Treaty Series Recueil des Traites - United Nations Treaty Collection

1956 Nations Unies - Recueil des Traitds 61
MEMORANDUM OF UNDERSTANDING BETWEEN UNITED STATES AND
THE GOVERNMENT OF SPAIN RELATING TO OFFSHORE PROCUREMENT
This Memorandum sets forth certain principles and policies which the Government
of Spain and the Government of the United States have agreed will govern the United
States Offshore Procurement Program in Spain.
1. Scope and Purpose of the Offshore Procurement Program
It is the intent of the United States Government to procure in countries participating
in the mutual security program those types of materials, services, supplies and equipment,
including vessels, vehicles and aircraft, appropriate either for mutual security
military aid or for the direct use of United States Forces. The extent of this program
in Spain is dependent upon various considerations, including the ability of the U. S. Government
to place contracts at reasonable prices with satisfactory delivery dates. It is
intended that offshore procurement will materially contribute to the combined defense
productive capacity of the nations which are associated with the United States in the
mutual defense of Western Europe and will at the same time provide a means for increasing
the dollar earnings of these countries.
The United States Government will conduct offshore procurement in accordance
with the laws of the United States governing military procurement and the mutual
security program. It is also the intent of the United States that the offshore procurement
program shall be carried out in Spain in furtherance of the principles set forth in
Section 516 of the Mutual Security Act of 1951,1 the Mutual Defense Assistance Control
Act of 1951, 2 and Article II (3) of the Economic Cooperation Agreement of June 28,
1948, as amended. 3
In accordance with the understanding that the U. S. Government intends to conduct
the offshore procurement program in accordance with relevant U. S. legislation and
in furtherance of the principles set forth in certain U. S. statutes, it is understood that,
in order to carry out this intention, the U. S. Embassy may from time to time submit
the names of certain firms and individuals who in their opinion have acted contrary to
the mutual security interest of our two countries and that no contracts will be awarded
to these firms and individuals under the Offshore Procurement Program, and that no
subcontracts will be awarded to these firms and individuals without prior conversations
between the Governments of Spain and the United States.
2. Intergovernmental Coordination
The program of the United States Government for procurement of military end
items in Spain will be coordinated with the defense program of the Spanish Government.
Appropriate officials of the two governments will consult on a continuing basis to study
production problems and the carrying out of recommendations for the procurement of
end items required by the United States Government. The two governments will exchange
information, as needed, and on a continuing basis, with respect to procurement
1 United States of America : 65 Stat. 382; 22 U.S.C. § 1667.
2 United States of America : 65 Stat. 644 ; 22 U.S.C. § 1611 note.
8 Correct reference should be to article II (1) (e) of the Economic Aid Agreement between
Spain and the United States of America, dated September 26, 1953. See p. 66 of this volume.
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