Memorandum from Secretary of the Treasury Fred Vinson to President Harry S. Truman, with Attachments
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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 The claim was withdrawn.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\""
}