AGENDUM No. 669: INTERNATIONAL CONFERENCE, PROPOSED INTERNATIONAL
MONETARY FUND [1]

With reference to the above subject, I am directed to inform you
that full Cabinet on 12th June, 1944, decided:-

1. That the Commonwealth of Australia should be represented at the
proposed conference;

2. That this representation be on an official expert level only;

3. That Australia's representatives should be Professor Melville,
Mr. Wheeler and Mr. Tange;

4. That the representatives should seek an improvement so far as
Australia is concerned in the proposed scheme somewhat clown the
lines of Paragraph 9 (i) and (ii) and Paragraph 10 (a) and (b) of
the memorandum entitled 'Australia and the Monetary Fund' [2]
attached to the Agendum dated 10th June put forward by the
Treasurer and the Minister for External Affairs.

This phase was discussed further on 13th June when Cabinet
approved of the following summary of instructions to the
Australian representatives:-

That the Australian representatives are to seek amendments of the
proposed scheme as it now stands somewhat along the following
lines:-

A. To press strongly for substantially increased accommodation
both in respect of the 'quota' and the annual drawing rights.

B. To seek:

(a) the inclusion in Clause (IV) [3] of a provision that the Fund
shall not reject a requested change in the exchange rate which is
designed to meet a serious and persistent deficit in the balance
of payments on current account accompanied by a substantially
adverse change in the terms of trade.

(b) the alteration of the 'purposes and policies' of the Fund to
give more emphasis to employment and less emphasis to exchange
stability and to strengthen the safeguards against the Fund
interfering with the domestic policies of a country.

C. To ask that it should be made clear that the right of
withdrawal from the Fund should not be prejudiced by making
membership of the Fund a condition of membership of any other
international body.

D. To urge that an employment agreement should be concluded before
a final decision is sought on whether countries will become
members of the Fund.

E. To report any proposals made concerning the time of
commencement of benefits and obligations before a decision
regarding the Australian attitude is made.

5. That Australia is not to be committed to adherence to any
resolutions of the conference even on an official level;

6. When the decisions of the conference are received they shall be
referred to Cabinet for consideration before any definite
commitment is entered into. Later any scheme approved by Cabinet
will be submitted to Parliament for ratification.

7. The representatives are to be instructed as to the Government's
views and desires on the lines of the Cabinet discussion and the
decisions arrived at. They are to be instructed that in all their
discussions they are to keep in mind that any scheme of
international monetary stabilisation arrived at may not be
acceptable to the Government in any event.

Cabinet also decided that if questions relating to commercial
policy come before the conference in any form an Australian
representative acquainted with the fiscal policy and problems of
the Commonwealth should attend.

Proposal for United Nations Bank for Reconstruction and
Development
It was decided that the delegates be instructed to hear the
proposals of the conference in this regard and on their return to
Australia submit a report for the consideration of Cabinet.

F. STRAHAN