§ Mr. Arnoldasked the Chancellor of the Exchequer what is the policy of Her Majesty's Government on the redistribution of quotas among International Monetary Fund members; and whether he is satisfied with the rate of progress towards achieving a speedy agreement.
§ Mr. Bruce-GardyneThe distribution of the quota increase should be achieved in a way that is uniform, fair and systematic. It should allow quota shares to change in an orderly way over time to reflect more clearly members' positions in the world economy. Progress on this and other elements of the review depend on securing a wide measure of support and agreement from many countries. Throughout the autumn there have been discussions and some advances have been made, with the United Kingdom playing an active role in promoting progress.
§ Mr. Arnoldasked the Chancellor of the Exchequer what are his responsibilities as chairman of the interim committee of the International Monetary Fund; for how long the appointment runs; and if he will make a statement.
§ Sir Geoffrey HoweThe principal responsibility of the chairman is to chair the twice yearly meetings of the 22 member interim committee. The committee advise the board of governors on supervising the management and development of the international monetary system, including the continuing operation of the adjustment process. It also advises the board of governors on the handling of sudden disturbances which might threaten the system. There is no fixed term for the chairmanship.
I am greatly honoured to have been elected. The importance of the fund's role needs no underlining in current circumstances. I hope to help to ensure that it has the resources, and the support, to enable it to continue to play that role effectively.
§ Mr. Arnoldasked the Chancellor of the Exchequer whether Her Majesty's Government propose to lend further sums to the International Monetary Fund under the general arrangements to borrow; if he will specify the amounts; and whether Her Majesty's Government favour overall extension of the arrangements.
§ Mr. Bruce-GardyneThese issues are still being examined. The general arrangements to borrow have been long standing arrangements by which the major industrial countries including the United Kingdom lend to each other. If enhanced borrowing arrangements were to play a role in enlarging the resources of the fund, perhaps the most effective way might be building on the GAB to make resources available to the fund for more general use if the stability of the international financial system is at risk.