Memorandum from Secretary of the Treasury Fred Vinson to President Harry S. Truman, with Attachments
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The U.S. side further stated that the War Department charges of 5 and
10 percent were specifically imposed by War Department regulations.
Upon this explanation, the French withdrew this claim.
11. Excise Taxes. There have been transferred to France, on cash
reimbursement and on credit terms, goods subject to U.S. excise tax on
domestic sales. These excise taxes are not payable on sales for export,
but it was administratively impossible to follow the procedure prescribed
by Treasury Department regulations for establishing the exemptions.
However, as the fact of export is undisputed, France has requested that
the excise tax be eliminated where it appears on the face of the invoice.
The claim appears just in principle and the U.S. and French figures are
in substantial agreement. The claim is approved for deduction of $0.13
million from Modus Vivendi account and $0.37 million from 3(c) account.
12. Petroleum Billing Procedure in North Africa. Petroleum
delivered to the French in North Africa up to the middle of 1943 was
billed on the basis of proceeds of sale. It was contemplated that
after June 30, 1943, billings would be based on landed cost, and this
was in fact done for products other than petroleum. However, petroleum
has been billed on a proceeds-of-sale basis until September 30, 1943.
The French contend that the three-month extension of this procedure
for petroleum alone is without present justification, and claim $1.2
million as the difference in cost to them under the two methods. The
claim is allowed at $1.2 million, to be deducted from Modus Vivendi
and charged to straight lend-lease.
13. Price of Petroleum in North Africa. The French claim that the
prices billed them for petroleum in North Africa from October 1, 1943,
were well above current world prices. Explanation of the prices
charged has been given to the French by the Army-Navy Petroleum Board,
showing that these were actual landed cost prices. The French have
accordingly withdrawn this claim.
14. French Petroleum Deliveries to the North African Pool.
93,000 tons of French-owned petroleum were contributed to the North
African pool through the British. The French claim derives from that
of a private French company against which France will agree to
indemnify the United States. The French felt that petroleum is a
product in such short supply in French territory as not to be a sub-
ject of reciprocal aid, and they therefore claim for the full value of
these petroleum deliveries. The U.S. side maintained that in view of
ARCHIVES NATIONAL AND of
RECORDS
:
SERVICE
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"ocrText": "- 4 -\nThe U.S. side further stated that the War Department charges of 5 and\n10 percent were specifically imposed by War Department regulations.\nUpon this explanation, the French withdrew this claim.\n11. Excise Taxes. There have been transferred to France, on cash\nreimbursement and on credit terms, goods subject to U.S. excise tax on\ndomestic sales. These excise taxes are not payable on sales for export,\nbut it was administratively impossible to follow the procedure prescribed\nby Treasury Department regulations for establishing the exemptions.\nHowever, as the fact of export is undisputed, France has requested that\nthe excise tax be eliminated where it appears on the face of the invoice.\nThe claim appears just in principle and the U.S. and French figures are\nin substantial agreement. The claim is approved for deduction of $0.13\nmillion from Modus Vivendi account and $0.37 million from 3(c) account.\n12. Petroleum Billing Procedure in North Africa. Petroleum\ndelivered to the French in North Africa up to the middle of 1943 was\nbilled on the basis of proceeds of sale. It was contemplated that\nafter June 30, 1943, billings would be based on landed cost, and this\nwas in fact done for products other than petroleum. However, petroleum\nhas been billed on a proceeds-of-sale basis until September 30, 1943.\nThe French contend that the three-month extension of this procedure\nfor petroleum alone is without present justification, and claim $1.2\nmillion as the difference in cost to them under the two methods. The\nclaim is allowed at $1.2 million, to be deducted from Modus Vivendi\nand charged to straight lend-lease.\n13. Price of Petroleum in North Africa. The French claim that the\nprices billed them for petroleum in North Africa from October 1, 1943,\nwere well above current world prices. Explanation of the prices\ncharged has been given to the French by the Army-Navy Petroleum Board,\nshowing that these were actual landed cost prices. The French have\naccordingly withdrawn this claim.\n14. French Petroleum Deliveries to the North African Pool.\n93,000 tons of French-owned petroleum were contributed to the North\nAfrican pool through the British. The French claim derives from that\nof a private French company against which France will agree to\nindemnify the United States. The French felt that petroleum is a\nproduct in such short supply in French territory as not to be a sub-\nject of reciprocal aid, and they therefore claim for the full value of\nthese petroleum deliveries. The U.S. side maintained that in view of\nARCHIVES NATIONAL AND of\nRECORDS\n:\nSERVICE"
}