Mr. Gold, the General Counsel and Director of the Legal Department of the Fund, is a graduate of the Universities of London and Harvard. He is the author of numerous books, pamphlets, and essays on the Fund and on international and national monetary law.
The first seven articles, together with another article, were issued in book form as The Fund Agreement in the Courts (Washington, 1962); the next four articles were issued as The Fund Agreement in the Courts: Parts VIII-XI (Washington, 1976). The twelfth article was published in Staff Papers, Vol. 24 (March 1977), pp. 193-231.
Joseph Gold, The Fund’s Concepts of Convertibility, IMF Pamphlet Series, No. 14 (Washington, 1971), pp. 33-37.
Joseph Gold, “The Legal Structure of the Par Value System,” Law and Policy in International Business, Vol. 5 (Number 1, 1973; hereinafter referred to as Gold, “Legal Structure of Par Value System”), pp. 177-84.
Article XV, Section 2(a), original and first. In the footnotes to this article, the word original, first, or second in italics following the reference to a provision of the Articles shows whether the reference is to the original Articles, or to the First Amendment, or to the Second Amendment.
Article XV, Section 2(b), original and first.
Annual Report, 1951 (Washington, 1951), p. 40.
Article IV, Section 5, original and first Article XX, Section 4(a) and (d) (iii), original and first.
See Joseph Gold, “Unauthorized Changes of Par Value and Fluctuating Exchange Rates in the Bretton Woods System,” American Journal of International Law, Vol. 65 (1971), pp. 117-20; Gold. “Legal Structure of Par Value System,” pp. 174-75.
Article IV, Section 8, original and first. See also Joseph Gold, Maintenance of the Gold Value of the Fund’s Assets, IMF Pamphlet Series, No. 6 (Washington, Second Edition, 1971), pp. 20-21.
Article XVI, Section I, original and first. For the partial suspension of one provision, see Decision No. 4078-(73/102)S. November 5, 1973 and Decision No. 4145-(74/6) S, February 1, 1974, Annual Report, 1974 (Washington, 1974), pp. 103, 108-109.
See, for example, Decision No. 3865-(73/12) G/S, February 16, 1973, Annual Report, 1973 (Washington, 1973), p. 98; Decision No. 3537-(72/3) G/S, January 4, 1972 and Decision No. 3637-(72/41) G/S, May 8, 1972, Annual Report, 1972 (Washington, 1972), pp. 87-89. The process culminated in the “basket” valuation of the SDR (Decision No. 4233-(74/67) S, June 13, 1974, as amended by Decision No. 4261-(74/78) S, July 1, 1974 and Decision No. 4234-(74/67) S, June 13, 1974, Annual Report, 1974 (Washington, 1974), pp. 116-18.
Decision No. 3463-(71/126), December 18, 1971 and Decision No. 4083-(73/104), November 7, 1973, Selected Decisions of the International Monetary Fund and Selected Documents (Washington, Eighth Issue, 1976; hereinafter referred to as Selected Decisions), pp. 14-21.
See Joseph Gold, Floating Currencies, Gold, and SDRs: Some Recent Legal Developments, IMF Pamphlet Series, No. 19 (Washington, 1976; hereinafter referred to as Gold, Floating Currencies, Gold, and SDRs, 1976), pp. 15-33. Appendices A and B.
Article IV, Section 4(a), original and first.
 3 All ER 851.
Ibid., p. 854. Article IV, Section 1 of the original Articles read as follows:
(a) The par value of the currency of each member shall be expressed in terms of gold as a common denominator or in terms of the United States dollar of the weight and fineness in effect on July 1, 1944.
(b) All computations relating to currencies of members for the purpose of applying the provisions of this Agreement shall be on the basis of their par values.
It will be apparent that par values were not agreed with the Fund under this provision as stated in Article 13 of the agreement on German external debt. The initial par value of the currency of an original member was established under Article XX, Section 4 of the original Articles as the result of a communication by the member to the Fund, or by agreement with the Fund if the Fund objected to the communicated par value. A subsequent par value was established under Article IV, Section 5. In some instances, the concurrence of the Fund was necessary, but not in others.
The reference to all provisions of the Articles in the discussion of this case are to provisions of the Articles before the Second Amendment.
 3 All ERatp. 856.
The court defined floating as a situation in which neither currency “was maintained in relation to gold within fixed margins on either side of their par values.” (Ibid., p. 855.) The situation should not be defined in relation to margins around the par values of the currencies, but in relation to margins around the parity between the currencies based on par values. Rates of exchange could be maintained within the same margins for the two currencies only in relation to the ratio between par values.
 3 All ER at p. 862.
See Transarctic Shipping Corporation, Inc. Monrovia. Liberia v. Krögerwerft (Kröner Shipyard) Company in Gold, Floating Currencies, Gold, and SDRs, 1976, pp. 17-33 and Joseph Gold, Floating Currencies, SDRs, and Gold: Further Legal Developments, IMF Pamphlet Series, No. 22 (Washington, 1977; hereinafter referred to as Gold, Floating Currencies, SDRs, and Gold, 1977), pp. 33, 56-57; Hornlinie v. Société Nationale des Pétroles Aquitaine in Joseph Gold, The Fund Agreement in the Courts: Parts VIII-XI (Washington, 1976), pp. 110-21; Matter of the Khendrik Kuivas in Gold, Floating Currencies, SDRs, and Gold, 1977, pp. 56-58.
For a discussion of the reform of Article II: 6(a) of the General Agreement on Tariffs and Trade in present circumstances, see Frieder Roessler, Specific Duties, Inflation and Floating Currencies, General Agreement on Tariffs and Trade, Studies in International Trade, No. 4 (Geneva, 1977).
Article II: 6(a) reads as follows:
The specific duties … included in the Schedules … are expressed in the appropriate currency at the par value accepted or provisionally recognized by the Fund at the date of this Agreement. Accordingly, in case this par value is reduced consistently with the Articles of Agreement of the International Monetary Fund by more than twenty per centum, such specific duties … may be adjusted to take account of such reduction….
Case 28/74  E.C.R. 473.
Ibid., p. 474.
Joined Cases 41, 43, and 44/73  E.C.R. 445. See also Rebecca M. M. Wallace, “Currency Fluctuation and the Payment of Fines,” European Law Review, Vol. 2 (August 1977), pp. 301-303.
The European Communities employ a number of units of account, of which the one defined in terms of gold was relevant in the case. The European unit of account (EUA), based on a basket of currencies, was created in 1975. So far, it is being used for the purposes of the European Development Fund, the operational budget of the European Coal and Steel Community, and the balance sheet of the European Investment Bank. The European Commission proposed in 1976, and the Council of Ministers agreed, that the EUA should be used eventually in all activities of the European Communities. (See Gold, Floating Currencies, Gold, and SDRs, 1976, pp. 40-45.)
Coöperatieve vereniging ‘Suiker Unie’ UA and Others v. Commission of the European Communities, Joined Cases 40 to 48, 50, 54 to 56, 111, 113, and 114/73  E.C.R. 2026.
Official Journal of the European Communities, Vol. 5, No. 13, February 21, 1962, p. 204.
Ibid., Vol. 16, No. L 116 (May 1, 1973).
Joined Cases 41, 43, and 44/73  E.C.R. 449.
Ibid., p. 451.
See fn. 27.
Joined Cases 41, 43, and 44/73  E.C.R., p. 463.
Financial Regulation of April 25, 1973:
The amounts shown to the credit of the accounts referred to in Article 28 shall retain the value corresponding to the parity in force on the day of deposit in relation to the unit of account as defined in Article 10.
Should the parity of the currency of a Member State in relation to the unit of account be modified, there shall immediately be an adjustment of the balance of those accounts, by means of a further payment made by the Member State or Member States concerned or a repayment made by the Commission.
Payments provided for in Articles 26 and 34 shall be made in national currencies; they shall be calculated on the basis of the parity declared to the International Monetary Fund in force on the day of payment.
Entries in the accounts of any amount in units of account shall comply with the parity in force on the date of payment or actual payment.
Communique of the Committee of the Board of Governors on International Monetary Reform and Related Issues, March 27, 1973, par. 4(a), IMF Survey, Vol. 2 (April 9 1973), p. 100; IMF Press Release No. 964, March 27, 1973.
Proposed Second Amendment to the Articles of Agreement of the International Monetary Fund: A Report by the Executive Directors to the Board of Governors (Washington, March 1976), Part II, Chapter C, Section 6.
Decision No. 3463-(71/126), December 18, 1971 and Decision No. 4083-(73/104), November 7, 1973, Selected Decisions, pp. 14-21.
Summary Proceedings of the Twenty-Sixth Annual Meeting of the Board of Gov ernors, September 27-October 1, 1971 (Washington. 1972), pp. 331-32.
31 U.S.C. 449.
Bretton Woods Agreements Act, Amendments. Public Law 94-564, October 19, 1976, Section 8.
“The legal standards for the dollar of $42.22 per fine troy ounce of gold would be retained solely with respect to gold certificates held by the Federal Reserve System—the only domestic purpose for which a value of the dollar in terms of gold is needed. Approximately $ 1 li billion of these certificates are now outstanding, and are being retired by the Treasury as its gold holdings are sold.” (U.S. Congress, House, Committee on Banking, Currency and Housing, Subcommittee on International Trade, Investment and Monetary Policy, To Provide for Amendment of the Bretton Woods Agreements Act, Hearings on H.R. 13955, 94th Congress, Second Session, June 1 and 3. 1976 (Washington, 1976), p. 12).
Article IV, Section 2(b), second.
Ibid. See also William H. L. Day, “A Reform of the European Currency Snake,” Staff Papers, Vol. 23 (November 1976), pp. 582-84.
Article IV, Section 4, second.
Schedule C, par. 1, second.
Schedule C, par. 3 second.
Schedule C, par. 6, second.
Schedule C, par. 7, second.
Schedule C, par. 8, second.
See Joseph Gold, Voting Majorities in the Fund: Effects of Second Amendment of the Articles, IMF Pamphlet Series, No. 20 (Washington, 1977), pp. 11-12.
“These new exchange rate provisions are of critical importance both for the system as a whole and for the United States. They focus on the essential need to achieve underlying stability in economic affairs if exchange stability is to be achieved. They provide a flexible framework for the evolution of exchange arrangements consistent with this broad focus. And they help to ensure that the United States is not again forced into the position of maintaining a value for its currency that is out of line with underlying competitive realities and that costs the United States jobs and growth due to loss of exports, increased imports and a shift of production facilities overseas. Under the new provisions, the United States will have a controlling voice in the future adoption of general exchange arrangements for the system as a whole; and will have full freedom in the selection of exchange arrangements to be applied by the United States, regardless of the general arrangements adopted, so long as it meets its general IMF obligations.” (U.S. National Advisory Council on International Monetary and Financial Policies, Special Report to the President and to the Congress on Amendment of the Articles of Agreement of the International Monetary Fund and on an Increase in Quotas in the International Monetary Fund (Washington, April 1976), p. 23).
Schedule C, par. 8, second.
Schedule C, pars. 5 and 8, second.
Article VIII, Section 3, second.
Schedule C, par. 8, second.
Schedule C, par. 7, second.
Schedule C, par. 6, second.