- 30 -
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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