The Annual Report of the Executive Directors of the International Monetary Fund for the fiscal year ended April 30, 1955 was transmitted to the Chairman of the Board of Governors on July 1, 1955. The report noted that during the period under review the trend of the previous fiscal year toward the relaxation of restrictions imposed for balance of payments reasons on imports, on currency transfers, and on dealings in foreign exchange had continued, resulting in a considerable improvement in international financial relations. The European industrial countries, in particular, because of a continuance of favorable payments balances had been able to reduce their use of restrictions, and in a few cases practically eliminate them. It was pointed out in the report that even the European countries which had experienced minor setbacks in their balance of payments in 1954 and 1955 had not increased their import restrictions. The report stated that the point had probably been reached at which obstacles to any further removal of import restrictions in Europe were due as much to a wish for protecting individual industries as to payments difficulties. In countries outside Europe, the relaxation of import restrictions was an important factor in the expansion of imports in many primary producing countries in 1954. However, because of the weakening of their reserves, several primary producing countries, especially Australia and Thailand, had to increase their import restrictions in the latter part of 1954. In addition to the reduction in the use of such restrictions, the tendency toward giving more equal treatment to imports from different sources or paid for in different currencies was noted in the report as another encouraging factor in the international financial situation.