GERMANY, FEDERAL REPUBLIC OF
1 JUN 1976
FLITE DOCUMENT NO. 7950001

AGREEMENT EXECUTED 26 MAY AND 1 JUNE 1976.

AGREEMENT CONCERNING THE TRANSFER OF US BRIDGE AND FERRY EQUIPMENT TO FEDERAL REPUBLIC OF GERMANY OWNERSHIP.

TERMINATES LEASE AGREEMENT DAJA 37 67 L 0001 OF 1 AUGUST 1966.

AGREEMENT BETWEEN THE COMMANDER IN CHIEF, HEADQUARTERS, UNITED STATES ARMY, EUROPE AND SEVENTH ARMY, REPRESENTED BY THE DEPUTY CHIEF OF STAFF FOR LOGISTICS (DCSLOG), HEIDELBERG,

HEREAFTER CALLED "HQ USAREUR" AND

THE FEDERAL MINISTER OF DEFENSE OF THE FEDERAL REPUBLIC OF GERMANY, BONN,

CONCERNING THE TRANSFER OF US BRIDGE AND FERRY EQUIPMENT TO FEDERAL REPUBLIC OF GERMANY OWNERSHIP.

GENERAL BACKGROUND: THE WORLD WAR II US BRIDGE AND FERRY EQUIPMENT, MORE PARTICULARLY DESCRIBED IN ANNEX 1, WAS LEASED TO THE BUNDESWEHR UNDER LEASE AGREEMENT DAJA 37 67 L 0001, DATED 1 AUGUST 1966. AS CONSIDERATION FOR THE LEASE, THE BUNDESWEHR WAS OBLIGATED TO OPERATE, MAINTAIN, REPAIR, RESTORE AND PROTECT THE BRIDGE AND FERRY EQUIPMENT UNTIL ITS RETURN TO THE US GOVERNMENT. WITH RESPECT TO THE PROPULSION UNITS, THE UNITED STATES GOVERNMENT WAS OBLIGATED TO PERFORM HEAVY MAINTENANCE OVERHAUL OF DEPOT TYPE. NOTWITHSTANDING THIS OBLIGATION, THE BUNDESWEHR WAS REQUIRED TO PERFORM HEAVY MAINTENANCE OVERHAUL OF DEPOT TYPE OVER AND ABOVE ITS OBLIGATIONS UNDER THE LEASE AGREEMENT, IN ORDER TO KEEP THE BRIDGE AND FERRY EQUIPMENT IN OPERATIONAL READINESS. BETWEEN 1 AUGUST 1966, THE CONCLUSION DATE OF THE LEASE AGREEMENT, AND 31 MAY 1972, THE BUNDESWEHR INVESTED THE AMOUNT OF DM 4,500,000.00

FOR MAINTENANCE, REPAIR, RESTORATION, AND PROTECTION OF THE BRIDGE AND FERRY EQUIPMENT. IN ADDITION TO THESE COSTS, WHICH WERE TO BE BORNE BY THE BUNDESWEHR IN ACCORDANCE WITH THE TERMS OF THE LEASE AGREEMENT, THE BUNDESWEHR INVESTED THE AMOUNT OF DM 5,250,000.00

FOR HEAVY MAINTENANCE OVERHAUL OF DEPOT TYPE. THESE ADDITIONAL EXPENSES INCLUDE INVESTMENTS MADE FOR THE REPLACEMENT OF THE PROPULSION UNITS. TOTAL INVESTMENTS MADE BY THE BUNDESWEHR DURING THE AFOREMENTIONED PERIOD OF TIME AMOUNT TO DM 9,750,000.00

FURTHER COSTS OF LIKE NATURE WERE INCURRED BY THE BUNDESWEHR BETWEEN 1 JUNE 1972 AND THE PRESENT. IN VIEW OF THE ABOVE, THE PARTIES TO THIS AGREEMENT HAVE AGREED UPON THE TRANSFER OF THE BRIDGE AND FERRY EQUIPMENT INTO FEDERAL REPUBLIC OF GERMANY OWNERSHIP.

1. THE US BRIDGE AND FERRY EQUIPMENT LISTED IN ANNEX 1 IS TRANSFERRED PERMANENTLY TO THE FEDERAL REPUBLIC OF GERMANY AND BECOMES ITS PROPERTY.

2. THE PRESENT DATE VALUE OF THE BRIDGE AND FERRY EQUIPMENT IS ESTIMATED AT $3,097,073.56 (IN WORDS: THREE MILLION NINETY SEVEN THOUSAND SEVENTY THREE DOLLARS AND 56/100 CENTS). THIS ESTIMATE IS BASED ON THE PRESENT CONDITION AND THE PROSPECTIVE SERVICE LIFE OF THE BRIDGE AND FERRY EQUIPMENT.

3. MOD AGREES TO WAIVE ITS CLAIM FOR ALL SUMS EXPENDED BY IT FOR REPAIR, MAINTENANCE, SPARE PART REPLACEMENT, ETC., OVER AND ABOVE THE RESPONSIBILITIES UNDER THE LEASE OF 1 AUGUST 1966, FROM THE DATE TO PRESENT.

IN CONSIDERATION OF THE TRANSFER OF THE US BRIDGE AND FERRY EQUIPMENT TO FEDERAL REPUBLIC OF GERMANY OWNERSHIP, MOD AGREES TO FULFILL THE FOLLOWING CONDITIONS:

A. THE EQUIPMENT REMAINS IN PEACE AND WAR TIME WITHIN THE PRESENT OPERATIONAL AREA, I.E. RHINE SECTION FROM STREAM KILOMETER 352 TO 544. A RELOCATION IS PERMISSIBLE FUNDAMENTALLY ONLY AFTER PREVIOUS APPROVAL BY HQ USAREUR.

B. MOD KEEPS THE EQUIPMENT IN OPERATIONAL CONDITION AS LONG AS THE MAINTENANCE IS JUSTIFIABLE UNDER CONSIDERATION OF ECONOMIC VIEWPOINTS. IF THE EQUIPMENT CAN HEREAFTER NO LONGER BE KEPT IN OPERATIONAL CONDITION AND MUST THEREFORE BE PUT OUT OF SERVICE, MOD WILL PROVIDE FOR REPLACEMENT OF EQUAL OR BETTER QUALITY IN ACCORDANCE WITH BUNDESWEHR AND US FORCES STANDARDS.

C. UPON REQUEST, THE EQUIPMENT WILL BE PLACED AT THE DISPOSAL OF THE US FORCES FOR EXERCISE AND TRAINING PURPOSES. THE COMPETENT GERMAN BRIDGE OPERATIONAL UNIT MUST BE NOTIFIED OF THE REQUIREMENT NOT LATER THAN SEVEN DAYS IN ADVANCE.

D. UPON NOTIFICATION OF THE PRESCRIBED ALERT STAGE OR THE BEGINNING OF HOSTILITIES, THE BUNDESWEHR WILL PUT THE EQUIPMENT INTO OPERATION IN GENERAL FOR THE US FORCES WITHIN AN AGREED PERIOD OF TIME. IN CASE OF CRISES, THE EQUIPMENT CAN ALSO BE USED FOR OTHER NATO FORCES IN ACCORDANCE WITH DOCUMENT MC 36/2 (REVISED) UPON CORRESPONDING PRIORITY DECISION BY COMCENTAG.

E. IF THE BUNDESWEHR DECLARES THAT IT IS NOT IN THE POSITION TO EXECUTE THE GIVEN TASKS IN THE EVENT OF TENSION OR DEFENSE, THE US FORCES MAY TAKE OVER THE OPERATION OF THE EQUIPMENT.

THIS AGREEMENT CAN BE CHANGED BY THE PARTIES THERETO IN MUTUAL COORDINATION. CHANGES MUST BE MADE IN WRITING. ARTICLE 5

THE AGREEMENT COMES INTO EFFECT UPON SIGNATURE BY THE PARTIES THERETO. AS OF THE DATE OF SIGNATURE, THE LEASE AGREEMENT DAJA 37 67 L 0001 OF 1 AUGUST 1966 WILL BE TERMINATED.

DONE AT BONN, ON