60 STAT.] UNITED KINGBlM-MUTUAL AID SETTLEMENT-MAR. 27,1946 ment of the United States. Such payment by the Government of the United Kingdom will constitute fulfilment of obligations laid upon it by this paragraph in respect of such leases. The foregoing provisions of this paragraph shall be without prejudice to the possible conclusion at a later date of separate arrangements between the governments concerned providing for the comprehensive settlement of the rights and obligations arising from the disposal for civilian use within a given country outside the United Kingdom and British Colonial Dependencies of lend-lease articles in the possession or control of the United Kingdom Armed Forces. Itisunderstood that although the dis- posal of lend-lease articles within the United Kingdom and British Colo- nial Dependencies shall be at the full discretion of the governments con- cerned, these governments will not in practice be releasing such articles for export or for civilian use except to a very limited extent. In view of this understanding, the total sum due to the Government of the United States pursuant to the Joint Statement of December 6, 1945 is deemed to include an adequate compensation for the value of such goods as may be released for civilian use in the United Kingdom and British Colonial Dependencies. In the case of food, the Govern- ment of the United Kingdom anticipates that all the lend-lease food- stuffs held by the United Kingdom Armed Forces will, subject to exceptional circumstances, be consumed by those Forces; in view of this, such exceptional disposals of food as may occur outside the United Kingdom and British Colonial Dependencies are excepted from the provisions of this paragraph, although such cases will be reported to the Government of the United States. 8. Lend-lease articles rendered unfit for military use may be dis- posed of for scrap outside the United Kingdom and British Colonial Dependencies without the prior authority of the Government of the United States. Accounts of any net proceeds from such disposals during an agreed six month's period shall be kept by the Government of the United Kingdom, which will remit the aggregate of such net proceeds to the Government of the United States. In the light of experience gained during such period, the Government of the United States will review with the Government of the United Kingdom this arrangement, with a view to determining whether an accounting to the Government of the United States for net proceeds from such disposals recorded prior to such period or derived thereafter need be under- taken. 9. The provisions of paragraphs 6, 7 and 8 hereof shall not apply to components (other than aircraft engines, aircraft propellors, air- craft automatic pilots, aircraft gun turrets, and power units of 3 or more kilowatts) which at the time of disposal are installed in or as- sembled with articles not themselves subject to this Agreement. 10. The provisions of this Agreement do not apply to the following categories of lend-lease and reciprocal aid articles: (a) Installations (covered by the Agreement on Lend-Lease and Reciprocal Aid Installations, No. VII). (b) Petroleum and Petroleum Products (covered by the Agreement relating to Petroleum, No. VI). 1541 Pot,p. IM4 . Food. Disposal of lend- lease articles for scrap. Nonapplication od provisions to desig- nated cagories of articles. Pot, p. 158. Pod p. 1517.
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