Foreign Relations of the United States, 1964–1968, Volume VIII, International Monetary and Trade Policy

49. Action Memorandum From the Assistant Secretary of State for Economic Affairs (Johnson) to Secretary of State Rusk¹

Washington, March 11, 1965.

SUBJECT

• Special Report of the NAC on IMF Quota Increases

The Treasury Department, supported by State and other U.S. agencies, has taken the lead in working out arrangements for a 25 percent increase in IMF quotas. These arrangements contain measures designed to reduce the impact of the quota increases on the U.S. gold stock.

The attached Special Report (Tab B)² explains these arrangements. It emanates from the National Advisory Council on International Monetary and Financial Problems (the NAC) which was set up in 1946 under the Bretton Woods Agreement. The NAC coordinates the United States position on international financial matters, including the IMF. You are a statutory member.

The NAC almost never meets. Its work is handled by a staff committee where E assures State representation on IMF matters. We have examined the Special Report and have no objection to it.

Recommendation

That you sign the transmittal letter (Tab A) to the President and the Congress.

Tab A³

Washington, March 12, 1965.

To the President and to the Congress:

The National Advisory Council on International Monetary and Financial Problems transmits herewith its Special Report on Proposed Increases in Quotas of the International Monetary Fund.

The Council recommends the enactment of legislation to authorize an increase in the quota of the United States in the International Monetary Fund by $1,035 million, from $4,125 million to $5,160 million, as part of a general 25 percent increase in Fund quotas under the conditions set forth in the Report.

Douglas Dillon
Secretary of the Treasury Chairman, National Advisory Council on International Monetary and Financial Problems

Dean Rusk
Secretary of State

John T. Connor
Secretary of Commerce

William McC. Martin, Jr.
Chairman,
Board of Governors of the Federal Reserve System

Harold F. Linder
President and Chairman
Export-Import Bank of Washington

1. Source: Department of State, Central Files, FN 10. No classification marking. Drafted by Michael E. Ely (E/OFE) on March 11 and cleared by Benjamin Caplan (E/OFE).
2. Not printed.
3. No classification marking. Tab A was sent under cover of a March 11 note from Alexander Rattray (S/S-S) to Edward S. Little (S) informing him that “Treasury hand carried this package to the Department this afternoon and is anxious to obtain the Secretary’s signature on the transmittal letter to the President and to the Congress at the earliest possible moment. The letter has been signed by Secretaries Dillon and Connor and by FRB Chairman Martin.”