WASHINGTON, DC, USA (AP) — The United States balked yesterday at immediately backing a European to lead the International Monetary Fund (IMF), saying only that it wanted an open and prompt succession.

The resignation of Frenchman Dominique Strauss-Kahn has set off a scramble to find a new leader for the powerful organization, which directs billions of dollars to troubled nations to stabilize the global economy.

Europe staked its traditional claim to the post. But fast-growing nations like China and Brazil said it was time to break that monopoly and seek an IMF chief from a developing country.

The United States, which has the largest share of votes for a single country, declined to publicly weigh in.

“We haven’t taken a position on any candidate,” said Lael Brainard, US Treasury undersecretary for international affairs. “What is important at this juncture is that we move quickly to an open process.”

Brainard was responding to reports that the United States would back French Finance Minister Christine Lagarde, a favourite in many European capitals.

Separately, at a hearing yesterday, a judge agreed to free Strauss-Kahn from a New York City jail on the condition he post US$1 million in bail and remain under house arrest, watched by armed guards, at a Manhattan apartment. Strauss-Kahn was formally indicted at the hearing on charges that he sexually abused a hotel maid.

Strauss-Kahn has been widely praised for his leadership and efforts to resolve Europe’s debt crisis. He resigned Wednesday to devote “all his energy” to fighting the sexual assault charges.

John Lipsky, the IMF’s acting managing director, said the organisation’s 24-member executive board will begin the process of selecting a new leader.

“We want this to happen as expeditiously as possible,” Lipsky said in his first public remarks after assuming his new role.

Brainard’s comments and a similarly ambiguous statement issued by US Treasury Secretary Timothy Geithner leave open the possibility that the US could support a candidate from either group. Some analysts said the US Government will make its preference clearer behind the scenes while keeping a more impartial stance in public.

Hours after Strauss-Kahn’s resignation, everyone from the European Commission to the German chancellor to the French finance minister — herself a potential candidate — said the replacement should come from Europe. Not because of any tradition, they insisted, but because intimate knowledge of Europe’s debt crisis should be a critical element of any candidate’s portfolio.

“From a European point of view, it is essential that the appointment will be merit-based, where competence and economic and political experience play the key role,” said Olli Rehn, European Commissioner for Monetary and Economic Affairs. “And in this current juncture it is a merit if the person has quite solid knowledge of the European economy and decision-making.”

There is no indication yet when a decision will be made. But a meeting of the G-8 — a group of eight developed countries — takes place next week in the seaside resort of Deauville, France, and all the major decision-makers will be there.

Lagarde has in recent days been touted in many European capitals as a good choice. A sharp, articulate negotiator, she has a strong international reputation and impeccable English after living in the United States for many years.