HL Deb 27 June 1974 vol 352 cc1631-2
THE EARL OF LAUDERDALE

My Lords, I beg leave to ask the first Question which stands in my name on the Order Paper.

The Question was as follows:

To ask Her Majesty's Government what is their policy on suggestions that it would be in the interest of industrial countries which are heavy importers of crude oil to secure larger representation of the OPEC countries on the Council of the International Monetary Fund.

THE LORD JACQUES

My Lords, Her Majesty's Government welcome full and active participation of all member countries in the important work of the International Monetary Fund. It would certainly be appropriate for the growing importance of the Oil Producing and Exporting Countries in international financial affairs to be reflected in their position in the International Monetary Fund.

Subject to a moderate weighting in favour of small member countries, voting rights in the I.M.F. are based upon quotas. These also determine subscriptions and drawing rights. Quotas are a matter for periodic negotiation. A renegotiation has begun and is due to be completed by February, 1975. It is to be expected, unless the OPEC countries themselves wish otherwise, that their relative position will be increased as a result of this round of renegotiation.

THE EARL OF LAUDERDALE

My Lords, in thanking the noble Lord for his informative and valuable reply, may I ask him to clarify one or two points? Can we take it that Her Majesty's Government are in favour of this general approach, inasmuch as the delays in the production of North Sea oil will make it important to be able to buy Middle Eastern crude? Do the Government realise that it is important to persuade the OPEC countries to be willing to accept Special Drawing Rights?

LORD JACQUES

My Lords, on earlier occasions not all OPEC countries have claimed as much as they might have been entitled to claim by way of quotas. Her Majesty's Government would welcome their full participation.

THE EARL OF LAUDERDALE

My Lords, may I thank the noble Lord for that answer to my supplementary question. It is satisfactory to me.

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