The Turkish Government will, upon request, conduct a security investigation of any prospective Turkish contractor to the United States Government in the same manner as such investigations are conducted in cases of defense procurement by the Turkish Government, and a recommendation resulting from such investigation will be made to the United States Government.

No charges will be made by the Turkish Government for services rendered pursuant to this clause. 8. Inspection

Inspection of all materials, services, supplies, construction and equipment procured by the United States Government in Turkey either from the Turkish Government or Turkish manufacturers and suppliers shall be carried out by representatives of the Turkish Government when requested by the United States Government. In such cases, the Turkish Government will certify to the United States Government that the products meet all specifications and other requirements of the contract. It is not the intention of the United States Government generally to duplicate inspections made by the Turkish Government, but the United States Government shall have the right to make independent inspections and verifications, and to make final decisions as to the acceptability of products. Inspection services (which term includes all materials and components furnished) rendered by the Turkish Government will be free of cost or charge to the United States Government. 9. Credit arrangements

It is understood that the Turkish Government will assist in providing Turkish contractors producing for the United States Offshore procurement program treatment concerning commercial bank priorities equal to that accorded to Turkish business establishments producing for the defense or export program of Turkey. 10. Licenses

The Turkish Government will grant, and facilitate the obtaining of, any necessary licenses, including exchange control, export and import licenses, which may be required in connection with any United States Government offshore procurement contract, whether placed in Turkey, other North Atlantic Treaty Organization countries, or other nations allied or associated with them for common defense, providing that the country concerned grants reciprocal treatment to Turkey in respect to offshore procurement contracts placed in Turkey, 11. Taxes

The provisions of the Tax Relief Agreement between the United States of America and Turkey, dated June 23, 1954, as well as the agreed procedures thereunder, are applicable to contracts and subcontracts previously let or which may be let under the United States offshore procurement program in Turkey. 12. Standard contract clauses

Standard clauses have been approved by the two Governments for use, as appropriate, in contracts between them. Other clauses, including modification of standard clauses, may be included in individual contracts between the two Governments. 13. Protection of United States property and personnel

1) a) It is understood that any interest of the United States Government in property acquired through or used in connection with offshore procurement contracts in Turkey will be immune from legal process or seizure.

b) Likewise, it is understood that the United States Government is protected against suits or other legal action in Turkey as to any matter which may arise out of an offshore procurement contract.

(2) Contracting officers and other authorized procurement personnel of United States nationality who are in Turkey in connection with the offshore procurement program will be considered to enjoy the status of members of the United States Forces and their civilian component under the NATO Status of Forces Agreement signed at London on June 19, 1951, and supplementary arrangements. Such contracting officers and other authorized procurement personnel are also protected from legal suits or process in Turkey as to any matter which may arise out of an offshore procurement contract.

11. Destination of end-items

Although the determination of specifications and other requirements of particular offshore procurement contracts may require a tentative identification of the recipient country to which the end-items are to be delivered, it is understood that the United States may subsequently amend any such prior determination and identification as to which country shall be the ultimate recipient of the end-items produced. 15. Contract terms

This contract is entered into this

day of

19.-by and between the United States of America (hereinafter called the United States Government) represented by the Contracting Officer executing this contract and the Republic of Turkey (hereinafter called the Turkish Government) represented by

This contract is executed subject to the agreement and conditions included in the Memorandum of Understanding between the Government of the United States of America and the Government of the Republic of Turkey relating to procurement of supplies, services and materials, dated 29 June 1955.

The parties hereto agree that the Turkish Government shall furnish and deliver all of the supplies and perform all the services set forth in the Schedule for the consideration stated therein.

TOTAL CONTRACT

PRICE ExcL TAXES: GENERAL PROVISIONS 1. Definitions

As used throughout this contract the following terms shall have the meanings set forth below:

(a) The term “Secretary" means the Secretary, the Under-Secretary, or any Assistant Secretary of the United States Military Department concerned ; and the term “his duly authorized representative” means any person or persons (other than the Contracting Officer) authorized to act for the Secretary.

(b) The term “Contracting Officer” means the person executing this contract on behalf of the United States Government, and any other officer or civilian employee who is a properly designated Contracting Officer; and the term includes, except as otherwise provided in this contract, the authorized representative of a Contracting Officer acting within the limits of his authority.

(c) The term “United States Government” means the United States of America.

(d) The term "Turkish Government” means the Republic of Turkey, or any officer duly authorized to act on behalf of the Turkish Government in relation to this contract.

(e) Except as otherwise provided in this contract, the term "subcontracts" means any agreement, contract, subcontract, or purchase order made by the Turkish Government with another party for the purpose of fulfilling the labor and material requirements which are directly attributable to the item to be manufactured or supplied under this contract, and any such agreements, contracts, subcontracts or purchase orders under such subcontract. 2. Changes

The Contracting Officer may at any time, by a written notice, make changes, within the general scope of this contract, in any one or more of the following:

(i) Drawings, designs, or specifications ;
(ii) Method of shipment or packing; and

(iii) Place of delivery. ? If any such change causes an increase or decrease in the cost of, or the time required for, performance of this contract, an equitable adjustment shall be made in the contract price or delivery schedule, or both, and the contract shall be modified in writing accordingly. Any claim by the Turkish Government for adjustment under this clause must be asserted within thirty days from the date of receipt by the Turkish Government of the notification of change; provided, however, that the Contracting Officer, if he decides that the facts justify such action, may receive and act upon any such claim asserted at any time prior to final payment under this contract. The Turkish Government shall proceed with the contract as changed.

3. Ertras

Except as otherwise provided in this contract, no payment for extras shall be made unless such extras and the price therefor has been authorized in writing by the Contracting Officer. 4. Variation in quantity

No variation in the quantity of any item called for by this contract will be accepted unless such variation has been caused by conditions of loading, shipping, or packing, or allowances in manufacturing processes, and then only to the extent, if any, specified elsewhere in this contract. 5. Inspection

(a) Adequate inspection and test of all supplies (which term throughout this clause includes without limitation raw materials, components, intermediate assemblies, and end products) to insure conformity with drawings, designs and specifications of the contract shall be effected by the Turkish Government.

(b) The Turkish Government will furnish a certificate or certificates stating that the inspection has been made and that all supplies, services or materials covered by the certificate meet all requirements of the schedules, drawings, designs and specifications of the contract.

(c) United States Government representatives shall have the right to verify the certifications and to verify that (1) the end items conform to standards and to drawings, designs and specifications, and (2) the quantity of end items specified is delivered. United States representatives will notify the appropriate Turkish Government representatives when they intend to conduct inspections and such inspections will, insofar as feasible, be conducted promptly. Representatives of the Turkish Government shall have the right to participate in such verifications.

(d) In case any supplies or lots of supplies are defective in material or workmanship or otherwise not in conformity with the requirements of this contract, the United States Government shall have the right to either reject them (with or without recommendations as to their disposition) or to require their correction. Supplies or lots of supplies which have been rejected or required to be corrected shall be removed or corrected in place, as requested by the Contracting Officer, by and at the expense of the Turkish Government promptly after notice, and shall not again be tendered for acceptance unless the former tender and either the rejection or requirement for correction is disclosed. : (1) The Turkish Government will provide and require their contractors and subcontractors to provide to the United States Government inspectors, without additional charge to the United States Government, reasonable facilities and assistance for the safety and convenience of the United States Government representatives in the performance of their duties. Final acceptance or rejection of the supplies shall be made as promptly as practicable after delivery, except as otherwise provided in this contract; but failure by the United States Government to inspect and accept or reject supplies shall neither relieve the Turkish Government from responsibility for such supplies as are not in accordance with the contract requirements nor impose liability on the United States Government therefor. However, if the Turkish Government considers that there is an undue delay by the United States Government in taking action on acceptance or rejection, it will so notify the United States and the two Governments will consult with a view toward amending the contract to provide for an equitable adjustment of the price or delivery schedule.

(2) The inspection and test by the United States Government of any supplies or lots thereof does not relieve the Turkish Government from any responsibility regarding defects or other failures to meet the contract requirements which may be discovered prior to final acceptance. Except as otherwise provided in this contract, final acceptance shall be conclusive except as regards defects which could not have been discovered by normal inspection methods appropriate to the industry concerned.

(e) The Turkish Government shall provide and maintain an inspection system acceptable to the United States Government covering the supplies hereunder. Records of all inspection work by the Turkish Government shall be kept complete and available to the United States Government during the performance of this contract and for such longer period as may be specified elsewhere in this contract. 6. Responsibility for supplies

Except as otherwise provided in this contract, (1) the Turkish Government shall be responsible for the supplies covered by this contract until they are delivered at the designated delivery point, regardless of the point of inspection; and (2) the Turkish Government shall bear all risks as to rejected supplies after notice of rejection. 7. Termination

(a) The performance of work under this contract may be terminated by the United States Government in accordance with this clause in whole, or, from time to time, in part, whenever the Contracting Officer shall determine that such termination is in the best interests of the United States Government. Any such termination shall be effected by delivery to the Turkish Government of a Notice of Termination specifying the extent to which performance of work under the contract is terminated, and the date upon which such termination becomes effective.

(b) After receipt of a Notice of Termination, and except as otherwise requested by the Contracting Officer, the Turkish Government shall (1) stop work under the contract on the date and to the extent specified in the Notice of Termination; (2) place no further orders or subcontracts for materials, services, or facilities except as may be necessary for completion of such portion of the work under the contract as is not terminated; (3) terminate all orders and subcontracts to the extent that they relate to the performance of work terminated by the Notice of Termination; (4) assign to the United States Government, in the manner, at the times, and to the extent requested by the Contracting Officer, all of the right, title, and interest of the Turkish Government under the orders and subcontracts so terminated; (5) settle all outstanding liabilities and all claims arising out of such termination of orders and subcontracts, with the approval or ratification of the Contracting Officer to the extent he may require, which approval or ratification shall be final for all the purposes of this clause; (6) transfer title and deliver to the United States Government, in the manner, at the times, and to the extent requested by the Contracting Officer, (i) the fabricated or unfabricated parts, work in process, completed work, supplies, and other material produced as a part of, or acquired in connection with the performance of, the work terminated by the Notice of Termination, and (ii) the completed or partially completed plans, drawings, information, and other property which, if the contract had been completed, would have been required to be furnished to the United States Government; (7) use its best efforts to sell, in the manner, at the times, to the extent, and at the price or prices requested or authorized by the Contracting Officer, any property of the types referred to in provision (6) of this paragraph; provided, however, that the Turkish Government (i) shall not be required to extend credit to any purchaser, and (ii) may acquire any such property under the conditions prescribed by and at a price or prices approved by the Contracting Officer; and provided further, that the proceeds of any such transfer or disposition shall be applied in reduction of any, payments to be made by the United States Government to the Turkish Government under this contract or shall otherwise be credited to the price or cost of the work covered by this contract or paid in such other manner as the Contracting Officer may request ; (8) complete performance of such part of the work as shall not have been terminated by the Notice of Termination; and (9) take such action as may be necessary, or as the Contracting Officer may request, for the protection and preservation of the property related to this contract which is in the possession of the Turkish Government and in which the United States Government has or may acquire an interest. Within sixty (60) days following the receipt by the Contracting Officer of acceptable inventory schedules covering all items of a particular property classification, such as raw materials, purchased parts and work in process, of the termination inventory at any one plant or location, or by such later date as may be agreed to by the Contracting Officer, the Turkish Government may submit to the Contracting Officer a list, certified as to quantity and quality, of any or all items of termination inventory not previously disposed of, exclusive of items the disposition of which has been requested or authorized by the Contracting Officer, and may request the United States Government to remove such items or enter into a storage agreement covering them. Not later than fifteen (15) days thereafter, the United States Government will accept title to such items and remove them or enter into a storage agreement covering the same, provided that the list submitted shall be subject to verification by the Contracting Officer upon removal of the items, or if the items are stored, within forty-five (45)