A. Neither Government will make any payment to the other for lendlease and reciprocal aid articles and services heretofore transferred or retransferred, or remaining to be transferred under previous agreement.

B. The Belgian Government will make no payment to the United States Government for the United States share of the combined claim against the Belgian Government for Plan A. As agreed in an exchange of memoranda between the two Governments, dated July 23, 1946, and September 24, 1946, the Belgian Government recognizes that the settlement hereby made with the United States Government in no way impairs the obligation of the Belgian Government to the United Kingdom and Canadian Governments for their shares of the combined claim for Plan A, and agrees to establish a reserve of 10 per cent of the combined bills in the Banque Nationale de Belgique which will be made payable to the United Kingdom and Canadian Governments to the extent and in the manner necessary to carry out the existing financial arrangements among the three supplying Governments. Any amounts of the reserve not so paid will not be claimed by the United States Government and will revert to the free disposition of the Belgian Government upon notification by the three supplying Governments.

2. In consideration of the United States surplus property heretofore transferred and heretofore designated for transfer to the Belgian Government under agreed procedures (estimated at approximately $18,000,000 in transfer value), it is agreed that:

5

A. (1) As and when requested by the United States Government, the Belgian Government will transfer to the United States Government, or provide Belgian francs for the acquisition of, real property in Belgium, the Belgian Congo and the Grand Duchy of Luxembourg to be mutually agreed upon, and will pay the expense of improvements in and furnishing of property of the United States Government in Belgium, the Belgian Congo and Luxembourg, up to an aggregate value of $5,450,000.o

A. (2) As and when requested by the United States Government, the Belgian Government will provide Belgian francs up to an aggregate value of $3,000,000, which will be used exclusively to carry out cultural and educational programs agreed upon between the Government of the United States of America and the Governments of Belgium and Luxembourg.

A. (3) Any francs provided under this sub-paragraph A will be at the par value between the two currencies established in conformity with procedures of the International Monetary Fund, or, if no such par value exists, at the rate most favorable to the United States Government used in any official Belgian Government transaction at the time payment is requested.

B. (1) The Belgian Government will process certain claims against the United States Government, and its war contractors and subcontractors, and discharge their liability with respect thereto, namely:

7

(a) Claims of individuals, firms and corporations asserted or about to be asserted in courts of Belgium, the Belgian Congo or Luxembourg against the United States Government, or respecting which the ultimate liability is that of the United States Government, arising from maritime incidents occurring on or after September 3, 1939 and prior to July 1, 1946. In addition, as part of the general settlement, the Belgian Government, without giving rise to any financial obligation on the part of the United States Government, will, at the request of the United States Government, take such steps as may be necessary, including the assumption of financial responsibility, to release vessels and cargoes belonging to the United States Government from legal actions brought in such courts to enforce any such claims.

(b) Claims of individuals, firms and corporations domiciled or resident in Belgium, the Belgian Congo or Luxembourg (except individuals who are exclusively United States nationals) against the United States Government, its contractors and subcontractors, for royalties under license contracts for the use of inventions, patented or unpatented, or for infringement of patent rights, in connection with war production carried on or contracted for prior to September 2, 1945.

(c) Claims of individuals, firms and corporations domiciled or resident in Belgium, the Belgian Congo or Luxembourg against the United States Government arising out of acts or omissions in Belgium, the Belgian Congo or Luxembourg of members of the United States Armed Forces or civilian personnel attached to such forces, both line-of-duty and non-line-of-duty, occurring on or after September 3, 1939 and prior to September 2, 1945 in the case of contracts, and occurring on or after September 3, 1939 and prior to July 1, 1946 in the case of other acts and omissions.

(d) Claims of subjects of Belgium or Luxembourg, whether individuals, firms or corporations, against the United States Government arising out of the requisitioning for use in the war program of property located in the United States in which the claimant had an interest.

B. (2) The undertaking of the Belgian Government in the preceding sub-paragraph (1) is valued at $5,000,000, not subject to adjustment.

C. (1) The undertakings of the Belgian Government in sub-paragraphs A and B above constitute a payment by the Belgian Government to the United States Government of $13,450,000 toward the total purchase price of the above-mentioned United States surplus property. The excess over $13,450,000 of the total purchase price (determined in accordance with usual procedures) of the surplus property heretofore transferred to the Belgian Government and hereafter transferred under designations heretofore made 7 See also interpretation, p. 643.

will be a dollar obligation of the Belgian Government to the United States Government.

C. (2) In the event that the United States Government should not be able to avail itself fully of the provisions of sub-paragraph A, the amount not availed of will, upon appropriate notification by the United States Government, be added to the dollar obligation of the Belgian Government to the United States Government.

C. (3) These dollar obligations of the Belgian Government will be governed by the provisions of paragraph 5 below.

3. The United States Government hereby makes available to the Belgian Government a line of credit of $10,000,000 for the purchase of United States surplus property contracted for with the Foreign Liquidation Commissioner before October 1, 1946, other than the surplus property referred to in paragraph 2 above. The resulting dollar obligation will be governed by the provision of paragraph 5 below.

4. The two Governments have agreed on the acquisition by the Belgian Government of certain United States surplus property remaining in Belgium on or after October 1, 1946, and, in stated circumstances, before September 30, 1946, on the basis of a division between the two Governments of the proceeds of sales. The share accruing to the United States Government of these proceeds will be a dollar obligation of the Belgian Government and will be governed by the provisions of paragraph 5 below.

5. A. Payment of the total of the dollar obligations of the Belgian Government to the United States Government referred to in paragraph 2C, 3, and 4 above shall be made in annual instalments over a period ending July 1, 1976. The first annual instalment shall be due and payable on July 1, 1947, and shall be equal to one-thirtieth of the total dollar obligations as of that date. Each subsequent instalment shall be equal to the total unpaid balance as of the date of the instalment divided by the number of instalments remaining to be paid.

B. Interest on the unpaid balance of the total dollar obligation shall be paid by the Belgian Government at the fixed rate of two and three-eighths per cent per annum, accruing from July 1, 1947, except that, with respect to dollar obligations arising after July 1, 1947, interest shall accrue from the first day of July next following the date on which the obligation arises. Interest shall be payable annually, the first payment to be made on July 1, 1948.

C. The Belgian Government may at any time or times anticipate the payment of any instalments or any part thereof. Such payments will be credited first to past due interest, if any, and then to the unpaid instalments in inverse order of maturity, and the number of instalments remaining to be paid will thereby be reduced by the number of instalments thus paid in full. D. In the event that the United States Government wishes to receive Belgian francs for the payment of any or all expenditures to be made after December 31, 1946 by the United States Government, including its agencies, in Belgium, the Belgian Congo, or Luxembourg, the United States Govern

ment may request Belgian francs in specified amounts at any time or times after December 31, 1946 and the Belgian Government agrees to furnish Belgian francs in such amounts at such time or times, subject to the limitations that (1) the aggregate of the dollar equivalents of such amounts (computed at the par value or rate specified in paragraph 2A (3)) shall not exceed $5,000,000 and (2) the aggregate of the dollar equivalents of any such amounts (computed as so specified) requested in the twelve-month period beginning any first day of July, added to the amount of the annual instalment and interest, if any, payable in such period under sub-paragraphs A and B above and any payments already made by the Belgian Government in such period under sub-paragraph C above, shall not exceed $2,000,000 and (3) the dollar equivalent of any single amount (computed as so specified) shall not exceed the unpaid balance of the total dollar obligation at the time payment of such amount is requested, plus interest then past due, if any. In the event that Belgian francs are so received, the United States dollar equivalent thereof (computed as so specified) will be credited first to past due interest, if any, and then to the unpaid balance of the total dollar obligation.

6. The two Governments have agreed upon arrangements and procedures for the settlement of past and future troop pay of United States Armed Forces in Belgium. The United States Government will continue to expedite payment under agreed procedures for supplies and services furnished by the Belgian Government to United States Government agencies on and after September 2, 1945.8

7. A. Notwithstanding the provisions of paragraph 1, claims in the following categories will be settled in accordance with procedures already established or to be established after appropriate discussions:

(1) Claims by the United States Government for the cost, and claims by the Belgian Government for the excess of amounts deposited by it with the United States Government over the cost, of supplies and services procured under cash reimbursement lend-lease requisitions filed by the Belgian Government.

(2)

Claims arising out of lend-lease requisitions for locomotives wherein the Belgian Government agreed to pay landed cost.

(3) Claims by the Belgian Government for the excess amounts deposited by it with the United States Government under the exchange of notes between the Foreign Economic Administration and the Belgian Ambassador on October 20 and October 25, 19449 over the cost of supplies and services procured thereunder and transferred to the Belgian Government on or before February 28, 1945.

Consistent with para. 6, a memorandum of understanding regarding settlement for supplies and/or services procured by the U.S. Army in Belgium was signed at Brussels Mar. 10, 1948 (not printed).

*Not printed here.

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B. Each Government waives all its claims against the other, and all its claims respecting which the ultimate liability is that of the other, which arose out of (1) maritime incidents 10 occurring prior to July 1, 1946, or (2) requisitioning for use in the war program of property of the other Government.

C. All other financial claims of either Government against the other, except those arising out of established arrangements where liability has heretofore been acknowledged and the method of computation agreed, which (1) arose out of lend-lease or reciprocal aid, or (2) otherwise arose out of incidents connected with the conduct of the war occurring on or after September 3, 1939 and prior to September 2, 1945, and which are not otherwise dealt with in this Memorandum, are hereby waived.

8. Nothing in this Memorandum affects the obligation of the Belgian Government in connection with silver transferred to it by the United States Government under lend-lease.

9. Each Government reserves the right of recapture of any supplies of types essentially or exclusively for use in war or warlike exercises held by the other Government, which were supplied on lend-lease or reverse lendlease, but each Government has indicated that it does not intend to exercise generally its right of recapture of such supplies. Each Government agrees that all such supplies held by it will be used only for purposes compatible with the principles of international security and welfare set forth in the Charter of the United Nations. Merchant vessels which were made available to the Belgium Government under lend-lease are to be returned to the United States Government.

10. Disposals to third Governments of lend-lease and reverse lend-lease supplies of types essentially or exclusively for use in war or warlike exercises will be made only with the consent of the supplying Government. All other materials supplied on lend-lease or reverse lend-lease may be disposed of without restriction by the recipient Government, and no further payment therefor will be required by the supplying Government.

11. Except as provided under paragraphs 9 and 10 of this Memorandum of Understanding, the Belgian Government and the United States Government receive full title to lend-lease and reverse lend-lease articles respectively held as of September 2, 1945, or transferred at any time thereafter, and not subsequently returned.

12. To the extent that the provisions of this Memorandum of Understanding are inconsistent with those contained in any previous agreement, the provisions of this Memorandum shall prevail.

13. The two Governments agree to conclude such specific agreements as may be necessary to implement this general understanding.

10 See also interpretation, p. 643.