134. Telegram From the Embassy in the United Kingdom to the Department of State1

463. Dept pass Treasury and White House. White House for Bator. Treasury for Kane and Hunt.

18th July 1967

Communique of the Ministerial Meeting of the Group of Ten on July 17th and 18th in London.

The Ministers and Central Bank Governors of the Ten countries participating in the General Arrangements to Borrow met in London on 17th and 18th July under the chairmanship of Mr. James Callaghan, [Page 393] Chancellor of the Exchequer of the United Kingdom. Mr. Pierre-Paul Schweitzer, Managing Director of the International Monetary Fund, took part in the meeting, which was also attended by the Secretary-General of the Organization for Economic Co-operation and Development, the General Manager of the Bank for International Settlements, and the President of the National Bank of Switzerland.
The Ministries and Governors had before them an outline of a contingency plan prepared after the recent fourth joint meeting in Paris of the Executive Directors of the International Monetary Fund and the Deputies of the Group of Ten.2 The plan would establish new facilities, in the form of automatic drawing rights administered by the International Monetary Fund.
The Ministers and Governors discussed major features of the plan and narrowed the remaining differences of view between them. They gave guidance to their Deputies to work out, in the coming weeks, proposals acceptable to all. It is expected that agreement will be reached on an outline plan to be embodied in a resolution of the forthcoming annual meeting of the Governors of the International Monetary Fund in Rio de Janeiro.
The Ministers and Governors noted that the proposals to make certain changes in the rules and practices of the International Monetary Fund put forward by the E.E.C. countries are currently being examined in the International Monetary Fund.
The Ministers and Governors took note of the other work done by their Deputies during the past year.

[Here follows the text of a statement by Secretary of the Treasury Fowler at the conclusion of this G–10 Ministerial Meeting in London.]

  1. Source: Department of State, Central Files, FN 10. Unclassified; Priority.
  2. Reference is apparently to the draft outline prepared by the IMF staff following the fourth joint meeting of Executive Directors and Deputies of the Group of Ten held in Paris June 19–21. The outline served as a working document, which clearly identified the main unresolved questions for discussion and possible compromise. (The International Monetary Fund, 1966–1971, vol. I, pp. 153–155)