The following is an amended version of the paper presented by Miss Bristow at the seminar on International Road Haulage, held at the London Press Centre on Oct. 5, 1977. The seminar was organised by Lloyd’s of London Press Ltd., with the support of the Road Haulage Association Ltd., and the Freight Transport Association Ltd.

1. All the international transport conventions contain provisions fixing maximum liability in gold francs defined in terms of a certain weight and degree of fineness (millesimal fineness 900). Two different gold francs have been in use—the Poincaré1 franc (65½ milligrammes) for the air and maritime conventions which were in force before the war, and the Germinal2 franc (10/31 of a gramme) for the rail, road and inland navigation conventions. That for rail was negotiated in Berne before the war and the others in the United Nations Economic Commission for Europe after the war. The Convention on Rhine Navigation (1868) also fixed maximum penalties in terms of the Germinal gold franc.

2. The gold franc was used as the best guarantee that damages awarded by courts of different countries in national currencies would have a uniform value in all the Contracting States and more stability in terms of purchasing power at different points in time than any national currency. This objective is of considerable importance to carriers, insurers and users of transport services when loss or damage and death or injury may occur anywhere in the territories of the Contracting States. National currencies then, as now, had a tendency to depreciate and exchange rates were subject to manipulation by Governments. The gold franc provided uniformity and stability as long as the dollar was linked with gold before the 1939 war and as long as members of the International Monetary Fund (IMF) had an obligation to maintain the market value of currencies within narrow margins of a par value fixed in terms of gold after that war. But after 1971 most currencies, including the dollar, were allowed to float and par values in terms of gold no longer reflected changes in market rates of national currencies.

3. Some conventions contain provisions on the method of converting the gold franc into national currencies (carriage of goods by sea and inland navigation) while others (road) leave this to national law (including any rules dealing with conflict of laws). In the case of the railways, an additional regulation, issued in accordance with the provisions of the CIM and CIV conventions, required the railways to determine by regulation the value of the gold franc in national currencies.