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SUMMARY PROCEEDINGS 1969 ©International Monetary Fund. Not for Redistribution This page intentionally left blank ©International Monetary Fund. Not for Redistribution INTERNATIONAL MONETARY FUND SUMMARY PROCEEDINGS OF THE TWENTY-FOURTH ANNUAL MEETING OF THE BOARD OF GOVERNORS SEPTEMBER 29-OCTOBER 3, 1969 WASHINGTON, D. C. ©International Monetary Fund. Not for Redistribution This page intentionally left blank ©International Monetary Fund. Not for Redistribution CONTENTS PAGE Introductory Note xi Message from the President of the United States of America, Richard M. Nixon 1 Opening Address by the Chairman of the Board of Gover- nors of the Fund, the Governor of the Fund for Argen- tina, Jose Maria Dagnino Pastore 2 Presentation of the Twenty-Fourth Annual Report by the Chairman of the Executive Board and Managing Direc- tor of the International Monetary Fund, Pierre-Paul Schweitzer 9 Discussion of Fund Policy at Second Joint Session Statements by the Governors for Pakistan—Nawab Mozaffar Ali Khan Qizilbash 20 Jamaica—Edward Seaga 24 Japan—Takeo Fukuda 29 United Kingdom—Roy Jenkins 34 Malaysia—Ali bin Haji Ahmad 42 United States—David M. Kennedy 46 France—Valery Giscard d'Estaing 56 Italy—Emilio Colombo 62 India—L. K. Jha 73 Canada—Edgar J. Benson 76 Indonesia—Ali Wardhana 80 New Zealand—R. D. Muldoon 85 Spain—Juan Jose Espinosa 88 V ©International Monetary Fund. Not for Redistribution vi CONTENTS PAGE Discussion of Fund Policy at Bank, IFC, and IDA Session Statements by the Governors for Austria—Stephan Koren 91 Congo, Democratic Republic of—Louis Namwisi ... 93 Israel—David Horowitz 94 Colombia—Abdon Espinosa Valderrama 96 Greece—Emmanuel Fthenakis 97 Netherlands—H. J. Witteveen 98 Gabon—Augustin Boumah 100 Ethiopia—Mammo Tadesse 103 Algeria—Cherif Belkacem 104 Paraguay—Cesar Romeo Acosta 109 Discussion of Fund Policy at Fund Session Statements by the Governors for Austria—Wolfgang Schmitz 110 China—Kuo-Hwa Yu 113 South Africa—Nicolaas Diederichs 116 Luxembourg—Pierre Werner 122 Chile—Carlos Massad 125 Congo, Democratic Republic of—Albert Ndele 132 Viet-Nam—Vu-Quoc-Thuc 135 Upper Volta—Tiemoko Marc Garango 139 Ethiopia—Menasse Lemma 143 Australia—Leslie H. E. Bury 145 Zambia—E. H. K. Mudenda 149 Netherlands—Jelle Zijlstra 152 Nepal—Yadav Prasad Pant 155 Ireland—T. K. Whitaker 158 Belgium—Baron Snoy et d'Oppuers 160 United Arab Republic—Hassan Abbas Zaki 163 ©International Monetary Fund. Not for Redistribution CONTENTS vii PAGE Somalia—Sufi Omar Mohamed 167 Paraguay—Cesar Barrientos 169 Sierra Leone—M. S. Forna 174 Tunisia—Hedi Nouira 176 Southern Yemen—Mahmoud Ushaish 180 Discussion of Fund Policy at Third Joint Session Statements by the Governors for Ghana—Jones Ofori-Atta 185 Ivory Coast—Konan Bedie 188 Korea—Jae Sul Lee 194 Germany—Karl Blessing 198 Tanzania—A. H. Jamal 203 Yugoslavia—Janko Smole 206 Kenya—Bruce McKenzie 209 Peru—Francisco Morales Bermiidez C 212 Sudan—Mohammed El Mekkawi Mustafa 216 Syrian Arab Republic—Adnan Farra 217 Trinidad and Tobago—Francis C. Prevatt 220 Discussion of Fund Policy at Closing Joint Session Statements by the Governors for Afghanistan—Mohammed Enwer Ziyaie 224 Philippines—Eduardo Z. Romualdez 226 Nicaragua—Guillermo Sevilla Sacasa 228 Denmark—P. Nyboe Andersen 232 Turkey—Cihat Bilgehan 234 Guyana—P. A. Reid 235 Burundi—Joseph Hicuburundi 238 The Gambia—S. M. Dibba 240 Israel—Zeev Sharef 241 Ceylon—U. B. Wanninayake 245 Lesotho—P. N. Peete 248 ©International Monetary Fund. Not for Redistribution viii CONTENTS PAGE Concluding Remarks Statements by The Chairman of the Executive Board and Managing Director of the International Monetary Fund, Pierre- Paul Schweitzer 250 The Governor of the Fund for Tunisia, Hedi Nouira.. 252 The Chairman of the Boards of Governors of the Bank, IFC, and IDA, the Governor of the Bank for Argen- tina, Egidio lannella 253 Schedule of Meetings 257 Provisions Relating to the Conduct of the Meetings 258 Agenda 259 Reports of the Joint Procedures Committee Report I 260 Annex I Amendments of the By-Laws 262 Annex II Amendments of the Rules and Regulations 263 Annex III Report to the Board of Governors Con- taining the Managing Director's Proposal on the Allocation of Special Drawing Rights for the First Basic Period 275 Statement of Results of Vote on Allocation of Special Drawing Rights for the First Basic Period 299 Report III 300 Annex I General Reserve and Distribution of Net Income 302 Annex II Adjustment of Quotas 303 Annex III Membership for the Yemen Arab Republic 304 Annex IV Membership for Equatorial Guinea 305 Report IV 305 ©International Monetary Fund. Not for Redistribution CONTENTS ix PAGE Resolutions 24-1 Place and Date of 1970 Annual Meeting 307 24-2 Increase in the Quota of Panama 307 24-3 Amendment of Section 14 of the By-Laws 308 24-4 Membership for Swaziland 309 24-5 Membership for Southern Yemen 312 24-6 Increase in the Quota of Jamaica 315 24-7 Membership for Cambodia 316 24-8 Amendment of Section 14(e) of the By-Laws. .. 319 24-9 Amendments of the By-Laws 320 24-10 Amendments of the Rules and Regulations 325 24-11 Rules for the Vote on the Resolution for the Allo- cation of Special Drawing Rights for the First Basic Period 326 24-12 Allocation of Special Drawing Rights for the First Basic Period 326 24-13 Financial Statements, Report on Audit, and Ad- ministrative Budget 328 24-14 General Reserve and Distribution of Net Income. 328 24-15 Adjustment of Quotas 329 24-16 Membership for the Yemen Arab Republic 329 24-17 Membership for Equatorial Guinea 332 Attendance Members of Fund Delegations 336 Observers 353 Executive Directors and Alternates 356 Guide to Statements by Governors Alphabetical List, by Country, of Governors' Statements 359 List of Principal Topics Discussed 361 ©International Monetary Fund. Not for Redistribution This page intentionally left blank ©International Monetary Fund. Not for Redistribution INTRODUCTORY NOTE The Twenty-Fourth Annual Meeting of the Board of Governors of the International Monetary Fund was held in Washington, D.C., from September 29 through October 3, 1969, under the Chair- manship of the Honorable Jose Maria Dagnino Pastore, Governor for Argentina. 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. Mr. Dagnino Pastore and the Honorable Egidio lannella, Governor of the Bank, IFC, and IDA for Argentina, acted as Chairmen of the Meetings. 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 chronological 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 are also included. A list of statements arranged alphabetically by country and a list of the principal topics discussed will be found on pages 359-63 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 20, 1969 xi ©International Monetary Fund. Not for Redistribution This page intentionally left blank ©International Monetary Fund. Not for Redistribution MESSAGE FROM THE PRESIDENT OF THE UNITED STATES OF AMERICA1 Richard M. Nixon A generation has passed since those far-sighted men at Bretton Woods conceived of the International Bank for Reconstruction and Development and the International Monetary Fund. They built well. These sister institutions have been an example to all of inter- national cooperation in action, nourishing the growth in trade and advancing the cause of development essential to peace and prosperity. Institutions maintain their strength, not by reviewing the accom- plishments of the past, but by responding to the needs of their time. As you meet this week in Washington, the challenges are plain. We must restore the stability of price levels, threatened by inflation, upon which sound growth depends. We must attack those obstacles that inhibit development. We must assure that the financial framework for international trade and investment is reinforced to support the requirements of the future. There are bright omens. This week, you are embarking on the path-breaking task of providing—by deliberate and cooperative decision—the financial liquidity needed to keep pace with eco- nomic needs. You will have the benefit of a thoroughgoing review of assistance needs. There are also visible difficulties. They can only be solved by the devoted efforts of dedicated men, working together with good will, patience, and the support of many countries. Such efforts are the hallmark of these institutions. I can assure you that this country aims to do its part, including dealing with the inflation that for too long has strained the vitality of our economy. I welcome you to Washington and wish you Godspeed in your efforts. 1 Delivered by the Governor of the Fund and Bank for the United States at the Opening Joint Session, September 29, 1969. 1 ©International Monetary Fund. Not for Redistribution OPENING ADDRESS BY THE CHAIRMAN OF THE BOARD OF GOVERNORS OF THE FUND, THE GOVERNOR OF THE FUND FOR ARGENTINA1 Jose Maria Dagnino Pastore On behalf of my colleague as Chairman, Governor lannella, and myself, I cordially greet the distinguished Governors of our organizations, their alternates and advisers, and official observers and special guests. It is a particular pleasure for me to welcome the delegates of Swaziland, who are taking part in these Annual Meetings for the first time, and the observers from Cambodia, Equatorial Guinea, Southern Yemen, and the Yemen Arab Republic, countries which have applied for membership in both the Bank and the Fund.