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I have gotten most of this info from the 1964 ACBL Official Encyclopedia of Bridge, where this system is called the "Relay System."
The Monaco system was the original relay system, invented by Pierre Ghestem, of France, and used with Rene Bacherich in several world championship tournaments. The main purpose of the relays (and some transfers) is to make the stronger hand be declarer. Notice that the "relays" are not always the cheapest bids, they may skip a whole level.
1. Opening bids
1C: 13-23 HCP, 3+ clubs (or 4-4-3-2), no 5-card major or 4-card diamond suit. See responses and relays below. With 18-22 HCP, bid 1C and jump in other long suit next.
1D: 12-18 HCP, 4+ diamonds, no 5-card major (or balanced with opposite variable 1NT hand). 1H response is a relay, then 1NT shows the opposite variable 1NT hand or jump shows a maximum. Other responses are natural and not forcing above 2C.
1M (major): 10-17, 5+ card suit. Cheapest response is a relay (this and 2nd relay ask partner to classify his hand type). 2C response is natural and forcing. 2NT response shows 3-suiter with void in opener's suit. Responses at the two level are transfers. Other responses are natural and not forcing.
Variable 1NT: Balanced, 13-15 HCP not vulnerable, 18-20 HCP vulnerable. Bid 1D then 1NT with the opposite variable 1NT hand. 2C response is a relay (2NT answer shows 5 clubs), and 2NT is 2nd relay. Most suit responses are transfers.
2C: 24+ HCP, any distribution, forcing to game. Responses: 2D=negative, 2H=1 ace or 4 kings, 2S=2 aces or 3 kings, 2NT=3 aces or 2 kings, others=natural but negative. Relay by opener asks for clarification, and super relay (skipping a bid) is an asking bid. Jump rebid by opener is limited.
2X (suit): 18-22 HCP, 5+ card suit, less than 3 clubs (with 3 clubs or more open 1C). Response at the 3-level is a transfer. 3C rebid by opener, over relay, shows maximum.
Responses to 1C
1D: Either a negative (0-7 HCP, followed by pass or weak rebid) or natural (10-11 HCP, followed by jump in diamonds or NT) or a game-going relay (11+ HCP, followed by 2nd relay or jump to game). Opener can relay with 2D (18+ HCP) asking responder to describe his hand.
1H/1S/2C: Natural, forcing, desire to be declarer. 2D rebid by opener is a relay.
1NT or 2NT: Natural, limit bids.
2D/2H/2S: Weak transfers, 4 or 5 playing tricks.
3-suit: Good suit, 6 playing tricks.
Relays after 1C
A 1D response (to 1C opening) is either a negative (0-7 HCP, followed by pass or weak rebid) or natural (10-11 HCP, followed by jump in diamonds or NT) or a game-going relay (11+ HCP, followed by 2nd relay or jump to game). Opener rebids 1H with 4 hearts, 1S with 4 spades, 1H with 4-4 in the majors, 1NT or 2C with no 4-card major.
With a strong hand and needing more information, responder continues to relay with 2D, then 3D or 3H. Unless otherwise shown in this chart, 3D or 3H by responder forces partner to bid the contract of 3NT:
| 1C | 1D | weak or natural or strong relay | |||||
| 1H | 4 hearts or 4-4 in majors | ||||||
| 2D | 2nd relay, forcing to game | ||||||
| 2S | 4-4 in majors | ||||||
| 2NT | no 4-card spades | ||||||
| 3D | 3rd relay | ||||||
| 3S | 3 spades (3-4-x-x) | ||||||
| 3NT | less than 3 spades | ||||||
| 1S | 4 spades | ||||||
| 2D | 2nd relay, forcing to game | ||||||
| 2H | 3 hearts (4-3-x-x) | ||||||
| 2NT | less than 3 hearts | ||||||
| 1NT or 2C | no 4-card major (1NT shows less than 6 clubs) | ||||||
| 2D | 2nd relay, forcing to game | ||||||
| 2H | 3 hearts | ||||||
| 2S | 3 spades | ||||||
| 2NT | 3-3 in majors | ||||||
| 3C | 7 clubs, no 3-card major | ||||||
| 3D | 2-2-3-6 |
Opener's first rebid is a jump with 18-22 HCP.