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MCA. The MCA provisions relating to EGPC's payment of Amoco
Egypt's taxes, including Article IV(f)(6), would be deleted.
Chiati advised Amoco that it would not be an easy matter to
pass through the People's Assembly the various amendments to the
laws required by Amoco's approach.
Amoco wanted to apply its approach to all other contractors.
However, on the assumption that this perhaps would not be
feasible, Amoco considered the consequences of only Amoco Egypt's
renouncing the MCA provisions and subjecting itself to the
general tax laws.
In September 1978, Amoco representatives met with Leithy,
the EGPC chairman, and then with Hilal, the Minister of
Petroleum, to advise them of the Indonesian rulings and the need
to amend Amoco's production sharing agreements in the ARE. Leithy
and Hilal indicated a willingness to discuss the matter further
when Amoco had a specific proposal to make.
Amoco assembled a group to develop specific proposals for
restructuring the agreements and to draft the necessary
documents. This group included Rosshirt, Jim Flaherty, an Amoco
tax attorney, Charles K. Koepke, the Administrative and Economics
Manager for the Middle East region, Richard Rausch, head of
Amoco's Planning and Economics Group, and Chiati, an Egyptian
attorney and adviser on Egyptian law. Also, Amoco retained Carl
A. Nordberg, as outside tax counsel, to advise the company on the
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