The
Government of the United States and the Government of the Union of
Soviet Socialist Republics, in order to provide for the orderly
disposition in their mutual interests of the undelivered articles
which were in inventory or procurement in the United States, prior
to the cessation of active military operations against the common
enemy, for the purpose of providing war aid to the Union of Soviet
Socialist Republics under the act of Congress of ~1arch 11,1941, as
amended, agree as follows:
Article l
All articles and services undertaken to be provided by the
Government of the United States under this agreement shall be made
available under the authority and subject to the terms and
conditions of the act of Congress of March 11, 1941, as amended, and
any acts supplementary thereto.
Article II
Within such periods as may be authorized by law, the Government of
the United States undertakes to transfer to the Government of the
Union of Soviet Socialist Republics, and the Government of the Union
of Soviet Socialist Republics agrees to accept subject to the right
of inspection referred to in article V, those articles which are or
will be available to the Government of the United States for
transfer to the Government of the Union of Soviet Socialist
Republics out of articles that are included in the requisitions set
forth in schedule I~A or in the categories of articles set forth in
schedule I-B and that were in inventory or procurement in the United
States for the purpose of providing war aid to the Union of Soviet
Socialist Republics, but were not transferred, prior to the date of
the signature of this agreement.
The Government of the Union Soviet of Republics undertakes to pay
the Government of the United States in dollars, for the articles
transferred to the Government of the Union of Soviet Socialist
Republics under this article, an amount to be determined as set
forth in schedule II, and interest thereon, according to the terms
and conditions set out in that schedule. The obligation of the
Government of the Union of Soviet Socialist Republics to make
payment in dollars in accordance with the terms of this agreement
may be discharged by the delivery of gold, which will be valued at
the buying price for gold provided in the provisional regulations
issued under the Gold Reserve Act of 1934 as the same may be in
effect at the time of each delivery.
Schedule I-A, Schedule I-B, and Schedule II, which are annexed
hereto, are made a part of this Agreement.
Article III
Changes may be made from time to time by mutual agreement of the
parties in the list of requisitions and categories in schedule I-A
and schedule I-B.
The Government of the Union of Soviet Socialist Republics shall be
released from its obligation to accept articles under the provisions
of article II upon payment to the Government of the United States of
any net losses to the Government of the United States, including
contract cancellation charges, resulting from the determination of
the Government of the Union of Soviet Socialist Republics not to
accept such articles.
The Government of the Union of Soviet Socialist Republics reserves
the right, without payment as provided in the foregoing paragraph,
not to accept articles which cannot be made available by the
Government of the United States in complete units as specified in
the approved requisitions or written requests of the Government of
the Union of Soviet Socialist Republics, or in the offerings mad e
by the United States Government, relating to such articles and units.
Article IV
Within such periods as may be authorized by law, the Government of
the United States undertakes to aid in the movement to the Union of
Soviet Socialist Republics of the articles provided under article II
by furnishing American flag shipping and related services so far as
it deems necessary to supplement Soviet flag shipping and so far as
it is consistent with the national interest of the United States,
and the G6vernment of the Union of Soviet Socialist Republics agrees
to pay the Government of the United States for such shipping and
related services as may be made available under the provisions of
this article in an amount and on terms and conditions set forth in
schedule II.
Article V
The Government of the United States will, in lieu of granting any
warranty express or implied with respect to articles transferred to
the Union of Soviet Socialist Republics, assign to the Government of
the Union of Soviet Socialist Republics any assignable rights which
it may have against the suppliers, inland carriers, or other private
contracting agencies for breach of warranty, or any assignable
claims for loss of or damage to articles prior to transfer to the
Government of the Union of Soviet Socialist Republics. The
Government of the Union of Soviet Socialist Republics shall have the
right of inspection of articles prior to delivery. The Government of
the United States undertakes to use its best efforts to provide
appropriate assistance to the Government of the Union of Soviet
Socialist Republics to effectuate a satisfactory settlement with the
suppliers, inland carriers, or other private contracting agencies of
any claims of the Government of the Union of Soviet Socialist
Republics covered by the aforesaid assignment.
The Government of the United States agrees that the provisions of
article V of the Mutual Aid Agreement of June 11,1942, shall not
apply to supplies made available to the Government of the Union of
Soviet Socialist Republics under the provisions of article JI of
this agreement.
Article VI
The provisions of this agreement shall not apply to those articles
which the Government of the Union of Soviet Socialist Republics has
agreed to purchase and the United States Government has agreed to
transfer under the terms and conditions of the letter dated May 30,
1945, from the Foreign Economic Administrator to the Chairman of the
Government Purchasing Commission of the Soviet Union in the United
States.
Nothing in this agreement shall modify or otherwise affect the final
determination, under the act of March 11, 1941, as amended, and the
Mutual Aid Agreement between the two Governments of June 11, 1942,
of the terms and conditions upon which the Government of the Union
of Soviet Socialist Republics has received aid except for the
articles and services made available under the provisions of this
agreement.
Article VII
This agreement shall take effect as from this day's date.
In witness whereof the undersigned, duly authorized by their
respective Governments, have signed the present agreement in
duplicate in Washington on the 15th day of October 1945.
For the Government of the United States:
(Signed) LEO T. CROWLEY.
For the Government of the Union of Soviet Socialist Republics:
(Signed) LEONID G. RUDENKO.
SCHEDULE I
(Schedule I-A and Schedule I-B contain voluminous detailed
information concerning the materials and equipment to be supplied
under the Agreement.)
SCHEDULE II
The terms and conditions upon which articles are to be transferred
and shipping and related services rendered by the Government of the
United States to the Government of the Union of Soviet Socialist
Republics under the provisions of this Agreement are as follows:
A. Definitions..-1. The term "contract price" means the contract
price f. o. b. point of origin, or the price computed by the United
States Government f. o. b. point of origin in cases in which
contracts are written on terms other than f.o.b. point of origin
(confirmed by proper documents), which is paid by the United States
Government to the contractor. The contract price shall be evidenced
by a specific contract in cases where specific contracts have been
entered into by a United States Government procurement agency in
pursuance of an approved requisition or other written request of the
Soviet Government Purchasing Commission or to fulfill 6fferings made
by the United States to the Union of Soviet Socialist Republics for
the war programs of the Union of Soviet Socialist Republics. In
cases where articles so requested or offered are not procured on
contracts placed by a U.S. Government procurement agency in part or
in whole specifically for the Union of Soviet Socialist Republics
but are procured by a United States Government procurement agency on
general war supply contracts without specification of the particular
ultimate recipient or recipients, the contract price shall be the
average contract price (as computed by the United States Government)
f.o.b. point of origin paid by the United States Government
procurement agency for similar articles.
2. The term "the fair value of the articles" means: (a) In the case
of nonfoodstuffs, in the aggregate, the contract price less 10
percent of such contract price; (6) In the case of foodstuffs, the
price (as computed by the United States Government) at which the
United States Government sells similar articles in similar
quantities in the United States to other foreign governments at or
about the time of transfer to the Union of Soviet Socialist
Republics.
3. The term "Inland point of origin" means the factory in the case
of articles in production or under contract for production at the
time of the signing of this agreement and in the case of articles
completed at the time of the sighing of this agreement the point at
which such articles are then situated or their immediate next
destination if the articles are in transit.
B. Unless otherwise provided by mutual agreement, transfers of
articles to the Government of the Union of Soviet Socialist
Republics shall take place, in the case of nonfoodstuffs,
immediately upon delivery of the articles at the inland point of
origin, and in the case of foodstuffs, immediately upon the loading
of the articles on board ocean vessels in a United States port, and
title and risk of loss with respect to articles shall pass upon
transfer to the Government of the Union of Soviet Socialist
Republics; provided, that any article which shall not have been
transferred to the Government of the Union of Soviet Socialist
Republics as above set forth prior to 3 months following the time of
the signing of this agreement or 3 months following the time of
notice to the Government of the Union of Soviet Socialist Republics
of the availability of the articles, whichever is the later, shall
be deemed to be transferred to the Government of the Union of Soviet
Socialist Republics upon such date, and the Government of the Union
of Soviet Socialist Republics shall thereafter assume complete
financial responsibility for the articles.
All articles made available shall be properly packed or prepared to
meet the requirements of ocean shipping. The invoice delivered by
the Government of the United States as certified by authorized
officials of the Government of the Union of Soviet Socialist
Republics with respect to articles transferred under article II
shall be final. The Government of the Union of Soviet Socialist
Republics shall, with respect to foodstuffs transferred, supply the
Government of the United States with the necessary number of ship
manifests and signed on-board bills of lading with related invoices,
packing lists, and other documents, whenever the foodstuffs are
transported on a vessel not under the control of an agency of the
Government of the United States.
C. The amount, which the Government of the Union of Soviet Socialist
Republics shall pay the Government of the United States, for
articles transferred under the provisions of article II of this
agreement, shall be the sum of the following items set forth in
subparagraphs 1 and 2:
1. The fair value of the articles.
2. The costs incurred subsequent to transfer for storage, inland
transportation, inland accessorial charges, and port accessorial
charges normally incurred by cargo in accordance with the custom of
the port.
In the case of nonfoodstuffs, such costs shall be evidenced by bills
of lading, warehouse receipts or other appropriate invoices, which
shall be certified by the Government of the Union of Soviet
Socialist Republics to represent true charges. Upon presentation of
such documents to the Government of the United States by the
Government of the Union of Soviet Socialist Republics the Government
of the United States will pay the carrier, warehouse or other
contracting agency, as the case may be. The Government of the Union
of Soviet Socialist Republics undertakes to identify by marking on
the bill of lading, warehouse receipt, or other documents involved,
the requisition and contract numbers and shipping marks or a
description of the articles covered by such documents.
In the case of foodstuffs, such cost is included in the fair value
of the article determined in accordance with subparagraph (1) above.
D. The amount which the Government of the Union of Soviet Socialist
Republics shall pay the Government of the United States for shipping
and related services made available under the provisions of article
IV of this agreement shall be determined on the basis of applicable
rates established by the Government of the United States, which
shall be subject to acceptance by the Government of the Union of
Soviet Socialist Republics.
E. Payment of the total amount determined as set forth above in
paragraphs C and D shall be made by the Government of the Union of
Soviet Socialist Republics, on or before July 1, 1975, in 22 annual
installments, the first of which shall become due and payable on
July 1, 1954. The amounts of the annual installments shall be as
follows:
Each of the first 4 installments shall be in an amount equal to 2.5
percent of the amount determined as set forth above; each of the
second 4 installments shall be 3.5 percent of said determined
amount; each of the third 4 installments shall be 4.5 percent of
said determined amount; each of the fourth 4 installments shall be
5.5 percent of said determined amount; and each of the last 6
installments shall be 6 percent of said determined amount.
Nothing herein shall be construed to prevent the Government of the
Union of Soviet Socialist Republics from anticipating the payment of
any of the installments, or any part thereof, set forth above.
If by agreement of both Governments it is determined that, because
of extraordinary and adverse economic conditions arising during the
course of payment, the payment of a due-installment would not be in
the joint interest of the United States and the Union of Soviet
Socialist Republics, payment may be postponed for an agreed upon
period.
Interest on the unpaid balance of the total amount determined as set
forth above in paragraphs C and D shall be paid by the Government of
the Union of Soviet Socialist Republics at a fixed rate of
23/8 percent per annum accruing from July 1, 1946. Interest shall be
payable annually, the first payment to be made July 1, 1947.
For the Government of the United States:
(Signed) LEO T. CROWLEY.
For the Government of the Union of Soviet Socialist Republics:
(Signed) LEONID G. RUDENKO.
Fuente:
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