Ca) the c~IXt~i s'0.bscriiJtion~ of member States (b) interest collected on excess debit balanOes

-(g) The Boar-d of Directors she-Il

iss;:;"~Lt'he

regulation aocorddng to which cumulative debi~ bal~c~~'are to be settled

by

receiving

cr~di t

froniand,

p~yi1g'~bldbr

convertible

"currencies tOF'th'",'^'UniOn and'^.cumukati^vs credit Qa.}ElpCe,Sc p.r"e:

to be 'S'etethd' by,'gr<\nting, credits, to or rece:i,y;i,ng gol,d or

"'6brrve1<'i1i1>ls"CurTenoies' from _toh~ Union:.'

(h)

Debitb~l~~~~ofa

^{member in}

~xC'es~lofthe:indiViduaI

^{", '}

oredit'l;.iotashall be settled immedfa.telyiliconvertible d';;encies

'I~<igofd.:i:ri

dese',,-tfing bases the lloaI'd of '

''iirie~tors ~ha'ii ~libw

^eX6ess

d~bi

ts t'o be

paidinins-ta:l-ment~: :'J£f~;e~t"'~hali

beoliarged on the excess balances., (i)

Elc~~~~'c;edi

'balaric~~6:f'£lllemb~r

out'iJ'tanding" a't'the'end,

~fth~ ~ioniinartciai

^{year shall}

be:'~ethed at

^tharequest

of the member in' cohvertil;le curr"mcyei tlier' iri:utiediately or in ,itHHalments. , Inter,est shall be paid to, the ,'Ill,!lmberon

(j ) The~~:rld.ng' 6~'h'tal

ana ourren tl'livenue of 'the union shall princip'llly consist'

of,'

Ca) the

c~IXt~i s'0.bscriiJtion~

of member States (b) interest collected on excess debit balanOes

216. I t is eviderit froin ihe forego'ing'tha tthis Unionaei proposed "

in the

agr~ement

dre;/- rriuch of it's inspiratibrf'frOri!l!1PUandEMA. There was, howevar , a con scLous

~t';empt

to adapttheprfu'c:i.:p'ies6ftlie

European institutions- 'to the paouliariLtle's of.the Afrioallo·,Gl;ond~,tions.

Moreover, th~r~ were,A number of original features too in ,the Casablanoa

.< ... , ~.,' .'::. . - " . . .:~:',:'. . ~:':c:,.'-.1.""1.'.', . _.. c;, , .. "

proposals •...

217. The compulsory reference,Lto the Afrioan.PaymentsUniou. 0:1\ all settlements of intra-Afr,±can paYJlients on .cur-r snt aooount i!;lbased on sound principles ,since it 'willcprevent,any ',distortion .of' payment flows and will ,"help' to "l,ower theoost'and",thus" ipCrease the efficienoy of multilateral settlements. Under Afrioan conditions where oommunioations

•

..

1'7

•

E/,~

^,1,^4,1"^!',,P,', , 2/4 Elm!

,14/A MA/ l ?,

Page 85"" .

are ill~deirelOpedand especially'iteCLecommunioations are stinimperfect

ll,!:iCi.

&ostiyC~llld: 'postalcommunica tions 'unreliabJJl and, ,time~q'pnsuming, ari'/'ct}"6Uhi'ing period of three months is no,t'~unrsasonablei;h"Thereare two"pr'inoiples'iiivolved in (,6) and (7)abovewhi;::h are takjln,put

straight from .ElPU.The first, is the cumu.la b i.ve prinoipl'e,tcdetermine tc whioh br-anches oi':'his' quobava member's in,or,ementilJ;'y del1:i,t

o:r

or edit , ,,,,,,longs durm:g:"th1l' accoun ting period.., The second invOl¥ls,S"

t~e !iet~len:en~Ofa:hY:1l!bitor credit incr~!(1ent partlY in ,t,lie .f'onm "

'of 'cr!edit'received or gr>ahted and, partly in,the form of gold, or-ocn;fer'tible currency_ "These' are again well-principledprovi,sions. ,:

218. In African conditions wh~re a persistehtdeterioration

In

the' terms of trade inay indueia' a

memb~r

^to

be6oin~iJ;

chr on rc di'Mtor,'the ,,'

i~:;.:.,·.r-He: '. , . , . ' . ", ,_ . '-'1::'

discretionary power given to the Board 'of Directdt's to' eri~blEl'an

exd~s~ 'd~fi~'i

t men\be';' to payoff his

~xcess

defic'f't' ih fufltalmenti is

a;~i~Le~~~:'

'1tis also an en1ightened suggestiort' tHattheUtLi6h (wh'ichis

~he

multilateral cre'diior cf ade:i'ieit meniber )canaskf'or immediate settlement of excess deficits at any time; 'This 'should act as a.deterrE!n'tto membsr s incurring exoess deficits.,:Furthermore, "the symmetry b'e~Tee:l'fErettlemeiit,of excess debit .and. exosss,oreditc,balanoes '

" 'i:i:;ili'i;lIe 'int'erestof maxama smg'

"m

tra....Africantrade. "The rul~, th~t a ':'n!emhSr w'fil'B:cilri"'excess cr,eeli t 'may, demand',immediate Qrgradl,l,al""ettlement

"only ortoea"'isar'

(:i,e.

'at the end of .,the,financial yea1))'lis .one Wb,ioh

"will dondticeto: moree'working capitalbeinglefkm' theh",,,ll,s

Of.

tn,1l Union for the ,greater part of the finalicial.yea:c;,

219. Another good feature of the Agreement is the provision (11) for the liquidation of bilateral payments agreements between members.

Bilateral swing credits must in any case disappear, otherwise members might not be able to discharge their mutual obligations towards the Union.

220, Albeit, the provisions for a member Withdrawing from the Union or for the liquidation of the Union are a little disappointing although, again, they reflect the peouliarities of the African and partioularly

-,\,

E.tClIT. •

14YJil'E\,~

^2./4

. w'

^ClIT^.14/^AlIlA/¹²

Page.

86

the African pcliticalscehe.'· QonE1i'deriri'g' the greai oostacles to be cvercome'"iri founding the

UJ:licri'iinci'6~"'ri[tingrt~ffici~ntlY,

^{the .two}

,years validTty'of the Agreenientc:ouldInor'e

rea~8i,~biy.have

^{been five}

or seven ;\r'ears.The Unfoil needed at least {hat

mu~h"'tiliie

^{of active}

'life to prove

±'t;E

worth • . .Also ;". mefuber must not be

aii6w~d

^{to wi} th-draw per ernp tor iiY. from tlle Union in case, forexampie; something

.. .,,' '.: ' . ,''-.f:t.C':'-:' c . .': .,'j/',:' .- ";. ' .; .,,":,"':

displeases him~' One further origi,fa1 yet objectionable featur.eis the propos&l that, thec>1pl

tinsub§criptio"'~f~achmember~hould'~lso

serv"

a~'his

credit q,i"ota. 'This aiainrefIec'ts

th~peculiaritie~

, .^of

the African backgr'ourid'; The ~ffect()ftiiis proposal,however, is that, even deficit countri$shave to putupconvertit,le'capita1' subscription and;,I).re then allowed,todrawecredi tonly up to 'that amount, .,Sure1y _t4~s,w:i:ll not help'to expand trade' 'as much

',as

^'mutual

c:r;edit(j".,§. the granting of ,ereditby :Stlrp1USmelllbersto'defici't mi:>mper,s,~ would d()X lfutual credit: is alwayspossiblesince'±rl ani' ,uUi9!! the., sum. p,f'.t4ecredi t balances is alwayse'cfi.i'al tc'the

sum

'of

thedepj:t b"lan9,sE,.,; . ,

221. Although the agreement was signed in April 1962 it did"not , 'come into'force. Algeria, one of'thesignatoh'es, d.id not become'

independen'tuni;il AugUst of thEit'Year.FUrthermore,the

pre~a;:a

^tions

for the OAUsummit

oonferenc~

^$.i'ready

a;"ticipatedR~solutionHfrand

{g) which' ha<i"itssi'ghts:beyond ta"itwider horizon.

'11b~it'):Lt

^{was an}

enlightenedffrst attiompt to sketbli'(;{,t aLpay£enis Union

ge~~ed

^{to the}

realities of the Afrioancontexi.

•

-.-"'.

",'.-..'.:~".,'

;..'.-1

. -'1 ..-'_.~:'

,-> ,".

::--~i~

C!tAPTER IX

, ,"

•

222. ,The.brtefswve;y;of 'the previous effoi'ts' a tva paymen:ts Ulli:on'ana similar mechan Lsma elsevrhere ':i.n,thevr6i'lden.a1li'e'us'to d.erivelessdllEJ"

from them that .will.be invalliftole

inouf/~earohfor'suchanin8tiwtf6rl

sui

t~~l~},?t~,~Afr.ica,n l;li~1,lai;ion. ,~i.n~,E1

thl1,ll'l ;i,ns:j;itlJ'tioAs VllJ:'i,!",d

widel;r,;i,n o0J:lr9~mJty lfith,,"lf~de~y V;I>F;y:il+g ge9~a,phical, his;toJ;'j,cal,:·,.

,_: .__._., ,;\ ,. : .. : , .. ," _.. _' .,_,•..l ~," '. " , " ' , , " ,- " " , " " ,

po Li,tica,la,nd eoonomic enviroumentil n9 siuipl~,ccpy <::>r.imitatiQui is "i"

:tCr.'q··:,i,;-~j1iX..,,';;::_n:y)·":"~,·,<_,,,~:;.,,;t:,,q:~ '>':'';;:,'';<>",,,' -'-; ". '" '. ",; f·- , ~",'." '- "-,:,:<,:'. ';'-;"",':[,: ::(,,:'1:,:'_,"'" : "-~, -~i .>..: :' ,

possibJ,.~~,,'r17!!C0J:ldi1ii,qns ;inAfri,ca" d~ff~:in lljaBY ~e\>:p.ect!i t'l'OmMfOs,'l,i.

prevail'kg:Ji;°::EJ\lrop~ orev~p~tr~+,~eri,o~

i\t,thetil!1e, of' .thEl emeJ;genoe

;-:;.T.:·:i;:;;'"::~.;_~',~ .~~_;e'__;..^_i..;·. ^{; , ;} ^{.,.' .. ,} " ' . ' . . , " ' ; ' ' . 1 ' " " " " , : : , ""'\"~"",",-,_, ..' " ' " , , : . , - , " , " " ' h

of thes,., ,inst~:\iution.s~ .NeVElrt!tlO11~ss,fQ~;i\WlJllple,tth J;1"K.tt4.t~it..th.,,:,

:.(;.::,-_~:.:::,",.~.:.". :...,...'.'.: .·'c.~.... ,' .."·" .".' " ,,,.. ,.,", ..." ' , ' - ' .

EPU was thfl, "nly orga,niz.,d paYll!!Onts _un~o~ in the.wor;J.d.which.se:MiJe~ ^tt,

som~~() P~;~101t;t."O~;~~tF~cle;~Yment~:~.~thew~rld f9r.t!>e~ePiter

part of a de.cad.,p~ts:.' :'.:'., !.'.. '.'., ,:..tllifl. institu,ti,<::>n ,:,I.n"allpmman4in,g,he;ight t9""l1·.:'c;·, i':·, ; '.' -- ... ,:-:, '. '''',' ,., .... -- . ^j ^{, .} ^{' '' ; ,}

those who contemplate a similar institution in, ,;(;~,.,.·world•• ,.I,.

'",<:,

i·u,,-'.:'.I'~:

223. To be opjectiye

in·

eduq;i,ng

Wh~t

i§L,ylll:,l.d

·in

thes."ms;t;i'tu"t,;iQns . ".,-"

.!-"'3j';::'·":::·':;·'I'.';:'rL~-"':;')"X:"· j ,"".! _,,"..~ ..'.,,1./.'. ' '>:;;,"~,I '_."-"",.' , . c .

fOI',¥:ftYil-

yEl Ijl~ft?,~ a'¥7~r,e9,fth.,

bas:,!.c, ,c;iif,;I;'Il:l,'ellceljl,inth!i'"I'l)-Y¥:°n'" c, mental conditions. ,!'fr;ica, to1;>e sur e, ,does no^t, possess th~c,t,echp,or., ",,:,

.,_: .,., 1 ••. •.•. ':'.-' '... ,.""'" ;," i, ' · h .... , ... ' , ..., . . . ' - ,

logical, scientific, managerial or organizational ability which Europe" .. ,

.' ..;-',~"-:- "'{-;: .C'.'.:" .;'. . . ' '.',',.- ..." . ' - , ' <. .' . / ,.::,:" . • • : -.:.:;.,~:: ^-. , ; " . ; , , , ' , , " , ;

had in:1956;'" N'bi' does she have the agricultural and 1Illmufacturing

equipment;'skiil,' or

prod~ctlbnanumarl~~ting

experience Which,

~;;;ec":""';

could iilsp6s'hii

in 1950~1fithID..rope the~itwas tl1e~pe~:l:s.lproble~'"

''j.~^..." . ; " C ' ' ' o " - .~,,, ot : ,:' ' . , ' . , ' .:'~-":·",·:r '\i"'::"' , , : " ' : : ' ; , , ,-:: ,: '~;.' "<,i';":' '.,,",. f'.',:~....r,

of resiidr'fug the 'working effiCiency 'of' a neglected, undermaint!J.in$<J, ,

_ ...,. - : : " . ! ' . . " , :'>' . :''''~'' ^• ~ ^, '.2: '- ..'L~ ^{,,'. .}:-,;~":-"'J ^.': r:',:'.,,':: 'or! ^<;~~'i":"~' ;u~

aiJ.'d -partly 'destr'oy'ed but potenhally highl/! productive appar-a tue , In Afr:i.~; theappara1l1,lS

Of

production':for'tlie,supp'ly,ofgoods for ",r.T

potentilj!} in~tr&"'AJ?r,icantrade'hasyet toba '<dreated.Afr:i:ca,in

:'the ,'''':

main, h/l>.!>:Iboinitia'te -a developm&n't ·take-ofT not to reconstructs.

devastatad'ec,pnoJllY.~;,Hencec;,Afi.ica,·Ulllike Eur'Opef'dc:ies not· want to e.x~d,ip;tra-Af;r;ticantrade<a tthe-e:Xip,en: s e ().f'extr<a"'Afr i can'"'liraue ao ", long as,;l;;ti,SlO1xports canbe-soldiiith6llt lllIich:'dift"ioultiY "itt'remtiher'a'tive prices

in.

the:worlli. . Africa needll':Eur'(H!Ull~riioaninva&tilientgood's.

:ID": ;'

ever~~j!I·ingvel_es".and:, .theref'ore, it ,rs'b:olild"D~'freeto earn' the

foreign ])uro-Ameri

7 ^:l

c~~;encie$~~j,~~l)l9;j~,)nem.,.T,!?-e,~~raI

here is clear. An African Payments Union must not be used to reduce or d

i.acr'

i1lti;!'t"J;;e,,,g',,inst, "';:i~Jf,a-e!¥r,±!q""ctF:i'jA,'e,.;) As r eCOllllliellde<ibiY',utiCTiD,

howellffi.l'""tj":ilPQr:eca,,,,,in€keX1Fq,C'~:r:;i;lcilA;'itj!\'a~;jW:i,;I,I,,requir,e.·,vniJ;a:te:eeil·,1

pr",feJ;',/ll1;Q'!;<;hjgJ?Wll,~,!bY.:M1 '1i!~ve>l

CJ]\i"¢i

rttomi;ir;i-'is+i;ci

Afr

ida. 'C,."

2 24

..&1 '6U.t g'tiiJd:illi ';'r6v{s'{Sh in th'e E1'u:~g;:~~~;eni(0ais t~egu~r ~~t ^{ee "}

of gOld)'~liyni\?lf'd (bY':th{'tTriibnto'i4fi,,,rect1t'ni~inp:#l.i;:Exch~ng~' ;a:tes .':

between EPU)rd.ili'igfi'd',,;swJ,j~ef{j2~~

^.b

Y' rKJiJii~Y",};¥;i~~k~it1i\{$ic~msultation

wi th"iiVlF.

"!fud ,j;;~s:i,~jbt'1ai~baseandh aCl1Ju.it't-dn'e~cha.ng~ 'gJWan _t'e~; ^",,:

Tn ~se"0gH1. ^d' ^'ijayh{ e';-t~ 'tcib'" Jd'i-ibi"in'Jlrtb €iri:;~,iEffi;;:b 1~d:' 'ith~in ^\6 ^"e1'f t~t 't~y~erii ^{s' '}

to th$'i'dlt'ra~'~'/ea~,"tlltis''\f\ing tne?fJ? 16;;k6enci~~)';ji ^{If TaCJ'h~'ite~

conve±,'{iYi1/i\i. ijf:'Mor:eo;;'Err'; 'the gOI'a,J

ri;i ;fc;li k'f. sO:p6~~Eik~ ^ed'bY t'h~ d'niori'

~,c'-:;'~<'~:")7\_ ,_~."t:i,+ rf""l<i, ,.f,i':'-" ,-; ..i~' ^"t.': ,~&t;I".:,r~n·f:';',~- ,:;':·r"·:'-~ ^<.>' ^{' , d} ^_ '-::r'rl,o}:·... '-.,:. _',: - ,"

enabled: it'toniake-gran'ts

arid'~loanstt5·

the" weakestinembers to import gOOds'· i'roil d:i;jie~"Jke'M:gJi~:'~Pi't'he5;'{~"t\'J:ii~'ili~g ba,.lk~c~' of;;[i~~ts [( "

'r- . c , '~r ~l r--':';;""+;"-:- , , : '.:nJ.:'::, .v:r "'''''I;~l;J:~'iC;) (iC": ':~.

difficulties at

tk~:C:diJ.i',ie't.'- ,IC,,' .";,, ," . . . . '

225 •

One

Basio

aa hire 6f;'t1i~'E:P1J w1il'ghth~{iid'b~c ^;eadiiY: (~c~;p6rat'e~ ^.

~ ",., _~ ·,/-,-}'tr,1') 'jj~{Jf.ii-·f ;'-'dLJ '1\:, :c'·~.s'.";;- :'::!.;j'a;'J:';.:' ':'-\', .~-"':_:.'<;:: ^'1,.,',

:into an Kfrican-Payments UnibrCaf'ter 'being suitably "'darted is that of the ef~Jii~hi/ cilto¥~ign proifli'ibi/' ili;'ri:~ii~rk'm~;'kphal(": ,.' "" "

J:-:;.:(,()l'.J"n(lt:J:t.,·-·,·I"~ .:::i::"~, ·'-·J.~.'.·:l .'.,,,-.. ' "n

226. A_~:::£'J~1J,,~'j~~9Fmo~s;f),dU~¥ltr.fjY~~j:;r:}pf~~r:fE;flv-.:r;:~

EfV

1,.1.P9_~ ^.its ^members ^':1

er~. ~~~lil P?,ffJ) l,~ 1ff?Y~f" t,~r?j ~,"H,~F?U,~ j"F _~Jf' .r: US$>5om;i~1 i o n "

,,~~?ft

tN':.

U,~".B~;Yff.rl;)'"r\':l'

\

,!!l,~dJ8j: aJs,Jf~, ,~Hia;r."

E'tag,e:,

Th~s;>!'10)}P;^t 1"'E's : i . '

o

.,93 p~r'LPt'P:1L ,?J'l;gi?~ln~ltC) P,~ifJ. ,~,~ l~tJ:v3r"re?,eiptfl;; of'}ll~,' )JS,,~pv,!rnm"llt.

in I~50.,

c'l'f-%"ri ^Slui

vp:}J'f'~'J'~I?~?elf!,~~t.ji~1

t

~f~,wou+d;

li e:Lrl.yS,$} ,07, p:\.lli?R

_~ 227.

The

'illi~iaJ, 411-;e!l"iQ~\igm'an:t:WlJ/s~::

c!l1'i!lcial>to tne

opel'a'b,iDiisq;,f ;l;he1.:·,

EPU.

,,!I'hi~t

ii3·,tru" '

fu,'SF,nA;",,',

'lllfc'

t&h~j:flltett.ha

tc a

t!tMt'ime·EUi'()p~

had

r eceived:'

MaIll'.\Ol·ha~lc<A,id

,f:or>two,,' y<e;affi'l1lr'j;>N,viiOusiY"ancl' heb"ul3.e::t>f this':

'C[ ,II

Europe

^&I:c;omparild'''l'iil;ll'AfWrl,c1:l.,jJ!.

was;,a, rela

-v"ly :mOre prt)'SpBl'OUS'

Con t

:\.n,e!'!

ti.'altllol1ghi:i''tdl!'l.d''n<> t't;f;uilay:'

",covliir ed to itspre"-1939' :pro

_8peIli$Y.~

Never:th'eleM," Ullisy;iii;j.J;ia1:',gran1ll'iOf;

'U.']; , $350 millioil''''to' a.

ts~work±ng

capitail J!>rov"d,'

ctlo·:be"'·inhsp:e>lO.s"ibl,,n:il:{'

working ,its', payments',

vn,'ion~,i,

'"", .. ',',.

A foreigri:rgrant of l>owdlrkfug,Loapatal

;j.rt'.ccinvertiblB!;cUrr'll'lcies;'tJJ.e;jJ~

Dans le document Conf6rence of Governors of African Central Banks (Page 88-92)