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SUMMARY PROCEEDINGS 1962 ©International Monetary Fund. Not for Redistribution This page intentionally left blank ©International Monetary Fund. Not for Redistribution INTERNATIONAL MONETARY FUND SUMMARY PROCEEDINGS OF THE SEVENTEENTH ANNUAL MEETING OF THE BOARD OF GOVERNORS SEPTEMBER 1962 WASHINGTON, D. C. ©International Monetary Fund. Not for Redistribution This page intentionally left blank ©International Monetary Fund. Not for Redistribution CONTENTS PAGE Introductory Note ix Address by the President of the United States of America, John F. Kennedy 1 Opening Address by the Chairman of the Boards of Gov- ernors, the Governor for Saudi Arabia, Ahmed Zaki Saad. 6 Presentation of the Seventeenth Annual Report by the Chair- man of the Executive Board and Managing Director of the International Monetary Fund, Per Jacobsson 16 Discussion of the Seventeenth Annual Report: Statements by the Governors for Turkey—Ekrem Alican 34 Sierra Leone—A. M. Margai 37 United States—Douglas Dillon 38 Canada—Donald M. Fleming 46 Kuwait—Sheikh Jabir Al-Ahmad Al-Jabir 53 France—Jacques Brunet 54 United Kingdom—Reginald Maudling 61 Federal Republic of Germany—Karl Blessing 68 Sudan—Abdel Magid Ahmed 73 Japan—Kakuei Tanaka 76 Australia—Harold Holt 78 India—Morarji R. Desai 81 Pakistan—Mumtaz Mirza 85 Philippines—Andres V. Castillo 89 Ceylon—D. W. Rajapatirana 95 South Africa—T. E. Donges 98 Austria—Reinhard Kamitz 102 Italy—Roberto Tremelloni 104 Greece—Xenophon Zolotas 108 V ©International Monetary Fund. Not for Redistribution VI CONTENTS PAGE Netherlands—M. W. Holtrop 116 Argentina—Alvaro C. Alsogaray 119 Tunisia—Hedi Nouira 125 Israel—Levi Eshkol 129 Peru—Enrique Bellido 132 Spain—Alberto Ullastres 134 Tanganyika—Paul Bomani 135 Paraguay—General Cesar Barrientos 139 United Arab Republic—Abdel Hakim El Rifai 143 Portugal—Rafael Duque 147 Yugoslavia—Nikola Miljanic 149 Iraq—Bakir Al-Dujaili 152 Concluding Remarks by the Chairman of the Executive Board and Managing Director of the International Mone- tary Fund, Per Jacobsson 155 Statements Bearing on Fund Policy Delivered at the Annual Discussion of the IBRD, IFC, and IDA by the Governors of the Fund and Bank for Togo—Hospice D. Coco 162 Ghana—F. K. D. Goka 164 Malaya—Tan Siew Sin 168 Delivered at the Second Joint Session by the Governor of the Bank for the United Arab Republic— A. M. El Kaissouni 173 Governor of the Fund for Senegal—Andre Peytavin. 177 Governor of the Fund for Nepal—Lakshmi Nath Gautam 181 Delivered at the Closing Joint Session by the Governor of the Bank for Colombia—Carlos Sanz de Santamaria 182 Reports of the Procedures Committees Report I 189 Annex I Schedule of Meetings 191 ©International Monetary Fund. Not for Redistribution CONTENTS Vll PAGE Annex II Provisions Relating to the Conduct of the Meetings 193 Annex III Agenda 194 Annex IV 1962 Regular Election of Executive Directors 195 Statement of Results of 1962 Regular Election of Executive Directors 205 Report III1 209 Annex I 211 Annex II 212 Annex III 214 Report IV 215 Annex I 217 Resolutions 17-1 Membership for the Republic of Somalia 218 17-2 Increase in the Quota of the United Arab Republic. 221 17-3 Membership for the State of Kuwait 222 17-4 Membership for Tanganyika 225 17-5 Election of an Additional Executive Director 228 17-6 1962 Regular Election of Executive Directors 229 17-7 Financial Statements, Report on Audit, and Administrative Budget 229 17-8 General Reserve 229 17-9 Amendments to Rules and Regulations 230 17-10 Membership for the Federal Republic of Cameroon. 230 17-11 Membership for the Central African Republic. ... 233 17-12 Membership for the Republic of Chad 236 17-13 Membership for the Republic of the Congo (Brazzaville) 239 17-14 Membership for the Republic of Gabon 242 17-15 Membership for the Republic of Guinea 245 17-16 Membership for the Republic of the Ivory Coast. 248 1 Report II dealt with the business of the Boards of Governors of the IBRD, IFC, and IDA. ©International Monetary Fund. Not for Redistribution Viii CONTENTS PAGE 17-17 Membership for Jamaica 250 17-18 Membership for the Republic of Niger 253 17-19 Membership for Upper Volta 255 17-20 Membership for the Republic of Dahomey 258 Attendance Members of Delegations 261 Observers 272 Executive Directors and Alternates 275 Reference List of Principal Topics 277 ©International Monetary Fund. Not for Redistribution INTRODUCTORY NOTE The Seventeenth Annual Meeting of the Board of Governors of the International Monetary Fund was held in Washington, from September 17 through September 21, 1962, under the Chairman- ship of the Honorable Ahmed Zaki Saad, Governor for Saudi Arabia. The meeting was held in conjunction with the annual meetings of the Boards of Governors of the International Bank for Reconstruction and Development and its affiliates. These Summary Proceedings of the Fund include the resolutions adopted by the Board of Governors, reports and recommendations of the Procedures Committees, and selected addresses. ROMAN L. HORNE Secretary International Monetary Fund Washington, D. C. October 30, 1962 IX ©International Monetary Fund. Not for Redistribution This page intentionally left blank ©International Monetary Fund. Not for Redistribution ADDRESS BY THE PRESIDENT OF THE UNITED STATES OF AMERICA l John F. Kennedy This is my first opportunity to take part in your Annual Meetings and to welcome you here to Washington—and I do so with genuine pleasure. For you are concerned with the problems which have been among my primary concerns since the day I took office exactly 20 months ago; and in that time I have learned how vital a role is played by the International Monetary Fund and the International Bank for Reconstruction and Development and its affiliated institutions. The work of the International Development Association is particularly important, and this country fully sup- ports the proposal that the Executive Directors develop a program to increase its resources. The pioneering practices of the Bank—which have set a standard for others to follow—will sorely miss the services of Eugene Black. I hope he will permit us to call upon his wise counsel in the future, and that the rest of us, in pursuing the goals which he set, will increase our own efforts—including efforts in the indus- trialized countries to provide greater capital assistance to the less developed areas; efforts also in the industrialized countries to maintain at home prosperous and easily accessible markets for the products of the growing nations; efforts to reach commodity agreements and other arrangements which will help stabilize the export earnings of those nations; and, finally and most importantly, greater efforts in the developing nations themselves to mobilize effectively their own people and financial resources, and to make certain that the benefits of increased output are shared by the many and not by the few. 1 Delivered at the Second Joint Session, September 20, 1962. 1 ©International Monetary Fund. Not for Redistribution 2 SUMMARY PROCEEDINGS, 1962 In addition to these discussions on the role of the Bank, your meetings this year, as they did last year, are giving top attention to the state of the dollar—and that has been at or near the top of my own agenda throughout the last year and a half. We in the United States feel no need to be self-conscious about discussing the dollar. It is not only our national currency; it is an international currency. It plays a key role in the day-to-day func- tioning of the free world's financial framework. It is the most effective substitute for gold in the international payments system. It the dollar did not exist as an important reserve currency, it would have to be "invented"—for a volume of foreign trade already reaching $130 billion a year and growing rapidly, accom- panied by large international capital movements, cannot rest solely on a slowly growing stock of gold which now totals only $40 billion. The security of the dollar, therefore, is and ought to be of major concern to every nation here. To undermine the strength of the dollar would undermine the strength of the free world. To compete for national financial security in its narrowest sense by taking individual actions inconsistent with our common goals would in the end only impair the security of us all. I recognize that this nation has special responsibilities—as one of the leaders of the free world, as its richest and most powerful nation, as possessor of its most important currency, and as the chief banker for international trade. We did not seek all of these burdens, but we do not shrink from them. We are taking every prudent step to maintain the strength of the dollar, to improve our balance of payments, and to back up the dollar by expanding the growth of our economy. We are pledged to keep the dollar fully convertible into gold, and to back that pledge with all our resources of gold and credit. We have not impaired the value of the dollar by imposing restric- tions on its use. We have not imposed upon our citizens in peacetime any limitations on the amount of dollars they may wish to take or send abroad. We have followed a liberal policy on trade. And we have continued to supply our friends and allies with dollars and gold to rebuild their economies and defend their freedom. ©International Monetary Fund. Not for Redistribution ADDRESS BY PRESIDENT OF UNITED STATES 3 All this we have willingly done. No other country or currency has borne so many burdens. But we cannot and should not bear them all alone. I know that other countries do not expect us to bear indefinitely both the responsibilities of maintaining an international currency and, in addition, a disproportionate share of the costs of defending the free world and fostering social and economic progress in the less developed parts of the world.