314. Editorial Note
On July 20, the Organization for European Economic Cooperation (OEEC) announced that Spain had been admitted to full membership and had been granted a $100 million credit from the European Monetary Fund. On the same day, the International Monetary Fund (IMF), the U.S. Government, and a consortium of New York banks announced that they were providing $75, $130, and $70 million in loans and credits to the Spanish Government in support of the Spanish stabilization program.
The Spanish Government in return agreed to the program of economic reforms previously proposed, including: [Page 733]
- 1)
- Increase in taxes and limits on expenditures;
- 2)
- Increase in interest rates and tightening of credit ceilings;
- 3)
- Abolition of many quantitative restrictions on imports; and
- 4)
- Change in the exchange rate from 42 pesetas per dollar to 60.
Documentation on these developments is in Department of State, Central File 852.00. For text of the announcement issued by the Department of State on July 20, see American Foreign Policy: Current Documents, 1959, pages 564–566.