§ 286u TITLE 22—FOREIGN RELATIONS AND INTERCOURSE Page 136

equipped with resources adequate to facilitate orderly

balance-of-payments adjustments; (2) persistent balance-of-payments surpluses in oil exporting countries

have placed, and will continue to place, severe strains

on the resources of oil importing countries and on the

liquidity of the Fund; (3) these strains can only be relieved if the oil exporting countries assume a greater

burden for financing balance-of-payments deficits

through direct methods of recycling their surpluses and

through proportionally greater contributions to the

Fund and to the international lending institutions; and

(4) the Fund must explore innovative proposals to encourage more direct recycling of oil surpluses and to

increase its own liquidity.’’

§ 286u. Dollar-Special Drawing Rights substitution account

It is the sense of the Congress that the Secretary of the Treasury and the United States

Executive Director of the Fund shall encourage

member countries of the Fund to negotiate a

dollar-Special Drawing Rights substitution account in which equitable burden sharing would

exist among participants in the account.

(July 31, 1945, ch. 339, §35, as added Pub. L.

96–389, §4(b), Oct. 7, 1980, 94 Stat. 1554; amended

Pub. L. 97–35, title XIII, §1371(a)(2), Aug. 13, 1981,

95 Stat. 746.)

AMENDMENTS

1981—Pub. L. 97–35 struck out reporting requirement

on progress toward achieving account.

EFFECTIVE DATE OF 1981 AMENDMENT

Amendment by Pub. L. 97–35 effective Aug. 13, 1981,

see section 1372 of Pub. L. 97–35, set out as an Effective

Date note under section 290i of this title.

EFFECTIVE DATE

Amendment by Pub. L. 96–389 effective Oct. 7, 1980,

see section 12 of Pub. L. 96–389, set out as a note under

section 286s of this title.

§ 286v. Membership for Taiwan in Fund

It is the sense of the Congress that it is the

policy of the United States that Taiwan (before

January 1, 1979, known as the Republic of China)

shall be granted appropriate membership in the

Fund and that the United States Executive Director of the Fund shall so notify the Fund.

(July 31, 1945, ch. 339, §36, as added Pub. L.

96–389, §6, Oct. 7, 1980, 94 Stat. 1554.)

EFFECTIVE DATE

Section effective Oct. 7, 1980, see section 12 of Pub. L.

96–389, set out as a note under section 286s of this title.

§ 286w. Denial of membership or other status in

Fund for Palestine Liberation Organization;

United States participation in Fund if membership or other status granted; report by

President to Congress

It is the policy of the United States that the

Palestine Liberation Organization should not be

given membership in the Fund or be given observer status or any other official status at any

meeting sponsored by or associated with the

Fund. The United States Executive Director of

the Fund shall promptly notify the Fund of such

policy.

In the event that the Fund provides either

membership, observer status, or any other official status to the Palestine Liberation Organization, such action would result in a serious diminution of United States support. Upon review of

such action, the President would be required to

report his recommendations to the Congress

with regard to any further United States participation in the Fund.

(July 31, 1945, ch. 339, §37, as added Pub. L.

96–389, §7, Oct. 7, 1980, 94 Stat. 1554.)

EFFECTIVE DATE

Section effective Oct. 7, 1980, see section 12 of Pub. L.

96–389, set out as a note under section 286s of this title.

§ 286x. Assistance to private sector of El Salvador, Nicaragua, and other nations

It is the sense of the Congress that in providing assistance through loans or other means to

any nation, in particular El Salvador and Nicaragua, the Fund and the Bank should encourage

programs which assist the private sector to create an environment which will stabilize the

economy of the nation; and that the United

States representatives to the Fund and the Bank

shall promote the use of assistance by the Fund

and the Bank to encourage such programs.

(July 31, 1945, ch. 339, §38, as added Pub. L.

96–389, §8, Oct. 7, 1980, 94 Stat. 1554.)

EFFECTIVE DATE

Section effective Oct. 7, 1980, see section 12 of Pub. L.

96–389, set out as a note under section 286s of this title.

§ 286y. Promoting conditions for exchange rate

stability

(a) In order to help assure that the resources

provided under section 286e–1i of this title are

used to support pro-growth policies which will

help establish the economic conditions necessary for more appropriate financial and exchange rate alignment and stability, it is the

sense of Congress that the Secretary of the

Treasury shall—

(1) in consultation with the Secretary of

State and the United States Trade Representative, initiate discussions with other countries

regarding the economic dislocations which result from structural exchange rate imbalances; and

(2) instruct the United States Executive Director of the Fund to work for adoption of

policies in the Fund, both within the framework of article IV (of the Articles of Agreement of the Fund) consultations and with respect to the conditions associated with Fundsupported balance of payments adjustments

programs, which promote conditions contributing to the stability of exchange rates and

avoid the manipulation of exchange rates between major currencies. Among other initiatives, the Secretary of the Treasury shall propose strengthening the article IV consultation

procedures of the Fund to attempt to ensure

that countries which are artificially maintaining undervalued or overvalued rates of exchange agree to adopt market determined exchange rates.

(b) In determining his vote on extensions of

assistance to any Fund borrower, the United