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Swap Arrangements - General, 1970-75 (4)

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The original documents are located in Box B98, folder "Swap Arrangements - General, 1970-75 (4)" of the Arthur F. Burns Papers at the Gerald R. Ford Presidential Library. Copyright Notice The copyright law of the United States (Title 17, United States Code) governs the making of photocopies or other reproductions of copyrighted material. Gerald R. Ford donated to the United States of America his copyrights in all of his unpublished writings in National Archives collections. Works prepared by U.S. Government employees as part of their official duties are in the public domain. The copyrights to materials written by other individuals or organizations are presumed to remain with them. If you think any of the information displayed in the PDF is subject to a valid copyright claim, please contact the Gerald R. Ford Presidential Library. STRICTLY CONFIDENTIAL (FR) SWAP ARRANGEMENTS BETWEEN THE SYSTEM AND FOREIGN CENTRAL BANKS May 9, 1973 Listed below as of May 9, 1973, are the swap arrangements concluded on behalf of the Federal Reserve System with foreign banks. Amount of Agreement Maturity of (millions of latest authorized Foreign Bank dollars) renewal Austrian National Bank 200 December 3, 1973 National Bank of Belgium 600 December 21, 1973 Bank of Canada 1,000 December 28, 1973 National Bank of Denmark 200 December 3, 1973 Bank of England 2,000 December 3, 1973 Bank of France 1,000 December 28, 1973 German Federal Bank 1,000 December 14, 1973 Bank of Italy 1,250 December 31, 1973 Bank of Japan 1,000 December 3, 1973 Bank of Mexico 130 December 3, 1973 Netherlands Bank 300 December 28, 1973 Bank of Norway 200 December 3, 1973 Bank of Sweden 250 December 3, 1973 Swiss National Bank 1,000 December 3, 1973 B.I.S. 1,000( 600) December 3, 1973 (1,000)1/ December 3, 1973 Total 11,730 1/ This reciprocal arrangement provides for swaps of dollars against authorized European currencies other than Swiss francs. FORD is 074839 LIBRARY STRICTLY CONFIDENTIAL (FR) -2- As of May 9, 1973, drawings on the above arrangements are outstanding in the amounts indicated below: Drawings Outstanding on Swaps Date since facility has Initiated Initiated been in con- Arrangements with by System by foreign bank tinuous use (millions of dollars equivalent) National Bank of Belgium 390 -- June 30, 1970 Swiss National Bank 565 -- May 19, 1971 B.I.S. (Swiss francs) 600 -- August 12, 1971 Total 1,555 FORD & GERALD LIBRARY STRICTLY CONFIDENTIAL (FR) SWAP ARRANGEMENTS BETWEEN THE SYSTEM GERALD R. FORD LIBRANA AND FOREIGN CENTRAL BANKS June 13, 1973 Listed below as of June 13, 1973, are the swap arrangements concluded on behalf of the Federal Reserve System with foreign banks. Amount of Agreement Maturity of (millions of latest authorized Foreign Bank dollars) renewal Austrian National Bank 200 December 3, 1973 National Bank of Belgium 600 December 21, 1973 Bank of Canada 1,000 December 28, 1973 National Bank of Denmark 200 December 3, 1973 Bank of England 2,000 December 3, 1973 Bank of France 1,000 December 28, 1973 German Federal Bank 1,000 December 14, 1973 Bank of Italy 1,250 December 31, 1973 Bank of Japan 1,000 December 3, 1973 Bank of Mexico 130 December 3, 1973 Netherlands Bank 300 December 28, 1973 Bank of Norway 200 December 3, 1973 Bank of Sweden 250 December 3, 1973 Swiss National Bank 1,000 December 3, 1973 B.I.S. 1,000( 600) December 3, 1973 (1,000)1/ December 3, 1973 Total 11,730 1/ This reciprocal arrangement provides for swaps of dollars against authorized European currencies other than Swiss francs. STRICTLY CONFIDENTIAL (FR) -2- As of June 13, i973, drawings on the above arrangements are outstanding in the amounts indicated below: Drawings Outstanding on Swaps Date since facility has Initiated Initiated been in con- Arrangements with by System by foreign bank tinuous use (millions of dollars equivalent) National Bank of Belgium 390 -- June 30, 1970 Swiss National Bank 565 -- May 19, 1971 B.I.S. (Swiss francs) 600 -- August 12, 1971 Total 1,555 FORD & LIBRARY 038470 6/14 S. Call John Reynolds- - that he can inform Treasury. (Retain the memo for Dr. B's files) FORD i LIBRARY 078870 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM to Office Correspondence Date June 14, 1973 To Chairman Burns Subject: Status of Negotiation on From John E. Reynolds Jak Increasing Swap Lines STRICTLY CONFIDENTIAL - F.R. Mr. Bodner telephoned from New York this morning to report on the status of the negotiations for increasing Federal Reserve swap lines. Canada. Bodner had discussions yesterday in Ottawa with Bank of Canada officials, and found them generally receptive to the idea of an increase in the swap line to $2 billion. They will give a more definite answer at Basle this weekend. Japan. The Japanese are favorably disposed to an increase in the line to $2 billion, providing that similar increases are negotiated with France and Germany. Germany. An increase in the swap line to $2 billion seems to be agreeable to them. Other Europeans. Mr. Coombs expects to bring negotiations with them to something near a conclusion this weekend at Basle. General. The aim has been to get agreements in principle, without final detailed agreement so that the matter will not have to reported to the EEC Commission where leaks might occur. The whole package could then be finalized and announced at a time judged propitious from the point of view of market psychology. GERALD Adbyait ? FORD - 2 - Bodner and some Europeans note that it would be desirable to have the revaluation clause agreed, at least with those countries on whom we might be likely to draw, at the same time, so that the announced increase in swap lines will not be purely cosmetic. Query: Do you wish Coombs, or Bodner, or me to inform the Treasury of any of the above? Or are you keeping them informed? II you ok R. GEORGIA R. FORD LIBRARY Proposed Changes in Federal Reserve Swap Network Foreign Bank Increase Total Austrian National Bank 50 250 National Bank of Belgium 400 1959 1,000 Bank of Canada City 1,000 2,000 National Bank of Denmark 50 250 Bank of England -- 2,000 Bank of France 1,000 2,000 German Federal Bank 1,000 2,000 Bank of Italy 750 2,000 Bank of Japan 1,000 2,000 Bank of Mexico 50 180 Netherlands Bank 200 500 Bank of Norway 50 250 Bank of Sweden 50 300 Swiss National Bank 400 1,400 Bank for International Settlements Swiss francs/dollars -- 600 Other European currencies/dollars 250 1,250 TOTALS 6,250 17,980 FORD is LIBRARY GERALD FEDERAL RESERVE OF SYSTEM OF THE THEREAL press release For immediate release July 11, 1973 The Federal Reserve System said today 13 foreign central banks and the Bank for International Settlements were involved in the $6.25 billion swap network increase announced yesterday. The largest increases, of $1 billion each, involved the Bank of Canada, Bank of France, German Federal Bank and the Bank of Japan. A swap arrangement is a short-term facility under which the Federal Reserve and another central bank mutually agree to exchange dollars for the currency of the other country up to a maximum amount over a limited period of time. The increases and the new totals of the swap lines are as follows (in millions of dollars): Foreign Bank Increase Total Austrian National Bank 50 250 National Bank of Belgium 400 1,000 Bank of Canada 1,000 2,000 National Bank of Denmark 50 250 Bank of England -- 2,000 Bank of France 1,000 2,000 German Federal Bank 1,000 2,000 Bank of Italy 750 2,000 Bank of Japan 1,000 2,000 Bank of Mexico 50 180 Netherlands Bank 200 500 Bank of Norway 50 250 Bank of Sweden 50 300 Swiss National Bank 400 1,400 Bank for International Settlements FORD i LIBRARY 973870 Swiss francs/dollars -- 600 Other European currencies/dollars 250 1,250 TOTALS 6,250 17,980 (Note: The foregoing announcement is also being released by the Federal Reserve Bank of New York) - 0 - STRICTLY CONFIDENTIAL (FR) GERALD R. FORD LIBRANA SWAP ARRANGEMENTS BETWEEN THE SYSTEM AND FOREIGN CENTRAL BANKS July 11, 1973 Listed below as of July 11, 1973, are the swap arrangements concluded on behalf of the Federal Reserve System with foreign banks. Amount of Agreement Maturity of (millions of latest authorized Foreign Bank dollars) renewal Austrian National Bank 250 December 3, 1973 National Bank of Belgium 1,000 December 21, 1973 Bank of Canada 2,000 December 28, 1973 National Bank of Denmark 250 December 3, 1973 Bank of England 2,000 December 3, 1973 Bank of France 2,000 December 28, 1973 German Federal Bank 2,000 December 14, 1973 Bank of Italy 2,000 December 31, 1973 Bank of Japan 2,000 December 3, 1973 Bank of Mexico 180 December 3, 1973 Netherlands Bank 500 December 28, 1973 Bank of Norway 250 December 3, 1973 Bank of Sweden 300 December 3, 1973 Swiss National Bank 1,400 December 3, 1973 B.I.S. 1,250( 600) December 3, 1973 (1,250)1/ December 3, 1973 Total 17,980 1/ This reciprocal arrangement provides for swaps of dollars against authorized European currencies other than Swiss francs. STRICTLY CONFIDENTI. (FR) -2- As of July 11, 1973, drawings on the above arrangements are outstanding in the amounts indicated below: Drawings Outstanding on Swaps Date since facility has Initiated Initiated been in con- Arrangements with by System by foreign bank tinuous use (millions of dollars equivalent) National Bank of Belgium 390 -- June 30, 1970 Swiss National Bank 565 -- May 19, 1971 B.I.S. (Swiss francs) 600 -- August 12, 1971 Total 1,555 FORD is LIBRARY 938870 STRICTLY CONFIDENTIAL (FR) GERALD R. FORD LIBRABY SWAP ARRANGEMENTS BETWEEN THE SYSTEM AND FOREIGN CENTRAL BANKS September 12; 1973 Listed below as of September. 12, 1973, are the swap arrangements concluded on behalf of the Federal Reserve System with foreign banks. Amount of Agreement Maturity of (millions of latest authorized Foreign Bank dollars) renewal Austrian National Bank 250 December 3, 1973 National Bank of Belgium 1,000 December 21, 1973 Bank of Canada 2,000 December 28, 1973 National Bank of Denmark 250 December 3, 1973 Bank of England 2,000 December 3, 1973 Bank of France 2,000 December 28, 1973 German Federal Bank 2,000 December 14, 1973 Bank of Italy 2,000 December 31, 1973 Bank of Japan 2,000 December 3, 1973 Bank of Mexico 180 December 3, 1973 Netherlands Bank 500 December 28, 1973 Bank of Norway 250 December 3, 1973 Bank of Sweden 300 December 3, 1973 Swiss National Bank 1,400 December 3, 1973 B.I.S. 1,850( 600) December 3, 1973 (1,250)1/ December 3, 1973 Total 17,980 1/ This reciprocal arrangement provides for swaps of dollars against authorized European currencies other than Swiss francs. STRICTLY CONFIDENTIAL (FR) -2- As of September 12, 1973, drawings on the above arrangements are outstanding in the amounts indicated below: are outstanding Drawings Outstanding on Swaps Date since facility has Initiated Initiated been in con- Arrangements with by System by foreign bank tinuous use (millions of dollars equivalent) National Bank of Belgium 362 : June 30, 1970 Swiss National Bank 565 -- May 19, 1971 B.I.S. (Swiss francs) 600 : August 12, 1971 German Federal Bank 5 : July 12, 1973 1,532 GERALD FORD VIBRARY STRICTLY CONFIDENTIAL (FR) R. FORD SWAP ARRANGEMENTS BETWEEN THE SYSTEM AND FOREIGN CENTRAL BANKS January 16, 1974 THE Listed below as of January 16, 1974, are the swap arrangements concluded on behalf of the Federal Reserve System with foreign banks. Amount of Agreement Maturity of (millions of latest authorized Foreign Bank dollars) renewal Austrian National Bank 250 December 3, 1974 National Bank of Belgium 1,000 December 21, 1973 Bank of Canada 2,000 December 28, 1973 National Bank of Denmark 250 December 27, 1974 Bank of England 2,000 December 3, 1974 Bank of France 2,000 December 28, 1973 German Federal Bank 2,000 December 14, 1973 Bank of Italy 2,000 December 31, 1973 Bank of Japan 2,000 December 3, 1974 Bank of Mexico 180 December 3, 1974 Netherlands Bank 500 December 28, 1973 Bank of Norway 250 December 3, 1974 Bank of Sweden 300 December 3, 1974 Swiss National Bank 1,400 December 3, 1974 B.I.S. 1,850 ( 600) December 3, 1974 (1,250)1/ December 3, 1974 Total 17,980 1/ This reciprocal arrangement provides for swaps of dollars against authorized European currencies other than Swiss francs. STRICTLY CONFIDENTIAL (FR) -2- As of January 16, 1974, drawings on the above arrangements are outstanding in the amounts indicated below: Drawings Outstanding on Swaps Data since facility has Initiated Initiated been in con- Arrangements with by System by foreign bank tinuous use (millions of dollars equivalent) National Bank of Belgium 262 -- June 30, 1970 Swiss National Bank 532 -- May 19, 1971 B.I.S. (Swiss francs) 600 -- August 12, 1971 Total 1,394 FORD s LIBRARY 07V838 STRICTLY CONFIDENTIAL (FR) R. FORD GERALD SWAP ARRANGEMENTS BETWEEN THE SYSTEM AND FOREIGN CENTRAL BANKS LIBRARY February 13, 1974 Listed below as of February 13, 1974, are the swap arrangements concluded on behalf of the Federal Reserve System with foreign banks. Amount of Agreement Maturity of (millions of latest aurhotized Foreign Bank dollars) renewal Austrial National Bank 250 December 3, 1974 National Bank of Belgium 1,000 March 29, 1974 Bank of Canada 2,000 December 27, 1974 National Bank of Denmark 250 December 27, 1974 Bank of England 2,000 December 3, 1974 Bank of France 2,000 December 27, 1974 German Federal Bank 2,000 December 27, 1974 Bank of Italy 3,000 December 31, 1974 Bank of Japan 2,000 December 3, 1974 Bank of Mexico 180 December 3, 1974 Netherlands Bank 500 December 27, 1974 Bank of Norway 250 December 3, 1974 Bank of Sweden 300 December 3, 1974 Swiss National Bank 1,400 December 3, 1974 B.I.S. 1,850 ( 600) December 3, 1974 (1,250)1/ December 3, 1974 Total 18,980 1/ This reciprocal arrangement provides for swaps of dollars against authorized European currencies other than Swiss francs. STRICTLY CONFIDENTIAL (FR) - 2 - As of February 13, 1974, drawings on the above arrangements are outstanding in the amounts indicated below: Drawings Outstanding on Swaps Date since facility has Initiated Initiated been in con- Arrangements with by System by foreign bank tinuous use (millions of dollars equivalent) National Bank of Belgium 262 : June 30, 1970 Swiss National Bank 371 : May 19, 1971 B.I.S. (Swiss francs) 600 : August 12, 1971 Total 1,233 FORD & LIBRARY GERALD STRICTLY CONFIDENTIAL (FR) SWAP ARRANGEMENTS BETWEEN THE SYSTEM LIBRARY GERALD R. FOR AND FOREIGN CENTRAL BANKS March 13, 1974 Listed below as of March 13, 1974, are the swap arrangements concluded on behalf of the Federal Reserve System with foreign banks. Amount of Agreement Maturity of (millions of latest aurhotized Foreign Bank dollars) renewal Austrial National Bank 250 December 3, 1974 National Bank of Belgium 1,000 March 29, 1974 Bank of Canada 2,000 December 27, 1974 National Bank of Denmark 250 December 27, 1974 Bank of England 2,000 December 3, 1974 Bank of France 2,000 December 27, 1974 German Federal Bank 2,000 December 27, 1974 Bank of Italy 3,000 December 31, 1974 Bank of Japan 2,000 December 3, 1974 Bank of Mexico 180 December 3, 1974 Netherlands Bank 500 December 27, 1974 Bank of Norway 250 December 3, 1974 Bank of Sweden 300 December 3, 1974 Swiss National Bank 1,400 December 3, 1974 B.I.S. 1,850 ( 600) December 3, 1974 (1,250)1/ December 3, 1974 Total 18,980 1/ This reciprocal arrangement provides for swaps of dollars against authorized European currencies other than Swiss francs. STRICTLY CONFIDENTIAL (FR) - 2 - As of March 13, 1974, drawings on the above arrangements are outstanding in the amounts indicated below: Drawings Outstanding on Swaps Date since facility has Initiated Initiated been in con- Arrangements with by System by foreign bank tinuous use (millions of dollars equivalent) National Bank of Belgium 262 -- June 30, 1970 Swiss National Bank 371 -- May 19, 1971 B.I.S. (Swiss francs) 600 -- August 12, 1971 German Federal Bank 120 -- February 28, 1974 Total 1,353 1 GERALD R. FORD STRICTLY CONFIDENTIAL (FR) SWAP ARRANGEMENTS BETWEEN THE SYSTEM AND FOREIGN CENTRAL BANKS May 15, 1974 Listed below as of May 15, 1974, are the swap arrangements concluded on behalf of the Federal Reserve System with foreign banks. Amount of Agreement Maturity of (millions of latest authorized Foreign Bank dollars) renewal Austrian National Bank 250 December 3, 1974 National Bank of Belgium 1,000 March 29, 1974 Bank of Canada 2,000 December 27, 1974 National Bank of Denmark 250 December 27, 1974 Bank of England 3,000 December 3, 1974 Bank of France 2,000 December 27, 1974 German Federal Bank 2,000 December 27, 1974 Bank of Italy 3,000 December 31, 1974 Bank of Japan 2,000 December 3, 1974 Bank of Mexico 180 December 3, 1974 Netherlands Bank 500 December 27, 1974 Bank of Norway 250 December 3, 1974 Bank of Sweden 300 December 3, 1974 Swiss National Bank 1,400 December 3, 1974 B.I.S. 1,850 ( 600) December 3, 1974 (1,250)1/ December 3, 1974 Total 19,980 1/ This reciprocal arrangement provides for swaps of dollars against authorized European currencies other than Swiss francs. FORD i STRICTLY CONFIDENTIAL (FR) - 2 - As of May 15, 1974, drawings on the above arrangements are outstanding in the amounts indicated below: Drawings Outstanding on Swaps Date since facility has Initiated Initiated been in con- Arrangements with by System by foreign bank tinuous use (millions of dollars equivalent) National Bank of Belgium 262 : June 30, 1970 Swiss National Bank 371 : May 19, 1971 B.I.S. (Swiss francs) 600 : August 12, 1971 German Federal Bank 365 : February 28, 1974 Total 1,597 FORD is LIBRARY GERALD THE BOARD OF FEDERAL OF GOVERNORS: RESERVE SYSTEM FEDERAL RESERVE press release For Immediate Release August 29, 1975 The Federal Reserve announced today that its reciprocal currency "swap" arrangement with the Bank of Mexico has been doubled, bringing the total of that arrangement to $360 million. The increase enlarges the System's swap network with 14 central banks and the Bank for International Settlements to $20.16 billion. A swap arrangement is a renewable, short-term facility under which a central bank agrees to exchange on request its own currency for the currency of the other party up to a specified amount over a limited period of time. The Federal Reserve swap network was initiated in 1962. In all reciprocal currency arrangements the Federal Reserve Bank of New York acts on behalf of the Federal Reserve System under the direction of the Federal Open Market Committee. The Federal Reserve's reciprocal currency arrangements are now as follows (in millions of dollars): Austrian National Bank $ 250 National Bank of Belgium 1,000 Bank of Canada 2,000 National Bank of Denmark 250 Bank of England 3,000 Bank of France 2,000 GERALD FORD LIBRARY German Federal Bank 2,000 Bank of Italy 3,000 Bank of Japan 2,000 Bank of Mexico 360 Netherlands Bank 500 Bank of Norway 250 Bank of Sweden 300 Swiss National Bank 1,400 Bank for International Settlements Swiss francs/dollars 600 Other Europeon currencies/dollars 1,250 Total $20,160 million -0- BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Office Correspondence Date September 13, 1976 To Chairman Burns Subject: From Charles J. Siegman CJS Attached as requested is a copy of a July 1968 letter by Henry Fowler to Chairman Martin on the swap arrangements, that deals with the question of take-out and use of reserves by the United States. (Although the enclosed letter is labelled "Draft", as noted on top of the letter, this is the letter that was signed by Secretary Fowler on July 23, 1968). I also am enclosing a copy of a July 1974 letter by you to Secretary Simon regarding the possibility of financial assistance includes to Italy in which a specific reference (in the next to final paragraph on page 2) to the need for firm take-out provisions by Italy. Attachments. FORD & BERALD LIBRARY Swappla BOARD OF GOVERNORS B OF THE FEDERAL RESERVE SYSTEM WASHINGTON, D.C. 20551 THE FEDERAL RESERVE July 15, 1968. CONFIDENTIAL (FR) TO: Federal Open Market Committee FROM: Mr. Holland Attached is a copy of a revised draft letter from the Secretary of the Treasury to Chairman Martin concerning Treasury backstop facilities for Federal Reserve swap arrangements. This letter is a revision of the earlier draft letter dated June 7, 1968, which was sent to members of the Committee under date of June 25, 1968, and represents the product of a meeting of Treasury and Federal Open Market Committee officials on July 15, 1968. The matter is being placed on the agenda for consideration at the Committee meeting on July 16, 1968. pt e Head Robert c. Holland, Secretary, Federal Open Market Committee. Attachment GERALD FORD JERARY DRAFT: July 15, 1958 STRICTLY CONFIDENTIAL (Draft of proposed letter from Secretary Fowler to Chairman Martin) Signed & dated by Dear Mr. Chairman: Secy Forder asses 7/23/63 On several occasions in recent months, representatives of FOMC mean the Federal Open Market Committee have discussed with the older Treasury the problem that arises when drawings under reciprocal currency arrangements reach maturity without a reversal of the 7/16/65 of mution funds covered. (pase Federal Reserve drawings under its reciprocal credit 14) facilities are made to provide foreign central banks who are unwilling to hold new dollar acquisitions on an uncovered basis with a temporary alternative to holding uncovered dollars on one hand or, on the other, purchasing gold from the United States or requiring the United States to purchase the surplus dollars through recourse to the International Monetary Fund. Drawings have generally been restricted to situations in which there was a reasonable hope for a reversal of the flows of funds so that the Federal Reserve would be able to acquire the necessary foreign exchange to liquidate the commitment in timely fashion. It has always been clearly established policy on both sides that Federal Reserve use of such credit arrangements is appropriate for only limited periods of time; current policy, as generally understood, calls for repayment within one year, if not earlier. FORD GERALD - 2 - There have been occasions, however, when such reversals did not materialize. On these occasions, arrangements have regularly been made by the System and the Treasury under which the United States used its basic reserve resources of gold, drawings on the International Monetary Fund, and the issuance of Treasury foreign currency-denominated securities to meet the problem which arises when the cover granted by the swap drawing is withdrawn Naturally the Federal Reserve wishes to maintain the essentially short-term character of its swap drawings and must always be in a position to honor at maturity any com- mitments it has undertaken under its reciprocal currency arrangements in cases where flows of funds to its swap partners do not reverse themselves within the appropriate period. Accordingly, the Treasury will stand ready, as in basic reserve the past, to use the/resources of the United States to the extent required and in the combination most suited to the interests of the United States that can be negotiated to obtain and provide to the Federal Reserve the foreign currencies needed. QERALD R.FORD LIBRABA In light of this understanding, and in view of the fact that swap drawings by the Federal Reserve, while initially conserving the reserves of the United States, may, if not reversible by market forces, necessitate a use of such reserves in connection with the repayment of such drawings, it is - 3 - appropriate that there should continue to be consultation between the Treasury and the Federal Reserve on the use of swaps. This purpose can no doubt be accomplished through a continuation, and if necessary intensification, of the consultative procedures already developed by representatives of our two agencies concerning use of the swaps. 7/7 GERALD ? FORD CHAIRMAN OF THE BOARD OF GOVERNORS FEDERAL RESERVE SYSTEM WASHINGTON, D.C. 20551 FEDERAL B July 16, 1974 CONFIDENT \L (FR) The Honorable William E. Simon Secretary of the Treasury Department the Treasury Washington, ). C. Dear Bill: In view of the possibility that you may be engaging in talks about the provision of financial assistance to Italy, I am writing on behalf of the Federal Open Market Committee to clarify the status of the $3 billion reciprocal currency arrange- ment (swap line) between the Federal Reserve System and the Bank of Italy. The swap facility can be drawn on subject to the conditions and limitations arising from its nature and purpose. It has always been understood by both central bank parties to the swap arrange- ment that swap drawings are available only to meet short-term needs. Drawings are normally made for a period of three months, and while they may sometimes be renewed, it is in no case envisaged that they will remain outstanding for longer than one year. Therefore the swap line cannot be used to make any contribution to medium-term or long-term financing needs. In present circumstances, recognizing that (a) the Italian authorities now appear to be taking substantial actions toward bringing about needed adjustments in the domestic Italian ecc nomy and in the Italian balan e of payments, and that GERALD FORD LIBRARY The Honorable William E. Simon July 16, 1974 Page 2 (b) some time may be needed to arrange an appropriate package of external financial assistance for Italy, the Federal iserve System would be prepared to allow the Bank of Italy to me .0 some use of Its swap line for interim, short-term financing purposes. We b ve had no specific discussions with the Bank of Italy about this. ut, for your information, the Federal Open Market Committee which decides these matters has been thinking along the following lines. It would be appropriate for the Bank of Italy -- in anticipation of obtaining longer-term financing -- to draw, say, $250 million initially, and to draw up to an additional $250 million subject to conditions to be specified. such as that Italy obtain commensurate amounts on comparable terms from other sources, including other central banks and particularly the U.S. Exchange Stabilization Fund. It would be expected that these drawings Would be repaid within three months, subject to periodic extensions, if necessary, up to one year. For any drawings by the Bank of Italy on the System beyond $500 million, the Committee would expect, in addition to commen- surate Italian drawings on other sources, that firm take-out provisions would be negotiated (c. S., by the pledge of proceeds from prospective IMF drawings or of gold collateral), so that the repayment of such swap drawings within one year would be assured. I am sure you will agree that would be helpful if you were to note, should the subject of the Sys 's swap arrangements arise in your talks, that decisions CC orning these arrangements are in the province of the Federal Open Market Committee. Sincerely yours, Arthur F. Burns GERALD P. FORD normit X mailitW olderonoH ofT Arei ,01 y/st S 9889 as agnetts of boboon od yum arried omos (d) Internall Inntaixo to ,Vist Tol constators street office wells of od bloow maley? ovrost Istobe'l crit miot-Iroda tol unil qawa all to 0.00 orriod 0, im of visit to essaying yisH to last odd ditw oiltooga on bad BY d oW nogO IsrobeT add way tol du and toods guots gubicidi nood and stotism papil) sobtoob doinw to feed odd Tol 9d bloow a nutwolfol odd 1888 195TD of -- gainishio to ni noillim 2520 qu worth of has noillim 0252 visit ** date belllages od of anottchmon nortie most general no adnivors 2 .U edit virolucitang bas axand [sximoo TONDO gaibulent of $ don't 11 penollog of toojdue DATE aidthe bisqor od .7007 опо of qu Proyed not no visit To offi of agaiworb yes TOT of notaible nt Jooque bloow collinmoD oris 0022 mail tedi voite no equivarb netted status absepora to scholq odt vd .0) ad blrow anotatvorq only and 00 bion to TO agaiwarb TiAl eyHooquorq most besuess ad bloow 1091 odo abiliw agaiwarb qowe done 10 themysqor STOW BOY 11 inlated od bluer tadi ootes Hiw NOV STUB MIS I adnomogostru qswa 178 odd 10 include oris blooda odom of pendt nature 33 enolaibeb TWOY at sults doctreM nagO Invobe'i odd lo servivorq off of QTS ,STOOY annual .7 TOTAL A I that gn kim, Bis Sin his 4 vlay folling - not y my babes l but any Insting that citims Enery In 27 juget it med h BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Office Correspondence Date December 14, 1976 To Chairman Burns and Governor Wallich Subject: Maturity Limitation on Foreign From Gary M. Welsh 6WO Currency Swap Arrangements. You have requested the Legal Division's opinion on whether there are any legal limitations on the maturity of swap arrangements entered into by the Reserve Banks pursuant to the direction of the FOMC. A search of Legal Records has revealed a memorandum dated May 28, 1962 from Howard Hackley, General Counsel to the FOMC that deals with this specific question (a copy of this memorandum is attached). In his memorandum (Item 3) Mr. Hackley concluded that-- "There is no statutory restriction upon the length of maturity of accounts that may be maintained by a Reserve Bank with a foreign bank; and if it can be established that such a medium term swap arrangement is necessary or desirable in order to effectuate open market transactions in foreign currencies, I would feel that it would be subject to no greater legal objection than a short term 90-day swap such as that already made with the Bank of France. However, the length of the commitment might make it more difficult as a matter of degree to establish DERALD FORD LIBRARY that the arrangement is related to the effective conduct of such open market transaction. It is of course, possible that arrangements of this kind might be subject to question on policy grounds." The Legal Divison has reviewed relevant statutory provisions supporting swap arrangements (see Mr. Hackley's memorandum to the FOMC of November 22, 1961) and sees no reason to disagree with Mr. Hackley's conclusions as expressed above. The Division would note, however, that there are specific statutory maturity limitations on bills of exchange and acceptances that can be purchased by Reserve Banks through accounts maintained with foreign banks (§ 14 (e) of the Federal Reserve Act) In addition, of course, Section 12A of the Federal Reserve Act prescribes that the "time, character and volume of all purchases and sales of paper described in Section 14 of this Act as eligible for open market operations shall be governed with a view to accommodating commerce and business and with regard to their bearing upon the general credit situation of the country." [Emphasis added] These limitations do not appear to apply to cable transfers (§ 14 (a) of the Federal Reserve Act) which are the medium through which the Reserve Banks may acquire or dispose of holdings of foreign currency in the form of balances with foreign banks. Tatum this only to Division as scon May 28, 1962. is uniled on the as Limits 01 mailing. CONFIDENTIAL (FR) Federal Open Market Committee Subject: Legal aspects of proposed Howard H. Hackley, General Counsel arrangements with foreign banks HAVE Mr. Coombs' memoranda of May 16, May 21, May 22, and May 23, 1962, discuss possible arrangements with the Bank of England, the Nederlandsche Bank, the Swiss National Bank, and the National Bank of Belgium, respectively. Certain possible legal questions are alluded to in these memoranda. (1) With respect to a possible swap arrangement with the Bank of England, discussed in Mr. Coombs' memorandum of May 15, I see no legal question. I assume that the arrangement would be generally similar to the 90-day swap with the Bank of France. (2) Mr. Coombs' memorandum of May 21 refers to the possibility that Federal Reserve holdings of guilders with the Nederlandsche Bank might be placed in a guilder time deposit with the BIS. If this should be desired, it would of course be necessary for the Board of Governors, pursuant to section 214.5(a) of Regulation N, to designate the BIS as a foreign bank with which an account payable in foreign currency may be maintained. Question might be raised as to whether any negotiation or agreement between the New York Reserve Bank and the BIS with respect to such account would fall within section 214.5(b) of Regulation N so as to be subject to authorizations, directions, and regulations of the Federal Open Market Committee (instead of the Board of Governors), since it might appear that the time account with the BIS would not be utilized for open market operations in foreign currency. In my opinion, however, where an account is opened with a foreign bank, in this case the Nederlandsche Bank, for the purpose of facilitating foreign exchange operations, and where a part of that account not needed for current operations is invested in a time account with another foreign bank, such investment may be regarded as related to the effective conduct of such open market transactions. Accordingly, I would see no legal ob- jection to the proposed time deposit with the BIS. (3) Mr. Coombs' memorandum of May 22 raises a question whether a "medium term credit arrangement" with the Swiss National Bank would be legally warrented. I assume that such an arrengement would contemplate reciprocal deposits between the New York Reserve Bank and the Swiss National Bank under a commitment running for five years or longer. There is no statutory restriction upon the length or maturity FORD GERALD LIBRARY Federal Open Market Committee -2- of accounts that may be maintained by a Reserve Bank with a foreign bank; and if it can be established that such a medium-term swap arrangement is necessary or desirable in order to effectuate open market transactions in foreign currencies, I would feel that it would be sub- ject to no greater legal objection than a short-term, 90-day swap such as that already made with the Bank of France. However, the length of the commitment might make it more difficult, as a matter of degree, to establish that the arrangement is related to the effective conduct of such open market transactions. It is of course possible that an arrangement of this kind might be subject to question on policy grounds. (4) In Mr. Coombs' memorandum of May 23, regarding discussions with the National Bank of Belgium, mention is made of a suggestion that funds with that bank might be invested in notes of a Belgian company engaged in providing credits to commerce and industry. It may be questionable whether such investment would be clearly authorized; but I understand that this question is now academic. As to the sug- gestion that Federal Reserve holdings of Belgian francs be placed in a time deposit with the BIS, the considerations mentioned above with respect to the Nederlandsche Bank arrengement would be equally applicable. GERALD FORD LIBRARY

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    "title": "Swap Arrangements - General, 1970-75 (4)",
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    "id": "324801952",
    "sourceUrl": "https://catalog.archives.gov/id/324801952",
    "contentType": "document",
    "title": "Swap Arrangements - General, 1970-75 (4)",
    "citationUrl": "https://catalog.archives.gov/id/324801952",
    "collections": [
        "Arthur F. Burns Papers",
        "Federal Reserve Board Subject Files"
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    "subjects": [
        "Foreign exchange"
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    "coverageEndDate": {
        "logicalDate": "1976-12-31",
        "month": 12,
        "year": 1976
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        "logicalDate": "1970-12-01",
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Page context 
{
    "seq": 1,
    "pageIndex": 0,
    "type": "document",
    "url": "https://s3.us-east-1.amazonaws.com/NARAprodstorage/lz/presidential-libraries/ford/grf-0001/565628/324801952.pdf",
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    "ocrText": "The original documents are located in Box B98, folder \"Swap Arrangements - General,\n1970-75 (4)\" of the Arthur F. Burns Papers at the Gerald R. Ford Presidential Library.\nCopyright Notice\nThe copyright law of the United States (Title 17, United States Code) governs the making of\nphotocopies or other reproductions of copyrighted material. Gerald R. Ford donated to the United\nStates of America his copyrights in all of his unpublished writings in National Archives collections.\nWorks prepared by U.S. Government employees as part of their official duties are in the public\ndomain. The copyrights to materials written by other individuals or organizations are presumed to\nremain with them. If you think any of the information displayed in the PDF is subject to a valid\ncopyright claim, please contact the Gerald R. Ford Presidential Library.\nSTRICTLY CONFIDENTIAL (FR)\nSWAP ARRANGEMENTS BETWEEN THE SYSTEM\nAND FOREIGN CENTRAL BANKS\nMay 9, 1973\nListed below as of May 9, 1973, are the swap arrangements\nconcluded on behalf of the Federal Reserve System with foreign banks.\nAmount of\nAgreement\nMaturity of\n(millions of\nlatest authorized\nForeign Bank\ndollars)\nrenewal\nAustrian National Bank\n200\nDecember 3, 1973\nNational Bank of Belgium\n600\nDecember 21, 1973\nBank of Canada\n1,000\nDecember 28, 1973\nNational Bank of Denmark\n200\nDecember 3, 1973\nBank of England\n2,000\nDecember 3, 1973\nBank of France\n1,000\nDecember 28, 1973\nGerman Federal Bank\n1,000\nDecember 14, 1973\nBank of Italy\n1,250\nDecember 31, 1973\nBank of Japan\n1,000\nDecember 3, 1973\nBank of Mexico\n130\nDecember 3, 1973\nNetherlands Bank\n300\nDecember 28, 1973\nBank of Norway\n200\nDecember 3, 1973\nBank of Sweden\n250\nDecember 3, 1973\nSwiss National Bank\n1,000\nDecember 3, 1973\nB.I.S.\n1,000( 600)\nDecember 3, 1973\n(1,000)1/\nDecember 3, 1973\nTotal\n11,730\n1/ This reciprocal arrangement provides for swaps of dollars against\nauthorized European currencies other than Swiss francs.\nFORD is 074839 LIBRARY\nSTRICTLY CONFIDENTIAL (FR)\n-2-\nAs of May 9, 1973, drawings on the above arrangements are\noutstanding in the amounts indicated below:\nDrawings Outstanding on Swaps\nDate since\nfacility has\nInitiated\nInitiated\nbeen in con-\nArrangements with\nby System\nby foreign bank\ntinuous use\n(millions\nof dollars\nequivalent)\nNational Bank of Belgium\n390\n--\nJune 30, 1970\nSwiss National Bank\n565\n--\nMay 19, 1971\nB.I.S. (Swiss francs)\n600\n--\nAugust 12, 1971\nTotal\n1,555\nFORD & GERALD LIBRARY\nSTRICTLY CONFIDENTIAL (FR)\nSWAP ARRANGEMENTS BETWEEN THE SYSTEM\nGERALD R. FORD LIBRANA\nAND FOREIGN CENTRAL BANKS\nJune 13, 1973\nListed below as of June 13, 1973, are the swap arrangements\nconcluded on behalf of the Federal Reserve System with foreign banks.\nAmount of\nAgreement\nMaturity of\n(millions of\nlatest authorized\nForeign Bank\ndollars)\nrenewal\nAustrian National Bank\n200\nDecember 3, 1973\nNational Bank of Belgium\n600\nDecember 21, 1973\nBank of Canada\n1,000\nDecember 28, 1973\nNational Bank of Denmark\n200\nDecember 3, 1973\nBank of England\n2,000\nDecember 3, 1973\nBank of France\n1,000\nDecember 28, 1973\nGerman Federal Bank\n1,000\nDecember 14, 1973\nBank of Italy\n1,250\nDecember 31, 1973\nBank of Japan\n1,000\nDecember 3, 1973\nBank of Mexico\n130\nDecember 3, 1973\nNetherlands Bank\n300\nDecember 28, 1973\nBank of Norway\n200\nDecember 3, 1973\nBank of Sweden\n250\nDecember 3, 1973\nSwiss National Bank\n1,000\nDecember 3, 1973\nB.I.S.\n1,000( 600)\nDecember 3, 1973\n(1,000)1/\nDecember 3, 1973\nTotal\n11,730\n1/ This reciprocal arrangement provides for swaps of dollars against\nauthorized European currencies other than Swiss francs.\nSTRICTLY CONFIDENTIAL (FR)\n-2-\nAs of June 13, i973, drawings on the above arrangements are\noutstanding in the amounts indicated below:\nDrawings Outstanding on Swaps\nDate since\nfacility has\nInitiated\nInitiated\nbeen in con-\nArrangements with\nby System\nby foreign bank\ntinuous use\n(millions\nof dollars\nequivalent)\nNational Bank of Belgium\n390\n--\nJune 30, 1970\nSwiss National Bank\n565\n--\nMay 19, 1971\nB.I.S. (Swiss francs)\n600\n--\nAugust 12, 1971\nTotal\n1,555\nFORD & LIBRARY 038470\n6/14\nS. Call John Reynolds- - that he can inform\nTreasury.\n(Retain the memo for\nDr. B's files)\nFORD i LIBRARY 078870\nBOARD OF GOVERNORS\nOF THE\nFEDERAL RESERVE SYSTEM\nto\nOffice Correspondence\nDate June 14, 1973\nTo\nChairman Burns\nSubject: Status of Negotiation on\nFrom John E. Reynolds Jak\nIncreasing Swap Lines\nSTRICTLY CONFIDENTIAL - F.R.\nMr. Bodner telephoned from New York this morning to\nreport on the status of the negotiations for increasing Federal\nReserve swap lines.\nCanada. Bodner had discussions yesterday in Ottawa with\nBank of Canada officials, and found them generally receptive to the\nidea of an increase in the swap line to $2 billion. They will give\na more definite answer at Basle this weekend.\nJapan. The Japanese are favorably disposed to an increase\nin the line to $2 billion, providing that similar increases are\nnegotiated with France and Germany.\nGermany. An increase in the swap line to $2 billion seems\nto be agreeable to them.\nOther Europeans. Mr. Coombs expects to bring negotiations\nwith them to something near a conclusion this weekend at Basle.\nGeneral. The aim has been to get agreements in principle,\nwithout final detailed agreement so that the matter will not have to\nreported to the EEC Commission where leaks might occur. The whole\npackage could then be finalized and announced at a time judged\npropitious from the point of view of market psychology.\nGERALD Adbyait ? FORD\n- 2 -\nBodner and some Europeans note that it would be desirable\nto have the revaluation clause agreed, at least with those countries\non whom we might be likely to draw, at the same time, so that the\nannounced increase in swap lines will not be purely cosmetic.\nQuery: Do you wish Coombs, or Bodner, or me to inform\nthe Treasury of any of the above? Or are you keeping them informed?\nII\nyou\nok\nR.\nGEORGIA R. FORD LIBRARY\nProposed Changes in Federal Reserve Swap Network\nForeign Bank\nIncrease\nTotal\nAustrian National Bank\n50\n250\nNational Bank of Belgium\n400\n1959\n1,000\nBank of Canada\nCity\n1,000\n2,000\nNational Bank of Denmark\n50\n250\nBank of England\n--\n2,000\nBank of France\n1,000\n2,000\nGerman Federal Bank\n1,000\n2,000\nBank of Italy\n750\n2,000\nBank of Japan\n1,000\n2,000\nBank of Mexico\n50\n180\nNetherlands Bank\n200\n500\nBank of Norway\n50\n250\nBank of Sweden\n50\n300\nSwiss National Bank\n400\n1,400\nBank for International Settlements\nSwiss francs/dollars\n--\n600\nOther European currencies/dollars\n250\n1,250\nTOTALS\n6,250\n17,980\nFORD is LIBRARY GERALD\nFEDERAL RESERVE\nOF SYSTEM OF THE THEREAL\npress release\nFor immediate release\nJuly 11, 1973\nThe Federal Reserve System said today 13 foreign central banks and\nthe Bank for International Settlements were involved in the $6.25 billion\nswap network increase announced yesterday.\nThe largest increases, of $1 billion each, involved the Bank of\nCanada, Bank of France, German Federal Bank and the Bank of Japan.\nA swap arrangement is a short-term facility under which the\nFederal Reserve and another central bank mutually agree to exchange\ndollars for the currency of the other country up to a maximum amount over\na limited period of time.\nThe increases and the new totals of the swap lines are as follows\n(in millions of dollars):\nForeign Bank\nIncrease\nTotal\nAustrian National Bank\n50\n250\nNational Bank of Belgium\n400\n1,000\nBank of Canada\n1,000\n2,000\nNational Bank of Denmark\n50\n250\nBank of England\n--\n2,000\nBank of France\n1,000\n2,000\nGerman Federal Bank\n1,000\n2,000\nBank of Italy\n750\n2,000\nBank of Japan\n1,000\n2,000\nBank of Mexico\n50\n180\nNetherlands Bank\n200\n500\nBank of Norway\n50\n250\nBank of Sweden\n50\n300\nSwiss National Bank\n400\n1,400\nBank for International Settlements\nFORD i LIBRARY 973870\nSwiss francs/dollars\n--\n600\nOther European currencies/dollars\n250\n1,250\nTOTALS\n6,250\n17,980\n(Note: The foregoing announcement is also being released by\nthe Federal Reserve Bank of New York)\n- 0 -\nSTRICTLY CONFIDENTIAL (FR)\nGERALD R. FORD LIBRANA\nSWAP ARRANGEMENTS BETWEEN THE SYSTEM\nAND FOREIGN CENTRAL BANKS\nJuly 11, 1973\nListed below as of July 11, 1973, are the swap arrangements\nconcluded on behalf of the Federal Reserve System with foreign banks.\nAmount of\nAgreement\nMaturity of\n(millions of\nlatest authorized\nForeign Bank\ndollars)\nrenewal\nAustrian National Bank\n250\nDecember 3, 1973\nNational Bank of Belgium\n1,000\nDecember 21, 1973\nBank of Canada\n2,000\nDecember 28, 1973\nNational Bank of Denmark\n250\nDecember 3, 1973\nBank of England\n2,000\nDecember 3, 1973\nBank of France\n2,000\nDecember 28, 1973\nGerman Federal Bank\n2,000\nDecember 14, 1973\nBank of Italy\n2,000\nDecember 31, 1973\nBank of Japan\n2,000\nDecember 3, 1973\nBank of Mexico\n180\nDecember 3, 1973\nNetherlands Bank\n500\nDecember 28, 1973\nBank of Norway\n250\nDecember 3, 1973\nBank of Sweden\n300\nDecember 3, 1973\nSwiss National Bank\n1,400\nDecember 3, 1973\nB.I.S.\n1,250( 600)\nDecember 3, 1973\n(1,250)1/\nDecember 3, 1973\nTotal\n17,980\n1/ This reciprocal arrangement provides for swaps of dollars against\nauthorized European currencies other than Swiss francs.\nSTRICTLY CONFIDENTI. (FR)\n-2-\nAs of July 11, 1973, drawings on the above arrangements are\noutstanding in the amounts indicated below:\nDrawings Outstanding on Swaps\nDate since\nfacility has\nInitiated\nInitiated\nbeen in con-\nArrangements with\nby System\nby foreign bank\ntinuous use\n(millions\nof dollars\nequivalent)\nNational Bank of Belgium\n390\n--\nJune 30, 1970\nSwiss National Bank\n565\n--\nMay 19, 1971\nB.I.S. (Swiss francs)\n600\n--\nAugust 12, 1971\nTotal\n1,555\nFORD is LIBRARY 938870\nSTRICTLY CONFIDENTIAL (FR)\nGERALD R. FORD LIBRABY\nSWAP ARRANGEMENTS BETWEEN THE SYSTEM\nAND FOREIGN CENTRAL BANKS\nSeptember 12; 1973\nListed below as of September. 12, 1973, are the swap arrangements\nconcluded on behalf of the Federal Reserve System with foreign banks.\nAmount of\nAgreement\nMaturity of\n(millions of\nlatest authorized\nForeign Bank\ndollars)\nrenewal\nAustrian National Bank\n250\nDecember 3, 1973\nNational Bank of Belgium\n1,000\nDecember 21, 1973\nBank of Canada\n2,000\nDecember 28, 1973\nNational Bank of Denmark\n250\nDecember 3, 1973\nBank of England\n2,000\nDecember 3, 1973\nBank of France\n2,000\nDecember 28, 1973\nGerman Federal Bank\n2,000\nDecember 14, 1973\nBank of Italy\n2,000\nDecember 31, 1973\nBank of Japan\n2,000\nDecember 3, 1973\nBank of Mexico\n180\nDecember 3, 1973\nNetherlands Bank\n500\nDecember 28, 1973\nBank of Norway\n250\nDecember 3, 1973\nBank of Sweden\n300\nDecember 3, 1973\nSwiss National Bank\n1,400\nDecember 3, 1973\nB.I.S.\n1,850( 600)\nDecember 3, 1973\n(1,250)1/\nDecember 3, 1973\nTotal\n17,980\n1/ This reciprocal arrangement provides for swaps of dollars against\nauthorized European currencies other than Swiss francs.\nSTRICTLY CONFIDENTIAL (FR)\n-2-\nAs of September 12, 1973, drawings on the above arrangements\nare outstanding in the amounts indicated below:\nare outstanding\nDrawings Outstanding on Swaps\nDate since\nfacility has\nInitiated\nInitiated\nbeen in con-\nArrangements with\nby System\nby foreign bank\ntinuous use\n(millions\nof dollars\nequivalent)\nNational Bank of Belgium\n362\n:\nJune 30, 1970\nSwiss National Bank\n565\n--\nMay 19, 1971\nB.I.S. (Swiss francs)\n600\n:\nAugust 12, 1971\nGerman Federal Bank\n5\n:\nJuly 12, 1973\n1,532\nGERALD FORD VIBRARY\nSTRICTLY CONFIDENTIAL (FR)\nR.\nFORD\nSWAP ARRANGEMENTS BETWEEN THE SYSTEM\nAND FOREIGN CENTRAL BANKS\nJanuary 16, 1974\nTHE\nListed below as of January 16, 1974, are the swap arrangements\nconcluded on behalf of the Federal Reserve System with foreign banks.\nAmount of\nAgreement\nMaturity of\n(millions of\nlatest authorized\nForeign Bank\ndollars)\nrenewal\nAustrian National Bank\n250\nDecember 3, 1974\nNational Bank of Belgium\n1,000\nDecember 21, 1973\nBank of Canada\n2,000\nDecember 28, 1973\nNational Bank of Denmark\n250\nDecember 27, 1974\nBank of England\n2,000\nDecember 3, 1974\nBank of France\n2,000\nDecember 28, 1973\nGerman Federal Bank\n2,000\nDecember 14, 1973\nBank of Italy\n2,000\nDecember 31, 1973\nBank of Japan\n2,000\nDecember 3, 1974\nBank of Mexico\n180\nDecember 3, 1974\nNetherlands Bank\n500\nDecember 28, 1973\nBank of Norway\n250\nDecember 3, 1974\nBank of Sweden\n300\nDecember 3, 1974\nSwiss National Bank\n1,400\nDecember 3, 1974\nB.I.S.\n1,850 ( 600)\nDecember 3, 1974\n(1,250)1/\nDecember 3, 1974\nTotal\n17,980\n1/ This reciprocal arrangement provides for swaps of dollars against\nauthorized European currencies other than Swiss francs.\nSTRICTLY CONFIDENTIAL (FR)\n-2-\nAs of January 16, 1974, drawings on the above arrangements\nare outstanding in the amounts indicated below:\nDrawings Outstanding on Swaps\nData since\nfacility has\nInitiated\nInitiated\nbeen in con-\nArrangements with\nby System\nby foreign bank\ntinuous use\n(millions\nof dollars\nequivalent)\nNational Bank of Belgium\n262\n--\nJune 30, 1970\nSwiss National Bank\n532\n--\nMay 19, 1971\nB.I.S. (Swiss francs)\n600\n--\nAugust 12, 1971\nTotal\n1,394\nFORD s LIBRARY 07V838\nSTRICTLY CONFIDENTIAL (FR)\nR.\nFORD\nGERALD\nSWAP ARRANGEMENTS BETWEEN THE SYSTEM\nAND FOREIGN CENTRAL BANKS\nLIBRARY\nFebruary 13, 1974\nListed below as of February 13, 1974, are the swap arrangements\nconcluded on behalf of the Federal Reserve System with foreign banks.\nAmount of\nAgreement\nMaturity of\n(millions of\nlatest aurhotized\nForeign Bank\ndollars)\nrenewal\nAustrial National Bank\n250\nDecember 3, 1974\nNational Bank of Belgium\n1,000\nMarch 29, 1974\nBank of Canada\n2,000\nDecember 27, 1974\nNational Bank of Denmark\n250\nDecember 27, 1974\nBank of England\n2,000\nDecember 3, 1974\nBank of France\n2,000\nDecember 27, 1974\nGerman Federal Bank\n2,000\nDecember 27, 1974\nBank of Italy\n3,000\nDecember 31, 1974\nBank of Japan\n2,000\nDecember 3, 1974\nBank of Mexico\n180\nDecember 3, 1974\nNetherlands Bank\n500\nDecember 27, 1974\nBank of Norway\n250\nDecember 3, 1974\nBank of Sweden\n300\nDecember 3, 1974\nSwiss National Bank\n1,400\nDecember 3, 1974\nB.I.S.\n1,850 ( 600)\nDecember 3, 1974\n(1,250)1/\nDecember 3, 1974\nTotal\n18,980\n1/ This reciprocal arrangement provides for swaps of dollars against\nauthorized European currencies other than Swiss francs.\nSTRICTLY CONFIDENTIAL (FR)\n- 2 -\nAs of February 13, 1974, drawings on the above arrangements\nare outstanding in the amounts indicated below:\nDrawings Outstanding on Swaps\nDate since\nfacility has\nInitiated\nInitiated\nbeen in con-\nArrangements with\nby System\nby foreign bank\ntinuous use\n(millions\nof dollars\nequivalent)\nNational Bank of Belgium\n262\n:\nJune 30, 1970\nSwiss National Bank\n371\n:\nMay 19, 1971\nB.I.S. (Swiss francs)\n600\n:\nAugust 12, 1971\nTotal\n1,233\nFORD & LIBRARY GERALD\nSTRICTLY CONFIDENTIAL (FR)\nSWAP ARRANGEMENTS BETWEEN THE SYSTEM\nLIBRARY GERALD R. FOR\nAND FOREIGN CENTRAL BANKS\nMarch 13, 1974\nListed below as of March 13, 1974, are the swap arrangements\nconcluded on behalf of the Federal Reserve System with foreign banks.\nAmount of\nAgreement\nMaturity of\n(millions of\nlatest aurhotized\nForeign Bank\ndollars)\nrenewal\nAustrial National Bank\n250\nDecember 3, 1974\nNational Bank of Belgium\n1,000\nMarch 29, 1974\nBank of Canada\n2,000\nDecember 27, 1974\nNational Bank of Denmark\n250\nDecember 27, 1974\nBank of England\n2,000\nDecember 3, 1974\nBank of France\n2,000\nDecember 27, 1974\nGerman Federal Bank\n2,000\nDecember 27, 1974\nBank of Italy\n3,000\nDecember 31, 1974\nBank of Japan\n2,000\nDecember 3, 1974\nBank of Mexico\n180\nDecember 3, 1974\nNetherlands Bank\n500\nDecember 27, 1974\nBank of Norway\n250\nDecember 3, 1974\nBank of Sweden\n300\nDecember 3, 1974\nSwiss National Bank\n1,400\nDecember 3, 1974\nB.I.S.\n1,850 ( 600)\nDecember 3, 1974\n(1,250)1/\nDecember 3, 1974\nTotal\n18,980\n1/ This reciprocal arrangement provides for swaps of dollars against\nauthorized European currencies other than Swiss francs.\nSTRICTLY CONFIDENTIAL (FR)\n- 2 -\nAs of March 13, 1974, drawings on the above arrangements\nare outstanding in the amounts indicated below:\nDrawings Outstanding on Swaps\nDate since\nfacility has\nInitiated\nInitiated\nbeen in con-\nArrangements with\nby System\nby foreign bank tinuous\nuse\n(millions\nof dollars\nequivalent)\nNational Bank of Belgium\n262\n--\nJune 30, 1970\nSwiss National Bank\n371\n--\nMay 19, 1971\nB.I.S. (Swiss francs)\n600\n--\nAugust 12, 1971\nGerman Federal Bank\n120\n--\nFebruary 28, 1974\nTotal\n1,353\n1\nGERALD R. FORD\nSTRICTLY CONFIDENTIAL (FR)\nSWAP ARRANGEMENTS BETWEEN THE SYSTEM\nAND FOREIGN CENTRAL BANKS\nMay 15, 1974\nListed below as of May 15, 1974, are the swap arrangements\nconcluded on behalf of the Federal Reserve System with foreign banks.\nAmount of\nAgreement\nMaturity of\n(millions of\nlatest authorized\nForeign Bank\ndollars)\nrenewal\nAustrian National Bank\n250\nDecember 3, 1974\nNational Bank of Belgium\n1,000\nMarch 29, 1974\nBank of Canada\n2,000\nDecember 27, 1974\nNational Bank of Denmark\n250\nDecember 27, 1974\nBank of England\n3,000\nDecember 3, 1974\nBank of France\n2,000\nDecember 27, 1974\nGerman Federal Bank\n2,000\nDecember 27, 1974\nBank of Italy\n3,000\nDecember 31, 1974\nBank of Japan\n2,000\nDecember 3, 1974\nBank of Mexico\n180\nDecember 3, 1974\nNetherlands Bank\n500\nDecember 27, 1974\nBank of Norway\n250\nDecember 3, 1974\nBank of Sweden\n300\nDecember 3, 1974\nSwiss National Bank\n1,400\nDecember 3, 1974\nB.I.S.\n1,850 ( 600)\nDecember 3, 1974\n(1,250)1/\nDecember 3, 1974\nTotal\n19,980\n1/ This reciprocal arrangement provides for swaps of dollars against\nauthorized European currencies other than Swiss francs.\nFORD i\nSTRICTLY CONFIDENTIAL (FR)\n- 2 -\nAs of May 15, 1974, drawings on the above arrangements\nare outstanding in the amounts indicated below:\nDrawings Outstanding on Swaps\nDate since\nfacility has\nInitiated\nInitiated\nbeen in con-\nArrangements with\nby System\nby foreign bank\ntinuous\nuse\n(millions\nof dollars\nequivalent)\nNational Bank of Belgium\n262\n:\nJune 30, 1970\nSwiss National Bank\n371\n:\nMay 19, 1971\nB.I.S. (Swiss francs)\n600\n:\nAugust 12, 1971\nGerman Federal Bank\n365\n:\nFebruary 28, 1974\nTotal\n1,597\nFORD is LIBRARY GERALD\nTHE BOARD OF FEDERAL OF GOVERNORS: RESERVE SYSTEM\nFEDERAL RESERVE\npress release\nFor Immediate Release\nAugust 29, 1975\nThe Federal Reserve announced today that its reciprocal currency\n\"swap\" arrangement with the Bank of Mexico has been doubled, bringing the\ntotal of that arrangement to $360 million.\nThe increase enlarges the System's swap network with 14 central\nbanks and the Bank for International Settlements to $20.16 billion.\nA swap arrangement is a renewable, short-term facility under which\na central bank agrees to exchange on request its own currency for the currency\nof the other party up to a specified amount over a limited period of time.\nThe Federal Reserve swap network was initiated in 1962. In all\nreciprocal currency arrangements the Federal Reserve Bank of New York acts\non behalf of the Federal Reserve System under the direction of the Federal\nOpen Market Committee.\nThe Federal Reserve's reciprocal currency arrangements are now as\nfollows (in millions of dollars):\nAustrian National Bank\n$ 250\nNational Bank of Belgium\n1,000\nBank of Canada\n2,000\nNational Bank of Denmark\n250\nBank of England\n3,000\nBank of France\n2,000\nGERALD FORD LIBRARY\nGerman Federal Bank\n2,000\nBank of Italy\n3,000\nBank of Japan\n2,000\nBank of Mexico\n360\nNetherlands Bank\n500\nBank of Norway\n250\nBank of Sweden\n300\nSwiss National Bank\n1,400\nBank for International Settlements\nSwiss francs/dollars\n600\nOther Europeon currencies/dollars\n1,250\nTotal\n$20,160 million\n-0-\nBOARD OF GOVERNORS\nOF THE\nFEDERAL RESERVE SYSTEM\nOffice Correspondence\nDate September 13, 1976\nTo Chairman Burns\nSubject:\nFrom Charles J. Siegman CJS\nAttached as requested is a copy of a July 1968 letter by\nHenry Fowler to Chairman Martin on the swap arrangements, that deals\nwith the question of take-out and use of reserves by the United States.\n(Although the enclosed letter is labelled \"Draft\", as noted on top\nof the letter, this is the letter that was signed by Secretary Fowler\non July 23, 1968).\nI also am enclosing a copy of a July 1974 letter by you\nto Secretary Simon regarding the possibility of financial assistance\nincludes\nto Italy in which a specific reference (in the next to final paragraph\non page 2) to the need for firm take-out provisions by Italy.\nAttachments.\nFORD & BERALD LIBRARY\nSwappla\nBOARD OF GOVERNORS\nB\nOF THE\nFEDERAL RESERVE SYSTEM\nWASHINGTON, D.C. 20551\nTHE FEDERAL\nRESERVE\nJuly 15, 1968.\nCONFIDENTIAL (FR)\nTO:\nFederal Open Market Committee\nFROM: Mr. Holland\nAttached is a copy of a revised draft letter from the\nSecretary of the Treasury to Chairman Martin concerning Treasury\nbackstop facilities for Federal Reserve swap arrangements.\nThis letter is a revision of the earlier draft letter\ndated June 7, 1968, which was sent to members of the Committee\nunder date of June 25, 1968, and represents the product of a\nmeeting of Treasury and Federal Open Market Committee officials\non July 15, 1968. The matter is being placed on the agenda for\nconsideration at the Committee meeting on July 16, 1968.\npt e Head\nRobert c. Holland, Secretary,\nFederal Open Market Committee.\nAttachment\nGERALD FORD JERARY\nDRAFT: July 15, 1958\nSTRICTLY CONFIDENTIAL\n(Draft of proposed letter from Secretary Fowler to Chairman Martin)\nSigned & dated by\nDear Mr. Chairman:\nSecy Forder asses 7/23/63\nOn several occasions in recent months, representatives of FOMC\nmean\nthe Federal Open Market Committee have discussed with the\nolder\nTreasury the problem that arises when drawings under reciprocal\ncurrency arrangements reach maturity without a reversal of the 7/16/65 of\nmution\nfunds covered.\n(pase\nFederal Reserve drawings under its reciprocal credit\n14)\nfacilities are made to provide foreign central banks who are\nunwilling to hold new dollar acquisitions on an uncovered\nbasis with a temporary alternative to holding uncovered dollars\non one hand or, on the other, purchasing gold from the United\nStates or requiring the United States to purchase the surplus\ndollars through recourse to the International Monetary Fund.\nDrawings have generally been restricted to situations in which\nthere was a reasonable hope for a reversal of the flows of\nfunds so that the Federal Reserve would be able to acquire\nthe necessary foreign exchange to liquidate the commitment\nin timely fashion. It has always been clearly established\npolicy on both sides that Federal Reserve use of such credit\narrangements is appropriate for only limited periods of time;\ncurrent policy, as generally understood, calls for repayment\nwithin one year, if not earlier.\nFORD\nGERALD\n- 2 -\nThere have been occasions, however, when such reversals\ndid not materialize. On these occasions, arrangements have\nregularly been made by the System and the Treasury under which\nthe United States used its basic reserve resources of gold,\ndrawings on the International Monetary Fund, and the issuance\nof Treasury foreign currency-denominated securities to meet\nthe problem which arises when the cover granted by the swap\ndrawing is withdrawn\nNaturally the Federal Reserve wishes to maintain the\nessentially short-term character of its swap drawings and\nmust always be in a position to honor at maturity any com-\nmitments it has undertaken under its reciprocal currency\narrangements in cases where flows of funds to its swap\npartners do not reverse themselves within the appropriate\nperiod. Accordingly, the Treasury will stand ready, as in\nbasic reserve\nthe past, to use the/resources of the United States to the\nextent required and in the combination most suited to the\ninterests of the United States that can be negotiated to\nobtain and provide to the Federal Reserve the foreign\ncurrencies needed.\nQERALD R.FORD LIBRABA\nIn light of this understanding, and in view of the\nfact that swap drawings by the Federal Reserve, while initially\nconserving the reserves of the United States, may, if not\nreversible by market forces, necessitate a use of such reserves\nin connection with the repayment of such drawings, it is\n- 3 -\nappropriate that there should continue to be consultation\nbetween the Treasury and the Federal Reserve on the use of\nswaps. This purpose can no doubt be accomplished through\na continuation, and if necessary intensification, of the\nconsultative procedures already developed by representatives\nof our two agencies concerning use of the swaps.\n7/7 GERALD ? FORD\nCHAIRMAN OF THE BOARD OF GOVERNORS\nFEDERAL RESERVE SYSTEM\nWASHINGTON, D.C. 20551\nFEDERAL B\nJuly 16, 1974\nCONFIDENT \\L (FR)\nThe Honorable William E. Simon\nSecretary of the Treasury\nDepartment the Treasury\nWashington, ). C.\nDear Bill:\nIn view of the possibility that you may be engaging in\ntalks about the provision of financial assistance to Italy, I am\nwriting on behalf of the Federal Open Market Committee to\nclarify the status of the $3 billion reciprocal currency arrange-\nment (swap line) between the Federal Reserve System and the\nBank of Italy.\nThe swap facility can be drawn on subject to the conditions\nand limitations arising from its nature and purpose. It has always\nbeen understood by both central bank parties to the swap arrange-\nment that swap drawings are available only to meet short-term\nneeds. Drawings are normally made for a period of three months,\nand while they may sometimes be renewed, it is in no case\nenvisaged that they will remain outstanding for longer than one\nyear. Therefore the swap line cannot be used to make any\ncontribution to medium-term or long-term financing needs.\nIn present circumstances, recognizing that\n(a) the Italian authorities now appear to be taking\nsubstantial actions toward bringing about\nneeded adjustments in the domestic Italian\necc nomy and in the Italian balan e of payments,\nand that\nGERALD FORD LIBRARY\nThe Honorable William E. Simon\nJuly 16, 1974\nPage 2\n(b) some time may be needed to arrange an\nappropriate package of external financial\nassistance for Italy,\nthe Federal iserve System would be prepared to allow the Bank\nof Italy to me .0 some use of Its swap line for interim, short-term\nfinancing purposes.\nWe b ve had no specific discussions with the Bank of Italy\nabout this. ut, for your information, the Federal Open Market\nCommittee which decides these matters has been thinking along\nthe following lines. It would be appropriate for the Bank of Italy --\nin anticipation of obtaining longer-term financing -- to draw, say,\n$250 million initially, and to draw up to an additional $250 million\nsubject to conditions to be specified. such as that Italy obtain\ncommensurate amounts on comparable terms from other sources,\nincluding other central banks and particularly the U.S. Exchange\nStabilization Fund. It would be expected that these drawings Would\nbe repaid within three months, subject to periodic extensions, if\nnecessary, up to one year.\nFor any drawings by the Bank of Italy on the System beyond\n$500 million, the Committee would expect, in addition to commen-\nsurate Italian drawings on other sources, that firm take-out\nprovisions would be negotiated (c. S., by the pledge of proceeds\nfrom prospective IMF drawings or of gold collateral), so that the\nrepayment of such swap drawings within one year would be assured.\nI am sure you will agree that\nwould be helpful if you were\nto note, should the subject of the Sys\n's swap arrangements\narise in your talks, that decisions CC orning these arrangements\nare in the province of the Federal Open Market Committee.\nSincerely yours,\nArthur F. Burns\nGERALD P. FORD\nnormit X mailitW olderonoH ofT\nArei ,01 y/st\nS 9889\nas agnetts of boboon od yum arried omos (d)\nInternall Inntaixo to\n,Vist Tol constators\nstreet office wells of od bloow maley? ovrost Istobe'l crit\nmiot-Iroda tol unil qawa all to 0.00 orriod 0, im of visit to\nessaying\nyisH to last odd ditw oiltooga on bad BY d oW\nnogO IsrobeT add way tol du and toods\nguots gubicidi nood and stotism papil) sobtoob doinw\nto feed odd Tol 9d bloow a nutwolfol odd\n1888 195TD of -- gainishio to ni\nnoillim 2520 qu worth of has noillim 0252\nvisit ** date belllages od of anottchmon\nnortie most general no adnivors\n2 .U edit virolucitang bas axand [sximoo TONDO gaibulent\nof $ don't\n11 penollog of toojdue DATE aidthe bisqor od\n.7007 опо of qu\nProyed not no visit To offi of agaiworb yes TOT\nof notaible nt Jooque bloow collinmoD oris 0022\nmail tedi voite no equivarb netted status\nabsepora to scholq odt vd .0) ad blrow anotatvorq\nonly and 00 bion to TO agaiwarb TiAl eyHooquorq most\nbesuess ad bloow 1091 odo abiliw agaiwarb qowe done 10 themysqor\nSTOW BOY 11 inlated od bluer tadi ootes Hiw NOV STUB MIS I\nadnomogostru qswa 178 odd 10 include oris blooda odom of\npendt nature 33 enolaibeb TWOY at sults\ndoctreM nagO Invobe'i odd lo servivorq off of QTS\n,STOOY\nannual .7 TOTAL\nA I that gn kim, Bis Sin his\n4 vlay folling - not y my babes l\nbut any Insting that citims\nEnery In 27 juget it med h\nBOARD OF GOVERNORS\nOF THE\nFEDERAL RESERVE SYSTEM\nOffice Correspondence\nDate December 14, 1976\nTo Chairman Burns and Governor Wallich\nSubject: Maturity Limitation on Foreign\nFrom Gary M. Welsh\n6WO\nCurrency Swap Arrangements.\nYou have requested the Legal Division's opinion on whether\nthere are any legal limitations on the maturity of swap arrangements\nentered into by the Reserve Banks pursuant to the direction of the FOMC.\nA search of Legal Records has revealed a memorandum dated\nMay 28, 1962 from Howard Hackley, General Counsel to the FOMC that deals\nwith this specific question (a copy of this memorandum is attached).\nIn his memorandum (Item 3) Mr. Hackley concluded that--\n\"There is no statutory restriction upon the length\nof maturity of accounts that may be maintained by\na Reserve Bank with a foreign bank; and if it can\nbe established that such a medium term swap arrangement\nis necessary or desirable in order to effectuate\nopen market transactions in foreign currencies,\nI would feel that it would be subject to no greater\nlegal objection than a short term 90-day swap such\nas that already made with the Bank of France.\nHowever, the length of the commitment might make\nit more difficult as a matter of degree to establish\nDERALD FORD LIBRARY\nthat the arrangement is related to the effective\nconduct of such open market transaction. It is\nof course, possible that arrangements of this kind\nmight be subject to question on policy grounds.\"\nThe Legal Divison has reviewed relevant statutory provisions\nsupporting swap arrangements (see Mr. Hackley's memorandum to the FOMC\nof November 22, 1961) and sees no reason to disagree with Mr. Hackley's\nconclusions as expressed above. The Division would note, however, that\nthere are specific statutory maturity limitations on bills of exchange\nand acceptances that can be purchased by Reserve Banks through accounts\nmaintained with foreign banks (§ 14 (e) of the Federal Reserve Act)\nIn addition, of course, Section 12A of the Federal Reserve Act prescribes\nthat the \"time, character and volume of all purchases and sales of paper\ndescribed in Section 14 of this Act as eligible for open market operations\nshall be governed with a view to accommodating commerce and business\nand with regard to their bearing upon the general credit situation of\nthe country.\" [Emphasis added]\nThese limitations do not appear to apply to cable transfers (§ 14 (a)\nof the Federal Reserve Act) which are the medium through which the Reserve\nBanks may acquire or dispose of holdings of foreign currency in the\nform of balances with foreign banks.\nTatum\nthis\nonly\nto\nDivision\nas\nscon\nMay 28, 1962.\nis\nuniled\non\nthe\nas\nLimits\n01 mailing.\nCONFIDENTIAL (FR)\nFederal Open Market Committee\nSubject: Legal aspects of proposed\nHoward H. Hackley, General Counsel arrangements with foreign banks\nHAVE\nMr. Coombs' memoranda of May 16, May 21, May 22, and May 23,\n1962, discuss possible arrangements with the Bank of England, the\nNederlandsche Bank, the Swiss National Bank, and the National Bank of\nBelgium, respectively. Certain possible legal questions are alluded\nto in these memoranda.\n(1) With respect to a possible swap arrangement with the\nBank of England, discussed in Mr. Coombs' memorandum of May 15, I\nsee no legal question. I assume that the arrangement would be\ngenerally similar to the 90-day swap with the Bank of France.\n(2) Mr. Coombs' memorandum of May 21 refers to the possibility\nthat Federal Reserve holdings of guilders with the Nederlandsche Bank\nmight be placed in a guilder time deposit with the BIS. If this should\nbe desired, it would of course be necessary for the Board of Governors,\npursuant to section 214.5(a) of Regulation N, to designate the BIS as\na foreign bank with which an account payable in foreign currency may\nbe maintained. Question might be raised as to whether any negotiation\nor agreement between the New York Reserve Bank and the BIS with respect\nto such account would fall within section 214.5(b) of Regulation N\nso as to be subject to authorizations, directions, and regulations of\nthe Federal Open Market Committee (instead of the Board of Governors),\nsince it might appear that the time account with the BIS would not be\nutilized for open market operations in foreign currency. In my opinion,\nhowever, where an account is opened with a foreign bank, in this case\nthe Nederlandsche Bank, for the purpose of facilitating foreign exchange\noperations, and where a part of that account not needed for current\noperations is invested in a time account with another foreign bank,\nsuch investment may be regarded as related to the effective conduct of\nsuch open market transactions. Accordingly, I would see no legal ob-\njection to the proposed time deposit with the BIS.\n(3) Mr. Coombs' memorandum of May 22 raises a question\nwhether a \"medium term credit arrangement\" with the Swiss National\nBank would be legally warrented. I assume that such an arrengement\nwould contemplate reciprocal deposits between the New York Reserve Bank\nand the Swiss National Bank under a commitment running for five years\nor longer. There is no statutory restriction upon the length or maturity\nFORD\nGERALD\nLIBRARY\nFederal Open Market Committee\n-2-\nof accounts that may be maintained by a Reserve Bank with a foreign\nbank; and if it can be established that such a medium-term swap\narrangement is necessary or desirable in order to effectuate open market\ntransactions in foreign currencies, I would feel that it would be sub-\nject to no greater legal objection than a short-term, 90-day swap such\nas that already made with the Bank of France. However, the length of\nthe commitment might make it more difficult, as a matter of degree,\nto establish that the arrangement is related to the effective conduct\nof such open market transactions. It is of course possible that an\narrangement of this kind might be subject to question on policy grounds.\n(4) In Mr. Coombs' memorandum of May 23, regarding discussions\nwith the National Bank of Belgium, mention is made of a suggestion\nthat funds with that bank might be invested in notes of a Belgian\ncompany engaged in providing credits to commerce and industry. It may\nbe questionable whether such investment would be clearly authorized;\nbut I understand that this question is now academic. As to the sug-\ngestion that Federal Reserve holdings of Belgian francs be placed in\na time deposit with the BIS, the considerations mentioned above with\nrespect to the Nederlandsche Bank arrengement would be equally applicable.\nGERALD FORD LIBRARY"
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