Foreign Relations of the United States, 1969–1976, Volume III, Foreign Economic Policy; International Monetary Policy, 1969–1972

112. Telegram From the Department of State to Selected Posts¹

Washington, January 31, 1969, 0115Z.

15720. Subject: Special Drawing Rights.

1. New Administration reaffirms U.S. interest in the Special Drawing Rights Amendment to International Monetary Fund.² You should make this clear to government and central bank officials.

2. As of now 34 countries with a little over 50 percent of the voting power in the Fund have ratified the Proposed Amendment, as against 67 countries and 80 percent of the voting power required for Amendment to enter into force. Only 13 countries representing 41.5 percent of the total quotas have deposited with Fund instruments of participation indicating their ability to assume responsibilities of participant.SDR facility can be activated only when countries representing 75 percent of Fund’s quotas have completed this as well as preceding step.

3. Administration believes it is important that requisite number of countries complete both of above steps as soon as possible—our goal is end of first quarter—so that discussion and decision on activation can follow promptly.

4. For Bonn, Brussels, The Hague, Rome, Luxembourg, Vienna, Stockholm, Kuwait, Jidda: In discussions with host country officials, you should avoid mention of U.S. desire for early decision on activation of SDR facility.

5. For Bern, Paris, Pretoria: Use above information, but presumption here is that would be unwise to make specific approach to government or central bank officials.

Rogers

1. Source: National Archives, RG 59, Central Files 1967-69, FN 10 IMF. Limited Official Use. Drafted by Thomas O. Enders (E/IMA) and L.P. Pascoe (Treasury), cleared at Treasury by Volcker and Willis and at the IMF by Dale, and approved by Enders. Sent to all posts except Bathurst, Bujumbura, Gaborone, Kigali, Maseru, Mbabane, and Port Louis.
2. In Fall 1968 the United States had joined in supporting creation of Special Drawing Rights (SDRs) by the IMF as a new source of international liquidity. See Foreign Relations, 1964–1968, vol. VIII, Document 193. A first allocation of $9.5 billion equivalent of SDRs over a 3-year period was approved at the 1969 Annual Meeting of the IMF at Washington in September 1969. See footnote 5, Document 140.