60 STAT.] UNITED KINGDOM-MUTUAL AID SETTLEMENT-MAR . 27,1946 with Part II of the Annex to this Agreement, and (b) petroleum prod- ucts, which for this purpose will be dealt with in accordance with the Agreement relating to Petroleum concluded this day (No. VI)) will be the amount determined by the Government of the United Kingdom as the cost to it of such articles and services. The general basis of costing by the Government of the United Kingdom has been the subject of full consultation with the appropriate United States authorities. D. TORT CLAIMS The amounts paid by the Governments of the United States and of the United Kingdom in settlement of certain claims described in the Agreement relating to Tort Claims concluded this day (No. IX) shall-be included in the offsetting arrangement. E. OFFSETTING ARRANGEMENT The Joint Statement of December 6, 1945 contemplated that the total amounts due for certain supplies and services furnished after September 1, 1945 through lend-lease and reciprocal aid channels to the Governments of the United Kingdom and of the United States respectively, would be offset in order finally to compute the net sum due from the Government of the United Kingdom to the Government of the United States in accordance with paragraph 3 of the Joint Statement. The sum of $118,000,000 appearing in paragraph 3 (a) of the Joint Statement represented the best estimate then obtainable of the net amount which would be due to the Government of the United States under paragraph 3 (a), after deducting the net sum due to the Government of the United Kingdom under the claims settle- ment. The net sum due to the Government of the United Kingdom under the Agreement on Settlement of Intergovernmental Claims concluded this day (No. II) has been finally computed at $53,020,000. The supplies and services to be brought into this offsetting arrange- ment are those so specified in this Agreement. The total amounts due for such supplies and services will be computed in accordance with the principles set forth in this Agreement. An agreed accounting procedure shall be established for the com- putation of the net sum due under this offsetting arrangement. ANNEX SHIPPING SERVICES AND SUPPLIES PART I There shall be brought within the lend-lease pipeline for inclusion in the offsetting arrangement: (1) Ocean transportation charges at established rates, on United States controlled vessels berthing during the period from November 1, 1945 to November 30, 1945, inclusive, in respect of personnel and wet or dry cargo, according to lend-lease practices which prevailed before August 18, 1945, including, inter alia, supplies procured by or transferred to the Government of the United Kingdom or to a 1531 Post, p. 1533 . Post, p. 1547. Poat, p. 15f6 Total amounts due. Port,p. 1664 . Pod, p. 1564 . Post, p. l164m Lend-lease pipeline. Inclusion n offset- ting arrangement of certain chargs etc.
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