UNITED NATIONS MONETARY AND FINANCIAL CONFERENCE

Bretton Woods, New Hampshire

July 1 to July 22, 1944

FINAL ACT

Having accepted the invitation extended to them by the Goverrment of the United States of America to be represented at a United Nations

Monetary and Financial Conference;

Appointed their respective delegates, who are listed below by countries in the order of alphabetical precedences

AUSTRALIA

Leslie G. Helville, Economic Adviser to the Conmonwealth Bank of

Austraila; Chairman of the Delegatior

James B. Brigden, Financial Counselor, Australian Legation, Wash-

BELGIUM
BOLIVIA

René Ballivián, Financial Counselor, Bolívian Embassy, Washing- ton; Chalrman of the Delegation

BRAZIL

Arthur de Souza Costa, Minister of Finance; Chairman of the Delom ranciato Alvos dos Santos-FIlho, Director of Foreign Exchange o the Bank of Brazil alentim Boucas ando ating conte a facil Comel anhano deram

Chief, Division of Economic and Financial Studies,

Ministry of Financa

Victor Azevedo Bastian, Director, Banco da Provincia do RIo Grande do Sul

CANADA

J. I. Ilsley, Minister of Finance; Chairman of the Delegation

Blanched S, Member of Parlament

w. A. Tucker, Member of Parlament

w. C. Clark,

Deputy Minister of Finance

G. F. Towers,

CHILE

Luis Alamos Barros, Director, Central Bank of Chile; Chairman of

CHINA

iang-Hsi K'ung, Vice President of Executive Juan and concurrent inister of Finance; Governor of the Central Bank of Chin

Chairman of the Delegation

:
'ingfu F. Isiang, Chief Political Secretary of Executive Juan orner Chinese Ambassador to the Union of Soviet Socialis 'ing-Wen Kuo, Vice Minister of Finance

Victor Hoo, Administrative Vice Minister of Foreign Affair:

Yee-Chun Koo, Vice Minister of Finance

- rector, he Cent a Bank, ocula, bars of con and Bant irector, the Central Bank of Communications

COLOMBIA

COSTA RICA

Francisco de P. Gutiérrez Ross, Ambassador to the United States;

former Minister of Finance and Commerce; Chairman of the

Delegation

Connerce; former Minister of Public Education

Fernanderde dal., Racer of Board of Directors, Chamber of

CUBA

E. I. Montouliou, Minister of Finance; Chairan Of the Delegation

CZECHOSLOVAKIA

Ladislav Feierabend, Minister of Finance; Chairuan of the Delega-

Ervin Hexner, Professor of Economics and Political Science, Uni- versity of North Carolina

DOMINICAN REPUBLIC

Anselmo Copello,

Ambassador to the United States; Chairman of the

Delegation
J. R. Rodriguez, Mintster Counselor, Embassy of the Dominican Repubm 11c, Washington

ECUADOR

Esteban F. Carbo, Financial Counselor, Ecuadoran Dabassy, Washing-

EGYPT

Sany Lackany Bey; Chairman of the Delogatio lahmoud Saleh El Falak

Ahmed Selin

EL SALVADOR

Agustin Alfaro Moran; Chairman of the Delogation

Raúl Gamero

Victor Manuel Valdes

ETHIOPIA

Blatta Iphrem Tewelde Medhen, Minister to the United States; Chair- nan of the Delegatio eorge A. Blowers, Governor, State Bank of Ethiopi

FRENCH DELEGATION

Plorre Mendes-France, Commissioner of Finance; Chairman of the Dolo- Andro stol, Techaical Cruselor to the Departent of Finance

Assistant Delegates ean de Largentaye, Finance Inspecto obert Mossé, Professor of Economic

Raoul Aglion, Legal Counselo:

André Paul Maury

GREECE
-.

:

GUATEMALA

HAITI

HONDURAS

ICELAND

Manuel Noriega Morales, Postgraduate Student in Economic Sciences,

Harvard University; Chairman of the Delegation

André Liautaud, Ambassador to the United States; Chairman of the

DeLegation

Pierre Chauvet, Under Secretary of State for Finance

Julián R. Cáceres, Ambassador to the United States; Chairnan of the

Delegation

Magnús Sigurdsson, Manager, National Bank of Iceland; Chairnan of logest legedeath, danager, Fishery kank of Icolan vanbjörn Frinannsson, Chairman, State Commerce Boar

INDIA

Sir Jereny Raianan, Member for Finance, Government of India; Chair-

A. De Shroff, Director, Tata Sons, Ita.

IRAN

Abol Hassan Ebtehaj, Governor of National Bank of Iran; Chairman of

IRAQ

Ibrahim Kamal, Senator and former Minister of Finance; Chairman of
LIBERIA

William E. Dennis, Secretary of the Treasury; Chairman of the Delem

LUXEMBOURG

Hugues le Gallats, Minister to the United States; Chairman of the

Delegation

MEXICO

NETHERLANDS

J. W. Beyen, Financial Adviser to the Netherlands Government; Chair- nan of the Delegatio . Crena de Iongh, President of the Board for the Netherlands Indies

NEW ZEALAND

NICARAGUA

Nalter Nash, Miniator of Finance; Minister to the United States;

23220

Gulllerno Sevilla Sacasa, Ambassador to the Unitod States; Chairman
aam

NORWAY

Wilhelm Keilhau, Director, Bank of Norway, p.t., London; Chairman of the Delegation

Ole Volbjornsen, Financial Counselor, Norwegian Embassy, Washington

Arne Skaug, Commercial Counselor, Norwegian Embassy, Washington

PANAMA

Guillermo Arango, President, Investors Service Corporation of Panama;

Chairman of the Delegation

Narciso E, Garay, First Secretary, Panamanian Embassy, Washington

PARAGUAY

Celso R. Velázquez, Ambassador to the United States; Chairman of the Delegation

Néstor M, Campos Kos, First Secretary, Paraguayan Embassy, Washing- ton

PERU

Pedro Beltrán, Ambassador-designate to the United States; Chairman of the Delegation

Manuel B. Liosa, Second Vice President of the Chamber of Deputies;

Deputy from Cerro de Pasco

Andrés F. Dasso, Senator from Lima

Alberto Alvarez Calderón, Senator from Lima

Juvenal Monge, Deputy from Cuzco

Juan Chávez, Minister, Commercial Counselor, Peruvian Embassy, Wash- ington

PHILIPPINE COMMONWEALTH

Colonel Andrés Soriano, Secretary of Finance of the Philippine Com- monwealth; Chairman of the Delegation

Jaime Hernandez, Auditor General of the Philippine Commonwealth

Joseph H, Foley, Manager, Philippine National Bank, New York Agency,

Pnilippine Commonwealth

POLAND

Ludwik Grosfeld, Minister of Finance; Chairman of the Delegation

Leon Barañski, Director General, Bank of Poland

Zygnunt Karpisiski, Director, Bank of Poland

Stanislaw Kirkor, Director, Ministry of Finance

Janusz Zóltowski, Financial Counselor, Polish Embassy, Washington

UNION OF SOUTH AFRICA

S. F, N, Gie, Minister to the United States; Chairman of the Dele- gation
. La Holloway,

UNION

OF SOVIET SOCIALIST REPUBLICS

Deputy People's Commissar of Foreign Trade; Chairman

P. A. Valetin,

I. D. Zlobin, Chief, Monetary Division of the People's Comnissariat of Finance

A, A, Arutiunian, Professor; Doctor of Economics; Expert-Consultant of the People's Commissariat for Foreign Affairs

A. P. Morozov, Member of the Collegium; Chief, Konetary Division of the People's Comnissariat for Foreign Trade

UNITED KINGDOW

UNITED STATES OF AMERICA

Henry Morgenthau, ix., Secretary of the Treasury; Chairman of the

Fred le Vinta, Director, orsice of Bcononic stablization; Yace ChaLr- ean Acheson, Assistant Secretary of Stat

Charles W. Tobey, United States Senate; lember, Committoe on Banking

Robert an Unto stato Jonase; chatman, camite co sakine

URUGUAY

Mario La Garma Acevedo, Expert, Ministry of Finance; Chairman of the

Delegation

Hugo García,

Financial Attaché, Uruguayan Embassy, Washington
:

VENEZUELA

YUGOSLAVIA

Vladimir Rybár, Counselor of the Yugoslav Eubassy, Washington; Chair- an of the Deegation

Tho met at Bretton Woods, New Hampshire, on July 1, 1944, under the lemporary Presidency of The Honorable Henry Morgenthau, Jr., Chairman of the Delegation of the United States of America.

The Honorable Henrik de Kauffmann, Danish Minister at Washington, at- tended the Inaugural Plenary Session in response to an invitation of the

Government of the United States to be present in a personal capacity. The

Conferenco, on the proposal of its Committee on Credentials, extended a gimilar invitation for the remaining sessions of the Conference.

bilitation Administration were each represented by one observer at the

Their representation vas in resporise to an

invitation of the Goverruent of the United States, and either the ob- servers or their alternates attended the subsequent sessions in accordance with the resolution presented by the Committee on Credentials and adopted by the Conference. The observers and their alternates are listed below:

ECONOMIC, FINANCIAL, AND TRANSIT DEPARTMENT OF THE LEAGUE OF NATIONS

Alexander Loveday, Director

Ragnar Nurkse; Alternate

INTERNATIONAL LABOR OFFICE

and holes, it ree and . J. Raches Actini Shot, ng titernates

UNITED NATIONS INTERIM COMMISSION ON FOOD AND AGRICULTURE

Edward Twentyman, Delegate from the United

Kingdom
UNITED NATIONS RELIEF AND REHABILITATION ADMINISTRATION

A. H. Feller, General Counsel; or

Mieczyslam Sokolowski, Financial Adviser

Warren Kelchner, Chief of the Division of International Conferences,

Department of State of the United States, was designated, with the approval

Committe pnear ted by the Cootered the following weabers of the General

CONMITTEE ON CREDENTIALS

• I. Montoulieu (Cuba), Chairma

• W. Beyen (Netherlands

S. F. N. Gie (South Africa)

Willian E. Dennis (Liberia)

#llhelm Keilhau (Norway)

COMMITTEE ON RULES AND REGULATIONS

Isiang-Hs1 K'ung (China)

Ludwik Grosfeld (Foland)

Leslie G. Melville (Australia,

Ibrahim Kamal (Iraq)

COMMITTEE ON NOMINATIONS

†
:

In accordance with the regulations adopted at the Second Plenary

Session, held on July 3, 1944,

the Conference elected a Steering Connit-

ee which was composed of the following Chairmen of Delerations

enry Morgenthau, Jr. (U.S.A.), Chairma amille Gutt (Belgium

Arthur de Souza Costa (Brazil)

'. I, Ilsley (Canada

Isiane-Hsi K'ung (China

Carlos Lleras Restrepo (Colombia)

Pierre Mendes-France (French Delegation)

Abol Hassan Ebtehaj (Iran)

Eduardo Suárez (Mexico)

M. S. Stepanor (U.S.S.R.)

Lord Keynes (U.K.)

in July 21, 1944, the Coordinating Committee was constituted wit he following membership

The Conference was divided into three Techrical Cormissions, The of jere Co teree Coate fisted belo their respaitive Committees, as electe

COMMISSION I

INTERNATIONAL MONETARY FUND

Chairman: Harry D. White (U.S.A.)

Vice Chairman:

Rodolfo Rojas (Venezuela)

Secreting PalerateD. 5ttnebover

I. Rasminsky (Canada)

Secretary:

Assistant Secretary:

Eleanor Lansing Dulles

Connittee 1 - Purposes, Policies,

and Quotas of the Fund

charan risest Kiang Charvaross (Greece)

Secretary: Willian Adams Brown, Jr.

Committee 2 - Operations of the Fund

Assistant Secretary: Alice Bourneuf
Committee 3 - Organization and Management

Chairman: Arthur de Souza Costa (Brazil)

Reporting Delegate:

Ervin Hexner (Czechoslovakia)

Secretary:

Assistant Secretary:

H. J. Bittermann

Conmittee 4 - Form and Status

of the Fund

Chairman: Manuel B. Llosa (Peru)

Secretary leone hardes i bysan

Wilhelm Keilhau (Norway)

Secretant SeCond i

Lauren Casaday

COMMISSION II

BANK FOR RECONSTHUCTION AND DEVELOPMENT

Chairman: Lord Keynes (U...)

Inis Alamos Barros (Chile)

Reporting Delegate: Georges Theunis (Belgium)

Secretary:

Secretary:

Arthur Smithies

Assistant Secretary: Ruth Russell

Committee 1 - Purposes, Policies, and Capital of the Bank

Chairman: J.W. Beyen (Netherlands)

Secreting Delegate:

J. Rafael Oreamuno (Costa Rica)

Secretary:

Ioung

Assistant Secretary:

Janet Sundelson

Committee 2 - Operations of the Bank

Chairman: E. I. Montoulieu (Cuba)

Reporting Delezate: i+

James B. Brigden (Australla)

Secretary:

Bit termann

Assistant Secretary:

Ruth Russell

Conmittee 3 - Organization and Management

Chairman: Miguel López Punarejo (Colombia)

Reporting Delegate:

Secretary:

l. H. de Kock (South Africa,

Mordecai Ezekiel

Assistant Secretary:

Captain William I. Ullmann

Committee 4 - Form and Status of the Bank

Chairman: Sir Chintaman D. Deshmukh (India)

Reporting Delegate:

Leon Barański (Poland)

Secretary:

Henry Edniston

Assistant Secretary:

Colonel Charles H. Dyson
"

COMMISSION III

OTHER MEANS OF INTERNATIONAL FINANCIAL COOPERATION

Alan G, B. Fisher (New Zealand)

tive Comnissions

INTERNATIONAL MONETARY FUND

Articles of Agreement of the International Monetary Fund, which are attached hereto as Annex A.

INTERNATIONAL

BANK FOR RECONSIRUCTION AND DEVELOPMENT

Irticles of Agreenent of the International Bank for Recon truction and Development, which are attached hereto as Annex B unmary of the Agreements in Annex A and Annex B, which i ttached hereto as Annex C

The following resolutions, statement, and recommendations were adopted:

I

PREFARATION OF THE FINAL ACT

The United Nations Monetary and Financial Conference

RESOLVES:

That the Secretariat be authorized to prepare the final Act in accord ance with the suggestions proposed by the Secretary General in Journal

No. 19, illy 19, 1944;

hat the Final Act contain the definitive texts of the conclusions aj nored at the losing Penary estongion, and that no changes be mac mit it to the Coned ratiar astoo rerson the text and, is approved, sub
II

PUBLICATION OF DOCUMENTATION

The United Nations Monetary and Financial Conference

RESOLVES:

III

NOTIFICATION OF SIGNATURES AND CUSTODY OF DEPOSITS

The United Nationa Monetary and Financial Conference

RESOLVES:

Io request the Government of the United States of America

STATEMENT REGARDING SILVER

:
V

LIQUIDATION OF THE BANK FOR INTERNATIONAL SETTLEMENTS

The United Nations Monetary and Financial Conference

RECOMMENDS:

The liquidation of the Bank for International Settlements at the earliest possible moment.

VI

ENEMY ASSETS AND LOOTED PROPERTY

Whereas, in anticipation of their impending defeat, enemy leaders, enemy nationals and their collaborators are transferring assets to and through neutral countries in order to conceal then and to perpetuate their influence, power, and ability to plan future aggrandizement and world domination, thus jeopardizing the efforts of the United Nations to estab lish and permanently maintain peaceful international relations;

Whereas, enemy countries and their nationals have taken the property of occupied countries and their nationals by open looting and plunder, by forcing transfers under duress, as well as by subtle and complex devices, often operated through the agency of their puppet governments, to give the cloak of legality to their robbery and to secure ownership and control of enterprises in the post-war period;

whereas, enemy countries and their nationals have also, through sales and other methods of transfer, run the chain of their overship and con- trol through occupied and neutral countries,

thus making the problem of

disclosure and disentanglement one of international character;

Whereas, the United Nations have declared their intention to do their utmost to defeat the methods of dispossession practiced by the enemy, have reserved their right to declare invalid any transfers of property belong- ing to persons within occupied territory, and have taken measures to pro- posal of looted property in United Nations markets; therefore

The United Nations Monetary and Financial Conference

1. Takes note of and fully supports steps taken by the United Nations for the purpose of:

uncovering, segregating, controlling, and making appropriate disposi- tion of enemy assets;

(b)

preventing the liquidation of property looted by the enemy, locating and tracing ownership and control of such looted property,

and tak-

ung appropriate measures with & view to restoration to its lawful owners;
2. RECOMMENDS:

That 211 Governments of countries represented at this Conference take action consistent with their relations with the countries at war to call upon the Goverrments of neutral countries o take immediate measures to prevent any disposition or transfer with n territories subject to their jurisdiction of an (1)

assets belonging to the Government or any individuals or institutions within those United Nations occupied by the enemy; and

2) Looted gola, currency, art objects, securities, other evidence doted by the clan or business enterprises, and of othe within territory subject to their jurisdiction;

) ande belongine or all ond to belong to, one copermont of

12) 3002 lot are to, or alley ed to belong to, enay adora, their to facilitate their ultimate delivery to the post-armistice authori- ties.

VII

INTERNATIONAL, ECONOMIC PROBLEMS

The United Nations Monetary and Financial Conference

RECOMMENDS:

10 the participating Governments that, in addition to implementing the specific monetary and financial measures which were the subject of
this Conference, they seek, with a view to creating in the field of international economic relations conditions necessary for the attainment of the purposes of the Fund and of the broader primary objectives of eco.

nomic policy, to reach agreement as soon as possible on ways and mean:

whereby they may best:

1) reduce obstacies to international trade and in other ways pro ote mutually advantageous international conmercial relation:

(2) bring about the orderly marketing of staple cormodities at prices fair to the producer and consuner alike;

(3) deal with the special problens of international concern whic will arise from the cessation of production for war purposes; and employment and progressively rising standards of living.

VIII

The United Nations Monetary and Financial Conference

RESOLVES:

To express its gratitude to the President of the United States

Franklin D. Roosevelt, for his initiative in convening the present Cor ference and for its preparation;

1ta dep ap rees to dr preten the done an Hack no as hay, d.., the Conference;
IN WITNESS WHEREOF, the following delegates sign the present Final

Act,

Authorities represented at the Conference.

FOR AUSTRALIAs

de. Malite

For purpose of certification

FOR BELGIUMS

FOR BOLIVIAS

Savinas

FOR BRAZIL:

FOR CANADA:

FOR CHILE:

FCR CHINA:

pire draman 4 72 77

熙

King He any Wei
FOR COLOMBIA:

FOR COSTA RICA:

funded

FOR CUBA:

FOR CZECHOSLOVAKIA:

FOR THE DOMINICAN REPUBLIC:

FOR ECUADOR:

Fifasters

POR EGYPT: ' Lacke

Sirene

FOR EL SALVADOR:

FOR ETHIOPIA:

Ерваеш 1. Meshen

FOR THE FRENCH DELEGATION:

Athbank
FOR GRENCES

FOR GUATEMALA:

# Vasaresso

On marigo

FOR HAITI:

FOR HONDURAS:

FOR ICELAND:

FOR INDIA:

FOR IRAQ:

FOR LIBERIA:

Stratin Kamal

Cassimpe-

FOR LUXEMBOURG:
REPUBLICS:

FOR THE UNITED KINGDOM:

Keyus

FOR URUGUAY:

FOR VENEZUELA:

The Venezuelan Delogation wishes to express that its
FOR YUGOSLAVIA:

Warrentelche

WARREN KELCHNER

SECRETARY GENERAL
Annex A

ARTICLES OF AGREEMENT OF THE

INTERNATIONAL MONETART FUND

The Governments on whose behalf the present Agreement is signed agree as follows:

INTRODUCTOHY ARTICLE

The International Monetary Fund is established and shall operate in accordance with the following provisions:

ARTICLE I

PURPOSES

The purposes of the International Monetary Fund are:

(1) To eat sea an

tive exchange depreciation.

In accordance with the above, to shorten the duration anc balances payee de of mubarb. we in the Internationa
1

The Fund shall be guided in all its decisions by the purposes set forth in this Article.

ARTICLE II

MENBERSHIP

Section 1. Original members

The original members of the fund shall be those of the countries rep- resented at the United Nations Monetary and Financial Conference whose gov ernments accept membership before the date specified in Articla XX, Sec- Section 2. Other members

Membership shall be open to the governments of other countries at suct times and in accordance with such terms as may be prescribed by the Fund

ARTICLE III

QUOTAS AND SUBSCRIPTIONS

section 1. quotas

Each member shall be assigned a quota. The quotas of the members rep 'esented at the United Nations Monetary and Financial Conference which ac be determined by the Fund.

section 2. Adjustrent of quotas

The Fund shall at intervals of five years revien, and if it deans it appropriate propose an adjustment of, the quotas of the members. It may quotas and no quota shall be changed without the consent of the member

Section 3. Subscriptions: time, Place, and form of payment

a) Ine subscription oi each member shall be equal to its quota ar hall be paid in full to the Fund at the appropriate depository on or be fore the date when the member becomes eligible under Article XX, Sec- tion 4(c) or (d), to buy currencies from the Fund.

(b)

Each member shall pay in gold, as a minimum, the smaller of
1

(i)

twenty-five percent of its quota; or (11)

Each member shall furnish to the Fund the data necessary to determine it:

net official holdings of gold and United States dollars.

(e) Each member shall pay the balance of its quota in its own cur- rency.

(d) Il the net official holdings of gold and United States dollara of any member as at the date referred to in (b) (it) above are not ascer- tainable because its territories have been occupied by the eneny, the

Fund shall fix an appropriate alternative date for determining such hoid- If such date is later than that

on which the country becomes eligi-

ble under Article XX, Section 4(c) or (d), to buy currencies from the Fund, the Fund and the member shall agree on a provisional gold payment to be made under (b) above, and the balance of the member's subscription shall be paid in the member's currancy, subject to appropriate adjustment be- tween the member and the fund when the net official holdings have been ascertained.

Section 4. Payments when quotas are changed

If, however, on the date when the member consents to an increase, its onetary reserves are less than its new quota, the fund may reduce the roportion of the increase to be paid in gold.

(b) If a member consents to a reduction in its quota, the Fund shall, within thirty days siter the date of the consent ber an amount equal to the reduction.

The payment shall be made in th

member's currency and in such amount of gold as may be necessary to pre- vent reducing the Fund's holdings of the currency below seventy-five per- cent of the new quota.

Section 5. Substitution of securities for currency member's currency which

accoin reager the fund of aot peeded or its

postory designed by tid menbe ander Are it enter 2, the de snall be non-negotiable, value on demand by crediting the account of the Fund in the designated

This Section shall apply not only to currency subscribed by

members but also to any currency otherwise due to, or acquired by, the

Fund.
ARTICLE IV

PAR VALUES OF CURRENCIES

Section 1. Expression of par values (&) The par value of the currency of each member shall be expressed in terms of gold as a common denominator or in terms of the United States dollar of the weight and fineness in effect on July 1, 1944.

(b) All computations relating to currencies of members for the pur- pose of applying the provisions of this Agreement shall be on the basis of their par values,

Section 2, Gold purchases based on par values

The Fund shall prescribe a margin above and below par value for transactions in gold by members, and no member shall buy gold at a price above par value plus the prescribed margin, or sell gold at a price below par value minus the prescribed margin.

Section 3. Foreign exchange dealings based on it

The maximum and the minimum rates for exchange transactions between the currencies of members taking place within their territories shall not differ from parity.

(i) in the case of spot exchange transactions, by more than one percent; and (ii) in the case of other exchange transactions, by a margin which exceeds the margin for spot exchange transactions by more than the Fund considers reasonable.

Section 4. Obligations regarding exchange stability (a) Each member undertakes to collaborate with the Fund to promote exchange stability, to maintain orderly exchange arrangements with other members, and to avoid competitive exchange alterations.

(b) Each member undertakes, through appropriate measures consistent with this Agreement, to permit within its territories exchange transactions between its currency and the currencies of other members only within the limits prescribed under Section 3 of this Article. A member whose mone- tary authorities, for the settlement of international transactions, in fact freely buy and sell gold within the limits prescribed by the Fund under

Section 2 of this Article shall be deemed to be fulfilling this undertak- ing.

Section 5. Changes in par values (a) À member shall not propose a change in the par value of its cur- rency except to correct a fundamenta] disequilibrium.
(b) A change in the par value of a member's currency may be made only on the proposal of the member and only after consultation with the

Fund.

(c) When a change is proposed, the Fund shall first take into ac-

(1)

does not exceed ten percent of the initial par value, ti und shall raise no objectio

（i1i） is not within (1) or (il) above, the Fund may either con ut or object, but shall be entitled to a longer perio in mich to declare its attitude.

(d) Uniform changes in par values made under Section 7 of this

Article shall not be taken into account in determining whether a proposed change falls within (1), (11), or (iii) of (c) above.

ransactions of members of the Fund

Section 6. Effect of unauthorized changes

otherwise determines; and if, after the expiration of a reasonable period, the difference between the member and the Fund continues, the matter shall be subject to the provisions of Article XV, Section 2(b).

Section 7. Uniform changes in par values

Notwithstanding the provisions of Section 5(b) of this Article, the

Fund by a majority of the total voting power may make uniform propor- ionato changes in the par values of the currencies of all members, pro vided each such change 1s approved by every member which has ten percent or more of the total of the quotas.

The par value of a member's currency

snall, horever, not be changed under this provision if, within seventy-two
hours of the Fund's actior, the member informs the Fund that it does not wish the par value of its currency to be changed by such action.

Section 8. Maintenance of gold value of the Fund's assets (a) The gold value of the Fund's assets shall be maintained notwithstanding changes in the par or foreign exchange value of the currency of any member, (b) Whenever (i) the par value of a member's currency is reduced, or (ii) the foreign exchange value of a member's currency has, in the opinion of the Fund, depreciated to a significant extent within that member's territories, the member shall pay to the Fund within a reasonable time an amount of its own currency equal to the reduction in the gold value of its currency held by the Fund.

(c) Whenever the par value of a member's currency is increased, the

Fund shall return to such member within a reasonable time an amount ín its currency equal to the increase in the gold value of its currency held by the Fund.

(d) The provisions of this Section shall apply to a uniform propor- tionate change in the par values of the currencies of all members, unless &t the tine when such a change is proposed the Fund decides otherwise,

Section 9. Separate currencies within a member's territories

A member proposing a change in the par value of its currency shall be deemed, unless it declares otherwise, to be proposing a corresponding change in the par value of the separate currencies of all territories in respect of which it has accepted this Agreement under Article XX, Sec- tion 2(g). It shall, however, be open to a member to declare that its proposal relates either to the metropolitan currency alone, or only to one or more specified separate currencies, or to the metropolitan currency and one or more specified separate currencies.

ARTICIE V

TRANSACTIONS WITH THE FUND

Section 1. Agencies dealing with the Fund

Each member shall deal with the Fund only through its Treasury, cen- tral bank, stabilization fund or other similar fiscal agency and the Fund shall deal only with or through the same agencies,

Section 2. Limitation on the Fund's operations

Except a8 otherwise provided in this Agreement, operations on the account of the Fund shall be limited to transactions for the purpose of supplying a member, on the initiative of such member, with the currency of another member in exchange for gold or for the currency of the member de- siring to make the purchase.
Section 3. Conditions governing use of the fund's resources ing conditions

The member desiring to purchase the currency represents that it is presently needed for making in that currency payments which are consistent with the provisions of this (11)

The Fund has not given notice under Articlo VII, Section 3

Cat its holdings of the currency destred have become

(iv)

The proposed purchase would not cause the Fund's holdings of the purchasing member's currency to increase by more than twenty-five percent of its quota during the period of twelve months ending on the date of the purchase nor to exceed two hundred percent of its quota, but the twenty- five percent limitation shall apply only to the extent that the Fund's holdings of the member's currency have been brought above seventy-five percent of its quota if they had been below that amount;

The Fund has not previously declared under Section 5 of this Article, Article IV

Section 6, Article VI, Section 1,

or Article XV, Section 2(a), that the menber desiring to purchase is ineligible to use the resources of the Fund.

(b) A member shall not be entitled without the permission of the

Fund to use the Fund's resources to acquire currency to hold against for- ward exchange transactions.

Section 4. Maiver of conditions

The Fund may in its discretion, and on terms which safeguard its in- terests, waive any of the conditions prescribed in Section 3(a) of this

Article, especially in the case oi members with a record of avoidin large or continuous use of the Fund's resources.

shall take into consideration periodic or exceptional reguirements of the member requesting the waiver.

The Fund shall also take into considera-

tion a member's willingness to pledge as collateral security gold, silver, securities, or other acceptable assets having a value sufficient in the opiuion of the Fund to protect its interests and may require as a condi- tion of waiver the pledge of guch collateral security.

Section 5. Ineligibility to use the Fund's resources

Whenever the Fund is of the opinion that any member is using the re- sources of the Fund in a manner contrary to the purposes of the Fund, it hall present to the member a report setting forth the views of the Func and prescribing a suitable time for reply.

After presenting such a re-

port to a member, the Fund may limit the use of its resources by the
the resources of the Fund.

Section 6. Purchases of currencies from the Fund for gold

ita territories.

section 7. Repurchase by a member of Its currency hold by the fund

22227

that has occurred during the year in the member's monetar reserves.

This rule shall not apply when a member's mone.

cary reserves have decreased during the year by more thai he Fund's holdings of its currency have increased

of that currency with other members or persons in their territories, the menber whose holdings of such currency (or gold) have thus increased shall use the increase to repurchase its own currency from the Fund.

(c) None of the adjustments described in (b) above shall be carried to a point at which

（i the member's monetary reserves are below its quota, or （ ） the fund's holdings of its currency are below seventy-five percent of its quota, or
(iii) the Fund's holdings of any currency required to be used are above seventy-five percent of the quota of the member concerned,

Section 8. Charges (a) Any member buying the currency of another member from the Fund in exchange for its own currency shall pay & service charge uniform for all members of three-fourths percent in addition to the parity price. The

Fund in its discretion may increase this service charge to not more than one percent or reduce it to not less than one-half percent.

(b) The Fund may levy & reasonable handling charge on any member buying gold from the Fund or selling gold to the Fund, (c) The Fund shall levy charges uniform for all members which shall be payable by any member on the average daily balances of its currency held by the Fund in excess of its quota, These charges shall be at the following rates:

(i) On amounts not more than twenty-five percent in excess of the quota: no charge for the first three months; one-half percent per annum for the next nine months; and thereafter an increase in the charge of one-half percent for each subsequent year, (ii) On amounts more than twenty-five percent and not more than fifty percent in excess of the quota: an additional one- half percent for the first year; and an additional one-half percent for each subsequent year, (iii) On each additional bracket of twenty-five percent in excess of the quota: an additional one-half percent for the first year; and an additional one-half percent for each subse- quent year, (d) Whenever the Fund's holdings of a member's currency are such that the charge applicable to any bracket for any period has reached the rate of four percent per annum, the Fund and the member shall consider means by which the Fund's holdings of the currency can be reduced, There~ after, the charges shall rise in accordance with the provisions of (c)

&bove until they reach five percent and failing agreement, the Fund may then impose such charges as it deems appropriate.

(e) The rates referred to in (c) and (d) above may be changed by a three-fourths majority of the total voting power.

(f) All charges shall be paid in gold. If, however, the member's monetary reserves are less than one-half of its quota, it shall pay in gold only that proportion of the charges due which such reserves bear to one-half of its quota, and shall pay the balance in its own currency.
ARTICLE VI

CAPITAL TRANSFERS

Section 1. Use of the Fund's resources for capital transfere

a) A member may not make net use of the Fund's resources to meet arge or sustained outflow of capital, and the Fund may request a membe

(b) Nothing in this Section shall be deemed (i) to prevent the use of the resources of the Fund for capital transactions of reasonable amount required for the expansion of exports or in the ordinary course of trade, banking or other business, OF to affect capital movements which are met out of a member's own resources of gold and foreign exchange, but members undertake that such capital movements will be in accordance with the purposes of the Fund.

Section 2. Special provisions for capital transfers

Il the Fund's holdings of the currency of a member have remained belon seventy-five percent of its quota for an inmediately preceding period f not less than six months, such member, if it has not been declared inligible to use the resources of the Fund under Section 1 of this Article, irticle IV, Section 6, Article V, Section 5,

or Article XV, Section 2(a),

hall be entitlad, notwithstanding the provisions of Section I(a) of thie

Article, to buy the currency of another member from the Fund with its own currency for any purpose, including capital transfers. Purchases for capital transfers under this Section shall not, however, be permitted if they have the effect of raising the Fund's holdings of the currency of the member desiring to purchase above seventy-fiva percent of its quota, or of reducing the Fund's holdings of the currency desired below seventy-five percent of the quota of the member whose currency is desired.

Section 3.

Controls of capital transfers

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ARTICLE VII

SCARCE CURRENCIES

Section 1. General scarcity of currency

involved stato parencipate in ese preparation or endereporte

Section 2.

Measures to replenish the Fund's holdings of scarce currencies

The Fund may,

if it deems such action appropriate to replenish its

holdings of any member's currency, take either or both of the following steps:

(1) Propose to the member that, on terms and conditions agreed betay to the undor the when the and emer

the latter lend its cur-

ber, the Fund borrow such currency from some other source either within or outside the territories of the member, but no member shall be under any obligation to make such loans to the Fund or to approve the borrowing of its cur- rency by the Fund from any other source.

(11)

Require the member to sell its currency to the Fund for gold.

Section 3. Scarcity of the Fund's holdings (a) If it becomes evident to the Fund that the demand for a member's currency seriougly threatens the fund's ability to supply that currency, the Fund, whether or not it has issued a report under Section 1 of this

Article, shall formally declare such currency scarce and shall thence- forth apportion its existing and

accruing supply of the scarce currency

vith due regard to the relative needs of members, the general interna- tional economic situation and any other pertinent considerations.

Fund shall also issue a ruport concerning its action.

The

(0)

A formal declaration under (a) above shall operate as an author- ization to any member, after consultation with the Fund, temporarily to impose limitations on the freedom of exchange operations in the scarce currency.

Subject to the provisions of Article IV, Sections 3 and 4, the

nember shall have complete jurisdiction in determining the nature of such limitations, but they shall be no more restrictive than is necessary to limit the demand for the scarce currency to the supply held by, or accru- ing to, the member in question; and they shall be relaxed and removed as rapidly as conditions permit.

(C) The authorization under (b) above shall expire whenever the Fund formally declares the currency in question to be no longer scarce.
1

Section 4. Administration of restrictions other ay per ber impatie pest proton in secto tourne Are hall give sympathetic consideration to any representations by the othe rember regarding the administration of such restrictions.

Section 5. Effect of other international agreements on restrictions

ARTICLE VIII

GENERAL OBLIGATIONS OF MEMBERS

Section 1. Introduction

In addition to the obligations assumed under other articles of thi:

greement, each member undertakes the obligations set out in this Article.

Section 2. Avoidance of restrictions er current payments

Article x, sect to a noraser old, athout the appoor he Fund, impose restrictions on the making of payments and transfers for current (b) Exchange contracts which involve the currency of any member an hich are contrary to the exchange control regulations of that member

Section 3. Avoidance of discriminatory currency practices

No member shall engage in, or permit any of its fiscal agencies referred to in Article V, Section 1, to engage in, any discriminatory currency arrangements or multiple currency practices except as authorized under thia Agreement or approved by the Fund. If such arrangements and practices are engaged in at the date when this Agreement enters into force the member concerned shail consult with the Fund as to their pro- ressive removal unless they are maintained or Imposed under Article XIV,

Section 2, in which case the provisions of Section 4 of that Article shall apply.

Section 4. ConvertIbility of foreign held balances

Each member shall buy balances of its currency held by another member if the latter,

in requesting the purchase, represents
1) that the balances to be bought have been recently ac.

quired as a result of current transactions; or

11) that their conversion is needed for making payments fo urrent transactions

The buying member shall have the option to pay either in the currency o he member making the request or in gold (b) The obligation in (a) above shall not apply

(2) when the convertibility of the balances has been restricte consistently with Section 2 of this Article, or Article VI

Section 3; or

(11) when the balances have accumulated as & result of trans- actions effected before the renoval by a member of restric- tions maintained or imposed under Article XIV, Section 2;

(111) When the balances have been acquired contrary to the ex- change regulations of the member which is asked to buy them; or (iv) when the currency of the member requesting the purchase has been declared scarce under Article VII, Section 3(a);

V) when the member requested to make the purchase is for an reason not

• entitled to buy currencies of other members from the Fund for its own currency.

Section 5. Furnishing of information

a) The fund may require members to furnish it with such informa ion as it deems necessary for its operations, including, as the minimu oncene to for te netfertive discharge of the Fund's dutles, national data (i) Official holdings at home and abroad, of (1) gola, (2)

Ioreign exchange.

(i1)

Hoa, at home and abay bak or a eign exchange.

(111)

Production of gold.

Gold exports and imports according to countries of destina- tion and origin.
(vii)

222200 (vill)

National income.

(ix)

Price indices, i.e., Indices oi conmodity prices in wholesale and retail markets and of export and import prices.

(x)

Buying and selling rates for foreign currencies.

(xi)

Exchange controls, i.s., a comprehensive statement of exchange controls in effect at the time of assuming membership in the Fund and details of subsequent changes as they occur.

(xil)

Where official clearing arrangements exist, details of amounts awaiting clearance in respect of connercial and financial transactions,

and of the length of time during

which such arrears have been outstanding.

Members undertake,

rith members.

embers Fud mail areas to entren furthe collection and agree of

thus lacilitating the prepa-

Section 6. Consultation between members regarding existing international

agreements

Where under this Agreement a member is authorized in the special or temporary circumstances apecified in the Agreement to maintain or establish restrictions on exchange transactions, and there are other engagenents between members entered into prior to this Agreement which conflict with the pplication of such restrictions, the parties to such engagementa will con ult with one another with & view to making such mutually acceptable adjustments as may be necessary, The provisions of this Article shall be with-
ARTICLE IX

STATUS, IMMUNITIES AND PRIVILEGES

Section 1. Purposes of Article hall be accorded to the Fund in the territories of each member section 2. Status of the Fund lar, the Supd shall poses full juridical porsonality, and, in partica- (i) to contract;

(11) to acquire and dispose of immorable and movable property;

(I11) to institute legal proceedings.

Section 3. Immunity from judicial process

The Fund, its property and its assets, wherever located and by whom soever held, shall enjoy immunity from every fora of judicial proces:

xcept to the extent that it expressly waives its immunity for the pur.

ose of any proceedings or by the terns of any contract

Section 4. Immunity frora other action

Section 5. Imunity of archives

The archives of the Fund shall be inviolable.

Section 6. Freedom of assets from restrictions unso forthe at already to carry do the pun to be ted for restrictions, regulations, controls and moratoria of any nature.

Section 7. Privilege for conmunicatione
Section 8.

Immunitles and privileges of officers and employees

All governors, executive directors, alternates, officers and employees of the Fund

(1)

(i11) shall be granted the sane treatment in respect of travelling facilitles as is accorded by members to representatives, 0fficiais and employeas of comparable rank of other members.

Sectior: 9. Immunitles fron taxation

(c) No taxation of any kind shall be levied on any obligation oi oy curam issued by the Fund, including any dividend or interest thereon,

(1) which discriminates against such obligation or security solely because of Its origin; or

Section 10. Application of Article

Each member shell take such action as is necessary in its om territories for the purpose of making effective in terns of its omi lam the principles set forth in this Article and shall inform the Fund of the detailed action which it has taken.
ARTICLE X

RELATIONS WITH OTHER INTERNATIONAL

ORGANIZATIONS

The fund shall cooperate within the terns of this Agreement with any general international organization and with public international organi-

ARTICLE XI

RELATIONS WITH NON-MEMBER COUNTRIES

Section 1. Undertakings regarding relations with non-member countries

Each member undertakes:

provisione of this Agreement or the purposes of the Fund;

(iii)

entrary to the provisions of this Agreement or the pu ges of the Fund; al

Io cooperate with the Fund with a view to the applicatio i its territories of appropriate measuras to prever

Section 2. Restrictions on transactions with non-member countries

ARTICLE XII

ORGANIZATION AND MANAGEMENT

Section 1. Structure of the Fund

The Fund shall have a Board of Governors, Executive Directors, e

Managing Director and a staff.
Section 2.

Board of Governors (a) All powera of the Fund shall be vested in the Board of Governors, consisting of one governor and one alternate appointed by each member in such manner as it may determine. Each governor and each alternate shall or mate a pod. No triate a use apt an the absence or is principal. The Board shall select one of the governors as chairan.

(b) The Board of Governors nay delegate to the Executive Director authority to exercise any powers of the Board, except the power tos

(1) Admit new members and determine the conditions of their ad mission.

(II) Approve a revision of quotas.

111) Approve a uniform change in the par value of the currencie { all members (iv) Hake arrangenents to cooperate with other international organizations (other than infornal arrangements of a temporary or administrative character).

(V) Determine the distribution d the not income of the Fund.

(vi) Require a member to mitharam.

(V11) Decide to Iiquidate the Fund.

111) Decido appeals from interpretations of this Agreement giv

• the Executive Director

meeting) aBode po Good for by he Boad or Called By the Beth other

Meetings of the Board shall be called by the Directors whenever

eng pated by are members or by mabers having one quarter of the total vot bajorday a giorgo for as exercisin not dancer one a roting power.

(0) Each governor shall be entitled to cast the number of votes al.

Lotted under Section 5 of this Article to the member appointing him.

1) The Board of Governors may by regulation establish a procedur hereby the Executive Directors, when they deen such action to be in th est interests of the Fund, may obtain a vote of the governors on a specifi uestion without calling a meeting of the Board

(h) Governors and alternates shall serve as such without compensation from the Fund, but the Fund shall pay them reasonable expenses incurred
1

in attending meetings.

The Board of Governors shall determine the remuneration to be paid to the Executive Directors and the salary and terms of the contract of service of the Managing Director.

Section 3. Executive Directors

(b) There shall be not less than twelve directors who need not be governors, and of whom

(1) Five shall be appointed by the five menbers having the largest quotas;

(11) Not more than two shall be appointed when the provisions of (c) below apply;

oint directors. ‹ (IV) Iwo shall be elected by the American Republics not entitled to appoint directors.

or the purposes of thig paragraph.

accordance with Article XX or in accordance with Article II, Section 2.

When governments of other countries become members, the Board of Governors may, by a four-fifths majority of the total voting power, increase the number of directors to be elected.

(C) IS, at the second regular election of directors and thereafter, the members entitled to appoint directors under (b) (1) above do not in- clude the two members, the holdings of whose currencies by the Fund have been, on the average over the preceding two years, reduced below their quotas by the largest absolute amounts in terms of gold as a conmon denominator, either one or both of such members, as the case may be, shall be entitled to appoint a director.

(d) Subject to Article XX, Section 3(b) elections of elective di- rectors shall be conducted at intervals of tro years in accordance with the provisions of Schedule C, supplemented by such regulations as the Func leems appropriate. Whenever the Board of Governors Increases the number of directors to be elected under (b) above, it shall issue regulations making appropriate changes in the proportion of votes required to elect directors under the provisions of Schedule C.

(e) Each director shall appoint an alternate with full power to act for him when he is not present.

When the directors appointing them are

present, alternates may perticipate in meetings but may not vote.
(I) Directors shall continue in office until their successors are ap-

Il the office of an elected director becomes vacant

more than ninety days before the end of his term, another director shall be elected for the remainder of the term by the members who elected the former director. A majority of the votes cast shall be required for election.

While the office remains vacant, the alternate of the former director shall exercise his powers, except that of appointing an alternate.

(g) The Executive Directors shall function in continuous session at the principal office of the Fund and shall meet as often as the business of the Fund may require.

A quorum for any meeting of the Executive Directors shall be a majority of the directors representing not less than one half of the voting power.

(1) Each appointed director shall be entitled to cast the number of votes allotted under Section 5 of this Article to the member appointing him.

Hach elected director shall be entitled to cast the number of votes which counted towards his election.

When the provigions of Section 5(b) of this

Article are applicable, the votes which a director would otherwise be entitled to cast shall be increased or decreased correspondingly.

votes which a director is entitled to cast shall be cast as a unit.

(j) The Board of Governors shall adopt regulations under which a menber not entitled to appoint a director under (b) above may send a representative to attend any meeting of the Executive Directors when a request made by, or a matter particularly affecting, that member is under consideration.

(k)

The Executive Directors may appoint such committees as they deen advisable.

Membership of conmittees need not be limited to governors or

directors or their alternates.

Section 4. Managing Director and staff (a) The Executive Directors shall select a Managing Director who shall not be a governor or an executive director.

The Managing Director shall be

chairman of the Executive Directors, but shall have no vote except a deciding vote in case of an equal division. He may participate in meetings of the Board of Governora, but shall not vote at such meetings. The Hanaging

Director shall cease to hold office when the Executive Directors so decide.
(d) In sppointing the staff the Managing Director shall, subject to the paramount importance of securing the highest standards of effi- ciency and of technical competence, pay due regard to the importance of recruiting personnel on as wide a geographical basis as possible.

Section 5. Voting (a) Each member shall have two hundred fifty votes plus one addi- tional vote for each part of its quota equivalent to one hundred thousand

United States dollars, (b) Whenever voting is required under Article V, Section 4 or 5, each member shall have the number of votes to which it is entitled under (a) above, adjusted:

(i) by the addition of one vote for the equivalent of each four hundred thousand United States dollars of net sales of its currency up to the date when the vote is taken, or (ii) by the subtraction of one vote for the equivalent of each four hundred thousand United States dollars of its net purchases of the currencies of other members up to the date when the vote is taken

provided, that neither net purchases nor net ssles shall be deemed at any time to exceed an amount equal to the quota of the member involved, (c) For the purpose of all computations under this Section, United

States dollars shall be deemed to be of the weight and fineness in effect on July 1, 1944, adjusted for any uniform change under Article IV, Sec- tion 7, if a waiver is made under Section 8(d) of that Article, (d) Except as otherwise specifically provided, all decisions of the Fund shall be made by a majority of the votes cast.

Section 6, Distribution of net income (a) The Board of Governors shall determine annually what part of the

Fund's net income shall be placed to reserve and what part, if any, shall be distributed.

(b) If any distribution is made, there shall first be distributed a two percent non-cumulative payment to each member on the amount by which seventy-five percent of its quota exceeded the Fundts average holdings of its currency during that year. The balance shall be paid to all members in proportion to their quotas. Payments to each member shall be made in its own currency.

Section 7. Publication of reports (a) The Fund shall publish an annual report containing an audited statement of its accounts, and shall issue, at intervals of three months or less, a summary statement of its transactions and its holdings of gold and currencies of members,
(b) The Fund may publish such other reports as it deems desirable for carrying out its purposes.

Section 8.

Communication of views to members

The Fund shall at all times have the right to communicate its views informally to any member on any matter arising under this Agreement.

ARTICLE XIII

OFFICES AND DEPOSITORIES

Section 1. Location of offices

The principal office of the Fund shall be located in the territory o having the largest quota, and agencies or branch offices may b

established in the territories of other members.

Section 2. Depositories

able to the Fund.

Section 3. Guarantee of the Fund's assets

Each nember guarantees all assets of the Fund against loss resulting from failure or default on the part of the dopository designated by it.
ARTICLE XIV

TRANSITIONAL PERIOD

Section 1. Introduction

The Fund is not intended to provide facilities for relief or recon- struction or to deal with international indebtedness arising out of the

Section 2. Exchange restrictions

have been occupied by the enemy, introduce where necessary) restrictions on payments and transfers for current international transactions. Men bers shall, homever, have continuous regard in their foreign exchange policies to the purposes of the Fund; and, as soon as conditions permit, they shall take all possible measures to develop such connercial and financial arrangenents with other membera as will facilitate International payments and the maintenance of exchange atability. In particular, nam bers shall withdraw restrictions maintained or imposed under thig Sec- ot such restrictions, to settle their balance of payments in a manner

Section 3. Notification to the Fund

Each member shall notify the fund before it becomes eligible under

Article XX, Section 4(c) or (d), to buy currency from the Fund, whether

It intends to avail itself of the transitional arrangements in Section 2 of this Article, or whether it is prepared to accept the obligations of

Article VIII, Sections 2, 3, and 4. A member availing itself of the transitional arrangements shall notify the Fund as soon thereafter as it is propared to accept the above-mentioned obligations.

Section 4. Action of the Fund relating to restrictions

after the date on which the Fund begins operations, and in each year

Anthony pray on the Run 7, it as us to a to a reh exceptional circunstances, make repreaentations to any member that condi- tions are favorable for the withdrawal of any particular restriction, or for the general abandonment of restrictions, inconsistent with the provi- sions of any other articles of this Agreement. The member shall be giver a guitable time to reply to such representations. If the Fund finds that the member persists in maintaining restrictions which are inconsistent with the purposes of the Fund, the member shall be subject to Article XV,

Section 2(a).
Section 5. Nature of transitional period

it shall give the member the benefit of any reasonable doubt.

ARTICLE XV

WITHDRAWAL FROM MEMBERSHIP

Section 1. Right of members to withdraw

Any member may withdraw from the Fund at any time by transmitting a notice in writing to the Fund at its principal office. Withdrawal shall become effective on the date suct: notice is received.

Section 2. Compulsory withdrawal •, The Funder y des do une member ine its ob tatuse he re sources

Nothing in this Section shall be deemed to limit the provi-

sions of Article IV, Section 6, Article V, Section 5, or Article VI,

Section 1.

(b)

Il, after the expiration of a reasonable period the member pet- sists in its failure to fulfill any of its obligations under this Agree-

Section 3. Settlement of accounts with members withdrawing

ARTICLE XVI

EMERGENCY PROVISIONS

Section 1. Temporary suspension (a) In the event of an emergency or the development of unforeseen
circumstances threatening the operations of the Fund, the Executive Di.

'ectors by unanimous vote may suspend for a period of not more than on hundred twenty days the operation of any of the following provisiona:

(1) Article IV, Sections 3 and 4(b)

(11) Article V, Sections 2, 3, 7, 8(a) and (f)

(i11) Article VI, Section 2 (iv) Article XI, Section 1 (b) Simultaneously with any decision to suspend the operation of any of the foregoing provisions, the Executive Directors shall call a meet- ing of the Board of Governors for the earliest practicable date.

(c)

le Executive Directors may not extend any suspension beyo le hundred twenty days. Such suspension may be extenced, however, I this Agreement pursuant to Article XVII.

The Executive Directors may, by a majority of the total voting power, terminate

such suspension at any time.

Section 2. Liguidation of the Fund of Governors.

liquidation of the fund may be necessary, i transactions, pending decision by the Baar may temporarily suspend b)Il the Board of Governors decides to liquidate the Fund, tr una shall forthwith cease to engage in any activities except those inc:

dental to the orderly collection and liquidation of its assets ard the settlement of its liabilities, and all obligations of members under thi

Agreement shall cease except those set out in this Article, ir

Article XVIII, paragraph (c), in Schedule D, paragraph 7, and in

Schedule E.

(c) Liquidation shall be administered in accordance with the provi- sions of Schedule.E.

ARTICL XVII

AMENDMENTS

(a) Any proposal to introduce modifications in this Agreement, whather contine rata teer, i go erone are Cuts sectora, bring the proposal before the Board.

proved by the Board the Fund shall, by circular letter or telegram, ask all members whether they accept the proposed amendment.

When three fifths
(b) Notwithstanding (a) above, acceptance by all members is required in the case of any amendment modifying

(1) the right to withdraw from the fund (Article XV, Section 1);

（1 e provision that no change in a member's quota shall k ade without its consent (Article III, Section 2)

(111)

the provision that no change may be made in the par value of a read reno sept on the proposal of that member

Amendments shall enter into force for all members three months after the date of the formal communication unless a shorter period is specified in the circular letter or telegram.

ARTICLE XVIII

INTERPRETATION

Any question of interpretation of the provisions of this Agree ment arising between any member and the Fund or between any members of the

Fund shall be submitted to the Executive Directors for their decision. II the question particularly affects any member not entitled to appoint an executive director it shall be entitled to representation in accordance with Article XII, Section 3(j).

In any case where the Executive Directors have given a decision act on the basis of the décision of the Executive Directors.

Whenever a disagreement arises betmen the Fund and a member

ARTICLE XIX

EXPLANATION OF TERMS

In interpreting the provisions of this Agreement the Fund and its menbers shall be gulded by the following:
(a) A member's monetary reserves means its net official holdings of gold, ol convertible currencies of other members, and of the curren- cies of such non-members as the Fund may specify.

(b) The official holdings of a member meana central holdings (that 19, the holdings of its Treasury, central bank, stabilization fund, or similar fiscal agency).

(d) A member's holdings of convertible currencies means ita holdings of the currencies of other members which are not availing themselves of che transitional arrangements under Article XIV, Section 2, together witt its holdings of the currencies of such non-members as the Fund may fron time to time specify. The term currency for this purpose includes with- out limitation coins, paper money, bank baiances, bank acceptances, and government obligations issued with a maturity not exceeding twelve months.

(0) A member's monetary reserves shall be calculated by deducting from its central holdings the currency liabilities to the Ireasuries, cen- tral banks, stabilization funds, bers or non-members specified under (d) above, together with similar liabilities to other official institutions and other banks in the terri- tories of members, or non-members specified under (d) above.

holdings shall be added the suns deemed to be official holdings of other official institutions and other banks under (c) above.

(I) The Fund's holdings of the currency of a member shall incjude any securities accepted by the Fund under Article III, Section 5.

(g) The Fund, after consultation with a member which is availing

Itself of the transitional arrangements under Article XIV, Section 2, may deem holdings of the currency of that member which carry specified rights of conversion into another currency or into gold to be holdinga of con- vertible currency for the purpose of the calculation of monetary reserves.

or the purpose of he purpose of franceen canet, and inos passentat hate toon

1) Al pet us due Inconine servie, red trade erm banking and credit facilities
(2) Fayments due as interest on loans and as net income from other investments;

(3) Payments of moderate amount for amortization of loans or for depreciation of direct investments; "

(4) Moderate remittances for family living expenses.

The Fund may, after consultation with the members concerned, determine whether certain specific transactions are to be considered current transactions or capital transactions,

ARTICLE XX

FINAL PROVISIONS

Section l. Entry into force

This Agreement shall enter into force when it has been signed on be- half of governments having síxty-five percent of the total of the quotas set forth in Schedule À and when the instruments referred to in Section 2(a)

of this Article have been deposited on their behalf, but in no event shall this Agreement enter into force before May 1, 1945.

Section 2. Signature (a) Each government on whose behalf this Agreement is signed shall deposit with the Government of the United States of America an instrument setting forth that it has accepted this Agreement in accordance with its law and has taken all steps necessary to enable it to carry out al] of its obligations under this Agreement.

(b) Each government shall become a member of the Fund as from the date of the deposit on its behalf of the instrument referred to in (a)

above, except that no government shall become a member before this Agree- ment enters into force under Section l of this Article.

(c) The Government of the United States of America shall inform the governments of all countries whose names are set forth in Schedule À, and all governments whose membership is approved in accordance with Article II,

Section 2, of all signatures of this Agreement and of the deposit of all instruments referred to in (a) above.

(d) At the time this Agreement is signed on its behalf, each government shall transmit to the Government of the United States of America one one-hundredth of one percent of its total subscription in gold or United

States dollars for the purpose of meeting administrative expenses of the

Fund, The Government of the United States of America shall hold such funds in a special deposit account and shall transnit them to the Board of

Governors of the Fund when the initial meeting has been called under Sec- , tion 3 of this Article. If this Agreement has not came into force by

December 31, 1945, the Government of the United States of America shall return such funds to the governments that transmitted them.
This Agreement shall remain open for signature at Washington on behalf of the governments of the countries wtose names are set forth in Schedule A until Decerber 31, 1945.

(I) After December 31, 1945, this Agreement shall be open for sig- nature on behalf of the government of any country whose membership has been approved in accordance with Article II, Section 2.

8) By their signature of this Agreement, all governments accept it oth on their own behalf and in respect of all their colonies, overseas erritories, all territories under their protection, suzerainty, or author- ty and all territories in respect of which they exerciso a mandate.

(h) In the case of governments whose metropolitar territorles have been under enery occupation, the deposit of the instrument referrad to in

(8) above may be delayed until one hundred eighty daya after the date on which these territories have been liberated.

If, however, it 1s not de

posited by any such government before the expiration of this period the signature affixed on behalf of that government shall become void and the portion of its subscription paid under (d) above shall be returned to it.

(1) Paragraphs (d) and (h) shall come into force with regard to each signatory government as from the date of its signature.

Section 3. Inauguration of the Fund (a) As soon as this Agreement enters into force under Section 1 of this Articlo, each member shall appoint a governor and the member having the largest quota shall call the first meeting of the Board of Governors.

b At the first meeting of the Board of Governors, arrangements hall be made for the selection of provisional executive directors,

The

govemments of the five countrias for which the largest quotas are set forth In Schedule A shall appoint provisional executive directors.

one or more of such governments have not become members, the executive directorships they would be entitled to fill shall remain vacant until hey become members, or until January 1, 1946, whichever is the eariier.

seven provisional executive directors shall be elected in accordance witt the provisions of Schedule C and shall remain in office until the data of the first regular election of axecutive directors which shall be held as soon as practicable after January 1, 1946.

director the Board opt or a de late to there lear tive Directors.

Section 4. Initial determination of par values
required to make such a communication mile that territory is a theater of major hostilities or for such period thereaftor as the Fund may deter- When such a member communicates the par value of its rurrency the provisions of (d) below shall apply.

(b) The par value coumunicated by a member whose metropolitan territory has not been occupied by the enegy shall be the par value of that mem ber's currancy for the purposes of this Agreement unless, within ninety days aiter the request referred to in (a) above has been received, (1) the member notifies the Fund that it regards the par value as unsatisfactory, or (11) the Fund notifies the member that in its opinion the par value car not be maintained without causing recourse to the fund on the part of that member or others on a scale prejudicial to the Fund and to members. When

period expires.

When the par value of a member's currency has been established (b) above, either by the expiration of ninety days without notifica-

occupiad by the enemy, the following modifications:

by the Fund.

（11）

At any time before the date fixed under (1) above, change:

day be made by agreement with the Fund in the par value communicated under (a) above.

(e) Il a member whose metropolitan territory has been occupied by the enemy adopts a new monetary unit before the date to be fixed under (d) (1) above, the par value fixed by that member for the nen unit shall be communicated to the Fund and the provisions of (d) above shall apply.

(f) Changes in par values agreed with the Fund under this Section shaza not in (4), (2a), or (us) oF AF1018 T Section Seeed change or its me tropositan denuntor hat the undo pay value for the carran
in terms of that currency, for each separate currency, in the territories in respect of which it has accepted this Agreement under

Section 2(g) of this Article, but no member shall be required to make a communication for the separate currency of a territory which has been occupied by the eneny while that territory is a theater of major hostili- ties or for such period thereafter as the Fund may determine. On the basis of the par value so communicated, the Fund shall compute the par value of each separate currency. A communication or notification to the

Fund under (a), (b) or (d) above regarding the par value of a currency, hall also be deened, unless the contrary is stated, to be a communica- ion or notification regarding the par value of all the separate curren- cies referred to above.

Any member may, however, make a communication or

notification relating to the metropolitan or any of the separate curren- cies alone.

If the member does so, the provisions of the preceding para-

graphs (including (d) above, if a territory where a separate currency exists has been occupied by the enemy) shall apply to each of these cur- rencies separately.

(h) The Fund shall begin exchange transactions at such date as it may determine after nembers having sixty-five percent of the total of the quotas set forth in Schedule A have become eligible, in accordance with the preceding paragraphs of this Section, to purchase the currencies of other members, but in no event until after major hostilities in Europe have ceased.

(i) The Fund may postpone exchange transactions with any merber if its circumstances are such that, in the opinion of the Fund, they would lead to use of the resources of the Fund in a manner contrary to the pur- poses of this Agreement or prejudicial to the Fund or the members.

(j) The par values of the currencies of governments which indicate their desire to become members after December 31, 1945, shall be deter- nined in accordance with the provisions of Article II, Section 2

DONE at Washington, in a single copy which shall remain deposited in the archives of the Government of the United States of America, which shall transmit certified copies to all governments whose names are set forth in Schedule A and to all governments whose membership is approved

In accordance with Article II, Section 2.
SCHEDULE A

QUOTAS

(In millions of United

States dollars)

Australia

Belgium

Bolivia

Brazil

Canade

Chile

China

Colombia

Costa Rica

Cuba

Czechoslovakia

Denmark*

Dominican Republic

Ecuador

Egypt

Ell Salvador

Ethiopta

France

Greece

Guatemala

Haiti

Honduras

Iceland

India

Iran

Iraq

Liberia

Luxembourg

Mexico

Netherlands

New Zealand

Nicaragua

Norway

Panama

Paraguay

Peru

Philippine Commonwealth

Foland

Union of South focallot Republics

Inited Kingdon

Inited State:

Uruguay

Venezuela

Yugoslavia "The quota of Denmark shall be deternined by the Fund after the Danish overnment has declared its readiness to sign this Agreement but be- fore signature takes place.
SCHEDULE B

1. In determining the extent to which repurchase of a member's currency from the Fund under Article V, Section 7(b) shall be made with each type of monetary reserve, that is,

with gold and with each convert-

Ible currency, the following rule, subject to 2 below, shall appiy:

If the member's monetary reserves have not increased dur- ing the year, the anount payable to the Fund shall be distributed among all types of reserves in proportion to the member's holdings thereof at the end of the year.

(b)

If the member's monetary reserves have increased during

a part of the amount payable to the Fund equal to one-half of the increase shall be distributed among nose types of reserves which have increased in proportio o the anount by which each of then has increased.

of reserves in proportion to the

{ after all the repurchases required under Article I lection 7(b), had been made, the result would exceed in of the limits specified in Article V, Section 7(c), the fund shall require such repurchases to be made by the members proportionately in such manner that the limits mill not be exceeded.

Article y, seStion 7al) and aguire the currency of any nor-menber under

3. In calculating monetary reserves and the increase in monetary reserves during any year for the purpose of Article V, Section 7(b) and (C), no account shall be taken,

unless deductions have otherwise been

made by the member for such holdings,

any increase in those monetary

reserves which is due to currency previously inconvertible having become convertible during the year; or to holdings which are the proceeds of a long-term or medium-term loan contracted which erve ben transferred or set aside for repayment or a ban during the subsequent year.

In the case of members whose metropolitan territories have been monetary reserves or of increases in their monetary reserves.
SCHEDULE C

ELECTION OF EXECUTIVE DIRECTORS

lot of the golectio if the octive axe Are die to aton by (als

In balloting for the fiva directora to be elected under Article

XII, Section 3(b) (111), each of the governors eligible to vote shall cast for on per a of persons re mich l pretest under of vote 87221

Section 5(a).

be directors, provided that no person who received less than nineteen percent of the total number of votes that can be cast (eligible votes) shall be considered elected.

3. When five persons are not electad in the first ballot, a second ballot shall be held in which the person who received the lowest number of votes shall be ineligible for election and in which there shall vote only (a) those governors who voted in the first ballot for a person not elected, and (b) those governors whose votes for a person elected are deemed under 4 below to have raised the votes cast for that person above twenty percent of the eligible votes.

In determining whether the votes cast by a governor are to be deemed to have raised the total of any person above twenty percent of the eligible votes the twenty percent shall be deemed to include, first, the votes of the governor casting the largest number of votes for such person, then the votes of the governor

casting the next largest number, and so on

until twenty percent is reached.

son thereby excead trenty percent.

b. If, after the second ballot, five persons have not been elected, further ballots shall be held on the

sane principles until five persons

have been elected, provided that after four persons are elected, the fifth may be elected by a simple majority of the remaining votes and shall be deemed to have been elected by all such votes.

irticle XII,

1. Xi, deceion to be ented be the And is lowbsics under (8)

Each of the directors shall be elected separately.

In the election of the first director, each governor representing an American Republic eligible to participate in the election shall cast for one person all the votes to rich he 1s entitled. The person receiving the largest number of votes shall be elected provided that he has received not less than forty-five percent of the total votes.

(a) 11 no person is elected on the first ballot, further ballots shall be held, in each of which the person receiving the
lowest number of votes shall be eliminated, until one per- aon receives a number of votes sufficient for election under (b) above.

d) Governors whose votes contributed to the election of th first director shall take no part in the election of th second director.

（e）

Persons who did not succeed in the first election shal not be inelizible for election as the second director.

I) A majority of the votes which can be cast shall be re juired for election of the second director.

first ballot no person receives a majority, further bal- lots shall be held in each of which the person receiving the lowest number of votes shall be eliminated, until some person obtains a majority.

The second director shall be deemed to have been elected by all the votes which could have been cast in the ballot securing his election.

SCHEDULE D

SELMENT OF ACCOUNTS WITH MEMBERS WITHDRAWING

1. The Fund shall be obligated to pay to a member withdrawing an amount equal to its quota, plus any other amounts due to it from the Fund, less any amounts due to the Fund, including charges accruing after the date of its withdrawal; but no payment shall be made until six months after the date of withdrawal. Payments shall be made in the currency of the withdrawing member.

2. If the Fund's holdings of the currency of the withdrawing mem- ber are not sufficient to pay the net amount due from the Fund, the alance shall be paid in gold, or in such other manner as may be agreed

I the Fund and the withdrawing member do not reach agreement within si months ol the date of withdrawal, the currency in question held by the rund snaut be paid forthwith to the withdrawing member.

Any balance due

anald be paid in ten half-yearly installments during the ensuing five tach such installment shall be paid, at the option of the Fund.

ither in the currency of the withdrawing member acquired after its with- drawal or by the delivery of gold.

3. If the Fund fails to meet any installment which is due in ac- ordance with the proceding paragraphs, the withdrawing member shall br entitled to require the Fund to pay the installment in any currency hel by the fund with the exception of any currency which has been declared acarce under Article VII, Section 3.

4. If the Fund's holdings of the currency of a withdrawing member exceed the amount due to it, and if agreement on the method of settling accounts 1s not reached within six months of the date of withdrawal, the former member shall be obligated to redeem such excess currency in gold
or, at its option, in the currencies of members which at the time of re- demption are convertible.

Redemption shall be made at the parity existing

at the time of withdrawal from the Fund. The withdraring member shall complete redemption within five years of the date of withdrawal, or within such longer period as may be fixed by the fund, but shall not be required to redeem in any half-yearly period more than one-tenth of the Fund's ex- cess holaings of its currency at the date of withdrawal plus further ac- quisitions of the currency during such halt-yearly period. If the with- drawing nember does not fulfill this obligation, the Fund may in an orderly manner liquidate in any market the amount of currency which should have been redeemed.

5. Any member desiring to obtain the currency of a member which has ¿thdrawn shall acquire it by purchase from the fund, to the extent that ruch member has access to the resources of the Fund and that such curreng

La available under 4 above.

6. The witndrawing mender guarantees the unrestricted use at all times

ized by the Fund on disposal under 4 and 5 above.

SCHEDULE E

ADINIS TRAT ION.OF. LICUIDATION

1. In the event of Iiquidation the liabilities of the Fund other than the repayment of subscriptions shall have priority in the distribution of the assets of the Fund.

In meeting each such liability the Fund shall use

its assets in the following order:

(a)

the currency in which the liability is payable;

(b)

gold;

(c)

all other currencies in proportion, so far as may be prac- ticable, to the quotas of the members.

2. After the discharge of the Fund's liabilities in accordance wit.

above, the balance of the Fund's assets shall be distributed and appor tloned as follows:

(a) The Fund shall distribute its holdings of gold among the nembers whose currencies are held by the Fund in amounts less than their quotas. These members shall share the gold so distributed in the proportions of the amounts by which their quotas exceed the Fund'a holdings of their currencies.
!

(b)

The Fund shall distribute to each member one-half the

Fund's holdings of its currency but such distribution shall not exceed fifty percent of its quots.

(c)

three-month period referred to in 3 above,

In period reterred o and Boyeement fund the ude the cure rencies of other members apportioned to that member under 2(c) above to the currency of that member apportioned to other members. Each currency apportioned to a member which has not reached agreement shall be used, so far as possible,

to redeem its currency apportioned to the

members which have made agreements with the Fund under 3 above.

5. If & member hes reached agreement with the Fund in accordance with 3 above, the Fund shall use the currencies of other members appor- tioned to that member under 2(c) above to redeem the currency of that member apportioned to other members which have made agreements with the

Fund under 3 above.

Each amount so redeemed shall be redeemed in the

currency of the member to which it was apportioned.

After carrying out the preceding paragraphs, the Fund shall pay to each member the remaining currencies held for its account.

under 6 above shall redeem such currency in gold or, at its option, in

Each member whose currency has been distributed to other members the currency of the member requesting redemption, or in such other manner as may be agreed between them.

If the members involved do not otherwise

agree, the member obligated to redeem shall complete redemption within five years of the date of distribution, but shall not be required to re- deem in any half-yearly period more than one-tenth of the amount dis- tributed to each other member.

If the member does not fulfill this obli-

the amount of currency which should have been redeemed may be liquidated in an orderly manner in any market.

under 6 above guarantees the unrestricted use of such currancy at all

Each member whose currency has been distributed to other members

times for the purchase of goods or for payment of sums due to it or to persons in its territories.

Each member so obligated agrees to compen-

sate other members for any loss resulting from the difference between the par value of its currency on the date of the decision to liquidate the

Fund and the value realized by such members on disposal of Its currency.
LIST OF ARTICLES AND SECTIONS

Introductory Article

I. Purposes

II. Membership

Original members

2. Other members

III.

Quotas

2. Adjustment of quotas

Subscriptions:

IV.

1.

Expression of par values

2. Gold purchases based on par values

3. Foreign exchange dealings based on parity 4.

Obligations regarding exchange stability 5.

6.

Changes in par values 7.

Bifect of unauthorized changes

Uniform changes in par values

8. Maintenance of gold value of the Fund's assets

9. Separate currencies within a merber's territories

V. Transactions with the Fund 1.

Agencies dealing with the Fund

2. Limitation on the Fund's operations

3. Conditions governing use of the Fund's resources

4. Waiver of conditions

7. Repurchase by a member of its currency held by the Fund

8. Charges

VI.

Capital Transfers 1.

Use of the Fund's resources for capital transfers

2. Special provisions for capital transfers

VII.

3. Controls of capital transfers

Scarce Currancies

General scarcity of currenci . Measures to replenish the Fund's holdings of scarce currencie

Scarcity of the Fund's holdings

4. Administration of restrictions

VIII.

Effect of other international agreements on restrictions teneral Oblizations of Nembers

Introduction

Avoidance of restrictions on current payments

Avoidance of discriminatory currency practices

Convertibility of Ioreign-held balances

Furnishing of information

Consultation between members regarding existing international

IX.

Status, Inmunities and Privileges

Purposes of Article

2. Status of the Fund

Immunity fron judicial process mmunity from other action

•
Immunity of archives

Freedon of assets from restrictions

Privilege for connunications

Inmunities and privileges of officers and employees

Immunities from taxation

Application of Article x.

XI.

Relations with Other International Organizations

Relations with Non-nember Countries

XII.

2.

Undertations on fraise pois with non-monter countratries

Organization and Management

Structure of the Fund 2.

Board of Governors 3.

Executive Directors 4.

Managing Director and staff

Voting 6.

Distribution of net income 7.

Publication of reports 8.

Communication of views to members

XIII.

Offices and Depositories

1. Location of offices

2. Depositories

3. Guarantee of the Fund's asseta

XIV. Transitional Period 1.

Introduction

2. Exchange restrictiona

3. Notification to the Fund

4. Action of the Fund relating to restrictions

5. Nature of transitional period

XV. Withdrawal from Membership

1. Right of members to withdram

2. Compulsory withdrawal

XVI.

3. Settlement of accounts with members withdrawing

Emergency Provisions 1.

temporary suspension

2. Liquidation of the Fund

XVII. Amendments

XVIII. Interpretation

XIX. Explanation of Terms

XX. Final Provisions

1. Entry into force

2. Signature

3. Inauguration of the Func

1. Initial determination of par value

SCHEDULES

SCHEDULE A. Quotas

SCHEDULE B.

Provisions with Respect to Repurchase by & Member of its

Currency Hold by the Fund

SCHEDULE C. Election of Executive Directore

SCHEDULE D.

Settlement of Accounts with Herbers Withdrawing

SCHEDULE E.

Administration of Liquidation
Annex B

ARTICLES OF AGREEMENT OF THE

INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT

he Governaonts on whose behalf the present Agraement 1s signe ree as follow

INTRODUCTORT ARTICLE

ARTICLE I

PURPOSES

The purposos of the Bank are:

(1) To assist in the reconstruction and developeant of ter- ritories of members by facilitating the investment of

I the development of productiv

ad these our rested these open of countles

(11) To promote private foreign investmont by means of guar- antees or participations in loans and other inrestsents made by private investors; and when private capital 1s not available on reasonable tors, to supplement private investment by providing, on suitable conditiona, finance for productive purposes out of Its ou capital, fundi raised by it and ita other resources.

(111) To pronote the long-range balanced growth of interna- tional trade and the maintenance of equilibrium in

IV) To arrange the loans made or guaranteed by it in rele

Ion to international loans through other channels a that the nore useful and urgent projects, large and saall alike, will be dealt with first.
The Bank shall be guided in all its decisions by the purposes set forth above.

ARTICLE II

MEMBERSHIP IN AND CAPITAL OF THE BANK

Section 1. Membership (8)

date specifled in Article XI, Section 2(e).

(b) Membership shall be open to other members of the Fund, at such imea and in accordance with such terms as may be prescribed by the Bank.

Section 2. Authorized capital

July 1, 19440 only by members.

(b)

The capital stock may be increased when the Bank deems it advisable by a three-fourths majority of the total voting porer.

Section 3. Subscription of shares (a) Each member shall subscribe shares of the capital stock of the

The minimum number of shares to be subscribed by the original menbers shall be those get forth in Schedule A.

The minimum number of shares

to be subscribed by other menbers shall be determined by the Bank, which shall reserve a sufficient portion of its capital stock for subscription by such members.

The Bank shall prescribe rules laying dom the conditions under which members may subscribe shares of the authorized capital stock of the

Bank in addition to their minimum subscriptions.

(c) If the authorized capital stock of the Bank is increased, each nember shall have a reasonable opportunity to subscribe, under such conditons as the Bank shall decide, a proportion of the increase of stock equivalent to the proportion which its stock theretofore subscribed beare to the total capital stock of the Bank, but no member shall be obligated o subscribe any part of the increased capital.

•
Section 4e Issue price of shares

stances to issue then on other terras.

section 5. Division and calls of subseribed capital follows:

The subscription of each member shall be divided into two parts as

(1) trenty percent shall be pald or subject to call under

Section 7(1) of this Article as needed by the Bank for its operations;

Calls on unpaid subscriptions shall be uniform on all shares.

Section 6. Limitation on liability

Liability on shares shall be limited to the unpaid portion of th issue price of the shares.

Section 7. Kethod of payment of subscriptions for shares state done and in the one at he be door uned

(11) when a call is made under Section 5(ii) of this Article,

scribed capital stock of the Bank as authorized and de-
Section 8. Time of payment of subscriptions

1) any original member of the Bank whose metropolitan ter itory has suffered from eneny occupation or hostilitie uring the present war shall be granted the right to post ont payment of one-halt percent unt11 five years afte

(1) at ors int recovered possest on of ta a reset e lie are still seized or immobilized as a result of the war dee postpone al1 payment until suct date as the Bank shal!

b) The remainder of the príce of each share payable under Sec ion 7(1) of this Article shali be baid as and when called by the Bank provided that

（‡）

within one year of its beginning opera-

he share in addition to the payment of two percent re erred to in (a) above not more than five percent of the price of the share shal.

e called in any period of three months,

Section 9. Maintenance of value of certain currency holdings of the Bank (a)

(1i) the foreign exchange value of a member's currency has, in the opinion itories, the member shall pay to the Bank within a reasonable -ime an additional amount of its own currency sufficient to maintain the value, as

, Section 7(1), Irom currency

(c) The provisions of the preceding paragraphs may be waived by the when a uniform proportionate change in the par values of the rurren- cies of all its members is made by the International Monetary F'und.
Section 10. Restriction on disposal of shares

Shares shall not be pledged or encumbered in any manner whatever and they shall be transferable only to the Bank,

ARTICLE III

GENERAL PROVISIONS RELATING TO LOANS AND GUARANTEES

Section l. Use of rescurces (a) The resources and the facilities of the Bank shall be used ex- clusively for the benefit of members with equitable consideration to proj- ects for development and projects for reconstruction alike, (b) For the purpose of facilitating the restoration and reconstruc- tion of the economy of members whose metropolitan territories have suf- fered great devastation from enemy occupation or hostilities, the Bank, in determining the conditions and terms of loans made to such members, shall pay special regard to lightening the financial burden and expediting the completion of such restoration and reconstruction,

Section 2. Dealings between members and the Bank

Each member shall deal with the Bank only through its Treasury, cen- tral bank, stabilization fund or other similar fiscal agency, and the Bank shall deal with members only by or through the same agencies.

Section 3. Limitations on guarantees and borrowings of the Bank

The total amount outstanding of guarantees, participations in loans &nd direct loans made by the Bank shall not be increased at any time, if by such increase the total would exceed one hundred percent of the un- impaired subscribed capital, reserves and surplus of the Bank.

Section 4. Conditions on which the Bank may guarantee or make loans

The Bank may guarantee, participate in, or make loans to any member or any political sub-division thereof and any business, industrial, and agricultural enterprise in the territories of a member, subject to the following conditions:

(i) When the member in whose territories the project is located is not itself the borrower, the member or the central bank or some comparable agency of the member which is acceptable to the Bank, fully guarantees the repayment of the principal and the payment of interest and other charges on the loan, (ii) The Bank is satisfied that in the prevailing market conditions the borrower would be unable otherwise to
btain the loan under conditions which in the opinion o the Bank are reasonable for the borrower.

4. co at ent comitted as prouded or an arentine, sec project after a careful study of the merits of the pro-

Bank shall act prudently in the interests both of the par- ticular member in whose territories the project 1s 1o- cated and of the members as a whole.

(vt)

In guaranteeing & loan made by other investors, the Bank raceives suitable compensation for its risk.

(vil) Loans made or guaranteed by the Bank shall, except in spe- cial circumstances,

be for the purpose of specific proj-

ects of reconstruction or development.

Section 5. Use of loans guaranteed, participated in or made by the Bank (a)

the Bank shall impose no conditions that the proceeds of a loa lall be spent in the territories of any particular member or members (b) The Bank shall make arrangements to ensure that the proceeds of any loan are used only for the purposes for which the loan was granted, with due attention to considerations of economy and efficiency and without regard to polítical or other non-economic influences or considerations.

(c) In the case of loans made by the Bank, it shall open an account in the name of the borrower and the amount of the loan shall be credited to this account in the currency or currencies in which the loan is made.

The borrower shall be permitted by the Bank to draw on this account only to meet expenses in connection with the project as they are actually in- curred.

ARTICLE IV

OPERATIONS

Section 1.

Methods of making or facilitating loans (a)

The Bank may make or facilitate loans which satisfy the genera conditions of Article III in any of the following ways:

!
!

By making or participating in direct loans out of its own funds corresponding to its unimpaired paid-up capital and surplus and, subject to Section 6 of this Article, to its reserves.

(11)

By making or participating in direct loans out of funds raised in the market of a member, or otherwise borrowed by the Bank.

（111 by guaranteeing in whole or in part loans made by private investors through the usual investment channels.

is denominated,

and only If those members agree that the proceeds may be

exchanged for the currency of any other meaber without restriction.

Section 2. Availability and transferability of currencies (a) Currencies paid into the Bank under Article II, Section 7(1), hall be loaned only with the approval in each case of the member whose currency is involved; provided, however, that if necessary, after the

Bank's subscribed capital has been entirely called, such currencies shall, without restriction by the members whose currencies are offered, be used or exchanged for the currencies required to meet contractual payments of interest, other charges or amortization on the Bank's own borrowings, or to neet the Bank's liabilities with respect to such con- tractual payments on loans guaranteed by the Bank.

(b) Currencies received by the Bank from borrowers or guarantors in payment on account of principal of direct loans made with currencies re- ferred to in (a) above shall be exchanged for the currencies of other mem- bers or reloaned only with the approval in each case of the members whose currencies are involved; provided, however, that if necessary, after the

Bank's subscribed capital has been entirely called, such currencies shall, i thout restriction by the members whose currencies are offered, be used or exchanged for the currencies required to meet contractual payments of interest, other charges or amortization on the Bank's om borrowings, or to meet the Bank's liabilities with respect to such contractual payments on loans guaranteed by the Bank.

(c) Currencies received by the Bank from borrowers or guarantors in ment of or repurchase part or all of the Bank's own obligations.

(d) All other currencios available to the Bank, including those 'aised in the market or otherwise borrowed under Section I(a) (1i) of this

Antice and or chad do to are of a de de see one 1(4) 05 and (11), and those received as payments of connissions and other charges under Section 1(a)(Íll), shall be used or exchanged for other currencies
or gold required in the operations of the Bank without restriction by the members whose currencies are offered.

(e) Currencies raised in the markets of members by borroners on loans guaranteed by the Bank under Section 1(a) (iii) of this Article, shall aleo be used or exchanged for other currencies without restriction by such members.

Section 3. Provision of currencies for direct loans

The following provisions shall apply to direct loans under Sec- tions I (a) (i) and (11) of this Article:

(8)

The Bank shall furnish the borrower with such currencies of menbers, other than the member in whose territories the project is located, as are needed by the borrower for expenditures to be made in the territories of such other members to carry out the purposes of the loan.

priate amount of that currency.

(C) The Bank, if the project gives rise indirectly to an increased need for foreign exchange by the member in whose territories the project 1s located, may in exceptional circumstances provide the borrower as part of the loan with an appropriate amount of gold or foreign exchange not in excess of the borrower's local expenditure in connection with the purposes of the loan.

(d) The Bank may, in exceptional circunstances, at the request of a member in those territories a portion of the loan is spent, repurchase with gold or foreign exchange a part of that member's currency thus spent but in no case shall the part so repurchased exceed the amount by which the ex- penditure of the loan in those territories gives rise to an increased need for foreign exchange.

Section 4. Payment provisions for direct loans

Loan contracts under Section 1(a)(1) or (ii) of this Article shall be made in accordance with the following payment provisions:

(a) The terms and conditions of interest and amortization payments, maturity and dates of payment of each loan shall be determined by the Bank.

I'he Bank shall also determine the rate and any other terms and conditions of commission to be charged in connection with such loan.

In the case of loans made under Section I(a)(ii) of this Article during the firat ten years of the Bank's operations, this rate of commission shall be not less than one percent per annur and not greater than one and one hall percent per annum, and shall be charged on the outstanding por- tion of any such loan. At the end of this period of ten years, the rate of connission may be reduced by the Bank with respect bath to the out- standing portions of loans already made and to future loans, it the

)
reserves accumulated by the Bank under Section 6 of this Article and out of other earnings are considered by it sufficient to justify a reduction.

In the case of future Ioans the Bank shall also have discretion to in- crease the rate of conmission beyond the above limit, il experienca indi- cates that an increase is advisable.

than that prescribed in the contract.

(1) In the case of loans made under Section 1 (a) (1) of this

Article, the loan contracts shall provide that payments to the Bank of interest, other charges and abortization shall be made in the currency loaned, unless the sember whose currency is losned agrees that such payments shall be made in some other specified currency or currencies.

These payments, subject to the provisions of Article II,

Section 9(c), shall be equivalent to the value of such

(11) In the case of loans made under Section 1 (a)(ii) of this

Article, the total amount outstanding and payable to the

Bank in any one currency shall at no tine exceed the total amount of the outstanding borrowings made by the Bank under Section 1 (a)(il) and payable in the same currency.

(c) If a member suffers from an acute exchange stringency, so that the service of any Loan contracted by that member or guaranteed by it or by one of its agencies cannot be provided in the stipulated manner, the member concerned may apply to the Bank for a relaxation of the conditione

Il the Bank is satisfied that some relaxation is in the in

terests of the particular member and of the operations of the Bank and of its members as a whole, it may take action under either, or both, of the following paragraphs with respect to the whole, or part, of the

(1) The Bank nay, in its discretion, make arrangements with

(11) The Bank may modify the terns of amortization or extend the 11fe of the loan, or both.

Section 5. Guarantees

a) In guaranteeing « loan placed through the usual investment char els, the Bank shall charge a guarantee connission payable periodically o
the amount of the loan outstanding at a rate determined by the Bank. Dur-

portions of loans already guaranteed and to future loans if the reserves accumulated by the Bank under Section 6 of this Article and out of other earings are considered by it sufficient to justify a reduction. In the case of future loans the Bank shall also have discretion to increase the rate of connission beyond the above limit, if experience indicates that an increase is advisable.

(b) Guarantee commissions shall be paid directly to the Bank by the borrower.

(c) Guarantees by the Bank shall provide that the Bank may terminate its liability with respect to interest if, upon default by the borrower and by the guarantor, if any, the Bank offers to purchase, at par and interest accrued to a date designated in the offer, the bonds or oùher obligations guaranteed.

(d) The Bank shall have power to determine any other terms and conditions of the guarantee.

Section 6. Special reserve

The amount of conmissions received by the Bank under Sections 4 and 5 o1 this Article shall be set aside as a special reserve, which shall be kept arallable for meeting liubilities of the Bank in accordance with Section 7 of this Articlo.

The special reserve shall be held in such liquid

Tom, permitted under this Agreement, as the Executive Directors may decide.

Section 7. Methods of meeting labilities of the Bank in case of defaults

In cases of default, on Loans made, participated in, or guaranteed by the Bank:

(a) The Bank shall make such arrangements as may be feasible to adjust the obligations under the loans, including arrangemente under or analogous to those provided in Section 4(C) Of this Article.

(b) The payments in discharge of the Bank's labilities on borrow- ings or guarantees under Sections 1(a) (11) and (111) of this irticle shal be charged:

(1)

first, against the special reserve provided in section 6 of this Article.

(ii)

available to the Bank.

..
(c) Whenever necessary to meet contractual payments of interest, other charges or amortization on the Bank's own borrowings, or to meet the Bank's liabilities with respect to similar payments on loans guar~ anteed by it, the Bank may call an appropriate amount of the unpaid sub- scriptions of members in accordance with Article II, Sections 5 and 7.

Moreover, if it believes that a default may be of long duration, the

Bank may call an additional amount of such unpaid subscriptions not to exceed in any one year one percent of the total subscriptions of the members for the following purposes:

(i) To redeem prior to maturity, or otherwise discharge its liability on, all or part of the outstanding principal of any loan guaranteed by it in respect of which the debtor is in default, (1i) To repurchase, or otherwise discharge its liability on, all or part of its own outstanding borrowings.

Section 8. Miscellaneous operations

In addition to the operations specified elsewhere in this Ágree- ment, the Bank shall have the power:

(i) To buy and sell securities it has issued and to buy and sell securities which it has guaranteed or in which it has ínvested, provided that the Bank shall obtain the approval of the member in whose territories the securi- ties are to be bought or sold.

(ii) To guarantee securities in which it has invested for the purpose of facilitating their sale.

(iii) To borrow the currency of any member with the approval of that member.

(iv) To buy and sell such other securities as the Directors by & three-fourths majority of the total voting power may deen proper for the investment of all or part of the 8pe- cial reserve under Section 6 of this Article.

In exercising the powers conferred by this Section, the Bank may deal with any person, partnership, association, corporation or other legal entity in the territories of any member,

Section 9. Wa to be placed on securities

Every security guaranteed or issued ty the Bank shall bear on its face & conspicuous statement to the effect that it is not an obligation of any govemment unless expressly stated on the security.

Section 10. Political activity prohibited

The Bank and its officers shall not interfere in the political af- fairs of any member; nor shall they be influenced in their decisions by
the political character of the member or members concerned, Only economic considerations shall be relevant to their decisions, and these considerations shall be weighed impartially in order to achieve the purposes stated

ARTICLE V

ORGANIZATION AND MANAGEMENT

Section 1. Structure of the Bank

The Bank shall have a Board of Governors, Executive Directors, a

President and such other officers and staff to perform such duties as the

Bank may determine.

Section 2. Board of Govemors (a) All the powers of the Bank shall be vested in the Board of Govemors consisting of one governor and one alternate appointed by each mem ber in such manner as it may determine. Each govemor and each alternate shall serve for five years, subject to the pleasure of the member appoint ing him, and may be reappointed, No alternate may vote except in the absence of his principal. The Board shall select one of the governors as

Chairman.

(b) The Board of Governors may delegate to the Executive Directors authority to exercise any powers of the Board, except the power to:

(i) Admit new members and determine the conditions of their admission;

(ii) Increase or decrease the capital stock;

(111) Suspend a member;

(iv) Decide appeals from interpretations of this Agreement given by the Executive Directors;

(v) Make arrangements to cooperate with other international organizations (other than informal arrangements of a temporary and administrative character);

(vi) Decide to suspend permanently the operations of the Bank ani to distribute its assets;

(vii) Determine the distribution of the net income of the Bank.

(c) The Board of Governors shall hold an annual meeting and such other meetings as may be provided for by the Board or called by the

Executive Directors, Meetings of the Board shall be called by the

Directors whenever requested by five members or by members having one- quarter of the total voting power.
(d) A quorum for any meeting of the Board of Govertiors shall be a majority of the Governors, exercising not less than two-thirds of the total voting power.

(e) The Board of Governors may by regulation establish a procedure

(f) The Board of Governors, and he Executive Directors to the ex- tent authorized, may adopt such rules and regulations as may be neces- ary or appropriate to conduct the business of the Bank.

8) Governors and alternates shall serve is such without compensa curred an thorin, see the Bank shad pay then reasonable expenses in- (h) The Board of Gove,rora shall determine the remuneration to be aid to the Executive Directors and the salary and teras of the contrac of service of the Fresident.

Section 3. Voting tional te to ender had at ok hundred fifty votes plus one adds- (b) Except as otherwise specifically provided, all matters before the Bank shall be decided by a majorlty of the votes cast.

section 4o Executive Directors

emors or shall be twelve axecutive Diractors, who need not be gov- (vonah bargeointed or yach of the five members geven shall be elected according to Schedule B by all th overnors other than those appointed by the five members referred to in (i) above.

Executive directors shall be appointed or elected every two years,
but shall not vote.

(e) The Executive Directors shall function in continuous session at the principal office of the Bank and shall neet as often as the busiass of the Bank may require.

(I) A quorum for any meeting of the Executive Directors shall be a majority of the Directors, exercising not less than one-half of the total voting power.

(g) Each appointed director shall be entitled to cast the number of votes allotted under Section 3 of this Article to the member appointing

Each elected director shall be entitled to cast the number of votes which counted toward his election.

All the votes which a director is

entitled to cast shall be cast as a unit.

The Board of Governors shall adopt regulations under which a member not entitled to appoint a director under (b) above may send a representative to attend any meeting of the Executive Directors when a request made by, or a matter particularly affecting, that member is under consideration.

(1) The Executive Directors nay appoint such connittees as they deem advisable.

Membership of such conmittees need not be limited to

govemors or directors or their alternates.

Section 5. President and staff

The Executive Directors shall select a President who shall not

and shall consert, under had rector of the ratine De or Bank.

ordinary business of the Bank.

Subject to the general control of the

ment ta Dental of eo2 cers and elble for the organization, appoint-
(C) The President, officers and staff of the Bank, in the discharg

I their offices, owe their duty entirely to the Bank and to no other

2252E

section 6. Advisory Counc11

of general policy.

occasions as the Bank may request.

ey shall be

section 7. Loan committees le Collates regar to report on loans under Article III, so tion 4, shall be appointed by the Bank.

Each such conmittee shali i

me a per sect by t ger representing the member di hose territorles the project is located and one or more members of th tochnical staff of the Bank.

Section 5. Relationship to other international organizations with an end in are tore to nep a comprate tional organizations having specialized responsibilities in related

Any arrangements for such cooperation which mould involve a odification of any provision of this Agreement may be effected onl

Iter amendment to this Agreement under Article VIII.

(b) In making decisions on applications for loans or guarantees re-
Section 9. Location of offices (a) The principal office of the Bank shall be located in the terri- tory of the member holding the greatest number of shares.

(b) The Bank may establish agencies or branch offices in the terri- tories of any member of the Bank.

Section 10. Regional offices and councils

a) The Bank may establish regional offices and determine the loca ion of, and the areas to be covered by, each regional office.

represe each of to entire chanded led as neat as to Bank.

may decide.

Section II. Depositories (a) Each menber shall designate its central bank as a depository for all the Bank's holdings of its currency or, Il it has no centras bank, it shall designate such other institution as may be acceptable to the Bank.

of shares and in

pository designated by the member in whose territory the Bank has its

and at least forty percent shall be held in the deposi-

tories designated by the remaining four members referred to above, each of such depositordes to hold, initially, not less than the amount

However, all transfers

section 12. Forn of holdings of currency

issued by the Government of the member or the depository designated by such member, which shall be non-negotiable, non-interest-bearing and payable at their par value on demand by credit to the account of the

Bank in the designated depository.

Section 13. Publication of reports and provision of information

Ine Bank shall publish an annual report containing an audite tatement of its accounts and shall circulate to members at intervals o

)
hree months or less a sunmary statement of its financial position and rofit and loss statement showing the results of its operations (b) The Bank may publish such other reports as it deems desirable to carry out its purposes.

(c) Copies of all reports, statements and publications made under his section shall be distributed to members.

Section 14. Allocation of net incone

b) If any part is distributed, up to two percent nor-cumulativ all be paid, as a first charge against the distribution for any year to each member on the basis of the average amourt of the loans out stand- ing during the year made under Article IV, Section 1(a) (i), out of cur- rency corresponding to its subscription.

irst charge, any balance remaining to be distributed shall be paid t all nembers in proportion to their shares. Payments to each member shall be made in its own currency, or if that currency is not available in other currency acceptable to the member.

If such payments are made

in currencies other than the member's own currency, the transfer of the currency and its use by the receiving nember after payment shall be without restriction by the members.

ARTICLE VI

WITHDRAWAL AND SUSPENSION OF MEMBERSHIP:

SUSPENSION OF OPERATIONS

Section 1. Right of members to withdraw

Any nember nuy withdraw frow the Bank at any time by transmitting a notice in writing to the Bank at its principal office.

shall become effective on the date such notice is received.

Section 2. Suapension of membership

If a nember fails to fulfill any of its obligations to the Bank, the date of its suspension unless a decision is taken by the same majority to restore the nember to good standing.

While under suspension, a member shall not be entitled to exercise any rights under this Agreement, except the right of withdrawal, but shall remain subject to all obligations.
section 3. Cessation of membership in Internat Lonal Monetary Fund

:

Section 4. Settlement of accounts with govemments coastry to be members

(c) The payment for shares repurchased by the Bank under this sec

Ion shall be governed by the following conditions

until six months after the date upon which the govern- ment ceases to be a member.

（111）

Payments shall be made in the currency of the country ro eiving payment or at the option of the Bank in gold

serve provided against loases on the date when the gov mment ceased to be a member, such goverment shall i
:

Section 5. Suspension of operations and settlement of oblizations

b) The Bank may suspend permanently ita operations in respect o ew loana and guarantees by vota of a majority of the Goverors, exe:

cising a majority of the total voting power.

After such suspension o

operations the Bank shall forthwith cease all activities, except thos incident to the orderly realization, conservation, and preservation of

Its assets and settlement of its obligations.

(c) The llability of all meabers for uncalled subscriptiona to the capital stock of the Bank ani in respect of the depraciation of their own currencies shall continue until all clatus of creditors, including all contingent claims, shall have been discharged.

(d) All croditors holding direct claims shall be paid out of the asgets of the Bank, and then out of paymerts to the Bank on calls on un- pala subscriptions. Before making any payments to creditors holding direct clalms, the Executive Directors shall make such arrangenents as aro necessary, in their judgaent, to insura a distribution to holdera of contingent clalas ratably with craditors holding direct clalas.

(e) No distribution shall be made to membera on account of thei ubscriptions to the capital stock of the Bank unti

1) all liabilities to croditors have bean discharged ‹ rovided for, an

(11) a majority of the Governors, exercising a majority of the total voting porar, bavo decided to make a dis tribution.

I) Aftor a decision to uke a distribution has been taken unde ) above, the Exacutive Directors may by a tro-thirds majority vot bale succesaire distributions of the asseto of the Bank to marbers unt li all of the asseta have been distributed.

This distribution shall be
subject to the prior settlement of all outstanding claias of the Bank against each member.

:

as at he dale of alive Dingot as a pace o diste to be in the toted lowing manner:

(1) There sall be paid to each member in its own obligations or those of its official agencies or legal entities within

li) Any balance due to a member after payment has been mac nder (1) above shall be paid, in its own currency sofar as it is hold by the Bank, up to an amou guivalent in value to such balance rency acceptable to the member, insofar as they are held baline Bank, up to an amount equivalent in value to such (iv) Any remaining assets held by the Bank after payments have been made to members under (i), (it), and (ill) above shal be distributed pro rata among the members.

ARTICLE VII

STATUS, INMUNITIES AND PRIVILEGES

Section lo Purposes of Article

To enable the Bank to fulfill the functions with which it is en- trusted, the status, immunities and privileges set forth in this Articlo shall be accorded to the Bank in the territories of each member.

Section 2. Status of the Bank

Lar, the Bank shall possess full jurdlead porsonality, and, in particu-

(1) to contract;

(11) to acquire and dispose of Immovable and movable property;
(Lii) to institute legal proceading;.

Section 3, Position of the Bank with regard to judicial process

Actions may be brought against the Bank only in a court of competent jurisdiction in the territories of a member in which the Bank has an office, has appointed an agent for the purpose of accepting service of lotice of procesa, or has issued or guaranteed securities.

shall, however, be brought by members or persons scting for or deriving claims from members. The property and assets of the Bank shall, where- soever located and by whorsoever held, be immune from all forus of seizure, attachment or execution before the delivery of final judgment against the Bank.

Section 4. Immunity of assets Iron seizure

Section 5. Immunity of archives

The archives of the Bank shall be inviolable.

saction 6. Freedom of assets from restrictions

Section 7. Privilege for communiest long

Section 8. Imunities and privileges of officers and employees

Loyees of vee das, executive directors, a

alternates, officers and en

ii) not being local nationals, shall be accorded the sume mmunities from inmigration restrictions, alien regis tration requirements and national service obligations
and the same facilities as regards exchange restrictions as are accorded by members to the representatives, offi- cials, and employees of comparable rank of other members;

(iii) shall be granted the same treatment in respect of travel- ling facilities as is accorded by members to representa- tives, officials and employees of comparable rank of other members,

Section 9, Immunities from taxation (a) The Bank, its assets, property, income and its operations and transactions authorized by this Agreement, shall be immune from all taxa- tion and from all customs duties. The Bank shall also be immune from liability for the collection or payment of any tax or duty.

(b; No tax shall be levied on or in respect of salaries and emolu- ments paid by the Bank to executive directors, alternates, officials or employees of the Bank who are not local citizens, local subjects, or other local nationals.

(c) No taxation of any kind shall be levied on any obligation or security issued by the Bank (including any dividend or interest thereon)

by whomsoever held - (i) which discriminates against such obligation or security solely because it is issued by the Bank; or (LL) if the sole jurisdictional basis for such taxation is the place or currency in which it is issued, made payable or paid, or the location of any office or place of business maintained by the Bank.

(d) No taxation of any kind shall be levied on any obligation or security guaranteed by the Bank (including any dividend or interest thereon) by whomsoever held -

(i) which discriminates against such obligation or security

solely because it is guaranteed by the Bank; or (ii) if the sole jurisdictional basis for such taxation is the location of any office or place of business maintained by the Bank,

Section 10. Application of Article

Each member shall take such action as is necessary in its own terri- tories for the purpose of making effective in terms of its own law the principles set forth in this article and shall inform the Bank of the de- tuiled action which it has taken,
ARTICLE VIII

AMENDMENTS

(a) Any proposal to introduce modifications in this Agreement, hether enanating from a member,

a governor or the Executive Directors,

shall be communicated to the Chaiman of the Board of Governors who shal bring the proposal before the Board. If the proposed amendment is ap- proved by the Board the Bank shall, by circular letter or telegram, ask

(b) Notwithstanding (a) above, acceptance by all members is re- quired in the case of any amendment modifying

1) the right to withdraw from the Bank provided in Arti ile VI, Section 1 (11)

the right secured by Article II, Section 3(c);

（11） the limitation on liability prováded in Articlo II, Sec- (C) Amendients shall enter into force for all members three months after the date of the formal communication unless a shorter period is specified in the circular letter or telegram.

ARTICLE IX

INTERPRETATION

Pending the re-

ult of the reference to the Board, the Bank may, so far as it deams secessary, act on the basis of the decision of the Executive Directors.

(c) Whenever a disagreement arises between the Bank and a country

DELETES
have full power to settle all questions of procedure in any case where the parties are in disagreement with respect thereto.

ARTICLE X

APPROVAL DEEMED GIVEN

ARTICLE XI

FINAL PROVISIONS

Section 1. Entry into force

This Agreement shall enter into force when It has been signed on be- 2222222 force before Hay 1, 1945.

Section 2. Signature

Each government on whose behalf this Agreement is signed shall deposit with the Government of the Unitad States of Anerica an instrunent set.ing forth that it has accepted this Agreement in accordance with its la nd has taken all steps necessary to enable it to carry out all of it:

obligations under this Agreement.

Instrument s referred to in (a) above.

t the time this Agreement is signed on its vehalf, each govern.

ent shall transmit to the Government of the United States of America one one-hundredth of one percent of the price of each share in gold or United

States dollars for the purpose of meeting administrative expenses of the

This payment shall be credited on account of the payment to be mad in accordance with Article II, Section 8(a). Tue Goverrment of the Unite

States of America shall hold such funis in a special deposit account ind shall transuit then to the Bound of Governors of the Bank when the initial

;
meeting has been called under Section 3 of this Article. If this Agree- ment has not come into force by December 31, 1945, the Govemment of the

United States of America shall return such funds to the governments that transmitted then.

This Agreement shall remain open for signature at Washington on behalf of the governments of the countries whose names are set forth in

Schedule A until December 31, 1945.

(f) After December 31, 1945, this Agreement shall be open for signa- ture on behall of the government of any country whose membership has been approved in accordance with Article II, Section I(b).

torterse under the rate hot oronor recept 1t

authority and all territories in respect of which they exercise a mandate.

(h) In the case of governments whose metropolitan territories have been under enemy occupation, the deposit of the instrament referred to in (a) above may be delayed until one hundred and eighty days after the date on which these territories have been liberated.

series are on it of tal preme at be can vo ma teare portion of its subscription paid under (d) above shall be returned to it.

(1) Paragraphs (d) and (h) shall come into force with regard to each signatory government as from the date of its simature.

Section 3. Inauguration of the Bank

As soon as this Agreement enters into force under Section 1 of

Inas ArtICLe, each member shall appoint a governor and the member to whom the largest number of shares ia allocated in Schedule A shall call the first meeting of the Board of Governors.

(b)

At the first meeting of the Board of Governors, arrangements shall be made for the selection of provisional executive directors.

governments of the five countries, to which the largest number of shares are allocated in Schedule A, shall appoint provisional executive direc- tors.

executive directorships which they would be entitled to fill shall re- nain vacant until they become nembers, or until Jamary 1, 1946, which.

elected in accordance with the provisions of Schedule B and shall re- main in office until the date of the first regular election of execu

January 1, 1946.

(c) The Board of Governors may delegate to the provisional execu- tive directors any powers except those which may not be delegated to the

Executive Directors.
(d)

The Bank shall notify members when it is ready to connence opera- tions.

DONE at washington, in a single copy which shall renain deposited in the archives of the Government of the United States of America, which shall transmit certified copies to all governments whose names are set forth in Schedule 4 and to all governments whose membership is approved in accordance with Article II, Section 1(b).

•
:

SCHEDULE A

SUBSCRIPTIONS

(millions oi dollare)

Australia

Belgium

Bolivia

Bra%i1

Canada

Chile

China

Colombia

Costa Rica

Cuba

Czechoslovakia *Denmark

Dominican Republic

Ecuador

Egypt

El Salvador

Ethiopia

France

Greece

Guatemala

Haiti

Honduras

Iceland

India

Iran

Iraq

Liberia

Luxembourg

Mexico

Netherlands

New Zealand

Nicaragua

Norway

Panama

Paraguay

Peru

Philippine Connorwealth

Poland

Union of South Africa

Union of Soviet Socialist Republics

United Kingdom

United states

Uruguay

Venezuela

Yugoslavia

7

Total

9100
SCHEDULE B

ELECTION OF EXECUTIVE DIRECTORS

The election of the elective executive directors shall be by ballot.

of the Governors eligible to vote under Article V, Section 4(b).

2. In balloting for the elective executive directors, each governor eligible to vote shall cast for one person all of the votes to which the member eppointing him is entitled under Section 3 of Article V. The seven persons receiving the greatest number of votes shall be executive

except that no person who receives less than fourteen percent

of the total of the votes which can be cast (eligible votes) shall be considered elected.

3. When seven persons are not elected on the first ballot, a secori ballot shall be held in which the person who received the lowest number of votes shall be ineligible for election and in which there shall vote only (a) those governors who voted in the first ballot for a person not elected and (b) those covernors whose votes for a person elected are deemed under 4 below to have raised the votes cast for that person above fifteen percent of the eligible votes.

In determining whether the votes cast by a governor are to be deemed to have raised the total of any person above fifteen percent of the eligible votes, the fifteen percent shall be deemed to include, first, the votes of the governor casting the largest number of votes for such person, then the votes of the governor casting the next largest nunber, and so on until fifteen percent is reached.

5. Any governor, part of whose votes must be counted in order to raise the total of any person above fourteen percent, shall be considered as casting all of his votes for such person even if the total votes for

6. If, after the second ballot, seven persons have not been elected, further ballots shall be held on

the save principles until seven persons

have been elected, provided that after six persons are elected, the seventh may be elected by a simple majority of the remaining votes and shall be deemed to have been elected by all such votes.

1
;

Introductory irticle

I. Purposes

II.

Membership in and Capital of the Bank

1. bembership

2. Authorized capital

3. Subscription of shares

4. Issue price of shares

5. Division and calls of subscribed capital

6. Limitation on Liability

Method of payment of subscriptions for shares 8.

Time of payment of subscriptiona

9. Maintenance of value of certain currency holdings of the Bank

10. Restriction on disposal of shares

III.

General Provisions Relating to Loans and Guarantees

Use of resources

IV.

Methods of making or facilitating loans

Availability and transferability of currencies

3. Provision of currencies for direct loans

Payment provisions for direct loans

Special reserve

7. Methods of meeting liabilities of the Bank in case of defaults 8.

Miscellaneous operations 9.

Warning to be placed on securities 10.

Political activity prohibited

V. Organization and Managemert 1.

Structure of the Bank

2. Board of Governors 3.

4.

Voting

Executive Directors

6. Pressient and start

Advisory Council 7.

Loan Committees 8.

Relationship to other international organizations 9.

10.

Location of offices regional offices and councils 11.

Depositories

1. Alondon at roar prorison of satomat son
withdrawal and suspension of membership:

Suspension of Operations

Hight of members to withdraw

Suspension of membership

VII.

Status, Imunities and Privileges

Status of the Bank

Position of the Bank with regard to judicial process

Immunity of assets from seizure

6. Freedon of assets from restrictions

VIII. Amendments

IX. Interpretation

X. Approvai deemed given

XI. Final Provisions

1. Entry into force

2. Signature

3. Inauguration of the Bart

SCHEDULES

SCHEDULE 1.

Subscriptions

SCHEDULE B.

Election of Executive Directors
Annex C

SUMMARY OF AGREEMENTS OF

BRETTON WOODS CONFERENCE

This Conference at Bretton Woods, representing nearly all the peoples of the world, has considered matters of internationel money and finance which are important for peace and prosperity, The Confer- ence has agreed on the problems needing attention, the measures which should be taken, and the forms of international cooperation or organi- zation which are required.

The agreements reached on these large and

complex matters are without precedent in the history of international economic relations.

I. The International Monetary Fund

Since foreign trade affects the standard of life of every people, all countries have a vital interest in the system af exchange of na- tional currencies and the regulations and conditions which govern its working.

Because these monetary transactions are international ex- changes, the nations must agree on the basic rules which govern the ex- changes if the system is to work smoothly.

men they do not agree, anc

men single netions and small groups of nations attempt by special ano different regulations of the foreign exchanges to gain trade advantages, the result is instability, a reduced volume of foreign trade, and damage to national economies.

This course of action is likely to lead to eco-

nomie warfare and to endanger the world's peace.

The Conference has therefore agreed that broad International action is necessary to maintain an international monetary system which will pro- mote loreign trade.

The nations should consult and agree on interna-

tional monetary changes which affect each other. They should outlaw practices which are agreed to be harrful to worid prosperity, and they hould assist each other to overcome short-term exchange difficulties.

The Conference has agreed that the nations here represented should establish for these purposes a permanent international body, The

International Monetary, Fund, with powers and resources adequate to per-

it. Agreement has been reached concerning

these powers and resources and the additional obliget ions which the member countries should undertake. Draft Articles of Agreement on these points have been prepared.

II. The International Bank for Reconstruction and Development should be rapid.

d be and rest, fad alone postmare particur

The Conference has agreed that expanded international Investment 1 ssential to provide a portion of the capital necessary for reconstructio and development.
The Conference has further agreed that the nations should cooperate to increase the volune of foreign investment for these purposes, made through normal business channels.

It is especially important that the nations should

cooperate to share the riaka of such foreign investment, since the benefits are general.

The Conference has agreed that the nations should establish a permanent

Bank for Reconstruction and DeveLopment.

should aseist in providing capital

must assume, and has prepared draft Articles of Agreement accordingly.

The Conference has reconnended that in carrying out the policies of the institutions here proposed special consideration should be given to the needa of countries which have suffered from enemy occupation and hostilities.

The proposals formulated at the Conference for the establiahment of the

Fund and the Bank are now submitted, in accordance with the terms of the in vitation, Ior consideration of the governments and people of the countries represented.

I carray that the forgoing text is a cue copy of the linal Aer of the Uniterd Nations

Conferener, with all the annexes thereto, signed at Bretton Woods, New Hampshire, on Jy language, the signed original of which is deposted in the archives of the Department of

America.

IN reSTIMONY WHERENE, 1. Cordell Hall, Secretary of State, have hereunto

Stille to be aflixes and my name subscribed by the Arting Chief, Division of

Department, at the city of Washington, in the District of Columbia, this

ary and Financial 1941, in du: English the Uniced States of é seal of the Department of calive Managemen, of thr sa day of August 1911.

Drentry of Stale

By .

ting cited. Denson of time drunce Minuemine