<pre>


FOREIGN RELATIONS) 1950, VOLUME I


convertibility was the main problem in dealing with the EPU or any
other regional group. In this instance, the very size of the area gave
the plan particular importance. There was no practicable way of
keeping the great colonial areas of England, France, and Belgium
outside of the EPU. We were dealing with something that which in
its impact, although not in its detail, was concerned with most of the
Eastern Hemisphere and a large part of the trade of the world.
This was what alarmed the Canadians and Latin Americans. The
question was whether there was a change in American policy.
  Mr. Southard pointed out that if the problem of -South African
discrimination were discussed in the Fund or raised at Torquay,' we
must be able to assure the critics that the United States has only one
main theme and is not going to say to Europe that it is all right to
discriminate and tell other parts of the world that discrimination is
not ,permissible.&quot;

   (Minutes of NAC Meeting No. 158, June 29, 1950, Lot 60D137,
Box 362)

  For documentation on this matter, see pp. 791 if. This is a reference to
the
meeting of the fifth session of the Contracting Parties of the General Agreement
on Tariffs and Trade (GATT), scheduled to be held on November 2.


NAC Files, Lot 60D137, Box 862
  Minutes of Meeting No. 167 of the National Advisory Council,
                  Washington, December 5, 1950

SECRET
   [Here follow list of persons present (23) and discussion of a prior
agenda item.]
2. Use of the [International Monetary] Fund's Resources
   Mr. Glendinning said that the U.S. Executive Director for the last
two years had made clear the United States position on the use of the
Fund's resources.' The United States criteria for Fund drawings,
however, had not received general acceptance. The Managing Director
of the Fund 2 had come to the conclusion that it would not be possible
to reach a clear understanding in the Board as to the abstract criteria
for drawings. Mr. Gutt felt, however, that the Fund should be moving
toward its objectives. As outlined in NAC Staff Document No. 473 3
he had made a proposal under which the Fund would explore actively
with a number of countries, whose balance of payments positions were

  For previous documentation on this subject, see Foreign Relations, 1949,
vol.
  1, pp. 729 ff.
  2Camille Gutt.
  8 Not printed.


824

 
</pre>