FOREIGN ECONOMIC AND COMMERCIAL POLICY


agree full presentation IMF conclusions if made orally. Saad 2 ap-
pears like this idea. They also raise no objection any 'CP or several
CP's stating opinion time for relaxation restrictions has come and
having this view formally recorded provided issue not pressed to vote.
This was procedure used Annecy in South African consultation.
   British insist consultation under paragraph 4 (b) is advance dis-
cussion to get views on table and formal action CP's desired, this
should be done under 4 (d), with normal courtesy !advance n, otice
challenge.
   British also willing have status consulting countries examined one
at a time provided CP's "take note" fact they are members sterling
area and this fact has important bearing any assessment their situa-
tion. Fund report, of course, discusses this fully in relation each
country.
   British did not raise the question of publicity with respect to docu-
ment finally developedsat Torquay on this subject.
  We propose to handle matter in the following fashion:
  1. Accept full consultation on present position as matter of course.
  2. Insist Fund conclusions be presented CP's but accept oral pres-
entation with appropriate record in WP report if necessary.
  3. Insist status each country be discussed individually.
  4. Raise no objection to presentation of British paper re sterling
area but take position that matters there discussed should more prop-
erly have been presented to the Fund. Point out that Fund reports
indicate that Fund was fully apprised of relationship of each country
to sterling area. Avoid arguing substance of British paper here but
make clear that silence does not imply consent. We feel it would be
undesirable to argue merits of paper here since matter so clearly in-
volves purely financial arrangements which should be dealt with
entirely in the Fund.
  5. Make the point as matter of principle that consultation between
CPs as collective group and individual country may very well require
vote by CP's to establish views of collective group for discussion with
individual country. However, CP's could conduct consultation by
simply sponsoring round-table exchange of views among participating
countries without developing collective CP position. For purposes
of present consultation, we see little to be gained by pressing for a
CP vote. On one hand, this would arouse violent opposition from UK
and others, and on other hand would add little to the pressure already
engendered by Fund conclusions and to be enendered by expression
of individual country views here which should reveal pretty clearly
what the result of a vote would be if taken. Establishing point that
voting would be a proper procedure would make it possible to press
for vote at sixth session in connection with review under last sentence
of Article XII, paragraph 4 (b) if there is no sign of relaxation on
part of British and others in the meantime.
  6. Insist that report record fact that Monetary Fund advises time for
beginning progressive relaxation has come.


763