Page:United States Statutes at Large Volume 60 Part 2.djvu/322

 INTERNATIONAL AGREEMENTS OTHER THAN TREATIES [60 STAT. ARTICLE VII SCARCE CURRENCIES Section 1. General scarcity of currency Report. If the Fund finds that a general scarcity of a particular currency is developing, the Fund may so inform members and may issue a re- port setting forth the causes of the scarcity and containing recommen- dations designed to bring it to an end. A representative of the mem- ber whose currency is involved shall participate in the preparation of the report. Section 2. Measures to replenish the Fund's holdings of scarce cur- rencies The Fund may, if it deems such action appropriate to replenish its holdings of any member's currency, take either or both of the follow- ing steps: (i) Propose to the member that, on terms and conditions agreed between the Fund and the member, the latter lend its currency to the Fund or that, with the approval of the member, the Fund borrow such currency from some other source either within or outside the territories of the member, but no mem- ber shall be under any obligation to make such loans to the Fund or to approve the borrowing of its currency by the Fund from any other source. (ii) 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 mem- ber's currency seriously 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 thenceforth apportion its existing and accruing supply of the scarce currency with due regard to the relative needs of members, the general international economic situation and any other pertinent considera- tions. The Fund shall also issue a report concerning its action. (b) A formal declaration under (a) above shall operate as an au- thorization to any member, after consultation with the Fund, tempo- rarily to impose limitations on the freedom of exchange operations in Ante, p. 1404. the scarce currency. Subject to the provisions of Article IV, Sections 3 and 4, the member 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 accruing 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. Section 4. Administration of restrictions Any member imposing restrictions in respect of the currency of any other member pursuant to the provisions of Section 3 (b) of this Article shall give sympathetic consideration to any representations by the other member regarding the administration of such restrictions. 1410

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