 129*; monetary policies, 78

Norway—balance of payments and reserves, 63*, 67*; capital movements, 51*; exports and export markets, 54, 57, 58*; Fund quota, proposed increases in, 32*, 129*

Oilseeds and Oils—72†

Organization for Economic Cooperation and Development—Fund cooperation with, 117

Pakistan—balance of payments and reserves, 75, 76*, 110; Fund quota, proposed increase in, 129*; monetary policy, 75; transactions with Fund, 35, 75, 108*, 109*, 110

Panama—balance of payments and reserves, 76*; Fund Article VIII, acceptance of, 107*; Fund quota, increase in, 108*; Fund quota, proposed increase in, 129*; transaction with Fund, 35, 108*

Par Valuessee Fund Members and individual countries

Paraguay—balance of payments and reserves, 76*, 110; Fund quota, proposed increase in, 129*; transactions with Fund, 109*, 110, 112*

Peru—balance of payments and reserves, 71, 74*, 76*; debt servicing problems, 26†; Fund Article VIII, acceptance of, 107*; Fund quota, proposed increase in, 129*; ratio of taxes to national income, 22; transactions with Fund, 109*, 111

Petroleum Exporters—balance of payments and reserves, 73, 74*; prices, 53.

Philippines—balance of payments and reserves, 74*, 76*; Fund quota, proposed increases in, 32*, 129*; gold production, 96; gold subsidy program, 102-103; monetary policies, 78; transactions with Fund, 109*, 111, 112*

Portugal—balance of payments and reserves, 67*, 76*; Fund quota, proposed increase in, 129*

Prices—adjustment of, difficult, 13; cost of living, 44†; in Europe, 6; in industrial countries, 6, 41-44; of exports, 44†, 53, 57*, 58; of imports, 44†; of metals and minerals, 7, 70, 71; of primary products, 6, 7, 20, 70-71, 72†, 75, 91, 92-93; wholesale, 44; see also individual countries

Primary Producing Countries—6-8, 11, 20-30, 53, 70-78; balance of payments and reserves, 4, 6, 7, 63*, 64†, 65, 66, 68†, 68*, 71-78; capital movements, 6, 25, 70, 77-78; credit expansion, 77-78; debt burden and debt renegotiation, 23-30; economic developments and policies, 78; exports, 53*, 54*, 58*; fiscal problems, 20-23; inflation, 20, 21, 24; prices of exports, 20, 53*, 70*; study of trade problems by UN, 7; terms of trade, 6-7, 70; wages, 21; see also individual countries

Primary Products—70-71; see also Prices and individual countries

Public Enterprises—pricing problems, 23

Purchases of Currencysee Fund Transactions

Quotas of Fund Memberssee Fund Quotas

Repurchases of Currencysee Fund Members; Fund Transactions

Reserve Center Currencies—8, 9, 10, 13-14

Reserves, Gold and Foreign Exchange—8, 13-14, 68-69; composition, 68*; world’s monetary gold holdings, 66, 69, 97-99; see also Monetary Reserves

Rhodesia—gold production, 96; gold subsidy program, 103

Rhodesia and Nyasaland—balance of payments and reserves, 74*; see also Malawi; Rhodesia; Zambia

Rice—72†

Rubber—72†, 75

Rubber Exporting Countries—74* Rwanda—Fund quota, proposed increase in, 129*

Saudi Arabia—balance of payments and reserves, 71, 74*, 75, 76*; Fund Article VIII, acceptance of, 107*; Fund quota, increase in, 107-108; Fund quota, proposed increase in, 129*

Securities Marketssee Capital Markets

Senegal—Fund quota, proposed increase in, 129*

Sierra Leone—Fund quota, proposed increase in, 129*

Singapore—balance of payments and reserves, 74*; see also Malaysia

Sino-Soviet Area—trade, see World Trade; see also U.S.S.R.

Somalia—balance of payments and reserves, 76*; Fund quota, proposed increase in, 129*; monetary policies, 78; transactions with Fund, 35, 108*, 109*, 111, 112*

South Africa—balance of payments and reserves, 59, 67*, 73, 74*, 76*; exports and export markets, 59; Fund quota, proposed increases in, 32*, 129*; gold exports to U.K., 101; gold production, 96; gold subsidy program, 102

Soviet Area—trade, see World Trade; see also U.S.S.R.

Spain—balance of payments and reserves, 67*, 71, 73, 74*, 75, 76*; capital movements, 73, 75; currency purchased by Fund with gold, 108*; currency used in Fund transactions, 113; Fund quota, proposed increases in, 32*, 129*; gold policy, 102; gold purchases from U.S., 99*; inflation, 75

Stand-By Arrangements—see Fund Transactions

Sterling Area—balance of payments I and reserves, 63*, 76*; see also United Kingdom

Sudan—balance of payments and reserves, 76*; Fund quota, increase in, 107, 108*; Fund quota, proposed increase in, 129*; transaction with Fund, 108*

Sugar—70, 71, 72†, 75

Sweden—balance of payments and reserves, 63*, 67*; currency purchased by Fund with gold, 108*; currency used in Fund transactions, 113; exports and export markets, 57, 58*; Fund Article VIII, acceptance of, 107*; Fund quota, proposed increases in, 32*, 129*; General Arrangements to Borrow, 108*; I interest rates, 45, 46, 49; monetary policy, 46; prices, 57

Switzerland—association with Fund’s General Arrangements to Borrow, 34, 35; balance of payments and reserves, 63*, 67*; capital market, 51*; exchange rates, 47†; exports and export markets, 58*; gold purchases from U.S., 99*; interest rates, 45, 46, 49f; monetary policy, 46-47; prices, 57

Syrian Arab Republic—balance of payments and reserves, 76*; Fund quota, increase in, 108; Fund quota, proposed increase in, 129*; transactions with Fund, 108*, 109*, 112*

Tanzania—Fund quota, proposed increase in, 129*; membership in Fund, 31

Tea—72†

Thailand—balance of payments and reserves, 71, 74*, 76*; Fund quota, increase in, 108; Fund quota, proposed increase in, 129*

Tin—72†

Togo—Fund quota, proposed increase in, 129*

Tradesee balance of payments of individual countries and World i Trade

Trinidad and Tobago—Fund quota, proposed increase in, 129*; initial par value agreed, 107*

Tunisia—balance of payments and reserves, 76*, 111; Fund quota, increase in, 107, 108*; Fund quota, proposed increase in, 129*; initial par value agreed, 107*, 111; monetary policies, 78; stabilization measures, 111; transactions with Fund, 35, 108*, 109*, 111

Turkey—balance of payments and reserves, 76*; debt servicing problems, 29; Fund quota, proposed increase in, 129*; transactions with Fund, 108*, 109*, 111, 112*

Uganda—Fund quota, proposed increase in, 129*

U.S.S.R.—gold production, reserves, and sales, 69, 97, 98†, 101; trade, see World Trade

United Arab Republic—balance of payments and reserves, 73, 74*, 76*; Fund quota, proposed increase in, 129*; monetary policies, 78; transactions with Fund, 108*, 109*, 111, 112*

United Kingdom—aid from foreign monetary authorities, 4, 13, 47-48, 84; balance of payments and reserves, 3, 4-5, 48, 54, 59, 60†, 63, 64†, 65, 66, 67, 68, 69, 83-85; capital market, 51, 52; capital movements, 4, 60, 61, 63, 68, 83-84; claims on, 501, 68*, 69; currency used in Fund transactions, 113*, 114*; currency used in international transactions, 9; debt management, 46; economic controls, 4, 48, 84, 85; economic expansion, 83; exchange controls, 84; exchange rates, 47†; exports and export markets, 4, 54, 55, 57-58, 59, 84; fiscal situation and policy, 4, 47, 48, 52, 84; Fund Article VIII, acceptance of, 107*; Fund holding of sterling, 112; Fund quota, proposed increase in, 129*; General Arrangements to Borrow, 108*; gold and foreign exchange reserves, 4, 50t, 68*, 69, 83*, 84; gold imports and exports, 101; gold market and prices, 99-101; gold sales to U.S., 81, 99*; gross national product, increases in, 42*; incomes policy, 43, 45, 85; industrial production, 3, 41†, 42, 43*, 84; interest rates, 4, 45, 46, 48, 49, 84, 85, 100; monetary policy, 46, 48-49, 85; National Board for Prices and Incomes, 45; National Economic Development Council, 45; National Incomes Commission, 45; prices, 44†, 57; sterling balances, 13; support for sterling, 4, 13, 47, 84-85; transactions with Fund, 4, 8, 20, 34, 35, 48, 84, 108*, 109*, 112, 113*; unemployment, 42; wages, 43, 44

United Kingdom Colonial Territories—balance of payments and reserves, 76*

United Nations—Conference on Trade and Development, 7, 118; Fund cooperation with, 36, 117, 118; Trade and Development Board, 7, 117

United States—balance of payments and reserves, 4, 5-6, 8, 12, 45, 51, 59, 60†, 63, 64t, 66, 67-68, 79-82; capital market, 5, 50, 51, 79; capital movements, 5, 12, 60, 61, 63, 79, 80-81; claims on, 13-14, 50†, 68*, 69; currency used in Fund transactions, 35, 113*, 114*; currency used in international transactions, 9, 10, 13-14; deficits financed, 13, 14; economic expansion, 3, 4, 41, 80; exchange rate, 47†; exports and export markets, 53, 55, 56, 57, 58, 59, 79; fiscal situation and policy, 46-47, 49; Fund Article VIII, acceptance of, 107*; Fund holding of dollars, 112; Fund quota, proposed increase in, 129*; General Arrangements to Borrow, 108*; gold and foreign exchange reserves, 68*, 69, 80*; gold held for account of others, 99; gold policy, 102; gold production, 96*, 97; gold purchases, 81, 99; gold sales, 79, 80*, 99; gross national product, increases in, 42*; industrial production, 41, 42, 43*; Interest Equalization Tax, 5, 13, 49, 51, 79, 81, 82, 85, 90; interest rates, 45-46, 49; monetary policy, 5, 46, 48; money market, 13; pressures on the dollar, 81; prices, 6, 13, 44, 53*, 57, 79; transactions with Fund, 20, 34, 35, 108*, 109*, 112, 113*; unemployment, 3, 41; wages, 43

Upper Volta—Fund quota, proposed increase in, 129*

Uruguay—balance of payments and reserves, 76*; debt servicing problems, 26†; Fund quota, proposed increase in, 129*; inflation, 78; monetary policies, 78

Venezuela—balance of payments and reserves, 67*, 74*, 76*; Fund quota, proposed increases in, 32*, 129*

Viet-Nam—balance of payments and reserves, 76*; Fund quota, proposed increase in, 129*

Wage Costs—industrial countries, 44; see also individual countries

Wages—industrial countries, 4, 41-44; see also individual countries

Wheat—72†, 91

Wool—72†, 91

World Reservessee Reserves, Gold and Foreign Exchange

World Trade—3, 41, 53-68; direction, 53*, 54*

Yugoslavia—balance of payments and reserves, 74*, 76*; Fund quota, proposed increase in, 129*; transaction with Fund, 112*

Zambia—membership in Fund, application for, 31

Zinc—72†