237. Editorial Note

Pursuant to preparatory work by the G-10 Deputies (see Documents 227 and 229), the Executive Directors of the International Monetary Fund, at their meeting on June 23, 1972, decided to submit a resolution on the establishment of a committee of the Board of Governors (which became known as the C-20) to the Board of Governors for a written vote to be received on or before July 28. IMF Document SM/72/122, Supplement 3, dated June 26, was sent to members of the Executive Board explaining the voting procedure, with the draft resolution attached. This document, which was circulated to the Volcker Group Alternates as VG/INFO/72-36 Supp. 3 on June 27, is in the Washington National Records Center, Department of the Treasury, Volcker Group Masters: FRC 56 86 30, VG/INFO/72-1-VG/INFO/72-39. A number of earlier drafts of the resolution and commentary by members of the VGAs are ibid.

On July 27 IMF Document SM/72/122, Supplement 4, was sent to all members of the Executive Board informing them that 308,766 votes had been cast in favor of the resolution, far more than the 2/3 majority required for its approval. There were no negative votes and 1 abstention, and 11 members had not voted. The votes of three members were not counted for technical reasons. The IMF document was distributed to members of the Volcker Group Alternates as VG/INFO/72-36 Supp. 4 on July 28. (Ibid.) France cast its 15,250 votes in favor of the resolution.

The resolution was adopted by the Governors of the International Monetary Fund during the Fund’s Annual Meeting in Washington in September. The resolution established an ad hoc Committee of the Board of Governors on reform of the international monetary system. The Committee was to “advise and report to the Board of Governors with respect to all aspects of reform of the international monetary system, [Page 644] including those that involve international trade, the flow of capital, investment, or development assistance.” The resolution provided for a Chairman and a Deputies Committee to prepare the work of the Committee. At its first meeting on September 28 Mohammed Ali Wardhana, Finance Minister of Indonesia, was elected Chairman of the C-20. Jeremy Morse of the Bank of England was selected to chair the C-20 Deputies. Draft minutes of the first C-20 meeting and the Deputies meeting on September 29 were circulated to members of the Volcker Group Alternates on October 10 and October 11 as VGA/72-90 and VGA/72-91. (Ibid., VGA/72-51-VGA/72-107)