-GOYERNMENT"l MARITIME , ...... ""'uH.TATIVE ORGANIZATION

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LmG/CONF.5/INF.2 1, J~¥.1976., , ., ; \, III ,,' 1 .'

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" "!he secrat'~e.t has·rece!'vetfft.om the cSPwPaio,'t:=·l.iit'.#timw. Wlltt;ttmnf!,Oofl (OOT!1, Ooixli1eht8 H aDd:' 'interJDa'bon aea11hs w1 th·, thQ. Postd,ble

'. rm.81Ost.'·ot-tme'pnit of ;Qoatit~d8i'O!1' inl ma1'i~ 'bOJ.ive.ni.1o~'.' . i, .. if '

.L,t :L.~~ ., 'ri' .~ -"J. t.,.; ~ ~:;r,~" .'::' '.\1 \: • .l: ",tl' ,'\ .. I~ .. I",,~'~' '::. ;i'~"'''A:' ~. !:'!',I The oomments and info:at\Q,tion from OC!n ore presented to the Conferenoe tor

inf'ormntlon and appropriate a.otion in the oontezt of the disoussions rega.rd1ng

the 1mi t vi a.ooount to be incorporated in the proposed oonvention on l1mi tation

of liability for maritime olaims.

The comments are reprodtLOed below and the informa.tion reoei ved b,y OCTI

in response to an enqrd,ry made among its Member States and intel','JUl.t1onal

organizations is a.ttached.

"OCTI does not favour the adoption ot Specia.l Drawing Rishts (sm' s) to

replace the SOld franc in tbe CIM and CIV Conventions. Suoh a. solution oould

not, in fact, be a.ocepted without introducing a doublo deroeat1on of the eonera.l

prinoiple in fa.vour of oountries which n.re not members of the IMF, IlS indeed

you ha.ve yourself foreseen o.nd os the lost It>ntreal Convention on Air !l'J.'Nlsport

provides. Derogations of such an important oha.moter oould be dtll!ll\gJ.rlg to the

uniform a.pplioa.tion of intema.tionaJ. la.w, and in our opinion this un1t01'!l1

applioa.tion ia the prime reason for establishing a unit of a.ooount in intexnational

oonventions.

It would oerto.1nl;r be deSirable if the some unit of a.ooount oould be

adopted ... if not for all international conventions relating to transport, a.t least tor tl10se whose field ot a.pplioation is essentially European, such as the

ElOC! conventions rela.ting to transport and our own oonventions. The EOO is

For rer~ns of economy, thi' documant is prlntlld In 8 limited nunlbtr, O.'egetllS are kindly D~.d to bring their copillS to meetings 4IInd not to request addition.1 cop illS,

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LBG/COBP,5/INP,2; _ 'e (' \~ ,'," ~' tU';{

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orgontoing 0. speoial meet.1ns to oonsider this que8ti~ ~' S.p~e.mb~r~ ,~ ~~~

seG whether or not the solution whioh this meeting will e.d.opt",oan bctj"~8ed into the ClM and cn Conventions,

to ' " , .... ~ •

.As fo:r as we a.1."G oonoerned, another solution IDisht be to introduoe, .in the

CIM a.nd CIV Conventions, the 'UlC Frano' oreated by the Interna.tional Union of • ','r'" , I ' , ; f, ', .. " "

ReJ.IWD¥B (UlO) ~1I,JQn~ J.~76,!'ffo b'.r,~8dJo~',~~e~l~t of acoounts between the ra.1lwa, networks, We ore o.lso ooneider:lng this possibil1ty, whioh,

in Bdd1 tion to undoubted p:ro.ottoa;l ltdvan'to,gGB, ha.s also a. number of dmwbacko -

tllnOll6 whioh should bo noted .in partioular the depreoia.tion ot the new moneta.ry

~t.,~.~~+~ ~~ ,t~, a.~~:~eval~i9p. ot:.,the,'~9U§1. ,9~es of wh10h

,J.t,;1s~~Ii1'.~., ~':' ~s,e~)~~"p~lJl~,ol,~~~8~!a ,<!~~c~1vel1l!~'m whioh

would e~~'t ~e, ,f!.fjW ,~~ to re~: ~~(;I,,~,~~al: ,value .~~ ,;r:e~~ .1z1.terv!Dls, This latter oomment appl1es equally to the 'tlIC Frano I ond. to the SDR' S. /I

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Subjeot. Possible re;plaoement of the SOld trano in the oonventions by another .. 'J;;"::.;' mc:in&tllJit·'urd.r6"~' ... n:.', '}! ,;.; .• ,-,':'.') ,J ,." . :.,j ."i.'~:

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In OirouJ.a.r letter No. A 04-0/4.75 ot " AU8USt '191~'~"> theiCea~ Otrioe

. ~~sfK\' o.;IO~~ ,~~'F :.~f· ~~t~~ to ;~e :~~~t1Mj ~tl(l>:t~8: ~~em1n8 'j!; :' . ·j·i.J.le,M~~b~" 2:8plao-.n,t.~~ ~e. ~~ t~o~~e.:~on~t~.~,.~1JPer moneta.:q

,·.:L~t.

In e. rem:tndar, No • .Aq)~/!h16'rb.t If) ·Jt.IiiUa:L71;76 • .-,the Ocitta1;·~Offioe .s-.a.teq .t~~;~ga~,.Statetf ~?~ ... <U.d.A9t!:;eP'~ ~JO }~~\~ffi: .. ~~76,:fto%dJle oonsidered

.\,;~~ ~t ,~~, ~ o~ ~.i,t~ .!$~15"'~ fo~ ;~e.J~:.r~O~',;:, NIT

.:: The t9.11,R~i~, t~$D.~'fflo l.~e.t~~~. l1'f~~~ed ~~~ ~r\,1ll p~ ~~ •. !~~s~ two l,et.tertu "c.; .... J",; ,., ... ;L"",:",:· .' .... "'1'"~(''' 'I ~ , .~ t· ", I, ", ....... , .. ,~,·\l .. ,' .'. J I.., ' .1 , . .i.) .... "

Austria., Belgl:um, Czechoslovakia, ~:, ftn1l\Adii)~~' (~e:l':f

.. .:' '" .. ~PW;IlJ"q:o,t) •. ;~~:r:O~orq.~ip)t~p~b~~, ~re,~9~,~:,~'" J:r~.! Ireland,

,r •. :. ,;.:~ ·.:'i;r:teJ.y,,~g')~fP:O~9.,;t!,~r~l~p,~"'t·NQ,~,:~PR,~~~ ~a,lI!l~pp.n,

.. «11 ,,)~)fe~,:~w..~~~ted.~JP.[! .. :::, ... ' ;:"I,i t l" '}"', :'Ir:: '.'"

mer a.nalys1ng the repUes from States··(P&rt·~)f 'We'!~l ~&te

" '/t~ ~o~t~8ent, l;Jy'~;1 va.P.-O}lS ;ir:!~~~t~ <?~~,q,tr14>%lS. po~ted on

~',V ',' ~ sub~,ec;t (p~.q).¥ .. ~l of',tt41J ~f!:P9~:-~11pe, ,<;~tpd, t~ ~~j,"

oonolusions ~oh ·~be~w,n~ t~m t~ ~~: ~to ,~<?l:lS, prp~s~p '~

:a~~~lo~~. ~~.~:re~~~ .i.~ . i ' .;;,: ... .c,. '1

(1) For .1nf'onnat.1on, it should be noted that- !thei'r9pl:tes ~MiI1:.'~, Ch'eeoe, Iraq, Italy, Moroooo and Turkey emanated from the respeotive Railway Administrations and not from the Governments.

-4'"

I. tnNY"" ofiGJd. .. , '_,-tll":~ ;, \' In reply to the f1rot queotton, whiob enqw.red how tho SOld frano et1pula.ted

111". oDi aDd' otv Convont:1ons was oonverted into the natioMl"'ou.rJ:eno;yf'·;

Twelve.".,,'· _p1l1lt4, that .~. :~."WUOD ,the'baals' of the oftioial • ' ". "; .,,' , ' 'r

pa.r1t7 in fo~e·.l,i) tbe1r"'" :'''ell,j' ·'~,·;oftlw'.iPam.ties ~ relatively

reoent (197l~:'1912 .. ~.19;rr.~~~:::;~2.·~C;,.' ~t;y or even thirty .J ,'!, ,I .' ':\;~ .,' ;ream, ... ,,,., ... "",." ..... _" .... _" .. ., ...

~. -/ • .1::' r .' .!, I • . '<.... .: t" . ,'. : " I

Seven Sta.tes said tbllt the oonversion wns tlu:q~, t~· llJ9(ij.~ of another 01ID*l07' the :BelgLan trone, US Dollar, Speoial DrewS RiGhts (SDR's) or

;'~ .. Qt~ ~~7.;, ., , .• '." '\ , .. :' .1." .•

• ,\ 't"'OtJe $tate,badan,·tmottioitiJ. pa:r.ltt I~b)" ·!tet'·HatiozUtl:~, oitottwr

v· ";"'Stiate e1'f'eCte4 ooirverStori' oll'the b~~I!I!s at the ,: eXcban89 mt. ·tables '.~tabUsbed

by' the Swiss Federal Railways for the RIV/RIO ReSQla.t:1ons, while·o' thi1'd

. 'f I ,Otd.:~M4 DO: . .t8~q'al pJ.'OQe~Ul'9, .f.Qr:'~ion. t'

o tfo State effeoted oonvers:1OrlO:Il.' the; boo!' . at the Ioa;rtei;" 1talue of 8014, ,." .. ,'," " ; nt '. ' ': : " .', ~ " \ :.i J,~ . . ' . , ,

The seoond question was. Ii~'tl~"oonvel'Sion of the SOld £reno into ;your

, natiOnal 6~i·!e. t;<mtrowreial mi.ttert· 'Eighteen st~tes repUed .s.n the

Xl.eBBt1ve, wh1le three States notified diff:1cultles whioh had not, howmr~ ~_m.ia,'.lesal )d''04.a1QIU1'',.e.t • .''. (' ';""'1 ' .. :, .'

f '.LI Ih the:1Jh1x'd"'4ue~t1ori~ States were biVited ttl'1M1oate the present va.lue

otitbM';~ldl1'&'1d·;in"th. con'verttiona·1!i' their nat1ona.l'b~no;y •. TWJmty sta.tes

BBV8 the values, two sta.tes repUed~~bb.tSUch l.\ bOnwrBiort'rested o%ino leeaJ.

yt~t-~OP ~.~ op_J'1e$.· <. !; . ' . , , ',1 ..

, ,I I .• \~ toUrbh: queet:ton ~. Whetbei- sto:bes' consid:e:red thri.t~ in Tid btl the

d1ftioul ties' oonneoted wi til oorxvers!()n, there' Wa.s mer! t in 0.' possible ~lo.oement

oltho SOld :ti'tIt1b. in our C~ionL.· 'by o.nbther monetary un! t. r. '.", , " \ r. . . ~) .

Twelve Sto.tes :repUed that the SOld .franc in the Conventions should be

replaced b;r the 11IC bano.

Four States oonsidered that no replacement was neoessary and tha.t the gold .,~._ •• A(, .... ,., .....

t,,:·,}:',~~~ft ,~. (L'e~., . ! ic ,,:.; . "':".", ' < ,}; 'e (1) 1 ,\ . .f' . . . t ': '.,: i _. ': ': d' or " ,I,),

• t '. 1/ ~; • i' 'I' . ....... - 5 -, !: j)' • i ~ .• J' ' , " J J ••

1\., " ." . . '. ~ • ."'r" '.~ " .' "," ,.".... '. ' "

. \ Two states" (P'1lll~d and' the Netheri~ds rtho~t that ··~ttoris· ~hould be

'f 'made ~ fin<t:~· '~~i,' ~t o'~; .~lu,' for' ke v8ri~Wl :~aes: o.~; t~~ort. .. ('.~ ::: , .. , , ' ...... ',. . ~'I " }'; .. : ~.. ',1' :·..l:~·l; .;' ~~.~ .... ,".f .. ,1> i :.,.,,~ ; J: " .. "

.;, . i:'lLI, " WlUle ~,Qatf~.~te fret.e,~~~.e ~or. ~!fh. thQ,Nethe,~;~~13 ad~~~,~~.the I, outoome'of th~i w~"rk,., o.~ ,tha"¥~ ,~port c.?~~~·~.,~~6 ,t~ possible

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repla.cement of the gold franc in 0.11 transport oonventions direotly ,i L i . adm:ln1ttt~:r$d 'bj-; the' trrl1 tail' NationS" (t'rariapbrt 'bt r<,h(1' arid 'Wand I wo.terw~)

-. ,:) .:: 'slrmuldb(,awaitea .. ' rh' the 'm&ortt1JD'S, they- roo'6dndeci ret@.tion 'ot the gold -: ,-.:J . t~o' in the~ obi ~d CIV':Con~tiOns! "j ... I, c·,· '" .. :. . 'IT ~

'}::;."~""".(.J .. ,'.. '.:' :":: ~. i " ,J"~ " .,i .~,:(,,~:.~,;·"j.:i " :,~~'.' :.'~r.;,'l .. ' ~JJ.! ... "'1 .~'!'

Two States (Ir,~7.~ ~~ ~¥.~.~er1~ prefe~~ ,SDRts.,~. ,a ;,ep'~a0!lmen,: . tor the .t, •• , .. ~ ' .• ";,\, • "~II·' lid .~ .... * ,l, ,L.L., .',,'. t~.'·.""

sold frano; Sweden lieted the SOld frano seoond in order ot preferenoe. : .. .... ,~:;;.l."'.' ,.I .... 1':,(~1' ":. !, ".1' iI.I~:,;;.~~ .. L;_\'~" ,::

'1'0 the question. Should replacement of the monetary unit in our ConvantJ.ons be' 'etteoteo: wiiliil6ut: "i:1eiB¥'~ .l.U11J<.. ot- an.' extm«l~nB.rt :M~~1oh eonferenoe?,

tbe folloW'ing' answers were gi vena .' \ \ '.,!

• ' . .,. I ;,'. " I • . J.:. " ,I ' '., .I,li· • "" ... !... ..

• 1 Si~ Sta:!i~s,. ,FfS'v~ a ~et~~i v~ .. :re~l.y ~ ,. 14rlo~ ~~e,~~'" 9ne~;t;lote oonsidered that such aotion ooUld. be deterred until the next reeula.r Revision Conferenoe,

.. " . and thre~'~' sta.t'es . th6\iaht ~t, aotibn ShoUld be~: d&terrea . Wittl the intexna.tiolUl1

. mori~~ I!lystellfhnd' evol:rid.: Without' e:ij)l1'lr1:tlY' 'co'm1.iig( M'!nc :ttl~~j'ot .i ·d.i~ " oonV$hingJ att ~xtta()~' coriterenoe, . foUr States" ~hb~"tkt[the"'heoessary

t •• .1', "ometJ.dment shOiild b~ mB'dtf as I soon as it)oes1bl'9r') AttiOtig tbese;.l'6rt~ (statet sa.1d

that the ohlm8e shoui~ b'$ mad-e: betore l3"~' 19f6~'~':'~' . ~ .. 'i'.

In the sixth question,st~tes .. "'ere ookecf .!'f .. "he'i .. ~Qlisia:~~_t: a. p1'el'f m1'11U7

~tt: ... eho:ul.d::i· be ~veQed. to'. ~t,~dy. :,~. ~ppropr.;1o.t$ne~s' 0.1: ~Jd~\·thE'

Pl»Vi.eiOl'UJ ,11). the Qonvont4.on,p:. ~l;q.t~; .t9 :the :mp~&tl,U.'T :~t~ J Jil~~ .~.ta;t~s:,. repUed

inthel:D4'f4.~t1Ye wb:Lle. ;.tQwtoolc ·the ~Glf ltb4t ,l1t '. wa.s 'Mt : .s~~J.,.ft.l. I'~ Ocmven9

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F1.naJ.1Y, "States wei-a'1liV1t~d to pUt forWard NlfPrOpoSd.liJ·'fbj}! ooturl:!li)ro.tion " by'a R&tisi~tlortf'e~o~ oil a pt'el.im1nart boinrb.1ttee~ . ',tn: :tePl:y,thre~· States

proposed the mc frano, one'State (the Fede:rai' aepubli6 'bt' Ge~)-)~1'I((p1'Oposed ,rtho, lJ.ICohw.\Q. ~~ ~i·tP.~~:o. ,~~l9! aad· O-OWiI14Je: d<ilf~t4..cm'J.boWA·?)e submitted

··.: .. 4n.··~ODdaP.oe,·_:tJl ~!.~q$l~~tei 1.W1.s.Lon p~~<l\U:'$.' .~.'W,1e».'~i~D.;.:(~)

:L, ;s.u. ~., ~otl8G:l~e ... 1;~ nc tnllo",:the .tXi.!JtU;w:· ~cij.tton, l7$~t,..s( "u).d be

'.1(" ~iI ~;.b,.e:· ~ri8.ut:tijJ .;li\"~:tU:e OOnvew:.wn.·Q:e. ;~hG; ~e.tP,ory'. ~.Iint~. national .' /.

18J/OOlW.5/m.2 - 6-

OurrerlO;YU1 ooooXdanoe with milWO¥ reGUlations, Austria oons1dered tho.t use

should be made ot ~ basket ot ourrencies nlread;y used, Ireland proposed

SDR's." F:lnal11, the' lh1ted ~0I:l Put torward 'a oonorete proposal tor the

adoption' of the mc frano oB the uni ~ ot ~oount in the eIM and OIV C~nvent1ons. " It tb~fo1'9 ~ated the" fOllow1na' ~ts to ~ph~ l' ond 2 of Art101e 57

of the ODt" COnvention (Art1ole 53 of the' CIv C~vent1on) I , . , . ~'.

"1, The aa>unts IJtated 1ntrenoR ~ th1~ Convention or the lumexea thereto . . .. ,. '. "

shall'bo deerao!it~ ~late tel) ~,'mc fra.no,', in ~B par~t the tem

'UIC £rQno' means the unit of,o.oo9unt, the def1n1tiqn ,of whioh together with the rules for its oonversion into the nat10nnl ourrenoies of Contrnottng States ~re speoif1ed in &mex • ~. to' thi~ conventlon~' .

2. 1 '

Each ra.f.lwn;r sholl be oblised to publish. " oj "t:

(0.) , t'ff,Loe ~ month, ,the value ,of the pIC trauo, e;lCJ?;,ef)sod in tho national ourrenc;y, and

(b) the rates at which it will convert oa.:r:r1o.ga ohprges, D~r oharges . ,. .

and oosh on dell very ~ntfJ expressed .in fo1'91sn currenoies

'bilt paid in, 'th~ currenot of the' oountry (mte of exclwl~)." The to~l()wing prel1Ill1n~'1 oonolus1on ~ be dmwn from the, foreaojng: for

tho t.:l.me b~Pi', ~e ,xnc.jont)", of the Member Sta:~es of O\\r Conventions do not wish . . . , , .. ".'" ., . ''; " ,

.. '; the 8Ql~ ,~tobe replaced ~ SJlO~her LlOneta:t'1 unit. and the,Q.U9l:WIl required

".;fcp:, .p,onv~~: e~ra.o~ Revis1onConfe~oe (one-,third of States) or a ,'., • I '

preUm1 nary Cormo1 ~~e (maj,or1 t;y of States) has no~ •. been nttained.

: . ,.,,'

. . The"· Mff'iouJ. tie8 of oonvert1n8' the gold treno into national 0u:rren01H

experienoed'!, at p~sent by some states steml bas1oal1,. !'rom the foot that the Inte:matlonal' It>netnry Fund haS for some time abandoned g:1 ving M· offioial· international def1ni tion of the prioe of SOld (SDR t S Ql.'e no longer defined by a

certain weight of fine SOld •. but b;y a basket of sixteen currenc1~s whose share ., -.1 ' \ '

1A world trade exceeds 1 per oent), and that IllOlliY States no ~o~r. fOooBn1~e an

otf1o~' P,a;t t7, betweeJl 1:~~r oUr.t'Qnoy and gold ... , " • \ .. l., , ',1 ," "

4l'heH ·d1ft1cultles BX'e·l'lOt'peoUliar toOC!'D,.l they' c.PPl1 also to ·all the

orgatJiMtLoJU!· wbiOh adopted the gold., franc (the Gem1nal trano (tt' the· PoinOar.s

'fraDC.'~': WlUff of, the to~r being five t1mes that Of the lAtter) .tl.8 the unit

j, . of BGoota'tt., It 'WOuld the-reto:t'e be useful. to'know hovlthese othGt:l' tbtemo.t1onal

oraa;n1zat1ons have solved the problem or are endeavouring to do so.

'. -1 - LEG/CONF.5/INF.2 '

,'I,' , ~ ;~::~~y,E)~al ~at~~ :mli~~>,~~ .~U '(~t,em~tion~l,',T~l~~:O~:~~~io.~,.l/nion) l w~~ request~d". by~e~T :,~~pe()ti va ( or~" ,to ; tol1~~, ~~ oo~~aQP;~tionf ;tq.e" , . evolution ot t.h~ ifl,t94'JlO,t1onal Il1Qnetar;y System !Uld to ,a,.da.pt th~:L,r rules to~

.~ ~J !.": . <:.:~. . '. "'j i..' ," ; I' ':".. f'.. ; ,j ~., '" ~, '. .; ',""~; + :" ,'. ~ i:,

.l ~~~"~? ,~~ )~ml, .. ~~ll°tiqo,~fJr,~t.~rlftJ0naJ.l>~~n~,e ~ ,~?re, u~~eo~~llY to the deoisiono ot th~, fr?ter;rm'tiqna.l ,~~e~~ :BWl~', "In:'r~~,,::9r;t¥~I~'"'~w~., Organizations, an.e.4 h22. working group oomposed ot speciAlists will be responsible

):.fo:r',o'tu~ the queStion ond ,di!a.Jihi'u~ tirti.rt amendi!lents to:tha: tWo oonstitutions.

IJiJ::I ,~i to theBo' odnBti:tUt£ohS'wil:l be BUbmitte~' t6' the neJCt Ocmltress -",:. 1. a.the next 'C~oe bt' :P1enip6'tehtillri'os 'of the' t\:rb 'Orgariiztit:tons resl1eoti vely,

, t'6 'btf1ut1d·tn 1900 .. " ,,", ,,".1" ,I, i ',I .; ':r:J [, ,'-,J "! . r : ;'o! t ,

,'~. ,', .... ,,_\"'), " ~ , I.'. ' . .:, .,. . i. : ",'r _:.t

~ the ~te:r;nationa.l Conte~no-,~. ,on Ail' Law .whioh .. wa.s b~lJi in Mollt~a.l ; ."~'.'" /").} '" ()~l ~ [I: .',", / '; I,,' ' ..... ~'i ;.' .1 '1:,' I ~ '}'.'. . :

~ .3 -, ~5. S~~~am~,ex: 1975,; lCAR f(~terno.t.1o~1 Pi~l 4;v:Lq~1~n.,~~zatio~) :... ,1 ... ,'_ • i' • \ . '.j,. , ~. , , '. .~. ••• .1 , ,,'.. . • j - t • A' t, '.' ./ .

'. ,;\,~Op'~~.tl n':Ul~~r..ot Ttoopl~" P~ Whi~.th~t p'ro~s~o~,,9~~~~~~,the 1n9netary

. ,.,~t ca.r. be, s~.z,eti. ~s t,o.l~owa: " ;1' >: ',(. ' ; ,", ' ' ",' '~ ,~ '. ,I ' .' , • I, " \ • ' • ',. • .".

, '" :",::~:~ ,replfl.ce~nt 1of:the SOld frano b;,y SDR"s,.'£L8: .. de£ined 'J::Gr':ithe;W.. .'

' .. -, :'" ~~ ~e, liowe~er; twoilnpbrtant deroBati6nS'rro~ thls-' ~erai pr1h61~le:

I ;.l \"~;.~~)~' j~~\Ult~~i~~~Ch' ~ p'O,~ m~b~:~" ~t:,: ~~'"iMF W~l~" o~o~~t~ !SDRI~lf a mt:llUler to be determined by t~~elvee; .

..4. • "I.'.' ...

" (b) _ c01:U1triea .. ~~~ are; ~ot m.emptll:j!3 pt th,e IM.F' on,d wMs.e .lElgisl.o;Uon does ,~ :..., I' ,i' .l. J i. ' .• ' t i'; " • • ~. .' . ~ '. .' .'" .' , '.','.: II .'. . • '. • "

, le,:, (, '.' ,vl10r PG~tt~~ o.Wltco.~~on ot:SDRr~ 'Will.OQ~ll~. to ,uq;ethe.~d,

,:':', ,traJl~;, .:ep4.t,~~ ~on~~~on).~toi :the, :~~~~mp.l ~~~I?-0Y:.~H~ be. ,~~f~pted

,,';'" ':' in, £lcco~cewi~h th~~ ~o.r"':B~"th~!p~~~~i~9tl9P~~P.. ',' """ ,',.>.

;k?";,I, ':b 'tl;l.iQ;-.o.onnmon, we 'woUld add tha.t,IAT4·,·{mtemattonaJ.:.AiX' TrtIl'lSpb'lrt·

'AeQoctL~tiorW "'! 'wllioh 'is the O'Ounte:t'Part)'~cf': thQ. u:r.o in' thG):t.ield: .ct, n:f.rtransport -

.~ 4$O.i,ded, aubJaQt toiha .a.pp:rovai:'.at; goVEl'l:'nlDehtfJ:f to:%ap;t.aco tM US dollar

an.p tp~; p?und ster~ in Intamo.t:Lonal~Tal:1tt:sby: .snm f1~."a.s from, 11 Ap:tf11 If'11. , ,I :7' .. '006 (:rnte~ :\werrimental ' Miri t1ma C'onstU. tat! ve' O;~~Bt1on) has c1eci(i'~d

.14': t~j oonv~e' 'a obriferenoe in November this yetu'toi:'th~ p'~gse of r~:plaotiig the

I;: goli! rrarib 'bY: a%lother Unit I ot a:ooouht~The' solution wt1~li' tlttsCbnterelldS1d.ll

..... ~·hdopt will' pl'Clbablt' be thttt t.1.dt;pted ~by 'tcAo'i SDRts i;o~thei-"with tw'o.i e:tCe~tions. "-'in t. ~':. ~·I:. 1 ' ... ,;. .;.;1'.,,)'1' • 'J .• , ,,,".,.' (I" , , ,,' • .'I',.t. '

;r'?e;B~~~~IT:;,~:~~~, C9~tr~a'I' ~~,oh ~~t~;rs. t~ ~inte~tie~ ;o~Fentions relating to ;oo.q tl;ansnort o.nd inlapd wa.terway transport, has deoided to oonvene

on ~bQa working group - in September 1916, it possible - to seek 0. solution

oommon to tlle two aforementioned oonventions.

LEG/CONF. 5/00'.2 - e -

!rho EuropqAA Co.t1llllQ1 tieR (Common Ma:t"kat) hove adopted 0. no,., un! t of aooount i

based on the nine ourrenoies of the oountries in the ColllllUlli ty. It 10 a

"atand.a.rd bo.slcot" whose wJ.ua io equol to tho wOiQhted DUO of the ourronciea of

the Member Sto.tea. The peroentaaeo (weiGhting) were decided in aooordanoe with

the average Groos natioMl produot (ON'P) and the avero(JEl inte~peon' trade . \ . ,.

of 'each Member State over the five ye(~ 1969 - 1973. "

To cushion the effscts of the 1noto.Qil1ty ot exqhanse ratea o.ttxibuto.ble , - \ .. ~. .

in la.rse measure to the inoreaaina'ly geneml.,ised floating of ourrenoies, ond

the diftioul ties onoounte~d by Some oOWltrJ.ee in oonvertJ,uc s\U:lS expX'e~s~q in

BOld franoe into their national ourrenoy, the railw~ repr~Qented,wit~ the

'DIC (Interna.tionaJ. Union of Railways) lul.va orea.ted the OlC fronc as from

1 Januar,y 1976. The Value of the OlC fronc woe deteDmined so aD to oorreopond

to that of the" SOld franc a.t 31 December 1975. Sinoe 1 January 1976, it i'a

oaloulated ill ~lation to the rate for 0. bo.aket of soventeen ourranoiee', ohosen

o.nd weishted a.ooord.1ng to the size of the exploi ta.tion produots of the oorresponding

ro.ilw~ nEitwo:r:ks. In order to 1)e inoluded in the bo.sket, they must pa.rlioipate

in exoeas of 1 per cent in the total exploitation product o.s given in !I'able 3-3 of the lnter.nationol nailway Statistios published by urC. The oomposition of

this baskot of ourrenoies will be reviewed for the first time cn 1 January 1974, and therea.ttar a.t three-year interV'o.ls.

The Central :Bureau of Compensation (l3CC) in Brussels, acting on bolul.lf of

all the netl.,orks, daily calculates the Villue ot the mc frano, oonverting into

Belgian franos - the ourrenoy of roferanoe - the amounts of the ourrenoies

forming port of the ba.sket on the basis of the avero.ge rates 'vhich oro either

ruling on the Brussels exohnnse mat.ket or are fixed by the monetar,y authorities

of the oountries oonoemed. The:Bureau telexes to the networks the va.lue 'of

the mc frano expressed in Belgian franos os determined on the fifteenth and

the last dr~y of each month (or the preoeding wo:rld.ne' dE\Y; o.a appropria.te).

If the Villue of tho 'DIC frano, in Belgian Imnc·s shows a. vnriation of more than

1 per oent from th;e last value advised, the BOC telexes this information to" the

networks w1tho1.1.t delay. Each netwo;rk oaloulates tho vnlue .of the orc frano in

ita national ourrenoy 0Tl the basis of the lost ,value of the mc frano in, Be1sLon

francs as advised by the l3CC, at the rate for the Bell3'ian frano ruling on its

notional exohanliemarket or fixed by its nationo.l monetary authorities.

-, -", ,.,

The mc frano, whioh has been used to oe:ttle aooounts betw~.m11wa,ys . '. . . .,., '\ ' ~, ."',...', ... " .

'::.~7,""rl~7~! ,~~~.~c~~~~}~~~·l~~:t<:)~Brl~,. ~ •• od 111 <.:,.:. j", '. ,'~:: < .It>,,; (r\'(~b:i.·:Vf' 1'. ,t. ~:. \ ! ... :.~~; ... , ~." '";: !Il.'t ... .,'. ~ I~ ,_, ',:t ... t

, " .c:;, ,:['be 'TJIC .~~~G~~i:~~ ~~,~t \~: ~a.ol~~t! ,f)f. . .:.~e £SOld};~ by

. :,l;~~ ~t,,:~\ ,I¥'p<?~~, ~.~e ~ .:e¢ q~!.p~~~~<¥1S,:~ll. Qfa.., ~~te~t~~,:~

.' .,'~~ Bf$, ~~R:t,., . ,it' • ,;:r·, '"U <, l:.:: " !'~")'" ,; .t ...... L·' ":');' \,i' ~!'<:.'L (r~., '; ':>

::,~ .:, ! ~ .. : !ml"'i'ntematlona.:t ~'~~' :OODlD1i~tcKi~;;p~pOBe8 the ''t~llcjWtn8' ~'·'torth6) O'Obventllo.aArtlbleiS, detUli'llt'with ~·itIOl1~BJPt \rii1t;',' ; ,\

."!)~'.:~,: ... ~ ,~,~, .,~, /.< k":'~: "!I'" ,,".I,;J I",f: " '::.,"',;; '}0 ~rt~,'t.~.i . . ~; ~:~rt .. ~t",,;,·:q'.-.~ .. }'· J.!"\ +,.~.'; ':·.r "1. The amounts ~ressed in £ranoe in this Convontion or the .iumexes

t:.r:. 'theret~ 'shtdi b~"~~~cf :."to· '~l~t~ t~'; the ute' franc cU*C" ~:~'> ~" ,',.;f-I,,,,:1-,'':!. i:" ,I~'" ~~~ :.:,1' .. : .:.~, _'1.~" ... '. ," :,.1.1: "Ii. .. ; ;·:r. _. ,~. f~' '~-,' '", .~: :

. '., a,'be l~ ~t ~':iUIp ,·~;:~!.p_o. ~~~4r ~ "~ ;~,~~pf po basket o:t:, 'P~~,,:(),(#lpQ .. e~ qf the n8tt~()~~8 o~ ,~~eJ ~i!

~IJlPOrtant Eu:z:opoon ra.11W'~, tald.,l'l8 into acoo~t their reo~pro~al , , '~rt~~~:'~I'c',(Ttw; ~moJ.nci~r ot the': Artlo1~':t~' :~o~d):' .. ,4

'. ~:~.;,:: ".: :;,:1i:{'~ ,_,~:,., >,-,""': ;"r '! .. ,~rr .'~" (\.., :":':'~l .,.~,.\.j, r' .. .J" .. \1'

.~~q~ f~,'O~ "~()' ~ ,j;M.~ s~,,~~qn,' of .1tihie, ~.t, ~(ji: ,Bho~d,~}o put

.,r ,.f~a.rd.'~ v+ew~ of t:wg i.P~~'t1onal 9~~~t~gns ;ofHS~:B. ",: , ; ," "j;,

~ (Internt\.tiona.l Feder'a;t!iOir 6t' Fo~ .iL6eriis l ;A8f)()oia.t~);'oonsi~ers

~tan ~gent. ne,o,~~si V ... ~g.,~:p'l~e ,~:'~lrd. tmnCWQIlo}iber ,~~~a;ry un! t •

. ~terab17 ~ l!lC trono..: ,J:~:a9-4!'tlm~~.tM. ~~e,p~b~~ 49ffi~d :be 1lI}lP¥!itted . . . . "

;.t,9J(I. ~up :of.tinanoi~~ ~~~~e. beCEl.wae. ~ .. ~e :p,~e,nt /!Ii~t~o~, ;+~ ,iQ :very

~~~ow,.t to,k;n,9¥ the ~~~! ,~~ ~e @?,If\, ~~o :1q;the ~J;M,~~ c~,q~y~t;1.ons.

"7·,..",.:Ml~1~t~~ o~e~ies." :.;.,:'u:"" ;; ",::~ ';: , ','. j X' ~. ,.":1.

',:,'j ',' Them,"(Iritemo.tic:ma.l J lI:llriO(jiiitt!ei'ot Tar1t't.:oSpeOitilist8~ 'OOl'ls1deiw:~:that,

from the userts point ot .view, there is no need to replooe the gtiictihtulo in

'; ,,~th!t:90lp.v~t1o~ ~,:~~'1,l!r'\JlfQljl.t~ ~,. r;;~~t l,~wever, .i~ WWiI lleo~,.sc.ry to

r~p~q~ :t~e 6Qld,J~q; '~~fLIVT ~~~4~~ ,thE,\t:,C!~tl t~\p;i;C £~~c"O'?ufc.l:~i11

~p., .1::>~11.'.fli1~', m,£l.d48.;p¥-;)~!~_ tl?s quelilt4-o~, ;1,8: f.~~ecl ;at t!le E~fb REf!1..sion

. \ CQpfe:r:~ge., 'h.~·!!~~4'p. ~l,;al,,~id~n.w w~~ f9fl1;h~ :4rl~clq.: q~ernin8'

c""',,'.J::lill$ ~t~ ~~j-.JP:t'9pqJ.~8.,fo~ b.t1i.~r..~y1eJ.on.e:"relatilll,:~o ~~bi~iW in

v1.ew of the fllot that ourrenoy ~~1~t1pn. m.akes:i:t ~oes~a.rr :toemencl ~

li~JS: of lia.b.1l:i~~ .. ::;::~ " ,. .' I'" i " .' ~':, ,.,:'.

" !. " ,,\. , .:...

,,'.:' .. "

I' :,1 ,.! ,{ .1.

Ui'IJ/COtfI. 5/1Jl8. 2 ' - 10 -

,', '. J." f ,l . • • .

In add1tion to Artio1e 57 of the CIM Convention (Artiole 53 of tbo CIV

Convention, ilrf;io1e 21 of tho Additionnl Convention) which aives the definition

ot the sOld t'rano,'therG an' ~ Artioled in"the Conventions lthioh i xnention

amo\Dlts expressed in ~os" 'These Articles deal' with 8U1'OharsejJ~ oorreotion

of ohar8Qs, deo1aration of interest in dellvery, the amount' of' oompenstit!.on

" 1A,'Qu, ot lO~QJ,'~,~ 4.ffl~ ,~,4eUV$;Wt: 1ihe QIDOunt "ot~QmPenoOttion in

oase ot w11~ JIJlsoon4~t o~ B'l"Q~8 neau~ on ~ paz.-t, ot, the"ro.1.~wq, interest on oom,pensation, ,the llmit o~ dame.Bes in the oase ot death ot or inju:q

., • " • ,<"\,, - . :( ,

to the pa.Bsepge~. and in the oase of damage ,to' or loss of artio1es'.' The nIP , .. ' i .'.... " ' ,

e.1so oontaJ.ns two Artioles in which there are referenoes to tranoe, one relates

to oircumstanoes pftvettU.ng continuation dt ce.r.i:ia.ge, am the other oOlloema

the amount o~' ~ation for' exceed:Lrlg the t1'8rlS1't', perJ.od~': '

: The ti~t Conventions' def.tnod the gOld ~ as be~ worth 1/5..18 of the , "

Ubited states SOld dOllar. The fourth revision oonferenoe,in 193', after not1.ng the depreoie:b1oil oj the" dollar, decided to g1ve the sOld frano grea.ter

stabiUty ~ mald.ng'it independent 6f national our.renoiee lU'1d. tix:l.ng its value

b7,'we.tBht EIl\Q. ,e. st.tpulP.ted tine, BOld 9ontent.

It shouid thUs be observed tha.t the legislator's'preoooupation was to

'Gnsure that tho mnet4l.7 'Uiiit ill theCormmt1c>ns 'had grea.t sta.billt1. This

sta.b111 tt 111 tems of time enabled the gold frano to preserve its 1ntr1.nSio

value in the faoe of goneral ourrency depreoia.tton, it also ba.d. stttbillit in

geographioal terms, DO that the some amount expressed 'in SOld fran6s, 'o01'tVU'f;ed

" .tm;o eo .na.tio~" 9~, represent~ a. 'Qmpra.b1e yalue,in ~ouo member

, i.'

tJntll the seoond WorldWu, the gold trario .fu1t111ed thi.i' dtial relain e.

satietaotbrt manher.' S1nde then, hOwever 010 end' Under the effeots of the'

" vioissitudes ot eoanomto'and finanoial 1ite(exobange oontrol. artifioial

' •. 'freezing ot'the price at SOld. at' natione.1and 1nte%'ha.t1onal'level) ... the SOld

I';, .tnu.'lo'~ 16st 'e. large' p~portion of tha1l 'essential qua.uty which was oonsidered

to be its preroent:l.w ... name17,stabil1ty. " . -

'When, in a.dd!tion, it is noted that there is no longer on offioial

intemational value tor gold, toot an ever inoreasing number ot oountr.l.es no

10Jl68r have offioieJ. parity between gold and their national ourrenoies and that

.. ".",

-11 ...

; Ul .OO'fltrlOO ~~ ~oh pa.rity stUl e~Gta it ~13 otten a.rt1£.1.oial, it must be

.llo()el?ifd ~~tNlY,.~:t thE\801d, ~f~ p~"101ete, ~ '1 ~~~\\~tiok for ourrencies and volue8 and that sooner or later its replacement muot be oontemplated.

'.. f I ',': : ... • ,', ~.: ~' f.i ... ; ,~.I J..4 ,. ~ :,1.'> " ; c·. ~', ~ .J' ... )

By what oould the BOld franc be repla.oed in the CIM and CIV Conventions? ., ,.t •• ,'· mi's·tnJ./3hf orter'~ i;1"eoure and eMi' anS"wet.2 'lJ:Ihef' :~·eato.bllshed and

oalioulated do.1lY bt ci:~,! u-ge lnternatioho.l~ inte~vernmeti~tl.i bo~ - the IMJr ...

~: they' h"ve the 'MvOnt~ :or\dde inter.no.tlon'til.:~et~ 1)a.okintr. However, ~ '. • . '.- -j , • ,. ~ l'" .• • . SDR"a' represent ri: ooaket in Wh1.oh the 'ourrenoies ot countries whioh are not

membetB ~~ our Qomentions (the t1n1tad :Statea, .. Ca.n,QI.'ba;' . Ja.pan, . Auatmlla and

Southllbioai) a.ooo~t·fo1"mom· thDn 50 W]j o.ent. InadditJ:obj a number of Sta.tes

.,Wh1oh a.re" members· of, auraOilwnt1onspmbllb~ oannota.pply for SDR's as they are

nat membersof.:the IMIi'.' A .'lV'br1d solutit>n must. consequently be worked out,

booed on;,the'j'oD:lula ·adopIted 1Jly:.ICAO,' this would, in ,our 'dew, have more

dmwbaoks than ndvantages.

Instead of 8DR's, oould the mC fronc servo o.s tho""" bnsis 1:or ,8. ,solution?

.Al~Q.~ ,~~P ~?;naiderflble L¥iYant~I3' ,tpe UICf.rmlo,.hac a. 1f~ber of defeots,

The ter,r1toria.1 sp%'6ad b£ the 'D'IC.t'.rano, coJ.+.responda. ~rG or lese to that

Q( OCT+J ,.1t, ",ould ther~;f.9;t'~ be ~th J,og1Ca.l ~ ~1mpJ,.~, f~r QC~~. to use the mc franc in ito Conventions 1nstooo of the BO,ld f~. "~e OlC frano meets .. '., .. ,"

the o.ooounting and fina;noiaJ. needs of the :milwa;ys oonoerned and is unanimously

approved,' by, the' networka of l!la.stem Ohd WestenicoUntries. Fino.lly, the UIC frano

'. oan relY on the whole a.dministr8.t1ve~ teohnioa.l and'finohoia.l mll.oh1ner:y of the

me ohd ita auxiliary bodies which would, in part!cula,;, ~bl~ ito rate to be

oaloulated doily 'anddissem1nated to the networks' oonoerned. at re~ar intervals. . , ~ , ,.,

Bo"feve;r. ,the 'OlC franc has the fo;LlowtnB draWbaok~,,1 , __ t, • . , " '.1 ,

- it ;I.e different .f'a:'om:the unl1ts: of 1va.lue wh.1.ohr,will.· be p;rOgreesively adopted

'", "f'or ,other ihte:mnt.tonaJ. oonven~ionB re13ted to t%'llllspo.rt. a:J.thovsh on

,the other hD.nd ,.1t 'Qa,nbe argued thnt.'rthis disa.CI.vantage ,Would be oo~pensated

.bY ,the .£act toot; the UIC .frano is 'bette%' a.da.pted" to the needs of the

. mu.l~J ".","

.:.. it: 1s' not "btwed dh!rihy state-controlled definition:~ sihoetbe composition

ot the 'basketo}1' currenoies 'and' theirweightlng are the prerogative of

.... '. "

'J'

''''''.'

,1

, r·

Lm/CONI'.5/m.~ - 12 -

, ',I

,~" , .' ,

. '

, .'

the m1lw~ to.one~ If the mc trono were to be ihtroduoed'irlto the • J' ~ t :.; ,..' ,

COlWentioM, the tolto'id.ha 'ooill:J'e'luential oottonsYOUld M~:'to betakeru • .'. ~.~', ;..;: .c;,'" .. ,~ ~: .; ,~~l . \ ./,,1"",

(n) to glve it a definition in the Conventions which 1sa • ,I, "',','.' .,;- ;.,'

... autfd.o1~tq, tl¢bla nev.ert;hebs& so:,unoii to ~r;the 'ra:l.l\fO¥,

whiCh has periodioally to mak& tho 'nec(isstJ.J:p: ada.ptations ,and,

modit1oat1ons to thewe.tshting of; tile ourrenoies in. tho bBaket.

In, the 'Qnme oontext, tbG!llppropmatfil ArtiCles l:Jt tbeConventions

.muB't be ,.inoo~mted 1Jl' tlle·.l1st' of, toxta whLch oan be'. revised by

the oooelernted prooedure.

(b) to WOrk ouit a formula:' .

,i

- which w6uld litve a Stdte' therl{3ht or objeot1on' either ':1n defenoe

of 8eneral interests or of th$' interests ofuaera"

- Whioh' wou.1d ensureoonsultations with '\tsers thrOugll their most , ,

repreeentat1veorganizations •

, - !i'he OlC ~ano oan be blamed ~C)r 1aoldng stabi!.i ty even more ~ the

gold franc. ;It is StUd, that one of the a4vantages of the "pa.sket"

type

of,1m.1.t is tha.t 'VO.J:i.ati~ should be restrioted in ol1~o.ot,eJ;' beoause its

value 1s~~e,xed qn 'fibe rates of a :J;O.tlge ofourreno~es wllose fluctuations

should offset each other at least in part. It must be noted, however,

that between' lJanuar,r 1976 'Bnd ~O'Ap~l 1976, the OlC,trend depreoiated

by 5.12p~ oent in'relation to the .Bw!l.as·'tlrano and. 1>7 2.67. per oent in

zela.t1on to' the :Belgla.n franc" which is' an, arm.ua.l de'\ltl.lua:tJ1on of

1,.~6per.'oentin the fi~t case and 8 per cent in,tho seoond.(l) The

basic eXplll:rlAt1on for this depreo.f.ation is the fnot,tlmt, .ill moat countries

whose ourrenoies oompose the mc frano, infla.tion oontinued at a hiBb l.;9vel., It~. therefore ,bel queried whethe~ Il oo;tTeCJt1'VEl; me,ohan1em should

~ "', ' , \," ~

be provided, so that the mo, frano ooul4 p9.;riodically regain its initinl value. ,'" ,

(1) In this oo::::..:...~on the Swiss frano is preferable to the ::8el81an franc as a. reference point, sinoe infla.tion in Switzerland. was pmot1oally zero du.r1ng the period oonoemed.

In view of the fore~1ng, ~ ~~~. y~ to s~~ t ~or. ~0'f., o.onsidero.t1on, the toUowin8 drtltt texts whioh would ena.ble the mc trano to be introduoed into th~ ;c~~ti'ons: it ~eoe~ea.ry. j, .,::! ,: ,.~ '1:.,1 I,:i,: '. , .

.. ~ ~~ .~ ~:·~.':'<.ti: :!;' :...A~<'~'. '. .' :.: :.l'·"" "~I t v~ ~ ,). ,'.

,"" : i '2. '., The :I'r.' J!J:C: shall' htW8, the .I.II!1e,WJ.'\1Q.. as ... unit of, ,eJ:)ooei used by the

,',:' ~~.,fq~~ett+W:ElO.o~t8 pq~$J)., .~.el:v;e~. "I,;t;. amo.ttb~~oula.ted on

I;;' ':; ,.:t}l,e baB~~" o~.i~ ~lJ,as4et'~9;t' ~~t~ qo~,~ Qt, ~o nE\:fi,:l.9nt;1 ~ur,w.noies of the

,; "C,: .• ,,If>e't § 1wpo~qnt., .rqdl~ , after, ~rp,~~"~te oq1W~ta.ti~ .~t~~e:}>r1noipaJ. inteDDQ.tional users' orsanizat1ons_ .' .

\4., i

!~ oj ,~." :~ a.~~ ... ~a.k~ by '~~o~l~ ~ ~~;pe~.t~f ~~e ,~e~I,\l.~,~t shall be

o~~~,~ ~ '\41, C~l~1,9t.t1oe,. ~<?h ~l: oO~9t\te, them 1;~: .~e

,c' :).' : ':~~~~~~"\ 9t. ~ont:r:a.o~:lpg,~c .. ~e~, ",~~1:"~l be ~~od as, ~~ ,be~

(.1:a.~(lepte4,:u.JllEl~~".:wi:th1n q~ ~~~.~:terthq!4:a.te of S\lO~::oQ~9at~Qll ~ the

C~tra.l O~f1oe, ~~, l.aa~. t~ve, :.Gove~~s ... bav~ not1tbd, tpfiir O:Ojl;lot~ons. In

the oontro.ry cose, if the Central Orfioe is una.ble to re~ve ~~e ,~.U;fe:renoeo of

~pinion, it ohall convene a meeting or :representat1 vea ot' Contracting' States . I ~~, ( ; .. ':. '. 1 ' i , ' . , ,~' . ,"

who sha.11 decide on the IDIltterby a. two,;;,th1rda mD.jor1~. \~~;() . !' .. :,1'"., ~ ,'., ... ; :~'.": _. " , ,

4. Conversion or the Fr. FIG.,1p~o, rhe na.ttO~:t. Il'l.Q.Te.llCY ¢lal 1 b~ efr~9ted in , .' , , \',

a.ocordance with the regula.tions of each railwa.y. .• • • " ' , " . t.:' • . , ' . .1 , "j ; ~: . . • . r. I' •

) "

., . ,'.' ' (13.): a.t' leMt twice a. month, ·the value of'. the Fr~ FIC expressed in the

" ..... ,'.'.:, ~" nat10nal :ourrenoYI ·:r ,:' ,', I (\ I /.'

::o.i .. j "':';'< ,'. (b)·the :rateS·a.t ,wh1olt 11; wtll"converti .aarr1D,ga. charges, 'other oharges

, " '. ana '·0" art Cle11'Verj'paymsnts' eXpressaa . .th foreign our.renoias but paid ,<,\..; , . :!D.~ thehb.t1otla.l··ou=enor (l'BiJG 'otr ex~). ' \,,'

6. A railway which a.ooepte payment in fore1en oUrrenoies shalf be obliged to

, j ··pt1bUsh the ~tes, t!:t 1-Ihlloh ithoS9 o~j;ee :'W111 be aooepted ... (mte, of acoeptanoe). :' Ie, .; • . 1." " ,~, i.. .

'. d' . !.).' , ')" .', : .• ;.,

/

,;

U1J/CONF.5/INF.2 - 14-

It will be'obsorved tha.t theSe textsl I t ~' .

, ~. I •

- ennble the :ro.1lwt\YS to fix the vnlue ot the ~et.~ ~ t in the I ' ", I .~) L." •

Convent1ons while at the some time ei ving St(ltes and users the risht

ot~~1~"

- p:ropose ths.t the monetarY unit' be 'oal:lscf ihe no frano mther thnn the

utC tronc. ' ~Te teel'\tMt use or thO texm"UIC trcndlt:wotu.d ~qU±ted t,' \, . • .' ,. _ ,. l .

" explanation 'and det1n1tion ot the u:ro itselt 1n the Conventions and these

1mttl:umants 'a:L'e not mally the, appropriate p@e for qWlb,lli'detWtion,

- i~ down ~ ~bUo 'ot ori terib. for oo.loUlo.t1ng the monetdrY' 'unit. the ,.: unit' 6t aooount Used b.f:.' railways ;to71 matunl settlemen'f of acoounts,

the basket Of'ou:trenoieaoompooed"ot the 'no.tionrll. cUrreno'ied otthe most important ra.1l~. i: ), 'j , ' i:

In order thAt the te:tts oan be quiokly adapted to m~et,nseds in a period

ot eoOl'lOm1c and f1nan01oJ. instabil1 ty ~ Artiole Sf ot the enr OonWnt1on

(Artiole 53 of the CD Con\tent1on) 'must, aaJ. mve shoWn earlier, be inoluded

!nthe Ust ot texts wh10h oar!' be reVised 'by thtl l\Ooe19rated i Prooedure; ''in

'acoordanoe W1 th .ll.rtiole' 69.3 of the OlM' Convention (Artiole 64~' ot the' , I

OXV- Conventicn). ' " , I'

, ,

There still ~ the aeri9U('J problem, of the !nevi to.ble devQ.luation of -".... ,

the proposed moneto.r,y unit, and the means whereby it ~ be remed1ed. In our view, there are severo.l possible solutions. ", • J \ ..

- to asSign to tho Administrative Committee of OCT! the task of period1ooJ.ly assessing devaluatioh and the a.ppropriate oorreotions to be' made to the

BmO'lmts 1ndioo.ted in the Convent~OM. The oo~otion' oou;Ld; be made

ever:! two years on the basis ot oritemB wh10h have' y~t to be doteminodJ

" ... 'or to t\Ssien the same teak tQ; the Revision Committee ,for w~oh proviSion

is made in Artiole 69.3-,of the CIM Qonvonticm (~iol(;) 64.3 of the

CIV Convent;f.on). and the texts shouJ;d b~ QUbjeot t¢l' ~ acoelerated

re~e1on prooed~; , '

-or to ass1en the t,eskto' the .1nterna.t1onaJ. conferenoe w~oh:l..s oonvened

ever,y five yecrs for the purpose of determining the oomposition ot the

Administrative Committee and the ~~ kilometrio oontributions ot states.