Amoco Corporation (Formerly Standard Oil Company (Indiana) and Affiliated Corporations - Page 30

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          order of several hundred million dollars annually in the near               
          future" and that the "ultimate result will be determined by                 
          negotiation."                                                               
               In late September 1980, Amoco sent a team to the ARE to                
          negotiate the changes to the MCA contemplated by the favorable              
          IRS ruling.  In an internal meeting with Amoco Egypt, Glen Taylor           
          of Amoco Egypt expressed concern that the proposed amendments had           
          deleted the provision "which allowed EGPC to 'deduct' from its              
          own tax liability all royalties which it pays to the Government             
          and Amoco [Egypt]'s Egyptian income taxes paid by EGPC on Amoco             
          [Egypt]'s behalf."  Amoco's U.S. representatives understood the             
          MCA to allow only a deduction from income.                                  
               At a meeting on September 28, 1980, Hilal, Minister of                 
          Petroleum, informed Amoco that he would be announcing the                   
          departure of Leithy as EGPC chairman.  Hilal also confirmed                 
          EGPC's willingness to amend the MCA, provided he could assure the           
          parliament that the ARE would never be any worse off under the              
          amended agreement.  Leithy left EGPC because of political                   
          differences with Hilal on how to run EGPC.                                  
               With regard to negotiating the amendment of the MCA, the               
          lead EGPC negotiator was Hamed Kaptan, an auditor.  Mansour, the            
          EGPC staff attorney, was also involved.  Rausch was the lead                
          negotiator for Amoco until August 1981, and Koepke was the lead             
          negotiator from August 1981 until the amendments were concluded             






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