The Exchange Control Act, 1947
| Published date | 01 October 1947 |
| Author | F. A. Mann |
| Date | 01 October 1947 |
| DOI | http://doi.org/10.1111/j.1468-2230.1947.tb00062.x |
THE
EXC.HANGE
CONTROL
ACT,
1947
WHATEVER the political scientist, economist
or
historian may
think about the Exchange Control Act,
1947,
it is certain that
lawyers will regard its appearance on the Statute Book with
mixed feelings. International lawyers will confess to a state
of
bewilderment, the practitioner cannot help expressing
melancholic resignation, and only those few who are interested
in the development of the conflict of laws will find some
satisfaction in theoretical speculation.
I
The Articles of Agreement
of
the International Monetary
Fund to which effect was given by the Bretton Woods Agree-
ments Act,
1945,'
make it one
of
the principal purposes of the
Fund 'to assist
. . .
in the elimination of foreign exchange
restrictions which hamper the growth of world trade'.' In
pursuance
of
this object the Agreement provides that, while
members
of
the Fund 'may exercise such controls as are
necessary to regulate international capital movements
',4
'
no
member shall, without the approval of the Fund, impose
restrictions on the making of payments and transfers for
current international transactions
'.5
Moreover, by clause
8
(ii)
of
the Financial Agreement
between the United Kingdom and the United States of America
of
December
6,
1945,6
the Governments of both countries agree
that not later than one year after the effective date of this
Agreement, unless
in
exceptional cases a later date is agreed
upon after consultation, they will impose no restrictions on
payments and transfers for current transactions.
The
obligations of this paragraph (ii) shall not apply
(a)
.
.
.
.
(b) to restrictions imposed in conformity with the
Articles of Agreement of the International
Monetary Fund, provided that the Governments
of
1
Cmd.
6546.
2
9
&
10
Geo.
6,
c.
19.
3
Art.
I
(iv).
4
Art.
VI
(3).
5
Art.
VIII
(2)
(a);
for
a
definition
of
'
current
international transactions
'
see
Art.
XIX.
6
Cmd.
6708.
To continue reading
Request your trial