RJR Nabisco Inc. (Formerly R.J. Reynolds Industries, Inc.) and Consolidated Subsidiaries - Page 17

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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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