the purview of this agreement and will be settled in accordance with paragraph eight below. Review of this recapitulation presented by the French Government of the total of the claims for the period September 2, 1945 through December 25, 1945, and for the period December 26, 1945 through March 31, 1946, indicates that the amounts of $100,000,000 and $20,000,000 set forth in the aforementioned Report were underestimated. It has been agreed between the United States Government and the French Government that the provisions of the aforementioned Report and the aforementioned Memorandum of Agreement should be amended to take account of these considerations. 7. After considering all claims presented by the French Government against the United States Armed Forces and all claims presented by the United States Armed Forces against the French Government, and after examining the amounts originally estimated as payable by the United States Armed Forces to the French Government for procurements of goods, services and facilities by them or on their behalf, following the reciprocal aid period through December 31, 1946, and the amounts finally claimed on both sides, it is agreed between the United States Government and the French Government that the following provisions covering goods, services and facilities furnished the United States Armed Forces will supersede the arrangements and procedures established on May 28, 1946, in so far as they are inconsistent therewith: A. It is agreed tnat a payment of $87,000,000 will be made by the United States Army on behalf of the United States Armed Forces to the French Government for obligations during the period prior to September 2, 1945, when ineligible for reciprocal aid, and for the period September 2, 1945 through December 31, 1946. The French Government agrees that this payment by the United States Armed Forces, together with any and all other amounts already paid by such Forces to the French Government, is in full, complete and final settlement for obligations during the above-mentioned periods. In this respect it is recognized that the United States Army is discharging other United States Government agencies' obligations included in the claims presented by the French Government on January 31, 1948, it being understood, however, that claims against United States Government agencies, other than the United States Armed Forces not included in the abovementioned claims, are not covered by this agreement. B. The United States Government agrees to pay forthwith to the French Government the amounts stated in paragraph A above in payment of the aforementioned obligations. To the extent that the United States Department of the Army holds French francs in its official accounts, such French francs may be used in settlement of the aforementioned obligations at their dollar value at the time of their purchase. C. The French Government agrees to pay to the United States Armed Forces upon the execution of this settlement, the sum of $1,452,312.86, covering certain transfers to France by the United States Army after March 1, 1946 ($142,586.00), V-Mail paper provided to France ($500,000.00), the printing of certain Allied military currencies ($559,726.86) and an amount estimated to be sufficient to cover certain transfers to the French Government by the United States Navy ($250,000). The last amount is subject to adjustment upon determination of the applicable French Government liability not otherwise provided for. D. Except as otherwise expressly provided in the within agreement, the French Government hereby acquits, and forever waives any and all claims against the United States Armed Forces or the United States Government, i. Which have arisen or will arise against the United States Armed Forces as a result of or incident to its operations in France or French overseas territories, and procurement by the United States Armed Forces of supplies, services, utilities, facilities, goods and properties from or through the French Government, its nationals, or others in Continental France and in French overseas territories, prior to September 2, 1945, when ineligible for reciprocal aid, and during the period September 2, 1945 through December 31, 1946. The payment by the United States Armed Forces to the French Government of the final amount stated in paragraph A above will discharge the United States Armed Forces of any and all liabilities pertaining thereto which have arisen or will arise in any place. ii. Which have arisen or will arise out of completed, delivered, or cancelled portions of all contracts entered into prior to January 1, 1947 in connection with the procurement referred to in the foregoing paragraph by representatives of the United States Armed Forces with French Government agencies, nationals, or others owning property, rendering services or residing in France or French overseas territories. 8. The United States Armed Forces agree to continue to reimburse the French Government for the procurement of goods, services and facilities obtained through the French Government in France and in French overseas territories subsequent to December 31, 1946 on the basis of the French authorities' presentation of appropriate documents in a form acceptable to the United States Armed Forces as has been, or may be, agreed upon between the United States Armed Forces and the French authorities. 9. Except as otherwise specifically provided in the within agreement, the United States Government hereby acquits and forever waives any and all claims against the French Government for supplies, services, utilities, facilities, goods and properties provided to the French Government or its overseas territories by the United States Armed Forces wherever they may be from March 2, 1946 through December 31, 1946. The United States Government will discharge the French Government of any and all liabilities pertaining thereto which have arisen or will arise in any place for this period. 10. It is understood and agreed that claims arising out of acts or omissions in France or French overseas territories, of members of the United States Armed Forces or civilian personnel attached to such Forces, are not settled within the terms of this agreement and shall be regulated under such terms as already have been agreed upon between the United States Government and the French Government in the "United States-French War Settlement Committee Agreed Combined Statement with Respect to Claims" of May 28, 1946.5 Conversely, it is recognized that similar claims of the United States against France arising out of acts or omissions of French nationals in France or French overseas territories are not settled within the terms of this agreement. 11. Other agreements between the United States and France, except in so far as they are not consistent with the terms of the within agreement, shall remain in full force and effect. The Government of the United States of America will consider this agreement, in the terms outlined above, to be in effect on the date of your reply note indicating that the terms of the agreement are in accord with the understanding of your Government and that your Government approves of those terms. Accept, Excellency, the renewed assurances of my highest consideration. For the Secretary of State: I am pleased to confirm that the terms of your note of February 27, 1948, regarding expenditures of the United States Armed Forces in France and French Overseas Territories, are in accordance with the understanding of my Government and that my Government approves those terms and considers them to be in effect from and after this date./. Accept, Mr. Secretary, the renewed assurances of my highest consideration. For the Ambassador ARMAND BÉRARD [SEAL] The Hon. GEORGE C. MARSHALL Secretary of State DOUBLE TAXATION AND FISCAL ASSISTANCE Protocol signed at Washington May 17, 1948, modifying and supplementing convention of July 25, 1939, and modifying convention of October 18, 1946 Senate advice and consent to ratification June 2, 1948 Ratified by the President of the United States June 18, 1948 Ratified by France September 5, 1949 Ratifications exchanged at Washington October 17, 1949 Entered into force October 17, 1949 Proclaimed by the President of the United States October 27, 1949 Supplemented by convention of June 22, 19561 Provisions concerning taxes on income, capital and stock exchange transactions terminated by convention of July 28, 1967 2 64 Stat. (3) B 28; Treaties and Other International Acts Series 1982 PROTOCOL The Government of the United States of America and the Government of the French Republic, desiring to conclude a supplementary Protocol modifying in certain respects the Convention signed at Paris October 18, 1946,3 for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on estates and inheritances and for the purpose of modifying and supplementing certain provisions of the Convention between the two Governments relating to income taxation signed at Paris on July 25, 1939,* Have agreed as follows: ARTICLE I (1) Article 12 of the Convention of October 18, 1946, is amended by adding thereto the following paragraph: (5) The assistance provided for in this Article shall not be accorded with respect to citizens, corporations or other entities of the State to which application is made nor with respect to estates of such citizens. 1 8 UST 843; TIAS 3844. 19 UST 5280; TIAS 6518. 8 TIAS 1982, ante, p. 1178. 'TS 988, ante, p. 1046. |