An act to amend the Bretton Woods Agreements Act to authorize consent to an increase in the United States quota in the International Monetary Fund, and for other purposes.
PL 96-389 (S.2271), enacted 10/07/1980

PUBLIC LAW 96-389—OCT. 7, 1980 
94 STAT. 1551 
Public Law 96-389 
96th Congress 
An Act 
To amend the Bretton Woods Agreements Act to authorize consent to an increase in 
the United States quota in the International Monetary Fund, and for other 
purposes. 
Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, 
INCREASE IN UNITED STATES QUOTA 
SECTION 1. The Bretton Woods Agreements Act (22 U.S.C. 286 et 
seq.) is amended by adding at the end thereof the following new 
section: 
"SEC. 32. The United States Governor of the Fund is authorized to 
consent to an increase in the quota of the United States in the Fund 
equivalent to 4,202.5 million Special Drawing Rights, to such extent 
or in such amounts as are provided in appropriation Acts.". 
Oct. 7, 1980 
[S. 2271] 
Bretton Woods 
Agreements Act, 
amendment. 
22 u s e 286e-lg. 
BASIC HUMAN NEEDS 
SEC. 2. (a) The Bretton Woods Agreements Act is further amended 
by adding at the end thereof the following new section: 
"SEC. 33. (a) The President shall instruct the Secretary of the 
Treasury, the Secretary of State, and other appropriate Federal 
officials to use all appropriate means to encourage countries, in 
formulating economic adjustment programs to deal with their bal-
ance of payments difficulties, to design those programs so as to 
safeguard, to the maximum feasible extent, jobs, investment, real per 
capita income, policies to reduce the gap in wealth between rich and 
poor, and social programs such as hesdth, housing, and education. 
"0^) To ensure the effectiveness of economic adjustment programs 
supported by Fund resources and the reinforcement of those pro-
grams by longer term efforts to promote sustained growth and 
improved living conditions— 
"(1) United States representatives to the Fund shall recom-
mend and shall work for changes in Fund guidelines, policies, 
and decisions that would— 
"(A) permit stand-by arrangements to be extended beyond 
three years, as necessary to enable Fund members to imple-
ment their economic adjustment programs successfully; 
"(B) provide that in approving any economic adjustment 
program the Fund shall take into account the effect such 
program will have on jobs, investment, real per capita 
income, the gap in wealth between the rich and poor, and 
social programs such as health, housing, and education, in 
order to seek to minimize the adverse impact of those 
adjustment programs on basic human needs; and 
"(C) provide that letters of intent submitted to the Fund in 
support of an economic adjustment program reflect that the 
International 
Monetary Fund 
economic 
adjustment 
programs. 
22 u s e 286s. 
79-194 O—81—pt.2 
18:QL3 
94 STAT. 1552 
PUBLIC LAW 96-389—OCT. 7, 1980 
Review. 
Annual reports 
to Congress. 
member country has taken into account the effect such 
program will have on the factors listed in subparagraph (B); 
"(2)(A) before voting on the approval of any standby arrange-
ment with respect to any economic adjustment program, the 
United States Executive Director shall review— 
"(i) any analysis of factors prepared by the Fund or the 
member country in accordance with subparagraphs (B) and 
(C) of paragraph (1), or 
"(ii) if no such analysis is prepared and available for such 
review, an analysis which shall be prepared by the United 
States Governor of the Fund which examines the effect of 
the program on the factors listed in subparagraph (B) of 
paragraph (1); and 
"(B) the United States Executive Director of the Fund shall 
take into account the analysis reviewed pursuant to subpara-
graph (A) of this paragraph in voting on approval of that standby 
arrangement; 
"(3) United States representatives to the Fund, to the Bank, 
and to other appropriate institutions shall work toward improv-
ing coordination among these institutions and, in particular, 
shall work toward formulation of programs in association with 
economic adjustment programs supported by Fund resources 
which (A) will, among other things, promote employment, invest-
ment, real income per capita, improvements in income distribu-
tion, and the objectives of social programs such as health, 
housing, and education, and (B) will, to the maximum extent 
feasible and consistent with the borrowing country's need to 
improve its balance of payments position within a reasonable 
period, ameliorate any adverse effects of economic adjustment 
programs on the poor; 
"(4) United States representatives to the Fund and the Bank 
shall seek amendments to decisions on policies on the use of Fund 
and Bank resources to provide that, where countries are seeking 
Extended Fund Facility or upper credit tranche drawings from 
the Fund and are eligible to receive financing from the Bank, the 
Fund and Bank will coordinate their financing activities in 
order— 
"(A) to take into account the effects of economic adjust-
ment programs on the areas listed in clause (A) of paragraph 
(3), 
"(B) to provide, to the extent feasible, Bank project loans 
designed to safeguard and further basic human needs in 
countries adopting economic adjustment programs sup-
ported by Fund resources, and 
"(C) to provide, as appropriate. Bank financing for pro-
grams of structural adjustment that will facilitate develop-
ment of a productive economic base and greater attainment 
of basic human needs objectives over the longer term; and 
"(5) United States representatives to the Fund and the Bank 
shall request the Fund and the Bank to provide periodic analyses 
of the effects of economic adjustment programs supported by 
Fund or Bank financing on jobs, investment, real income per 
capita, income distribution, and social programs such as health, 
housing, and education. 
"(c) The National Advisory Council on International Monetary and 
Financial Policies shall include in each of its annual reports to the 
Congress a statement detailing the actions and progress made in 
PUBLIC LAW 96-389—OCT. 7, 1980 
94 STAT. 1553 
canning out the requirements of subsections (a) and (b) of this 
section 
(b) Section 30 of the Bretton Woods Agreements Act (22 U.S.C. 
286e-9) is amended— 
(1) in subsection (a) by striking out "entered into pursuant to 
loans from the Supplementary Financing Facility"; 
(2) in the first sentence of subsection 0)) by striking out 
"entered into pursuant to loans from the Supplementary Financ-
ing Facility"; and 
(3) in the second sentence of subsection Qy) by striking out "by 
the Supplementmy Financing Facility". 
SEC. 3. Strike section 7 of Public Law 95-435, the Bretton Woods ^^ use 27. 
Agreements Act Amendments of 1978, which reads: "Beginning with 
Fiscal Year 1981, the total budget outlays of the Federal Government 
shall not exceed its receipts.", and msert in lieu thereof: "The 
Congress reaffirms its commitment that beginning with Fiscal Year 
1981, the total budget outlays of the Federal Government shall not 
exceed its receipts. . 
RECYCUNG BALANCE-OP-PAYMENTS SURPLUSES 
SEC. 4. (a) It is the sense of the Congress that (1) the interests of the 2
2 use 286t 
United States and those of other member countries require an "
°
*
® 
effective International Monetary Fund equipped with resources ade-
quate to facilitate orderly balance-of-pajrments adjustments; (2) per-
sistent balance-of-payments surpluses in oil exporting countries have 
placed, and will continue to place, severe strains on the resources of 
oil importing countries and on the liquidity of the Fund; (3) these 
strains can only be relieved if the oil exporting countries assume a 
greater burden for financing balance-of-payments deficits through 
direct methods of recycling their surpluses and through proportion-
ally greater contributions to the Fund and to the international 
lending institutions; and (4) the Fund must explore innovative 
proposals to encourage more direct recycling of oil surpluses and to 
increase its own liquidity. 
(b) The Bretton Woods Agreements Act is further amended by 
adding at the end thereof the following new sections: 
"SEC. 34. The Secretary of the Treasury, in consultation with the study and report 
United States Executive Director of the Fund, shall study and, 2
2 usc^slt 
following consultations with member countries, shall report to the 
Congress prior to May 15,1981, with respect to— 
"(1) the current adequacy of Fund resources, together with 
projected needs of the Fund over the next 
five 
years; 
"(2) the feasibility of increasing Fund liquidity by encouraging 
the Fund to borrow directly from the governments of oil export-
ing countries; 
"(3) the feasibility of increasing Fund liquidity by encouraging 
the Fund to borrow in private capital markets through the 
issuance of 
securities backed by Fund resources; 
"(4) the feasibility of an offer by the Fund of incentives to oil 
exporting countries, including financial guarantees by the Fund 
for government-to-government loans to countries with balance-
of-payments deficits, in order to promote more direct recycling of 
oil surpluses; and 
"(5) methods to enhance cooperation between commercial 
banks and the Fund to promote the availability of adequate 
resources for balance-of-payments financing. 
94 STAT. 1554 
PUBLIC LAW 96-389—OCT. 7, 1980 
Report to 
Congress. 
22 u s e 286u. 
"SEC. 35. It is the sense of the Congress that the Secretary of the 
Treasury and the United States Executive Director of the Fund shall 
encourage member countries of 
the Fund to negotiate a dollar-Special 
Drawing Rights substitution accoimt in wmch equitable burden 
sharing womd exist among participants in the account, and shall 
report to the Congress prior to May 15,1981, with respect to progress 
toward achieving this goal.". 
DEBT RESCHEDULING COMPARABILITY 
22 use 286e-8. 
SEC. 5. Soction 29 of 
the Bretton Woods Agreements Act is amended 
by striking out "on the use of 
the facility". 
International 
Monetary Fund 
membership. 
22 u s e 286v. 
TAIWAN 
SEC. 6. The Bretton Woods Agreements Act is further amended by 
adding at the end thereof the foUowing new section: 
"SEC. 36. It is the sense of the Congress that it is the policy of the 
United States that Taiwan (before January 1, 1979, known as the 
Republic of China) shall be granted appropriate membership in the 
Fund and that the United States Executive Director of 
the Fund shall 
so notify the Fund.". 
22 u s e 286w. 
Presidential 
report to 
Congress. 
PALESTINE LIBERATION ORGANIZATION 
SEC. 7. The Bretton Woods Agreements Act is further amended by 
adding at the end thereof the following new section: 
"SEC. 37. It is the policy of the United States that the Palestine 
Liberation Organization should not be given membership in the Fund 
or be given observer status or any other official status at any meeting 
sponsored by or associated with the Fund. The United States Execu-
tive Director of the Fund shall promptly notify the Fund of such 
policy. 
"In the event that the Fund provides either membership, observer 
status, or any other official status to the Palestine Liberation 
Organization, such action would result in a serious diminution of 
United States support. Upon review of such action, the President 
would be required to report his recommendations to the Congress 
with regard to any further United States participation in the Fund.". 
22 u s e 286x. 
International 
Monetary Fund 
salaries and 
travel costs. 
22 u s e 286a 
note. 
ASSISTANCE TO THE PRIVATE SECTOR OF EL SALVADOR AND OTHER 
NATIONS 
SEC 8. The Bretton Woods Agreements Act is further amended by 
adding at the end thereof the following new section: 
"SEC 38. It is the sense of the Congress that in providing assistance 
through loans or other means to any nation, in particular El Salvador 
and Nicaragua, the Fund and the Bank should encourage programs 
which assist the private sector to create an environment which will 
stabilize the economy of the nation; and that the United States 
representatives to the Fund and the Bank shall promote the use of 
assistance by the Fund and the Bank to encourage such programs.". 
SEC 9. The United States Executive Director to the Fund shall seek 
to insure (a) that Fund salaries do not exceed those levels endorsed by 
the Fund Bank Joint Committee on Staff Compensation Issues; and 
(b) that travel costs are minimized by limiting first class and super-
sonic travel to instances where no reasonable alternative exists. 
PUBLIC LAW 96-389—OCT. 7, 1980 
94 STAT. 1555 
ROLE OF GOLD IN INTERNATIONAL MONETARY SYSTEMS 
SEC. 10. (a) The Secretary of the Treasury shall establish and chair 
a commission consisting o
f
— 
(1) three members of the Board of Governors of the Federal 
Reserve System and two members of the Council of Economic 
Advisors, all of whom shall be designated by the Secretary of the 
Treasury; 
(2) one majority and one minority member each from (A) the 
Joint Economic Committee of the Congress, (B) the Committee on 
Banking, Housing, and Urban Affairs of the Senate, and (C) the 
Committee on Banking, Finance and Urban Affairs of the House 
of Representatives, who shall be designated by the Speaker of the 
House of Representatives and the President of the Senate, 
respectively, upon the recommendations of the majority and 
minority leaders of 
the respective Houses; and 
(3) four distinguished private citizens with business, finance, or 
academic back^unds who shall be designated by the Secretary. 
(b) The commission shall conduct a study to assess and make 
recommendations with regard to the policy of the United States 
Government concerning the role of gold in domestic and interna-
tional monetary systems, and shall transmit to the Congress a report 
containing its findings and recommendations not later than one year 
after the date of 
enactment of 
this Act. 
(c) Sums appropriated pursuant to section 5 of Public Law 95-612 
shall be available to the commission to carry out its functions. 
Commission, 
establishment. 
31 u s e 822a 
note. 
Study and report 
to Congress. 
92 Stat. 3092. 
FULL APPROPRIATIONS REQUIRED 
SEC. 11. Section 32 of the Bretton Woods Agreements Act, as added 22 use 286e-ig. 
by section 1 of this Act, is amended by striking "to such extent or in 
such amounts as are provided in appropriations Acts" and inserting 
in lieu thereof "limited to such amounts as are appropriated in 
advance in appropriation Acts." 
EFFECTIVE DATE 
SEC. 12. This Act shall take effect on its date of enactment, except 
that funds may not be appropriated under any authorization con-
tained in this Act for any period prior to October 1,1980. 
Approved October 7, 1980. 
22 u s e 286s 
notej 
LEGISLATIVE HISTORY: 
HOUSE REPORT No. 96-1018 accompanying H.R. 7244 (Comm. on Banking, Finance 
and Urban Affairs). 
SENATE REPORTS: No. 96-693 (Comm. on Foreign Relations) and No. 96-794 
(Comm. on Banking, Housing, and Urban Affairs). 
CONGRESSIONAL RECORD, Vol. 126 (1980): 
June 16, considered and passed Senate. 
Sept. 17, 18, H.R. 7244 considered and passed House; passage vacated and S. 
2271, amended, passed in lieu. 
Sept. 23, Senate concurred in House amendments. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 16, No. 41: 
Oct. 7, Presidential statement.