61 STAT.] I'RANCE-: -M-TUAL AID SETTLEMENT- MAY 28 , 1946 2-As to the effect of Mr. Mendes-France's letter on the payment of supplies and services furnished by the French Government to the U.S. Army from Sept. 2 to Dec. 26, 1945, it might be discussed whether the wording and the spirit of the said letter cover such items. Without raising such a disucssion it should be observed that the billings made out for that period by the French Government to the American Gov- ernment are computed on the basis of French official prices and tariffs, especially for wages and transportation. When said prices and tariffs are compared with the American prices and tariffs, it appears that the 50 franc rate would be more adequate for the supplies and services than for the pay of the troops. An adjustment, if desired, should be arrived at on the basis of a rate intermediary between 50 and 75 francs. 3-As a whole, the American Government owes to the French Govern- ment, for the period preceding the change in the French rate of ex- change, the equivalent in dollars of about 5 billion francs for supplies and services and, according to American figures, the equivalent in dol- lars of about 1.5 billion francs for the pay of the troops and other expenses non eligible as "reciprocal aid." These figures, at the rate of 50 francs for 1 dollar, correspond respectively to about $100 million and $30 million, i. e., a total amount of $130 million. Moreover, the French Government has disbursed for the U.S. Army a further amount of about 2.8 billion francs for bonus and various facilities; therefore, the U.S . Army has received from the French Government, in cash or otherwise a total of 9.3 billion francs. If the American Government should pay 130 million dollars as a counter- part, it would correspond to an average rate of about 70 francs for 1 dollar for all the expenses of the American army. Such a result would seem to realize the equitable adjustment con- templated in Mr. Mendes-France's letter. 4205 Payment of supplies and services fi'uinhed by French Govern- ment. Amount owed by American Goo rn- in 't, 95347---50 --r. iv---5
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