§ In the last year there have been further disturbances in foreign exchange markets, which have led to concern about international monetary arrangements. I welcome constructive discussion about these matters, but it is misleading to talk as though the system had broken down or was about to do so. 1968 was a year of monetary tension, but it was also a year of vigorous growth of output and trade in the world economy. When strains in the system have appeared, international co-operation has been successful in resolving them. The Basle arrangements 993 for stabilising the official balances of the sterling area stood secure against the strains of last November and December. In March this year, renewed fears about the French position caused tension in the exchange markets for a few days only, and did not prevent the month from being a good one for sterling. And Central Banks have agreed to take steps to neutralise the impact on reserves if speculative currency movements recur.
§ The most urgent improvement which is needed is to bring into operation the scheme for Special Drawing Rights in the International Monetary Fund. I hope that the first S.D.R.s will be created and distributed, on a substantial scale, before the end of this year.