SUMMARY PROCEEDINGS 1985 ©International Monetary Fund. Not for Redistribution International Standard Sériai Number: ISSN 0074-7025 ©International Monetary Fund. Not for Redistribution INTERNATIONAL MONETARY FUND SUMMARY PROCEEDINGS OF THE FORTIETH ANNUAL MEETING OF THE BOARD OF GOVERNORS OCTOBER 8-11, 1985 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 Address by the President of the Republic of Korea, Chun Doo Hwan 1 Opening Address by the Chairman of the Boards of Governors, the Governor of the Fund and the Bank for Senegal, Mamoudou Touré 6 Presentation of the Fortieth Annual Report by the Chairman of the Executive Board and Managing Director of the Interna- tional Monetary Fund, J. de Larosière 19 Discussion of Fund Policy at Second Joint Session Report by the Chairman of the Interim Committee of the Board of Governors on the International Monetary System, H. O. Ruding 33 Statements by the Governors for Luxembourg—Jacques F. Poos* 37 Brazil—Dilson Domingos Funaro* 40 Ireland—Alan M. Dukes 42 France—Pierre Bérégovoy 46 United States—James A. Baker III 50 Japan—Noboru Takeshita 58 Canada—Michael H. Wilson 68 Spain—Mariano Rubio Jiménez 72 China—Liu Hongru 75 New Zealand—R. O. Douglas 78 Discussion of Fund Policy at Third Joint Session Report by the Chairman of the Joint Ministerial Committee of the Boards of Governors on the Transfer of Real Resources to Developing Countries (Development Committee), Ghulam Ishaq Khan 81 Statements by the Governors for Venezuela—Benito Raúl Losada* 85 United Kingdom—Ian Stewart 89 *Speaking on behalf of a group of countries. ©International Monetary Fund. Not for Redistribution vi CONTENTS PAGE India—Vishwanath Pratap Singh 95 Korea—Mahn Je Kim 98 Germany, Federal Republic of—Gerhard Stoltenberg 101 Algeria—Mohamed Terbèche* 105 Italy—Giovanni Goria 108 Austria—Franz Vranitzky 115 Iran, Islamic Republic of—Hossein Namazi 117 Indonesia—Radius Prawiro 125 Australia—Christopher Hurford 131 Discussion of Fund Policy at Fourth Joint Session Statements by the Governors for South Africa—B. J. du Plessis 136 Denmark—Palle Simonsen* 139 Hungary—János Fekete 143 Netherlands—H. O. Ruding 147 Zaïre—Djamboleka Loma Okitongono* 150 Jamaica—Edward Seaga* 157 Yugoslavia—Vlado Klemencic 163 Egypt—Kamal El-Ganzoury 165 Western Samoa—Tofilau Eti Alesana 168 Sri Lanka—Ronnie de Mel 169 Greece—loannis Papantoniou 173 Discussion of Fund Policy at Fifth Joint Session Statements by the Governors for St. Christopher and Nevis—Kennedy A. Simmonds* 176 Thailand—Sommai Hoontrakool 178 Israel—Yitzhak Moday 181 Nepal—Prakash Chandra Lohani 185 Pakistan—Mahbub ul Haq 188 Belgium—Jean Godeaux 193 Bangladesh—M. Syeduzzaman 195 Solomon Islands—George Kejoa* 199 Tonga—James Cecil Cocker 202 Peru—Luis Alva Castro 203 Bolivia—the Delegation for Bolivia 215 Fiji—Jone Kubuabola 218 Lao People's Democratic Republic—Kikham Vongsay .... 222 Lesotho—Peete Nkuebe Peete 224 Malaysia—Daim Zainuddin 227 Malta—Wistin Abela 229 *Speaking on behalf of a group of countries. ©International Monetary Fund. Not for Redistribution CONTENTS vii PAGE Papua New Guinea—Philip Bouraga 232 Paraguay—César Romeo Acosta 235 Concluding Remarks Statements by The Temporary Alternate Governor of the Fund for Colom- bia, Ramiro Zambrano Cardenas 239 The Chairman of the Executive Board and Managing Direc- tor of the International Monetary Fund, J. de Larosière 240 The Chairman of the Boards of Governors, the Governor of the Fund and the Bank for Senegal, Mamoudou Touré.. 243 DOCUMENTS AND RESOLUTIONS OF THE BOARD OF GOVERNORS Schedule of Meetings 249 Provisions Relating to the Conduct of the Meetings 250 Agenda 251 Reports of the Joint Procedures Committee 252 Report II 252 Annex 254 Attachment 1. Rules and Regulations Amended Since the 1984 Annual Meeting 255 Report III 257 Annex 258 Attachment. Report of the Joint Ministerial Committee of the Boards of Governors of the Bank and the Fund on the Transfer of Real Resources to Developing Countries 259 Annex A. Members of the Committee 266 Annex B. Organizational and Administrative Aspects 269 Annex C. IBRD and IMF Resolutions Establishing the Development Committee 271 Annex D. Agendas and Press Communiqués of Meet- ings Held in September 1984 and April 1985 271 Resolutions 40-1 Direct Remuneration of Executive Directors and Their Alternates 276 40-2 Membership for Tonga 276 40-3 Financial Statements, Report on Audit, and Adminis- trative Budget 279 ©International Monetary Fund. Not for Redistribution viii CONTENTS PAGE 40-4 Amendments of the Rules and Regulations 279 40-5 Appreciation 279 Interim Committee of the Board of Governors on the Interna- tional Monetary System Press Communiqué (October 7, 1985) 280 Composition (as of October 7, 1985) 284 Joint Ministerial Committee of the Boards of Governors of the Bank and the Fund on the Transfer of Real Resources to De- veloping Countries Press Communiqué (October 7, 1985) 285 Composition (as of October 7, 1985) 289 Attendance Members of Fund Delegations 290 Executive Directors, Alternates, and Advisors 309 Reference List of Principal Topics Discussed 313 List of Abbreviations Used 319 ©International Monetary Fund. Not for Redistribution STATEMENTS BY GOVERNORS Listed in Alphabetical Order by Country PAGE Algeria—Mohamed Terbèche 105 Australia—Christopher Hurford 131 Austria—Franz Vranitzky 115 Bangladesh—M. Syeduzzaman 195 Belgium—Jean Godeaux 193 Bolivia—the Delegation for Bolivia 215 Brazil—Dilson Domingos Funaro 40 Canada—Michael H. Wilson 68 China—Liu Hongru 75 Denmark—Palle Simonsen 139 Egypt—Kamal El-Ganzoury 165 Fiji—Jone Kubuabola 218 France—Pierre Bérégovoy 46 Germany, Federal Republic of—Gerhard Stoltenberg 101 Greece—loannis Papantoniou 173 Hungary—János Fekete 143 India—Vishwanath Pratap Singh 95 Indonesia—Radius Prawiro 125 Iran, Islamic Republic of—Hossein Namazi 117 Ireland—Alan M. Dukes 42 Israel—Yitzhak Moday 181 Italy—Giovanni Goria 108 Jamaica—Edward Seaga 157 Japan—Noboru Takeshita 58 Korea—Mahn Je Kim 98 Lao People's Democratic Republic—Kikham Vongsay 222 Lesotho—Peete Nkuebe Peete 224 Luxembourg—Jacques F. Poos 37 Malaysia—Daim Zainuddin 227 Malta—Wistin Abela 229 Nepal—Prakash Chandra Lohani 185 Netherlands—H. O. Ruding 147 New Zealand—R. O. Douglas 78 Pakistan—Mahbub ul Haq 188 Papua New Guinea—Philip Bouraga 232 Paraguay—Cesar Romeo Acosta 235 ix ©International Monetary Fund. Not for Redistribution x STATEMENTS BY GOVERNORS Peru—Luis Alva Castro 203 St. Christopher and Nevis—Kennedy A. Simmonds 176 Solomon Islands—George Kejoa 199 South Africa—B. J. du Plessis 136 Spain—Mariano Rubio Jiménez 72 Sri Lanka—Ronnie de Mel 169 Thailand—Sommai Hoontrakool 178 Tonga—James Cecil Cocker 202 United Kingdom—Ian Stewart 89 United States—James A. Baker III 50 Venezuela—Benito Raúl Losada 85 Western Samoa—Tofilau Eti Alesana 168 Yugoslavia—Vlado Klemencic 163 Zaïre—Djamboleka Loma Okitongono 150 ©International Monetary Fund. Not for Redistribution INTRODUCTORY NOTE The Fortieth Annual Meeting of the Board of Governors of the Interna- tional Monetary Fund was held in Seoul, Korea from October 8 through October 11, 1985, jointly with the Annual Meetings of the Boards of Gov- ernors of the International Bank for Reconstruction and Development, the International Finance Corporation, and the International Development Association. His Excellency, Mamoudou Touré, Governor for Senegal, served as Chairman. These Summary Proceedings include statements, or portions of state- ments, relating to the work of the Fund presented by Governors during the Meetings, resolutions adopted by the Board of Governors of the Fund over the past year, reports, recommendations, or communiqués issued by the Committees of the Board of Governors at the time of the Meetings, and other documents relating to the Meetings. Statements, or portions thereof, relating to the work of the World Bank are omitted from these Summary Proceedings; the insertion of dots (...) within statements indicates where passages have been omitted. Statements not reproduced in these Summary Proceedings may be found in the Summary Proceedings of the Annual Meetings of the Bank and its affiliates, issued separately by the Bank. Statements by the Governors are listed in alphabetical order by country on pages ix and x. A reference list of principal topics discussed in the state- ments is given on pages 313-18, and a list of abbreviations used in the statements and documents is given on page 319. LEO VAN HOUTVEN Secretary International Monetary Fund Washington, D.C. December 30, 1985 xi ©International Monetary Fund. Not for Redistribution This page intentionally left blank ©International Monetary Fund. Not for Redistribution ADDRESS BY THE PRESIDENT OF THE REPUBLIC OF KOREA1 Chun Doo Hwan It is a great pleasure today to witness the opening of the joint Annual Meetings of the World Bank and the International Monetary Fund here in Seoul. On behalf of the Korean people, and in the name of the Govern- ment of the Republic of Korea, I extend to all of you who have come from near and afar, and especially from afar, to visit our country a sincere welcome. First of all, I wish to praise the historic achievements of the two institu- tions in re-establishing anew an economic order out of chaos that prevailed after World War II. We should all appreciate the work of economic recon- struction to which the Bank and the Fund made an indispensable contri- bution. In particular, I have the greatest respect for the individual coun- tries that cooperated closely with the two institutions to overcome the difficult challenges of the postwar era. The Korean people feel that there is a special significance to your forti- eth joint meetings of the Bank and the Fund, because it has been during these forty years that Korea has managed to raise itself from one of the world's most underprivileged and disadvantaged countries to one of the world's most promising and developing.