§ LORD CONESFORDasked Her Majesty's Government:
- (1) What are the current rules of the International Monetary Fund binding member countries (in the absence of specific exemption) to allow the use of foreign exchange for current transactions and foreign travel, and in what document these rules are set out;
- (2) When, and in what terms, the United Kingdom obtained exemption from these rules, and in what document the exemption is contained;
1057 - (3) What are the current rules of the Organisation for Economic Co-operation and Development binding member countries (in the absence of specific exemptions) to allow the use of foreign exchange for current transactions and foreign travel, and in what documents these rules are set out; and
- (4) When, and in what terms, the United Kingdom obtained exemption from these rules of the O.E.C.D., and in what document the exemption is contained.
§ LORD BESWICK(1) Article VIII, Section 2(a) of the Articles of Agreement of the International Monetary Fund provides that no member shall impose restrictions on payments for current international transactions without the approval of the Fund.
(2) The United Kingdom has obtained approval to the introduction and con- 1058WA tinuation of the existing restrictions in a series of decisions by the Executive Board of the Fund, the latest of which was in October, 1969. These decisions are not published.
(3) So far as O.E.C.D. is concerned, the rules are set out in the Code of Liberalisation of Current Invisible Operations. Article 1 provides for the elimination between members of restrictions on current invisible transactions and transfers. Article 7 permits members in balance of payments difficulties to impose restrictions temporarily.
(4) The Council of O.E.C.D. has accepted, by decisions taken in January, 1967, and March, 1969, that the invoking by the United Kingdom of Article 7 is justified. Council decisions are not published.
House adjourned at half-past nine o'clock.