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agreement. Petitioner signed the agreement as chairman of Diesel
Power. The agreement provided for Diesel Power to market
Harnischfeger construction equipment in Iran. In a letter of the
same date to petitioner, Harnischfeger proposed to amend certain
provisions of the distributor agreement. Petitioner accepted
these amendments on August 25, 1972. On May 24, 1976, a new
distributor agreement very similar to the 1972 agreement was
entered into between Harnischfeger and Diesel Power. Again,
petitioner signed the new agreement as chairman of Diesel Power.
From 1972 through 1976 there was considerable direct contact
between Diesel Power employees and Harnischfeger. I.J. Zand of
Diesel Power communicated directly with Harnischfeger concerning
price quotes and sales of Harnischfeger equipment. However, CTC
continued in its normal role of controlling the payment of
commissions by issuing the bills. In 1975 CTC employees
submitted a quotation for Harnischfeger equipment to a company in
the United States and contacted Harnischfeger concerning trade
fairs, where equipment would be displayed. Expressing
dissatisfaction with the sales and service coverage by Diesel
Power over the previous few years, Harnischfeger terminated the
1976 distributor agreement with Diesel Power by a letter
addressed to petitioner dated September 1976, pursuant to the 30-
day notification provision in the agreement. On at least four
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