910 



systems which will supply, in addition to Palomares and Villaricos, 

 other communities, possibly Vera, Garrucha and Mojacar. 



2. To avoid unnecessary transfer of funds, actual payments will be 

 made as follows : the entire United States Government gift of $150,- 

 000 U.S. currency will be applied toward the desalting plant contract 

 mentioned in Paragraph 3 ; the Spanish Government will completely 

 finance the conduction and distribution system mentioned in Para- 

 graph 4; and the Spanish Government will transfer funds to the 

 United States Government by means of a letter of credit, or other mutu- 

 ally agreeable means, in the amount of the difference between the total 

 amount of the desalting plant contract and the United States Gov- 

 ernment gift of $150,000 prior to the signing of that contract. This 

 transfer of funds will be in U.S. dollars except as provided in Para- 

 graph 3 B below. By this arrangement of payments, the Government 

 of Spain pays for the construction of the storage, conduction and 

 distribution facilities for Palomares and Villaricos considered to cost 

 $45,000 and the United States Government increases its payment to- 

 ward the desalting plant contract by $45,000 to a total of $150,000. 



3. The United States Government will contract with a United States 

 firm to manufacture and install a U.S. -made desalting plant after 

 consultation with Spanish Government officials regarding the terms 

 of the contract. The contractor, who should have a proven record of 

 successful experience in the manufacture and installation of desalt- 

 ing plants of appropriate nature, will be responsible for : 



A. The installation at an agreed site in the township of Palo- 

 mares of a vapor compression type desalting facility which will 

 reliably produce at least 70,000 U.S. gallons of desalted water 

 per day. 



B. The installation of the foundations and appropriate shelter- 

 for the desalting plant and associated equipment and the sea- 

 water intake and outfall facilities. Costs of Spanish labor, ma- 

 terial and services used by the contractor in this element of the 

 construction will be paid in pesetas from the Government of 

 Spain's contribution to the project. 



C. Connection of the plant to the product water pipe and elec- 

 tric power service line at the site which will be provided by the 

 Spanish Government. The product water from the plant will be 

 at an agreed pressure, sufficient to fill the nearby storage facility 

 provided by the Spanish Government. 



D. The initial operation of the plant for thirty days, excluding 

 any prior test period, during which time the contractor will also 

 provide for the appropriate training in operation and mainte- 

 nance of the plant to individuals selected by the Spanish Gov- 

 ernment as operation and maintenance personnel for the plant. 



At the end of the initial operation period, and after the agency 

 of the United States Government responsible for the procure- 

 ment of the plant is satisfied that the terms of the contract have 

 been fulfilled, full title to and responsibility for the plant would 

 be transferred to the agency designated by the Spanish Govern- 

 ment. 



