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SUMMARY PROCEEDINGS 1968

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©International Monetary Fund. Not for Redistribution INTERNATIONAL MONETARY FUND

SUMMARY PROCEEDINGS

OF THE TWENTY-THIRD ANNUAL MEETING

OF THE BOARD OF GOVERNORS

SEPTEMBER 30-OCTOBER 4, 1968

WASHINGTON, D. C.

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©International Monetary Fund. Not for Redistribution CONTENTS

PAGE Introductory Note xi Address by the President of the United States of America, Lyndon B. Johnson 1

Opening Address by the Chairman of the Boards of Gover- nors, the Governor for Ceylon, U. B. Wanninayake 7

Presentation of the Twenty-Third Annual Report by the Chairman of the Executive Board and Managing Direc- tor of the International Monetary Fund, Pierre-Paul Schweitzer 19

Discussion of Fund Policy at Second Joint Session Statements by the Governors for Indonesia—Ali Wardhana 30 Korea—Jong Ryul Whang 34 Malaysia—Ismail bin Mohamed Ali 36 Canada—Edgar J. Benson 40 India—Morarji R. Desai 45 United States—Henry H. Fowler 48 Germany—Karl Schiller 63 France—Frangois-Xavier Ortoli 69 Zambia—E. H. K. Mudenda 77 Italy—Emilio Colombo 79 Japan—Makoto Usami 89 Algeria—Cherif Belkacem 94

©International Monetary Fund. Not for Redistribution VI CONTENTS

PAGE Discussion of Fund Policy at Fund Session Statements by the Governors for Spain—Faustino Garcia Monco 103 Venezuela—Benito Raul Losada 105 Austria—Wolfgang Schmitz Ill Ceylon—William Tennekoon 114 Malta—Giovanni Felice 117 Australia—William McMahon 119 United Kingdom—Roy Jenkins 125 Congo, Democratic Republic of—Albert Ndele .... 131 Netherlands—J. Zijlstra 135 Ethiopia—Menasse Lemma 139 Nepal—Yadav Prasad Pant 141 Libya—Khalil Bennani 143 New Zealand—R. D. Muldoon 145 Ghana—A. A. Afrifa 150 Philippines—Alfonso Calalang 152 Kenya—D. N. Ndegwa 155 Somalia—Abdullah! Jirreh Dualeh 158 Burundi—Joseph Hicuburundi 160 Paraguay—Carlos Chaves Bareiro 162 Discussion of Fund Policy at Bank, IFC, and IDA Session Statements by the Governors for Philippines—Eduardo Z. Romualdez 168 Sweden—Gunnar Strang 168 Trinidad and Tobago—F. C. Prevatt 170 Turkey—Cihat Bilgehan 172 Israel—David Horowitz 173 Congo, Democratic Republic of—Victor Nendaka ... 174 Pakistan—N. M. Uquaili 174 Jamaica—Edward Seaga 179

©International Monetary Fund. Not for Redistribution CONTENTS Vli

PAGE Argentina—Adalbert Krieger Vasena 180 Belgium—Baron Snoy et d'Oppuers 183 United Arab Republic—Hassan Abbas Zaki 184 Netherlands—H. J. Witteveen 187 Liberia—J. Milton Weeks 188 Spain—Juan Jose Espinosa 193 Kenya—J. N. Michuki 193

Discussion of Fund Policy at Third Joint Session Statements by the Governors for South Africa—Nicolaas Diederichs 195 Yugoslavia—Kiro Gligorov 200 The Gambia—S. M. Dibba 203 Afghanistan—M. E. Ziyaie 204 Congo (Brazzaville)—Edouard Ebouka-Babackas . . . 209 Israel—Jacob Arnon 211 China—Kuo-Hwa Yu 216 Nigeria—C. N. Isong 218 Uganda—L. Kalule-Settala 222 Syrian Arab Republic—Adnan Farra 225

Discussion of Fund Policy at Closing Joint Session Statements by the Governors for Lebanon—Joseph Oughourlian 231 Sierra Leone—M. S. Forna 234 Mauritius—Veerasamy Ringadoo 239 Sudan—Hussein El Sherif El Hindi 242 Niger—Courmo Barcourgne 244 Tanzania—Paul Bomani 246 Central African Republic—Antoine Guimali 251 Guyana—P. A. Reid 252 Malawi—J. Z. U. Tembo 255

©International Monetary Fund. Not for Redistribution Vlll CONTENTS

PAGE Concluding Remarks Statements by The Chairman of the Executive Board and Managing Director of the International Monetary Fund, Pierre- Paul Schweitzer 257 The Governor of the Fund and Temporary Alternate Governor of the Bank for Argentina, Adalbert Krieger Vasena 259 The Chairman of the Boards of Governors, the Gov- ernor for Ceylon, U. B. Wanninayake 259

Schedule of Meetings 263

Provisions Relating to the Conduct of the Meetings 264

Reports of the Joint Procedures Committee Report I 265 Annex I Agenda 267 Annexes II and III General Reserve and Distribution of Net Income 268 Annexes IV and V Stabilization of Prices of Primary Products 270 Annex VI 1968 Regular Election of Executive Directors 274 Statement of Results of Elections, October 2, 1968 . . 280

Report III 285

Resolutions 23-1 Membership for Lesotho 287 23-2 Increase in the Quota of Nigeria 290 23-3 Increase in the Quota of Uruguay 291 23-4 Increase in the Quota of Trinidad and Tobago . . 292

PAGE 23-5 Proposed Amendment of Articles of Agreement: New Facility Based on Special Drawing Rights; Changes in Fund Rules and Practices 293 23-6 Increase in the Quota of Cyprus 294 23-7 Increase in the Quota of Burma 295 23-8 Membership for Malta 296 23-9 Membership for Mauritius 299 23-10 1968 Regular Election of Executive Directors . .. 302 23-11 Financial Statements, Report on Audit, and Administrative Budget 303 23-12 General Reserve and Distribution of Net Income 303 23-13 Stabilization of Prices of Primary Products 304

Attendance Members of Fund Delegations 305 Observers 321

Executive Directors and Alternates 323

Guide to Statements by Governors Alphabetical List, by Country, of Governors' Statements 327 List of Principal Topics Discussed 329

The Twenty-Third Annual Meeting of the Board of Governors of the International Monetary Fund was held in Washington, D. C., from September 30 through October 4, 1968, under the Chair- manship of the Honorable U. B. Wanninayake, Governor for Ceylon. 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 include statements, or portions of statements, relating to the work of the Fund which were made by the Governors during the Meetings; omitted passages are indicated by dots (...)• The statements are presented in chrono- logical order. Resolutions adopted by the Board of Governors of the Fund, reports and recommendations of the Joint Procedures Committee, and other documents relating to the conduct of the Meetings and the election of Executive Directors are also included. A list of statements arranged alphabetically by country and a list of the principal topics discussed will be found on pages 327-31. Statements relating to the work of the Bank are reproduced in the Summary Proceedings of the Annual Meetings of the Bank and its affiliates, issued by the Bank.

W. LAWRENCE HEBBARD Secretary International Monetary Fund

Washington, D. C. November 15, 1968 xi