4190 INTERNATIONAL AGREEMENTS OTHER THAN TREATIES [61 STAT. in which French residents had interests, thus incurring liability for payment of the fair value of the property interests requisitioned. France agrees to assume this liability. (d) Information necessary to the processing of claims assumed by the French Government under this paragraph 2 will be furnished by the United States Government to the French Government on its request. (e) France also agrees to waive all claims against the United States that the French Government may have with respect to matters described in this paragraph 2. (f) In the net claims adjustment, an allowance will be made to France in the amount of $15 million in consideration of such of the obligations assumed by France under this paragraph 2 as are not the subject of reciprocal aid. 3. Charter Hire. Recommendations on this subject have been made by a separate combined Shipping Group. 4. Sugar Barter Agreement. The so-called "Sugar Agreement No. 2", dated August 1, 1944, between FEA, the French Supply Council, and Commodity Credit Corporation, provided that during the period August 1-December 31, 1944, CCC would furnish approved quantities of refined sugar to the French, would charge FEA's account for refined sugar furnished, and would report to FEA the quantities furnished, for settlement between FEA and the French under cash reimbursement lend-lease. On their side, the French undertook to furnish to CCC 107 pounds of raw sugar from Martinique and Guadaloupe for every 100 pounds of refined sugar furnished to the French, the value of this to be credited against shipments of refined sugar. In fact, the French failed to meet their commitment to the extent of 62,000 tons of raw sugar, and have advised the United States that they will not make such deliveries. CCC has purchased this amount of raw sugar in Cuba, at the higher Cuban price, resulting in an additional cost to CCC of $669,884.07. CCC has charged this sum to FEA account. The United States claims that France is liable for this amount as consequential damages resulting from the failure of France to deliver raw sugar in accordance with the agreement. It is recommended that the claim be approved. 5. Diversions. The United States has requested France to include in the general settlement an allowance to cover claims arising out of retransfers or diversions of lend-lease articles by France, occurring in France and French overseas territories during the period from March 11, 1941, to September 1, 1945, inclusive, or out of exports during that period, for which the United States would be entitled to reimburse- ment. The claim is allowed at $1 million. 6. Price Clause Revision. Under the 3(c) Agreement France is entitled to a 5% reduction from the contract price of articles trans- ferred. The original purpose of this provision was to give France the benefit of contract renegotiation recoveries by the United States procuring agencies. It is now believed that recoveries on contract
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