Page 135 TITLE 22—FOREIGN RELATIONS AND INTERCOURSE § 286t

(b) Changes in Fund guidelines, policies, and decisions; review prior to approval of standby

arrangements; coordination among institutions; coordination between Fund and Bank;

periodic analyses

To ensure the effectiveness of economic adjustment programs supported by Fund resources

and the reinforcement of those programs by

longer term efforts to promote sustained growth

and improved living conditions—

(1) United States representatives to the

Fund shall recommend and shall work for

changes in Fund guidelines, policies, and decisions that would—

(A) permit stand-by arrangements to be

extended beyond three years, as necessary to

enable Fund members to implement their

economic adjustment programs successfully;

(B) provide that in approving any economic adjustment program the Fund shall

take into account the effect such program

will have on jobs, investment, real per capita income, the gap in wealth between the

rich and poor, and social programs such as

health, housing, and education, in order to

seek to minimize the adverse impact of

those adjustment programs on basic human

needs; and

(C) provide that letters of intent submitted to the Fund in support of an economic

adjustment program reflect that the member country has taken into account the effect such program will have on the factors

listed in subparagraph (B);

(2)(A) before voting on the approval of any

standby arrangement with respect to any economic adjustment program, the United States

Executive Director shall review—

(i) any analysis of factors prepared by the

Fund or the member country in accordance

with subparagraphs (B) and (C) of paragraph

(1), or

(ii) if no such analysis is prepared and

available for such review, an analysis which

shall be prepared by the United States Governor of the Fund which examines the effect

of the program on the factors listed in subparagraph (B) of paragraph (1); and

(B) the United States Executive Director of

the Fund shall take into account the analysis

reviewed pursuant to subparagraph (A) of this

paragraph in voting on approval of that standby arrangement;

(3) United States representatives to the

Fund, to the Bank, and to other appropriate

institutions shall work toward improving coordination among these institutions and, in

particular, shall work toward formulation of

programs in association with economic adjustment programs supported by Fund resources

which (A) will, among other things, promote

employment, investment, real income per capita, improvements in income distribution, and

the objectives of social programs such as

health, housing, and education, and (B) will, to

the maximum extent feasible and consistent

with the borrowing country’s need to improve

its balance of payments position within a reasonable period, ameliorate any adverse effects

of economic adjustment programs on the poor;

(4) United States representatives to the

Fund and the Bank shall seek amendments to

decisions on policies on the use of Fund and

Bank resources to provide that, where countries are seeking Extended Fund Facility or

upper credit tranche drawings from the Fund

and are eligible to receive financing from the

Bank, the Fund and Bank will coordinate their

financing activities in order—

(A) to take into account the effects of economic adjustment programs on the areas

listed in clause (A) of paragraph (3),

(B) to provide, to the extent feasible, Bank

project loans designed to safeguard and further basic human needs in countries adopting economic adjustment programs supported by Fund resources, and

(C) to provide, as appropriate, Bank financing for programs of structural adjustment that will facilitate development of a

productive economic base and greater attainment of basic human needs objectives

over the longer term; and

(5) United States representatives to the

Fund and the Bank shall request the Fund and

the Bank to provide periodic analyses of the

effects of economic adjustment programs supported by Fund or Bank financing on jobs, investment, real income per capita, income distribution, and social programs such as health,

housing, and education.

(July 31, 1945, ch. 339, §33, as added Pub. L.

96–389, §2(a), Oct. 7, 1980, 94 Stat. 1551; amended

Pub. L. 101–240, title V, §541(d)(1), Dec. 19, 1989,

103 Stat. 2518.)

AMENDMENTS

1989—Subsec. (c). Pub. L. 101–240 struck out subsec.

(c) which required inclusion of statement detailing

progress made in carrying out subsecs. (a) and (b) requirements in Council’s annual report to Congress.

EFFECTIVE DATE

Section 12 of Pub. L. 96–389 provided that: ‘‘This Act

[enacting this section and sections 286e–1g and 286t to

286x of this title, amending sections 286e–1g, 286e–8, and

286e–9 of this title and section 27 of former Title 31,

Money and Finance, and enacting provisions set out as

notes under sections 286a and 286t of this title and section 822a of former Title 31] shall take effect on its date

of enactment [Oct. 7, 1980], except that funds may not

be appropriated under any authorization contained in

this Act for any period prior to October 1, 1980.’’

§ 286t. Omitted

CODIFICATION

Section, act July 31, 1945, ch. 339, §34, as added Oct.

7, 1980, Pub. L. 96–389, §4(b), 94 Stat. 1553, directed the

Secretary of the Treasury, in cooperation with the

United States Director of the Fund, to study and report

to Congress prior to May 15, 1981, with respect to adequacy of Fund resources and method of increasing Fund

liquidity, promotion of more direct recycling of oil surpluses, and methods of providing adequate resources for

balance-of-payments financing.

RECYCLING BALANCE-OF-PAYMENTS SURPLUSES BY OIL

EXPORTING COUNTRIES

Section 4(a) of Pub. L. 96–389 provided that: ‘‘It is the

sense of the Congress that (1) the interests of the

United States and those of other member countries require an effective International Monetary Fund
§ 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