Contracting Party, on conditions and for a period which shall be determined by the Organisation, (i) if that Contracting Party fails to fulfil any of its obligations under the present Agreement or under any of the decisions of the Organisation referred to in Article 2; or (ii) for any other reason which shall have been determined by a previous decision of the Organisation. Article 34 WITHDRAWAL (a) Unless the Organisation decides otherwise, the present Agreement shall terminate with regard to any Contracting Party which fails to make any payment of gold due under Articles 11 or 13, as from the end of the accounting period in which the default occurs; provided that the other Contracting Parties shall be relieved of their obligations towards that Contracting Party under Article 8 immediately the default is established. (b) The present Agreement shall terminate with regard to any Contracting Party which withdraws from the Organisation, at the end of the accounting period in which the withdrawal becomes effective, unless the Organisation decides on another date. (c) The Organisation may decide to terminate the present Agreement with regard to a Contracting Party in the case of force majeure or exceptional circumstances. (d) By notifying the Organisation, any Contracting Party may terminate the present Agreement with regard to it: (i) if its cumulative accounting surplus or deficit reaches the amount (iii) in such other cases on such conditions as the Organisation may (e) If the provisions of the present Article are applied: (i) the operations relating to the accounting period at the end of which the present Agreement terminates in respect of the Contracting Party concerned, shall nevertheless be carried out; and (ii) the rights and obligations of the Contracting Party concerned shall be determined in accordance with the provisions of Section I 415900-57-69 of Annex B to the present Agreement which shall remain in force. until the provisions of that Section are carried out. Article 35 EXTENSION OF THE OPERATION OF ARTICLE 11 (a) Not later than 31st March, 1952, the Organisation shall carry out a comprehensive review of the operation of the present Agreement in order to decide, in consultation with the Government of the United States of America, on the conditions on which Article 11 may remain in force as from 1st July, 1952. (b) The present Agreement shall terminate on 30th June, 1952, with regard to any Contracting Party which does not take part in the decision taken by the Organisation by virtue of paragraph (a) of the present Article, and paragraph (e) of Article 34 shall then apply to that Contracting Party. (c) Article 11 shall, subject to the provisions of paragraph (a) of Article 36, remain in force between the other Contracting Parties on conditions which they shall determine. Article 36 TERMINATION (a) The present Agreement may be terminated by decision of the Organisation at any time. (b) Unless the Organisation decides otherwise, the present Agreement shall terminate at any time after 30th June, 1952, if the quotas of the Contracting Parties should amount in aggregate to less than 50 per cent. of the total amount of quotas initially fixed by Article 11. (c) Upon the termination of the present Agreement: (i) the operations relating to the accounting period at the end of which the present Agreement terminates, shall nevertheless be carried out; and (ii) the Union shall be liquidated in accordance with the provisions of Section II of Annex B to the present Agreement which shall remain in force until the provisions of that Section are carried out. ANNEX A OUTSTANDING DEBTS 1.-(a) For the purposes of the present Agreement outstanding debts shall consist of: (i) the balances, on 30th June, 1950, of accounts referred to in paragraph (a) of Article 5 of the Agreement for Intra-European Payments and Compensations for 1949-1950, signed on 7th September, 1949,' adjusted to take into account operations relating to June 1950, carried out under that Agreement; and (ii) such other debts outstanding on 30th June, 1950, between two Contracting Parties as they may notify to the Agent, excluding that part of any consolidated debt in respect of which there is no liability for the debtor to make anticipated repayment. (b) The Council may decide to substitute other dates for those referred to in sub-paragraph (a), (i) and (ii), of this paragraph in the case of any Contracting Party with regard to which the present Agreement does not apply with effect from 1st July, 1950. 2. If an agreement is concluded between the two Contracting Parties concerned, for the amortisation or repayment of any outstanding debt within the meaning of paragraph 1 of the present Annex, the repayment instalments in respect thereof shall be included in the calculation of the bilateral surpluses or deficits of those Contracting Parties. Two Contracting Parties may agree that any debt outstanding between them shall not be subject to amortisation. 3. If the Organisation decides that an agreement concluded for the amortisation or repayment of any outstanding debt may prejudice the proper operation of the Union, the two Contracting Parties concerned shall amend that agreement in accordance with the decision of the Organisation. 4. If the two Contracting Parties concerned disagree regarding the amortisation of an outstanding debt or on the conditions of the amortisation, the conditions of amortisation may be determined by a decision of the Organisation at the request of either of those Contracting Parties. 5. If the Organisation is not in a position to take a decision under paragraph 4 of the present Annex, the debt shall be amortised on the following conditions: (i) repayment shall be made in two years and, unless the two Contracting Parties concerned agree otherwise, by equal monthly instalments; and (ii) interest shall be paid at 1 per cent. per annum, unless a higher rate is provided for the same period by a payments agreement in force on 30th June, 1950, as between the said Contracting Parties, in which case that rate shall apply. If the payments agreement provides for a higher rate for a longer period, the rate of interest shall be determined by a decision of the Organisation, taking account of that rate. 6. The conditions of amortisation determined in accordance with the provisions of paragraphs 4 or 5 of the present Annex may be modified by agreement of the two Contracting Parties concerned, subject to the provisions of paragraph 3 of the present Annex. 'British Misc. No. 13 (1949), Cmd. 7812. ANNEX B Section I RIGHTS AND OBLIGATIONS OF THE CONTRACTING PARTIES IN CASE OF WITHDRAWAL 1. When the present Agreement terminates with regard to any Contracting Party under Articles 34 or 35 thereof, the rights and obligations of that Contracting Party shall be determined in accordance with the following provisions. 2. (a) Subject to the provisions of paragraph (g) of Article 10 of the present Agreement and of sub-paragraphs (b) and (c) of the present paragraph, any amount in respect of an initial credit or debit balance allotted to the Contracting Party concerned and not used in the operations relating to accounting periods prior to the date of termination of the present Agreement with regard to that Contracting Party, shall be treated as if it were an accounting surplus or deficit, as the case may be, of that Contracting Party arising in the accounting period ending on that date. (b) The preceding sub-paragraph shall apply as regards any amount in respect of an initial debit balance only to the extent that an equivalent amount of conditional aid is already firmly allotted to the Contracting Party concerned. (c) If the Contracting Party concerned is the United Kingdom, any amount in respect of its initial debit balance not used in the operations referred to in sub-paragraph (a) of the present paragraph shall be cancelled. 3. Unless the Organisation decides otherwise, the credit granted to or received from the Union by the Contracting Party concerned in accordance with the provisions of Articles 11 and 13 of the present Agreement, and the amount of credit used or granted by the said Contracting Party in accordance with Article 12 of the present Agreement, shall be cancelled and shall be replaced by bilateral credits calculated in accordance with the provisions of paragraph 4 of the present Annex. 4. (a) The Contracting Party concerned shall grant to each of the other Contracting Parties, or receive from each of them, as the case may be, a credit equivalent to that fraction of the net amount of credit received from or granted to the Union by the first Contracting Party, which is equal to the fraction which the quota of that other Contracting Party represents of the sum of the quotas of all the Contracting Parties. (b) The Contracting Party concerned shall receive from each of the Contracting Parties which has granted a net amount of credit to the Union and shall grant to each of the Contracting Parties which has received a net amount of credit from the Union, a credit equivalent to that fraction of the credits granted or received by each of those Contracting Parties, which is equal to the fraction which the quota of the first Contracting Party represents of the sum of the quotas of all the Contracting Parties. (c) The credits granted or received under the provisions of subparagraph (a) of the present paragraph shall, where appropriate, be offset against the credits granted or received under the provisions of sub-paragraph (b) of the present paragraph. 5. (a) The amounts of credit used in accordance with Article 12 of the present Agreement shall be considered, for the purposes of paragraph 4 of the present Annex, as credit granted to the Union by the Contracting Party which grants the credit and as credit received from the Union by the Contracting Party in whose favour the credit is granted. (b) (i) For the purposes of the calculations under paragraph 4 of the present Annex, if the withdrawing Contracting Party has received a net amount of credit from the Union, the total of the credits granted to the Union shall be adjusted proportionately so as to be equal to the total of the credits granted by the Union. (ii) For the purposes of the calculations under paragraph 4 of the present Annex, if the withdrawing Contracting Party has granted a net amount of credit to the Union, the total of the credits granted by the Union shall be adjusted proportionately so as to be equal to the total of the credits granted to the Union. 6. The bilateral credits arising under paragraph 4 of the present Annex shall be expressed and repaid in the currency of the Contracting Party which grants the credit, unless the Contracting Party which grants it agrees otherwise with the Contracting Party which receives it. The conditions of such credits shall be determined by agreement between the two Contracting Parties or, in the absence of such agreement, by decision of the Organisation. If the Organisation is not able to take a decision, the credits concerned shall bear interest at the rate of two and three-quarters per cent. per annum; they shall be repaid in three years and shall, unless the two Contracting Parties agree otherwise, be repaid by equal monthly instalments. 7-(a) Each of the other Contracting Parties shall grant to the Union or receive from the Union, as the case may be, a credit equal to that which it receives from or grants to the withdrawing Contracting Party by virtue of paragraph 4 of the present Annex. (b) These credits shall bear interest at a rate to be determined by the Organisation. They shall not be taken into consideration for the calculation provided for in paragraph (b) of Article 11 of the present Agreement; nevertheless, (i) they may be used for the settlement of the accounting surplus or deficit, as the case may be, of each Contracting Party to the extent to which its cumulative accounting surplus or deficit exceeds its quota; and (ii) they shall be treated as credits granted or received by virtue of Article 11 of the present Agreement, for the purposes of the present Annex. |