Interpretation of Article IX, Section 7

Whereas the Executive Director for the [member concerned] has raised certain questions of interpretation of the provisions of Section 7 of Article IX of the Articles of Agreement of the Fund as to the treatment to be accorded by a member of the International Monetary Fund to official communications of the Fund, which questions of interpretation are set forth below;

Whereas the said Executive Director has requested that the Executive Directors, in accordance with Article XVIII¹ of said Articles, decide such questions of interpretation;

Now Therefore, the Executive Directors hereby decide such questions of interpretation as follows:

Question No. 1:

Does Section 7 of Article IX of the Articles of Agreement of the Fund apply to rates charged for official communications of the Fund?

Decision on Question No. 1:

Yes. Section 7 of Article IX applies to rates charged for official communications of the Fund.

Question No. 2:

If a member exercises regulatory powers over the rates charged for communications, is it relieved of the obligation of Section 7, Article IX, by reason of the fact that the facilities for transmitting communications are privately owned or operated or both?

Decision on Question No. 2:

No. A member which exercises regulatory powers over the rates charged for communications is not relieved of its obligation under Section 7 of Article IX by reason of the fact that the facilities for transmitting such communications are privately owned or operated or both.

Question No. 3:

Is the member’s obligation under Section 7 of Article IX satisfied if official communications of the Fund may be sent only at rates which exceed the rates accorded the official communications of other members in comparable situations? For example, would the obligation of member “a,” under Section 7 of Article IX, be satisfied if the rate charged the Fund for its official communications from the territory of member “a” to the territory of member “b” exceeds the rate charged member “b” for its official communications from the territory of “a” to that of “b”?

Decision on Question No. 3:

No. The obligation of a member under Section 7 of Article IX is not satisfied if official communications of the Fund may be sent only at rates which exceed the rates accorded the official communications of other members in comparable situations. For example, the obligation of member “a,” under Section 7 of Article IX, would not be satisfied if the rate charged the Fund for its official communications from the territory of member “a” to the territory of member “b” exceeds the rate charged member “b” for its official communications from the territory of “a” to that of “b.”

Decision No. 534-3,

February 20, 1950

¹ Ed. Note: Corresponds to Article XXIX of the Articles of Agreement after the Second Amendment.