SETTLEMENT OF LEND-LEASE, RECIPROCAL AID, AND INTERGOVERNMENTAL CLAIMS Agreement signed at Washington July 12, 1948 62 Stat. 2034; Treaties and Other International Acts Series 1770 AGREEMENT BETWEEN THE GOVERNMENT OF THE UNITED STATES AND THE GOVERNMENT OF THE UNITED KINGDOM REGARDING SETTLEMENT OF LEND-LEASE AND RECIPROCAL AID ACCOUNTS AND INTERGOVERNMENTAL CLAIMS The Government of the United States of America and the Government of the United Kingdom of Great Britain and Northern Ireland have reached agreement as set forth below regarding settlement of lend-lease and reciprocal aid accounts and certain financial claims of each Goverment against the other. This Agreement modifies and supplements the specific agreements between the two Governments signed on March 27, 1946,1 which implemented the Joint Statement of December 6, 1945 2 regarding settlement for lend-lease, reciprocal aid, surplus war property, and claims. 1. Offsetting Arrangement The two Governments agree that the net amount to be paid by the Government of the United Kingdom to the Government of the United States in final discharge of the obligations of each Government to the other under the Agreement on Lend-Lease and Reciprocal Aid Pipelines and Offsetting Arrangment (Agreement I of March 27, 1946) and under this Agreement is $90,446,911. This amount replaces the estimate of $118,000,000 used in paragraph 3(a) of the Joint Statement of December 6, 1945 and in Section E of Agreement I of March 27, 1946. It is derived from the following figures which are final and not subject to amendment. (a) Payments due to the Government of the United TOTAL (b) Payments due to the Government of the United TOTAL $234, 040, 131 $238, 135, 131 $ 93, 418, 220 1,250,000 53,020,000 $147, 688, 220 (c) Balance due to the Government of the United States $ 90, 446, 911 2. Terms of Payment In accordance with the provisions of the Joint Statement of December 6, 1945 and the Agreement on Lend-Lease and Reciprocal Aid Pipelines and Offsetting Arrangement (Agreement I) of March 27, 1946, the amount set forth in the first sentence of numbered paragraph 1 above will be paid on the same terms as those specified in the Financial Agreement of December 6, 1945 for the discharge of the credit provided therein. 3. Military Holdings The Agreement Relating to Military Holdings (Agreement IV) of March 27, 1946 set forth certain mutual obligations of the two Governments in respect to lend-lease and reciprocal aid articles held by the Armed Forces of the United Kingdom and the United States respectively. The provisions of that Agreement remain in effect except for the following specific modifications set forth in subparagraphs (a), (b) and (c) below, which have been agreed in consideration of the other provisions of this Agreement. (a) The Government of the United States relinquishes its right to the proceeds of any retransfers of lend-lease articles to third governments for military use (under paragraph 6 of Agreement IV) to which it has not yet given consent but may give consent after the date of this Agreement. The terms of settlement for such articles shall be at the full discretion of the Government of the United Kingdom. 1 (b) The Government of the United States relinquishes its rights, in respect to lend-lease articles which have been or are to be disposed of for civilian use outside the United Kingdom and British Colonial Dependencies (under paragraph 7 of Agreement IV), (i) to be offered the return of such articles, (ii) to grant or withhold approval of such disposal, except in respect to articles (other than those rendered, prior to disposal, unfit for military use) defined as arms, ammunition, and implements of war by Proclamation number 2776 issued by the President of the United States on March 26, 1948, 13 Federal Register 1623, March 27, 1948, and (iii) to any further proceeds of such disposal, except as has already been provided for by the Middle East Stores Disposal Agreement of January 7, 1948,3 to the extent that these rights have not already been exercised. (c) The Government of the United States relinquishes its right, in respect to lend-lease articles disposed of for scrap (paragraph 8 of Agreement IV), to any further payment for net proceeds of such disposals not already received and not provided for by the Middle East Stores Disposal Agreement of January 7, 1948. 4. Specific Claims Accepted for Offset During the course of the negotiations leading to this Agreement, representatives of the two Governments have discussed certain claims of each Government against the other, with the objective of arriving at as comprehensive a settlement as possible. The following claims were accepted by the Governments of the United States and the United Kingdom respectively for offset in this settlement and computed in the amounts indicated below in arriving at the net balance set forth in item (a)(ii) of numbered paragraph 1 above: (a) Claims by the Government of the United States accepted by the Government of the United Kingdom (i) Lend-lease interest in fixed assets in Iran disposed of $650,000 (ii) Rentals of equipment to the Anglo-Iranian Oil 47,000 (iii) Disposal of lend-lease uniform shorts in Kenya 285,000 130,000 (v) Freight charges, ineligible for lend-lease, on trans- 1,078, 000 TIAS 1698, ante, p. 843. (vi) Lend-lease rubber retransferred to Finland $ 261,000 (vii) Lend-lease rescue boats 300,000 (viii) Financial interest in lend-lease military holdings of the British forces in Germany 5, 000, 000 (ix) Financial interest in lend-lease military holdings of the British forces, global, except Germany and the Middle East (to the extent covered by the Agreement of January 7, 1948) (x) Supplies eligible for reciprocal aid (xi) Miscellaneous Middle East accounts (xii) Lend-lease airfield equipment TOTAL 2, 000, 000 124,000 384, 000 13,000 $10, 272, 000 (b) Claims by the Government of the United Kingdom accepted by the Government of the United States (i) Non-reciprocal aid area disbursements prior to (ii) Balance due on sales of trucks in the Middle East ships (v) Services to British ships eligible for lend-lease $ 109,000 733,000 2,578,000 400, 000 120,000 posed of by the United States 650,000 (vii) Overpayments on lend-lease diversions and cost of (x) Reciprocal aid interest in oil sold in Turkey, Octo During the course of negotiations leading to this Agreement, the following claims were considered by representatives of the two Governments and were not accepted for offset, but, in consideration of the other provisions of this Agreement, are to be regarded as taken into account and waived under numbered paragraph 7 hereof: (a) Claims presented by the Government of the United States (ii) Fuel oil and subsistence provided to Royal Navy (iii) Additional surcharge on lend-lease machine tools (vii) Rentals of equipment to Anglo-Iranian Oil Com- $ 600,000 23,000 293, 000 undetermined undetermined undetermined undetermined (b) Claims presented by the Government of the United Kingdom (i) Refund of ocean freight on insulation board (ii) Repairs to ships in Rio (iii) Freights on coal transported to French North Africa (iv) Oil drums furnished to the United States forces in Europe $ 199,000 183,000 962, 000 (v) Stores and services furnished in the Middle East SS TUNG SONG, and SS TEMARA (vii) Salvage services, cargo of SS BELLO undetermined 387,000 88,000 16,000 6. Claims Excluded The following types of claims between the two Governments are not covered by this Agreement and will be dealt with in accordance with procedures already established or to be established. (a) Claims of and against the United States Maritime Commission, including those in which the United States Maritime Commission is the ultimate beneficiary or is ultimately liable, except as otherwise specified in this Agreement. (b) Claims of and against the Reconstruction Finance Corporation and its subsidiaries. (c) Claims of and against the Commodity Credit Corporation, except lend-lease claims. (d) Claims arising out of the operation of the Cairo-Suez pipeline. (e) Claims arising out of the so-called Tripartite Agreement of May 6, 1942 between the Governments of the United States, the United Kingdom, 4 'Not printed. |