§ Mr. RiddickTo ask the Chancellor of the Exchequer if he will make a statement on the negotiations on the ninth review of the International Monetary Fund quotas.
§ Mr. RyderDiscussions are continuing in the International Monetary Fund board, and we very much hope that they can be concluded swiftly. One difficulty which had emerged was how to accommodate the special quota increase that Japan is seeking. The United Kingdom has helped to provide a solution by offering to give up some of its quota share: this enables Japan to move up to second rank in the fund without reducing the quota share of developing countries. Our offer has been widely welcomed. The rankings of the other major countries will be determined in the usual way, according to the quota formulas agreed by the whole International Monetary Fund membership. Taking account of the offer we have made, these formulas would reduce the United Kingdom's quota share from 6.9 per cent. to 6.0 per cent. and would move the United Kingdom to fourth position in the rankings; we are perfectly ready to accept that result. I hope that the remaining issues, on the overall size of the quota increase and on the problem of arrears on past International Monetary Fund lending, can be resolved soon.