TNAG-2227-FCO40-3199-Political-relations-between-Hong-Kong-and-Commonwealth-count-1991 — Page 121

vpu.sarimf91.31

8.

Governors are voting on a membership resolution which gives Switzerland

starting quota of SDR 1.7 billion (US $2.3 billion) rising to SDR 2.5 billion

(US $3.4 billion) after the Ninth Quota Review. This outcome places Switzerland

13th in the Fund just

just ahead of Australia but a long way ahead of Spain whose

quota is SDR 1.29 billion ($1.74 billion). Spain originally voiced their

dissatisfaction with this result and threatened formally to request an ad hoc increase in their quota. Recent indications are that they will acquiesce in exchange for Swiss support for their bid to join the G10.

9.

Switzerland is looking for its own seat on the EB but will have to wait

until the next EB elections in 1992 before it can make a bid. Ranked only 13th,

it is unlikely that Switzerland will

will displace

Nor it is likely that the

Board

an existing European head of

would be expanded beyond its

There remains an outside chance

constituency.

present 22 members to accommodate Switzerland.

that Switzerland could attract support from new East European members and might,

thus, head up new constituency. But it is unclear how this could be squared

with their commitment not to obtain a seat at the expense of the developing

countries.

C

10.

Moreover, the creation of an extra industrial country constituency would run

counter to long held understandings regarding the geographical distribution of

the EB and the balance in the EB between developed and developing countries.

These principles were explicitly endorsed by the Board in its report to Governors

on Swiss membership.

•

11. Once Switzerland has completed its own legal processes to accept membership; deposited an instrument of ratification; and paid its subscription; membership

will become effective. Internal procedure in Switzerland for approving membership of the IMF could be lengthy. It is possible that a national

referendum will be called for, although this is not obligatory under the Swiss

constitution, but "facultatif' (ie optional; callable by a minimum number of

citizens). The Sviss authorities are confident that a referendum, if it were

held, would endorse IMF membership but it is doubtful whether this could be

completed by the 1991 Annual Meetings. In any event, according to the Membership

Resolution, membership must be completed within 12 months.

ぐ

-

· 2 -