B-129421, OCT. 9, 1956

B-129421: Oct 9, 1956

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UNITED STATES INFORMATION AGENCY: REFERENCE IS MADE TO YOUR LETTER OF OCTOBER 4. WHICH SUM WAS DEDUCTED BY THE CLAIMANT FROM AMOUNTS OTHERWISE DUE THE UNITED STATES UNDER SALES CONTRACT NO. 524.53 GERMAN MARKS THE VALIDITY OF CLAIMS NOS. 115A AND 115B IS NOT QUESTIONED. IT APPEARS THAT A TENTATIVE COMPROMISE AGREEMENT WAS REACHED WITH THE CLAIMANT. PROVIDED ITS OFFER IS ACCEPTED BY THE GOVERNMENT ON OR BEFORE OCTOBER 12. YOU POINT OUT THAT IF THE OFFER IS NOT ACCEPTED. IT WILL BECOME NECESSARY FOR THE UNITED STATES TO INSTITUTE A CIVIL ACTION IN A COURT OF GERMAN JURISDICTION. IT IS STATED THAT CLAIM NO. 236. ASSERTED BY THE CLAIMANT IS LEGALLY SOUND. THE RECOMMENDATION IS MADE THAT THE CLAIMANT'S OFFER BE ACCEPTED.

B-129421, OCT. 9, 1956

TO MR. JOHN M. SMITH, UNITED STATES INFORMATION AGENCY:

REFERENCE IS MADE TO YOUR LETTER OF OCTOBER 4, 1956, TRANSMITTING EMBASSY CLAIM FILE NO. 2016, FROM BONN, GERMANY, CONSISTING OF THREE INDIVIDUAL CLAIMS, TOTALING 21,524.53 GERMAN MARKS, PRESENTED BY THE FIRM OF MUENCHENER BUCHGEWERBEHAUS, WHICH SUM WAS DEDUCTED BY THE CLAIMANT FROM AMOUNTS OTHERWISE DUE THE UNITED STATES UNDER SALES CONTRACT NO. F-636-FA- 2976, COVERING THE SALE OF A PRINTING PLANT LOCATED IN MUNICH, GERMANY.

THE CLAIMS REFERRED TO MAY BE ITEMIZED AS FOLLOWS:

TABLE

CLAIM 115A (PRINTING WORK -

CONTRACT S-636-FA-3356) 2,146.65 GERMAN MARKS

DO. 115B (REPAIR WORK ETC.)

NO CONTRACT 748.08

DO. 236 (DAMAGE FOR NON-PERFORMANCE

OF CONTRACT S-636-FA-3235) 18,629.80

TOTAL 21,524.53 GERMAN MARKS

THE VALIDITY OF CLAIMS NOS. 115A AND 115B IS NOT QUESTIONED, BUT, WITH RESPECT TO CLAIM NO. 236, IT APPEARS THAT A TENTATIVE COMPROMISE AGREEMENT WAS REACHED WITH THE CLAIMANT, WHEREBY THE LATTER WOULD ACCEPT 9,500 GERMAN MARKS IN FULL SETTLEMENT OF ITS CLAIM, AND REFUND 9,129.80 GERMAN MARKS TO THE UNITED STATES, PROVIDED ITS OFFER IS ACCEPTED BY THE GOVERNMENT ON OR BEFORE OCTOBER 12, 1956.

YOU INDICATE THAT YOU FAVOR ACCEPTANCE OF THE PROPOSED SETTLEMENT OFFER AS IN THE BEST INTERESTS OF THE UNITED STATES; AND, YOU POINT OUT THAT IF THE OFFER IS NOT ACCEPTED, IT WILL BECOME NECESSARY FOR THE UNITED STATES TO INSTITUTE A CIVIL ACTION IN A COURT OF GERMAN JURISDICTION, WHICH NECESSARILY WOULD ENTAIL THE INCURRENCE OF CONSIDERABLE EXPENSE, WITH THE POSSIBILITY THAT THE RESULT WOULD BE ADVERSE TO THE UNITED STATES.

IN A MEMORANDUM DATED JULY 13, 1956, PREPARED BY OFFICE OF THE GENERAL COUNSEL OF YOUR AGENCY, IT IS STATED THAT CLAIM NO. 236, ASSERTED BY THE CLAIMANT IS LEGALLY SOUND, AND THE RECOMMENDATION IS MADE THAT THE CLAIMANT'S OFFER BE ACCEPTED.

IN VIEW OF ALL THE CIRCUMSTANCES, YOU ARE ADVISED THAT WE WOULD NOT BE REQUIRED TO OBJECT TO SETTLEMENT OF CLAIM NO. 236 UPON THE BASIS OF THE CLAIMANT'S SETTLEMENT OFFER OF 9,500 GERMAN MARKS, AS PROPOSED.