Summary Proceedings of the Forty-Fifth Annual Meeting of the Board of Governors September 25-27, 1990 International Monetary Fund Washington, D.C. ©International Monetary Fund. Not for Redistribution International Standard Serial Number ISSN 0074-7025 ©International Monetary Fund. Not for Redistribution CONTENTS Page Introductory Note ix Address by the President of the United States, George Bush 1 Opening Address by the Chairman of the Boards of Governors, the Governor of the Fund and the Bank for Kenya, George Saitoti . 5 Presentation of the Forty-Fifth Annual Report by the Chairman of the Executive Board and Managing Director of the International Monetary Fund, M. Camdessus 12 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, Michael H. Wilson 22 Statements by the Governors for Italy—Guido Carli* 25 Italy—Guido Carli 29 Indonesia—J. B. Sumarlin 33 France—Pierre Bérégovoy 38 Japan—Ryutaro Hashimoto 40 Côte d'lvoire—Kablan D. Duncan* 46 China—WANG Bingqian 52 Philippines—Jesus P. Estanislao 56 Kuwait—Sheikh Ali Al-Khalifa Al-Sabah 58 Austria—Ferdinand Lacina 61 Israel—Michael Bruno 63 Greece—Efthimios Christodoulou 67 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) B.T.G. Chidzero 73 Statements by the Governors for Islamic Republic of Iran—Mohsen Nourbakhsh 76 Federal Republic of Germany—Karl Otto Poehl 79 United Kingdom—John Major 83 India—Madhu Dandavate 87 *Speaking on behalf of a group of countries. iii ©International Monetary Fund. Not for Redistribution iv CONTENTS Page Brazil—Zelia Maria Cardoso de Mello* 91 United States—Nicholas F. Brady 96 Somalia—Abdirahman Jama Barre* 99 Czech and Slovak Federal Republic—Vaclav Klaus 102 Thailand—Virabongsa Ramangkura 106 Australia—Simon Crean 109 Turkey—Günes Taner 112 Ireland—Albert Reynolds 115 Spain—Carlos Solchaga 119 Netherlands—W. Kok 123 Canada—Monique Landry 127 Discussion of Fund Policy at Fourth Joint Session Statements by the Governors for South Africa—B.J. du Plessis 131 Honduras—Benjamin Villanueva 133 Belgium—Philippe Maystadt 139 Sri Lanka—D.B. Wijetunga 143 Dominica—Mary Eugenia Charles* 147 Korea—Yung-Euy Chung 152 Pakistan—Sartaj Aziz 155 Denmark—Niels Helveg Petersen* 158 Bangladesh—Mohammad Abdul Munim 160 Portugal—Luis Miguel Couceiro Pizarro Belaza 163 Nepal—Devendra Raj Panday 165 Bulgaria—/. Dragnevski 169 Afghanistan—Mohammad Hakim 171 Discussion of Fund Policy at Fifth Joint Session Statements by the Governors for Chile—Alejandro Foxley Rioseco 175 Peru—Juan Carlos Hurtado Miller 179 Poland—Leszek Balcerowicz 187 Iraq—Abdul Moneim Othman 190 Viet Nam—Cao Si Kiem 192 Romania—Theodor Dumitru Stolojan 194 Western Samoa—Tofilau Eti Alesana 196 El Salvador—Mirna Lievano de Marques 198 Fiji—J.N. Kamikamica 201 Lao People's Democratic Republic—Sisavath Sisane 204 Malaysia—Daim Zainuddin 207 *Speaking on behalf of a group of countries. ©International Monetary Fund. Not for Redistribution CONTENTS V Page Malta—George Bonello du Puis 210 Namibia—Otto Herrigel 215 New Zealand—Richard Prebble 216 Papua New Guinea—Morea Vele 220 Paraguay—Carlos Alberto Knapps 224 Tonga—James Cecil Cocker 227 Yugoslavia—Branimir Zekan 228 Concluding Remarks Statements by The Governor of the Bank for Ecuador, Jorge Gallardo Zavala 232 The Chairman of the Executive Board and Managing Director of the International Monetary Fund, M. Camdessus 233 The Chairman of the Boards of Governors, the Governor of the Fund and the Bank for Kenya, George Saitoti 235 DOCUMENTS AND RESOLUTIONS OF THE BOARD OF GOVERNORS Schedule of Meetings 241 Provisions Relating to the Conduct of the Meetings 242 Agenda 243 Reports of the Joint Procedures Committee 244 Report I 244 Report III 245 Report IV 246 Annex I Regulations for the Conduct of the 1990 Regular Election of Executive Directors 248 Annex II 255 Attachment. Rules and Regulations Amended Since the 1989 Annual Meeting 256 Report VI 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 269 Annex B. Agendas and Press Communiques of Meetings Held in September 1989 and May 1990 272 ©International Monetary Fund. Not for Redistribution vi CONTENTS Page Resolutions 44-5 Increases in Quotas of Members—Ninth General Review 280 45-1 Increases in Quotas of Members—Ninth General Review 281 45-2 Increases in Quotas of Members—Ninth General Review 282 45-3 Proposed Third Amendment of the Articles of Agreement 286 Attachment to Resolution No. 45-3. Proposed Third Amendment of the Articles of Agreement of the International Monetary Fund 287 45-4 Direct Remuneration of Executive Directors and Their Alternates 290 45-5 Benefits of Executive Directors and Their Alternates 290 45-6 Membership for the Czech and Slovak Federal Republic 291 45-7 1990 Regular Election of Executive Directors 294 45-8 Membership for the People's Republic of Bulgaria ... 294 45-9 Membership for the Republic of Namibia 297 45-10 Forthcoming Annual Meetings 299 45-11 Financial Statements, Report on Audit, and Administrative Budget 299 45-12 Amendments of the Rules and Regulations 300 Interim Committee of the Board of Governors on the International Monetary System Press Communique (September 24, 1990) 301 Composition (as of September 23-24, 1990) 304 Joint Ministerial Committee of the Boards of Governors of the Bank and the Fund on the Transfer of Real Resources to Developing Countries (Development Committee) Press Communique (September 24, 1990) 306 Composition (as of September 24, 1990) 312 Press Announcement (September 27, 1990) 314 Attendance 315 Executive Directors, Alternates, and Advisors 338 List of Abbreviations Used 339 ©International Monetary Fund. Not for Redistribution STATEMENTS BY GOVERNORS Listed in Alphabetical Order by Country Page Afghanistan—Mohammad Hakim 111 Australia—Simon Crean 109 Austria—Ferdinand Lacina 61 Bangladesh—Mohammad Abdul Munim 160 Belgium—Philippe Maystadt 139 Brazil—Zelia Maria Cardoso de Mello 91 Bulgaria—/. Dragnevski 169 Canada—Monique Landry 127 Chile—Alejandro Foxley Rioseco 175 China—WANG Bingqian 52 Côte d'lvoire—Kablan D. Duncan 46 Czech and Slovak Federal Republic—Vaclav Klaus 102 Denmark—Niels Helveg Petersen 158 Dominica—Mary Eugenia Charles 147 El Salvador—Mirna Lievano de Marques 198 Fiji — J. N. Kamikamica 201 France — Pierre Beregovoy 38 Germany, Federal Republic of — Karl Otto Poehl 79 Greece — Efthimios Christodoulou 67 Honduras — Benjamin Villanueva 133 India — Madhu Dandavate 87 Indonesia — J.B. Sumarlin 33 Iran, Islamic Republic of — Mohsen Nourbakhsh 76 Iraq — Abdul Moneim Othman 190 Ireland — Albert Reynolds 115 Israel — Michael Bruno 63 Italy — Guido Carli 29 Japan — Ryutaro Hashimoto 40 Korea — Yung-Euy Chung 152 Kuwait— Sheikh Alt Al-Khalifa Al-Sabah 58 Lao People's Democratic Republic — Sisaveth Sisane 204 Malaysia — Daim Zainuddin 207 Malta — George Bonello du Puis 210 Namibia — Otto Herrigel 215 Nepal — Devendra Raj Panday 165 Netherlands— W. Kok 123 New Zealand — Richard Prebble 216 Pakistan — Sartaj Aziz 155 vii ©International Monetary Fund. Not for Redistribution viii STATEMENTS BY GOVERNORS Page Papua New Guinea — Morea Vele 220 Paraguay — Carlos Alberto Knapps 224 Peru — Juan Carlos Hurtado Miller 179 Philippines — Jesus P. Estanislao 56 Poland — Leszek Balcerowicz 187 Portugal — Luis Miguel Couceiro Pizarro Belaza 163 Romania — Theodor Dumitru Stolojan 194 Somalia — Abdirahman Jama Barre 99 South Africa — B.J. du Plessis 131 Spain — Carlos Solchaga 119 Sri Lanka — D. B. Wijetunga 143 Thailand — Virabongsa Ramangkura 106 Tonga — James Cecil Cocker 227 Turkey — Gunes Taner 112 United Kingdom — John Major 83 United States — Nicholas F. Brady 96 Viet Nam — Cao Si Kiem 192 Western Samoa — Tofilau Eti Alesana 196 Yugoslavia — Branimir Zekan 228 ©International Monetary Fund. Not for Redistribution INTRODUCTORY NOTE The Forty-Fifth Annual Meeting of the Board of Governors of the International Monetary Fund was held in Washington, D.C., from Septem- ber 25 through September 27, 1990, jointly with the Annual Meetings of the Boards of Governors of the World Bank Group. The Honorable George Saitoti, Governor of the Fund and the Bank for Kenya, served as Chairman. These Summary Proceedings include statements, or portions of statements, 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 communiques 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 Group 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 World Bank Group, issued separately by the Bank. Statements by the Governors are listed in alphabetical order by country on pages vii and viii, and a list of abbreviations used in the statements and documents is given on page 339. LEO VAN HOUTVEN Secretary International Monetary Fund Washington, D.C. November 30, 1990 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 STATES1 George Bush It really is a pleasure to be back with you this year, to welcome you all to Washington for this important work. And it is a particular pleasure today to welcome the new members from Bulgaria, the Czech and Slovak Federal Republic, and Namibia, and, of course, the special invitees from the Soviet Union. Your presence here reminds us all of how events of the past year are producing a new partnership of nations—a fundamental, indeed inspiring, change in the world's political and economic order.