902 



(b) In order to effect the proper indemnification of the United 

 States Government, its officers and its employees, as indicated in 

 subparagraph (a) hereof, the' Saudi Arabian Government further 

 agrees that it will post sufficient sureties as may be mutually agreed 

 upon with the United States Government to idemnify the United 

 States Government for any final judgments or final decisions of ad- 

 ministrative tribunals, which judgments or decisions require pay- 

 ment by the United States Government for any liability arising 

 from the performance of the functions covered by this Agreement 

 or from the construction, operation and maintenance of the project 

 facilities. 



6. (a) The United States and Saudi Arabian Governments will 

 consult, upon request of either of them, regarding any matter 

 relating to the terms of this Agreement, and will endeavor jointly 

 in the spirit of cooperation and mutual trust to resolve any difficul- 

 ties or misunderstandings that may arise. 



(b) The Kingdom of Saudi Arabia shall designate an Authority 

 to act finally for the Government of Saudi Arabia in connection 

 with all project matters that may proprely be referred to it by the 

 Contracting Officer, who will be appointed by the Department of 

 the Interior and identified to the Saudi Arabian Government. The 

 Contracting Officer shall establish and maintain constant liaison 

 with such Authority and shall keep it constantly advised with 

 respect to the progress of work undertaken by the Department of 

 the Interior hereunder. It is contemplated by both Governments 

 that the proposed project work will be in two phases, that is, the 

 preconstruction phase and the construction and initial operation 

 phase. The Contracting Officer shall consult with, and obtain the 

 approval of, the Authority prior to taking any of the following 

 actions : 



(i) With respect to Phase I : 



a. giving instructions to the Contractor to perform pre- 

 construction work and preparation of plans and speci- 

 fications, or to make basic alterations in performance 

 of the contract ; 



b. giving approval to the final plans and specifications 

 to be included in the proposal to the Contractor; 



c. giving instructions to terminate the performance of 

 the contract, in whole or in part, unless the reason for 

 the termination notice shall be lack of funds to meet 

 contractual commitments. 



(ii) With respect to Phase II : 



a. giving instructions to the Contractor to introduce 

 changes in the design parameters of the proposed 

 plant, or with respect to any change of a basic feature 

 of the proposed plant ; 



b. giving final acceptance to the Contractor for the com- 

 pleted installation ; 



c. giving instructions to terminate the performance of 

 the contract, in whole or in part, unless the reason for 

 the termination notice shall be lack of funds to meet 

 contractual commitments. 



(c) The Contracting Officer shall give notice to the Authority at 

 any time when he has reason to believe that available funds are 



