22 U.S.C. § 286n — Special Drawing Rights

Page 185 TITLE 22—FOREIGN RELATIONS AND INTERCOURSE § 286n non-discrimination, a country whose economy has been disrupted by war, or (c) either government imposes quantitative restrictions having equivalent effect to any exchange restrictions which that government is authorized to impose in conformity with Article VII of the Articles of Agreement of the International Mone- tary Fund. The provisions of this section shall become effective as soon as practicable but not later than De- cember 31, 1946. 10. Accumulated sterling balances: (i) The Government of the United Kingdom intends to make agreements with the countries concerned, vary- ing according to the circumstances of each case, for an early settlement covering the sterling balances accu- mulated by sterling area and other countries prior to such settlement (together with any future receipts arising out of military expenditure by the Government of the United Kingdom to the extent to which they are treated on the same basis by agreement with the coun- tries concerned). The settlements with the sterling area countries will be on the basis of dividing these ac- cumulated balances into three categories (a) balances to be released at once and convertible into any cur- rency for current transactions, (b) balances to be simi- larly released by installments over a period of years be- ginning in 1951, and (c) balances to be adjusted as a con- tribution to the settlement of war and postwar indebt- edness and in recognition of the benefits which the countries concerned might be expected to gain from such a settlement. The Government of the United King- dom will make every endeavor to secure the early com- pletion of these arrangements. (ii) In consideration of the fact that an important purpose of the present line of credit is to promote the development of multilateral trade and facilitate its early resumption on a non-discriminatory basis, the Government of the United Kingdom agrees that any sterling balances released or otherwise available for current payments will, not later than one year after the effective date of this Agreement unless in special cases a later date is agreed upon after consultation, be freely available for current transactions in any cur- rency area without discrimination. 11. Definitions: For the purposes of this Agreement: (i) The term ‘‘current transactions’’ shall have the meaning prescribed in Article XIX (i) of the Articles of Agreement of the International Monetary Fund. (ii) The term ‘‘sterling area’’ means the United King- dom and the other territories declared by the Defence (Finance) Definition of the Sterling Area) (No. 2) Order, 1944, to be included in the sterling area, namely ‘‘the following territories excluding Canada and Newfound- land, that is to say— (a) any Dominion, (b) any other part of His Majesty’s dominions, (c) any territory in respect of which a mandate on be- half of the League of Nations has been accepted by His Majesty and is being exercised by His Majesty’s Gov- ernment in the United Kingdom or in any Dominion, (d) any British protectorate or protected State, (e) Egypt, the Anglo-Egyptian Sudan and Iraq. (f) Iceland and the Faroe Islands.’’ 12. Consultation on Agreement: Either government shall be entitled to approach the other for a reconsider- ation of any of the provisions of this Agreement, if in its opinion the prevailing conditions of international exchange justify such reconsideration, with a view to agreeing upon modifications for presentation to their respective legislatures. Signed in duplicate at Washington, District of Co- lumbia this 6th day of December, 1945. For the Government of the United States of America: FRED M. VINSON, Secretary of the Treasury of the United States of America. For the Government of the United Kingdom of Great Britain and Northern Ireland: HALIFAX. § 286m. Amount of loan; public-debt transaction; disposition of interest payments For the purpose of carrying out the agreement dated December 6, 1945, between the United States and the United Kingdom, the Secretary of the Treasury is authorized to use as a public- debt transaction not to exceed $3,750,000,000 of the proceeds of any securities issued after July 15, 1946, under chapter 31 of title 31, and the pur- poses for which securities may be issued under that chapter are extended to include such pur- pose. Payments to the United Kingdom under this section and section 286l of this title and pur- suant to the agreement and repayments thereof shall be treated as public-debt transactions of the United States. Payments of interest to the United States under the agreement shall be cov- ered into the Treasury as miscellaneous re- ceipts. (July 15, 1946, ch. 577, § 2, 60 Stat. 535.) Editorial Notes REFERENCES IN TEXT Agreement dated December 6, 1945, between the United States and the United Kingdom, referred to in text, is set out as a note under section 286l of this title. CODIFICATION ‘‘Chapter 31 of title 31’’ and ‘‘that chapter’’ sub- stituted in text for ‘‘the Second Liberty Bond Act, as amended’’ and ‘‘that Act’’, respectively, on authority of Pub. L. 97–258, § 4(b), Sept. 13, 1982, 96 Stat. 1067, the first section of which enacted Title 31, Money and Fi- nance. Section was not enacted as a part of act July 31, 1945, ch. 339, 59 Stat. 512, known as the Bretton Woods Agree- ment Act, which comprises this subchapter. § 286n. Special Drawing Rights The President is hereby authorized (a) to ac- cept the amendment to the articles of agree- ment of the International Monetary Fund (here- inafter referred to as the ‘‘Fund’’), attached to the April 1968 report by the Executive Directors to the Board of Governors of the Fund, for the purpose of (i) establishing a facility based on Special Drawing Rights in the Fund and (ii) giv- ing effect to certain modifications in the present rules and practices of the Fund, and (b) to par- ticipate in the special drawing account estab- lished by the amendment. (Pub. L. 90–349, § 2, June 19, 1968, 82 Stat. 188.) Editorial Notes CODIFICATION Section was not enacted as part of act July 31, 1945, ch. 339, 59 Stat. 512, known as the Bretton Woods Agree- ment Act, which comprises this subchapter. Statutory Notes and Related Subsidiaries SHORT TITLE Pub. L. 90–349, § 1, June 19, 1968, 82 Stat. 188, provided: ‘‘That this Act [enacting this section and sections 286o to 286r of this title and amending sections 412, 415, 417, and 467 of Title 12, Banks and Banking] may be cited as the ‘Special Drawing Rights Act’.’’ Page 186 TITLE 22—FOREIGN RELATIONS AND INTERCOURSE § 286o § 286o. Administration as part of the Exchange Stabilization Fund (a) Special Drawing Rights Special Drawing Rights allocated to the United States pursuant to article XVIII of the Articles of Agreement of the Fund, and Special Drawing Rights otherwise acquired by the United States, shall be credited to the account of, and administered as part of, the Exchange Stabilization Fund established by section 5302 of title 31. (b) Deposit in and withdrawal from Fund The proceeds resulting from the use of Special Drawing Rights by the United States, and pay- ments of interest to the United States pursuant to article XX, article XXIV, and article XXV of the Articles of Agreement of the Fund, shall be deposited in the Exchange Stabilization Fund. Currency payments by the United States in re- turn for Special Drawing Rights, and payments of charges or assessments pursuant to article XX, article XXIV, and article XXV of the Arti- cles of Agreement of the Fund, shall be made from the resources of the Exchange Stabiliza- tion Fund. (Pub. L. 90–349, § 3, June 19, 1968, 82 Stat. 188; Pub. L. 94–564, § 5(1), (2), Oct. 19, 1976, 90 Stat. 2661.) Editorial Notes CODIFICATION In subsec. (a), ‘‘section 5302 of title 31’’ substituted for ‘‘section 10 of the Gold Reserve Act of 1934, as amended (31 U.S.C. 822a)’’ on authority of Pub. L. 97–258, § 4(b), Sept. 13, 1982, 96 Stat. 1067, the first sec- tion of which enacted Title 31, Money and Finance. Section was not enacted as part of act July 31, 1945, ch. 339, 59 Stat. 512, known as the Bretton Woods Agree- ment Act, which comprises this subchapter. AMENDMENTS 1976—Subsec. (a). Pub. L. 94–564, § 5(1), substituted ‘‘article XVIII’’ for ‘‘article XXIV’’. Subsec. (b). Pub. L. 94–564, § 5(2), substituted ‘‘article XX, article XXIV, and XXV’’ for ‘‘article XXVI, article XXX, and article XXXI’’ wherever appearing. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1976 AMENDMENT Amendment effective Apr. 1, 1978, see section 9 of Pub. L. 94–564, set out as a note under section 286a of this title. § 286p. Issuance, purpose, and redemption of Special Drawing Rights certificates (a) The Secretary of the Treasury is author- ized to issue to the Federal Reserve banks, and such banks shall purchase, Special Drawing Right certificates in such form and in such de- nominations as he may determine, against any Special Drawing Rights held to the credit of the Exchange Stabilization Fund. Such certificates shall be issued and remain outstanding only for the purpose of financing the acquisition of Spe- cial Drawing Rights or for financing exchange stabilization operations. The amount of Special Drawing Right certificates issued and out- standing shall at no time exceed the value of the Special Drawing Rights held against the Special Drawing Right certificates. The proceeds result- ing from the issuance of Special Drawing Right certificates shall be covered into the Exchange Stabilization Fund. (b) Special Drawing Right certificates owned by the Federal Reserve banks shall be redeemed from the resources of the Exchange Stabiliza- tion Fund at such times and in such amounts as the Secretary of the Treasury may determine. (Pub. L. 90–349, § 4, June 19, 1968, 82 Stat. 188.) Editorial Notes CODIFICATION Section was not enacted as part of act July 31, 1945, ch. 339, 59 Stat. 512, known as the Bretton Woods Agree- ment Act, which comprises this subchapter. § 286q. Limitation on allocations to the United States (a) Unless Congress by law authorizes such ac- tion, neither the President nor any person or agency shall on behalf of the United States vote to allocate in each basic period Special Drawing Rights under article XVIII, sections 2 and 3, of the Articles of Agreement of the Fund so that allocations to the United States in that period exceed an amount equal to the United States quota in the Fund as authorized under the Bretton Woods Agreements Act [22 U.S.C. 286 et seq.]. (b)(1) Neither the President nor any person or agency shall on behalf of the United States vote to allocate Special Drawing Rights under article XVIII, sections 2 and 3, of the Articles of Agree- ment of the Fund without consultations by the Secretary of the Treasury at least 90 days prior to any such vote, with the Chairman and rank- ing minority members of the Committee on For- eign Relations and the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Banking, Finance and Urban Affairs of the House of Representatives, and the appropriate subcommittees thereof. (2) Such consultations shall include an expla- nation of the consistency of such proposal to al- locate with the requirements of the Articles of Agreement of the Fund, in particular the re- quirement that in all its decisions with respect to allocation of Special Drawing Rights, the Fund shall ‘‘seek to meet the long-term global need, as and when it arises, to supplement exist- ing reserve assets in such manner as will pro- mote the attainment of its purposes and will avoid economic stagnation and deflation as well as excess demand and inflation in the world’’. (3) Unless Congress by law authorizes such ac- tion, neither the President nor any person or agency shall on behalf of the United States en- gage in any voluntary transaction involving the exchange of Special Drawing Rights that are held by a member country of the Fund, if the Secretary of State has found that the govern- ment of the member country— (A) has committed genocide at any time dur- ing the 1-year period ending with the date of the transaction; or (B) has repeatedly provided support for acts of international terrorism. (4) The Secretary of the Treasury shall direct the United States Executive Director at each