1. Purpose. To provide guidance for the organization and operation of the U. S. Military Liquidation Section, American Embassy, Paris. This directive supports the Secretary of Defense's Terms of Reference for the Military Liquidation Section (Reference a below), and amplifies the guidance provided in the USCINCEUR establishing General Order (Reference b below).

2. References.

a. NATUS Def message 2621, dated 31 December 1966, subject: Terms of Reference for U. S. Military Liquidation Section, American Embassy, Paris.

b. Hq USEUCOM General Order No. 17 of 27 January 1967, subject Establishment of U.S. Military Liquidation Section, American Embassy, Paris.

3. Definitions.

a. "Operational Base". A U. S. Military Base facility in France which the GOF has requested be turned over to French authorities in operating condition, requiring therefore that certain facilities and related personal property be left in place, pending negotiations.

b. "A" date. The date on which operations at a base or installation have terminated, all stocks, supplies and troops (except for the custodial force) have been withdrawn and all personal and related personal property for which there is a U. S. requirement has been removed.

4. General. The U. S. Military Liquidation Section, American Embassy, Paris (MLS) was established on 1 February 1967 by reference b in accordance with the provisions of reference a.

5. Mission. The Military Liquidation Section is responsible for the disposition of matters of military interest, including the disposition of property, remaining after the relocation of U. S. military forces from France.

REVISED (CHG #1) 12 May 1967

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6. Functions. MLS functions and responsibilities are limited to those which are directly related to the liquidation of U. S. military interests as result of the military withdrawal from France. Liquidation Section functions include the following:

a. Acceptance of custodial responsibility, including control, ownership, security, protection and accountability for U. S. installations and facilities, including all real, personal and related personal property contained therein, on "A" date (3 b). MLS will, at the time of acceptance of custody of component commanders' bases/facilities, assume responsibility for U. S. unilaterally funded facilities, NATO and conjunctively funded facilities under U. S. military control.

b. Care and preservation only of any remaining U.S. assets (e.g. command operating stocks) which are to be removed from France by the component commander.

c. Responsibility, with USAFE and USAREUR support, for the negotiation of "Operational Base" (3 a) sales. (Negotiations for "Operational Base" sales must be terminated within a limited time period such that, in the event sale agreement is not reached, component commanders will be able to remove needed personal and related personal property and/or transfer the base to the MLS prior to 31 March 1967).

(1) MLS is not responsible for the disposition (by sale or otherwise) of NATO property, except as directed by component authority in the action of final transfer to GOF of the base/facility involved.

d. Termination of USNAVEUR liquidation actions in Villefranche.

e. Disposal of remaining personal and related personal property, according to economic determination, i. e., disposal by procedures most economically advantageous to the U. S. Related personal property not otherwise disposed of will be placed on real property records. This property thus becomes a part of the facility turned over to GOF, and will be the subject of Embassy residual value negotiations.

f. Support and assistance to the U. S. Embassy, Paris, in residual value negotiations.

g. Transfer of facilities and installations, held in custody, to appropriate authorities of the Government of France.

h. Acceptance of surplus commodity housing records and custody, concurrently with the transfer of the parent base. Surplus commodity housing real estate records and responsibility for custody of physical assets will remain with the accountable officer until transfer to MLS.

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i. Settlement of claims against the US Government.

j. As available and within MLS legal personnel resources, provide counsel and assistance to U. S. military agencies and offices in France, to include legal counsel on any contract administration, contract termination, or procurement- not otherwise provided for.

k. Such matters as the following, are deemed to relate to the phasing out of military activities, installations and facilities in France.

(1) Labor relations, to include administration, and other matters related to the employment of French nationals.

(2) All matters in connection with U. S. military personnel subject to French criminal jurisdiction.

(3) Administration and termination of contracts let by MLS for the purpose of meeting MLS requirements. Termination and settlement of outstanding utilities service contracts will remain a responsibility of component commanders. The Commanding General, COMZ, as head of procurement activity for USAREUR, will appoint Contracting Officers required for MLS except that power procurement officers will be appointed by the designated representative of the USAREUR power procurement officer.

(4) MLS will assume responsibility for administration, funding and termination of utility contracts which are continued in force at installations after MLS assumes custodial responsibility for the installations. MLS will assume responsibility for such contracts on or about the date the installation is transferred from the component command to MLS, but not later than 1 April 1967. Exception will be those installations where the component command will retain an active operation beyond 31 March 1967 (such as Evreux AB), where, by agreement between the component command and MLS, the component command will be responsible for funding the utility contract until termination of the active operation. The component command will remain responsible for termination costs and/or claims costs arising from utility service contracts assumed by MLS.

(5) Administration of the field sales for MAP return from France until this continuing function can be absorbed by CINCUSAFE.

(6) MLS is not responsible for the termination of component command leases.

1. Effecting reimbursement settlements and reconciling financial accounts with the GOF for expenditures made under appropriate bilateral agreements (FAFLO)

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m. Budgeting for costs of operations and O&M support/MLS, except
for pay and related costs of military and civilian personnel (NOTE 1) which
will be borne by the various services furnishing personnel. Funding, until
absorbed at the Embassy, will be provided by the Department of the Army,
from within existing resources.

7. Organization.

a. Concept. The Military Liquidation Section is organized as an
integral part of the American Embassy under the political direction of the
Ambassador, and operates under the general direction of USCINCEUR
through CINCUSAREUR. The Section will operate under this general com-
mand arrangement until such time as there are no longer significant uni-
fied command interests in France. At this time, as mutually agreed bet-
ween CINCEUR and Chief of Staff, U. S. Army, the responsibility for gene-
ral direction of the Section will be transferred to the Department of the
Army. Operations will continue under this modified command arrangement
until such time as remaining military interests and functions are reduced
to a minimum and there remains no further significant physical custody
of facilities and assets. At this time, the Section will be phased out and
the Embassy will assume full responsibility for such residual military
interests, functions and resources as may be appropriate. The date of
transfer of responsibility and procedural details will be as agreed by
appropriate State and Defense Department authorities.

b. Command. The Commanding General, USA, COMZEUR, initially
is the designated Chief of the Military Liquidation Section as an additional
duty.

(1) The U. S. Ambassador, France, exercises political direction
of the Liquidation Section, which operates as an integral part of the Embassy.

(2) USCINCEUR, in close coordination with the Embassy, exer-
cises general guidance in the development of policies and standards, insuring
effective integration of State and Defense Department interests in relocation
matters.

(3) CINCUSAREUR exercises day-to-day supervision of MLS
operations in coordination with Amemb, Paris, in support of USCINCEUR/
Embassy policy. This includes:

(a) Review, evaluation and coordination of all action in areas
of administration, personnel support, financial support and operations.

ED 6.0-17

(b) Provision of procedural guidance for the execution of the Liquidation Section mission:

1. In areas not presently covered by uni-service publications. 2. In areas in which current joint guidance requires amendment(s) to meet the unique circumstances of military relocation from France.

(4) Channels of communications: for uni-service matters, the channels of communication will be from the military department through the service component to the Liquidation Section and from the Liquidation Section through the service component to the military department.

d. Personnel and Phasing.

(1) Personnel manning of the Military Liquidation Section is on a joint basis, primarily utilizing current theater resources, and will be on an equitable share basis in accordance with the MLS workload. As the MLS workload decreases, personnel manning levels will be phased down accordingly.

(2) Assignment authority for personnel will derive from the JTD

currently being prepared.

8. Administration and Support.

a. Headquarters: The headquarters for the Liquidation Section is designated as Embassy Building "G", 5 Avenue Gabriel, PARIS 8eme, France.

b. Administrative Support: The Embassy will provide on a reimbursable basis, initially from CINCUSAREUR and eventually from the Department of the Army, to the extent practicable, administrative and logistic support for the Liquidation Section. Logistic support will flow through Embassy-managed channels upon termination of military support facilities in the Paris area. These arrangements and basis for reimbursement will be made the subject of a support agreement between appropriate Department of Defense and State Department authorities.

c. Personnel Funding and Services.

(1) Pay, Allowances and PCS travel costs of military personnel assigned to the Liquidation Section will be borne by the respective military departments.