A.—B

Section 2.—Depositories (a) Bach member country shall designate its central bank as a depository for all the Fund's holdings of its currency, oi" if it has no central bank it shall designate such other institution as may be acceptable to the Fund. (b) The Fund may hold other assets, including gold, in the depositories designated by the five members having the largest quotas and in such other designated depositories asi the Fund may select. Initially, at least one-half of the holdings of the Fund shall be held in the depository designated by the member in whose territories the Fund has its principal office and at least 40 per cent, shall be held in the depositories designated by the remaining four members referred to above. However, all transfers of gold by the Fund shall be made with due regard to the costs of transport and anticipated requirements of the Fund. In an emergency the Executive Directors may transfer all or any part, of the Fund's gold holdings to any place where they can be adequately protected. Section 3.—Guarantee of the Fund's Assets Each member guarantees all assets of the Fund against loss resulting from failure or default on the part of the depository designated by it. ARTICLE XIV.—TRANSITIONAL PERIOD Section 1 .—lntroduction The Fund is not intended to provide facilities for relief or reconstruction or to deal with international indebtedness arising out of the war. Section 2.- -Exchange Restrictions In the post-war transitional period members may, notwithstanding the provisions of any other articles of this Agreement, maintain and adapt to changing circumstances (and, in the case of members whose territories have been occupied by the enemy, introduce where necessary) restrictions on payments and transfers for current international transactions. Members shall, however, have continuous regard in their foreign exchange policies to the puposes of the Fund; and, as soon as conditions permit, they shall take all possible measures to develop such commercial and financial arrangements with other members as will facilitate international payments and the maintenance of exchange stability. In particular, members shall withdraw restrictions maintained or imposed under this Section as soon as they are satisfied that they will be able, in the absence of such restrictions, to settle their balance of payments in a manner which will not unduly encumber their access to the resources of the Fund. Section 3.—Notification to the Fund •Each member shall notify the Fund before it becomes eligible under Article XX, Section 4 (c) or (d), to buy currency from the Fund, whether it intends to avail itself of the transitional arrangements in Section 2 of this Article, or whether it is prepared to accept the obligations of Article VIII, Sections 2, 3, and 4. A member availing itself of the transitional arrangements shall notify the Fund as soon thereafter as it is prepared to accept the above-mentioned obligations. Section 4.—Action of the Fund relating to Restrictions Not later than three years after the date on which the Fund begins operations and in each year thereafter, the Fund shall report on the restrictions still in force under Section 2 of this Article. Five years after the date on which the Fund begins operations, and in each year thereafter, any member still retaining any restrictions inconsistent with Article Vlll,'Sections 2, 3, or 4, shall consult the Fund as to their further retention. The Fund may, if it deems such action necessary in exceptional circumstances, make representations to any member that conditions are favourable for the withdrawal of any particular restriction, or for the general abandonment of restrictions, inconsistent with the provisions of any other articles of this Agreement. The member shall be given a suitable time to to such representations. If the Fund finds that the member persists in maintaining restrictions which are inconsistent with the purposes of the Fund, the member shall be subject to Article XV, Section 2 (a) Section 5. —Nature of Transitional Period In its relations with members, the Fund shall recognize that the post-war transitional period will be one of change and adjustment, and in making decisions on requests occasioned thereby which-are presented by any member it shall give the member the benefit of any reasonable doubt. ARTICLE XV.—WITHDRAWAL FROM MEMBERSHIP Section I.—Right of Members to Withdraw Any member may withdraw from the Fund at any time by transmitting a notice in writing to the Fund at its principal office. Withdrawal shall become effective on the date such notice is received.

30