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The French subsidiary also handled shipping and customs
clearance for paintings acquired in Europe for the U.S. art
galleries. Although a resident manager oversaw operations, all
major decisions concerning the French subsidiary were made by the
officers of WFGI.
The principal asset of the French subsidiary was a long-term
lease for the premises it used for its business. The premises
comprised a handsome 18th-century townhouse at 2, Avenue
Matignon, and space in the basement and first floor of an
adjoining building at 48, Avenue Gabriel. The leased property
was located in a prestigious district of the city and enjoyed
high security owing to the proximity of the French president's
residence. Although the stated term of the lease was 9 years,
owing to restrictions under French law on the landlord's ability
to withhold his consent to renewal, it was effectively renewable
indefinitely at the lessee's option. The rent was adjusted once
in every 3-year period, or trimester, according to a statutory
formula based on the cost of living. Presumably because of legal
restrictions on the rental market, the fair-rental value of
desirable commercial space in Paris tended substantially to
exceed the rent. Thus, to acquire its premium lease in 1969, the
French subsidiary paid the prior tenant FF 1,445,250, or $262,773
at the then-current exchange rate of 5.5 francs per U.S. dollar.
The French subsidiary made extensive renovations and structural
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Last modified: May 25, 2011