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With respect to Aminoil’s claims for recompense for its
assets, Kuwait argued that the only proper measure of
compensation for any of Aminoil’s assets was book value.
Kuwait’s position reflected the stated policy of OPEC that
compensation to Western oil companies should be based exclusively
on book value and that any other basis for compensation,
including, in particular, any measure of lost profits, should be
refused. The parties submitted a joint report to the tribunal
(the joint report) that showed unagreed amounts for book values
as follows:
Aminoil’s Kuwait’s
Position Position
Assets (in thousands) (in thousands)
Fixed assets $10,619 $8,610
Other assets 31,857 28,075
Total $42,476 $36,685
5. Rate of Interest; Inflation
With respect to the interest that was to be determined by
the tribunal, only Aminoil suggested any specific rates of
interest. Kuwait proposed only that the interest rate be an
“appropriate rate”. Aminoil suggested the following rates of
interest:
1973 7.90%
1974 8.43%
1975 7.21%
1976 5.23%
1977 7.39%
1978 11.16%
1979 13.17%
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