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"TO WHOM IT MAY CONCERN", Clark confirmed that Diesel Power was
its authorized sole distributor in Iran. In certain respects,
this representation is supported by Diesel Power's considerable
contact with Clark. Diesel Power provided quotes for Clark
equipment to local companies and, in one instance, asked a Clark
representative to travel to Iran about an order. In November
1974, Mr. Ott, of Clark, sent a letter to Mr. Khalatbari
restating some of the main problems that Diana Zand had mentioned
during his recent visit to Teheran. One of these problems Mr.
Ott mentioned involved tax issues:
The accrual of commissions in the manufacturing country
might be subject to taxation if the governmental tax
authorities have the last word in the pending negotiations.
However, a meeting of tax experts has been scheduled in
Strasbourg on 7 November 1974 for the purpose of working out
a satisfactory solution.
Diesel Power also notified a Clark German affiliate in 1975 of
the change in Diesel Power's organization from a partnership to a
"private joint stock company". Thereafter, when Clark grew
dissatisfied with the level of sales in Iran, Clark canceled the
1975 distributor agreement with Diesel Power. Both Mr.
Khalatbari and I.J. Zand wrote to Clark protesting the
cancellation and insisting that Diesel Power remain Clark's
authorized sole distributor in Iran. Despite these contacts with
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