J.J. Zand - Page 233

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          July 1970 to establish lines of credit with the Export-Import               
          Bank and GM in favor of the Iranian Government in connection with           
          the purchase of the 51 locomotives from GM.  In 1974 GM again               
          dealt with Diesel Power employees with regard to electrification            
          of certain sections of the railroad lines in Iran and the                   
          possibility of substituting a GM electric locomotive for a diesel           
          locomotive.                                                                 
               However, GM viewed petitioner as being the ultimate                    
          responsible person.  For example, a 1974 letter from GM to                  
          petitioner asks that petitioner confirm GM's understanding that             
          petitioner and Mr. Khalatbari had agreed to pay certain extra               
          expenses incurred in connection with negotiations leading to a              
          contract for the sale of locomotives for the Iranian State                  
          Railways.  On June 26, 1973, the Iranian State Railways sent a              
          letter to GM asking if Diesel Power was GM's representative for             
          transactions related to diesel electric locomotives and spare               
          parts.  A CTC employee responded to GM that "Mr. Zand does want             
          you to reply indicating Diesel Power Trading Company is not your            
          representative since, in fact, I believe Caspian (CTC) is the               
          authorized distributor."  Petitioner also responded personally              
          with the following suggested language to be used by GM in                   
          replying to the Iranian State Railways, "inasmuch as, in fact,              
          and in truth Diesel Power is neither your representative nor                
          distributor in Iran":                                                       





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