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- 5 - the large volume of petroleum products furnished by the United States to France on a straight lend-lease basis, the United States should not be required to pay for the comparatively small amount of petroleum furnished to the pool by France, and that France's contributions to the pool must be treated in the same way as those of other members. The U.S. side therefore believed the French contribution should be con- sidered as applied first against French military withdrawals, which considerably exceeded the tonnage of petroleum put into the pool by France. The claim was withdrawn. 15. Price of Rubber. It is agreed that the price charged to the French should be the same as that paid by the United States, subject to adjustment for accrued charges, etc. The U.S. side states that necessary revisions will be made as a routine accounting matter. 16. Missing or Damaged Goods. France has abandoned this claim. 17. Cost of Procurement. France has waived its claim for reduc- tion of the 15% accessorial charge (to cover inland transportation, handling, etc.) on cash reimbursable and 3(c) goods. However, with respect to coal procured under "Q" requisitions, the U.S. procuring agency requests reimbursement for actual expenses instead of adding 15% to the purchase price. The French point out that the 15% charge is an average designed to cover the overall procuring expenses on a group of commodities. If therefore actual cost of services is to be the rule for coal, the same rule should apply for all other commodities procured under "Q" requisition. The U.S. side replies that 15% is clearly inadequate to cover accessorial charges in the case of coal and that coal constitutes $23 million of $62 million of "Q" requisitions. Application of the 15% rule could therefore result in a loss to the United States which no appropriations are available to cover. On the other hand a complete departure from such rule would create a precedent which would have to be extended to other countries and would greatly disturb the accounting procedure followed by the U.S. procuring agency. While it seems that technically the accessorial charge should be consistent throughout, the French side recognizes the problem facing the American administration Upon the request of the U.S. side, France has consented to withdraw this claim. "NATIONAL ARCHIVES AND RECORDS = SERVICE"

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    "ocrText": "- 5 -\nthe large volume of petroleum products furnished by the United States\nto France on a straight lend-lease basis, the United States should\nnot be required to pay for the comparatively small amount of petroleum\nfurnished to the pool by France, and that France's contributions to the\npool must be treated in the same way as those of other members. The\nU.S. side therefore believed the French contribution should be con-\nsidered as applied first against French military withdrawals, which\nconsiderably exceeded the tonnage of petroleum put into the pool by\nFrance. The claim was withdrawn.\n15. Price of Rubber. It is agreed that the price charged to the\nFrench should be the same as that paid by the United States, subject\nto adjustment for accrued charges, etc. The U.S. side states that\nnecessary revisions will be made as a routine accounting matter.\n16. Missing or Damaged Goods. France has abandoned this claim.\n17. Cost of Procurement. France has waived its claim for reduc-\ntion of the 15% accessorial charge (to cover inland transportation,\nhandling, etc.) on cash reimbursable and 3(c) goods.\nHowever, with respect to coal procured under \"Q\" requisitions,\nthe U.S. procuring agency requests reimbursement for actual expenses\ninstead of adding 15% to the purchase price. The French point out\nthat the 15% charge is an average designed to cover the overall\nprocuring expenses on a group of commodities. If therefore actual\ncost of services is to be the rule for coal, the same rule should\napply for all other commodities procured under \"Q\" requisition.\nThe U.S. side replies that 15% is clearly inadequate to cover\naccessorial charges in the case of coal and that coal constitutes $23\nmillion of $62 million of \"Q\" requisitions. Application of the 15%\nrule could therefore result in a loss to the United States which no\nappropriations are available to cover. On the other hand a complete\ndeparture from such rule would create a precedent which would have\nto be extended to other countries and would greatly disturb the\naccounting procedure followed by the U.S. procuring agency.\nWhile it seems that technically the accessorial charge should be\nconsistent throughout, the French side recognizes the problem facing\nthe American administration Upon the request of the U.S. side,\nFrance has consented to withdraw this claim.\n\"NATIONAL\nARCHIVES AND\nRECORDS\n=\nSERVICE\""
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