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Agreed Record of Meetin g Held Between American and Danish

Representatives July 9 and 10 in Copenhagen on Contracts and

Labor Used in Work on D efense Areas in Greenlan

Prom the 9th-lith July discussions have taken place in

Copenhagen between representatives of the Danish and of the

United States Governments (see Annex) o.n questions relating

to the participation by Danish enterprises and labor in work

on defense areas in Greenland. As a result of the dis-

cussions agreement was reached on the folidwing:

1. With regard to participation in work on defense areas

in Greenland, Danish enterprises shall in every respect as

in the past enjoy treatment no less favorable than that

accorded to American concerns. The American Representatives

again reiterated their intention to use Danish labor and

contractors to the maximum extent possible. As regards the

use of material, reference is made to the Departmeit of States

note of August 22, 1951, addressed to the Ambassador of Denmark,

which states in part, "It is the genrá1 polièy in carrying

out military projects in areas not under sovereignty of the

United States to utilize local contractors, labor and materials

to the greatest extent practicable and consistent with other

considerations. .

2. Construction, Operation and Maintenance contracts for works

in the defense areas in. Greenland will in future only be

awarded to Danish and American enterprises. The following

exceptions will apply:

a) In the rare cases where employment of a third part

contractor for work in Greenland is considered desirable,

the American forces will employ such third country contractor

only after prior consultation and agreement with the Danish

Government.

h) The employment of third country contractors for

emergency cases. The Danish authorities will be notified

concurrent with the emergency or in any event as soon as

possible.

The problem of small maintenance contracts mentioned in

the American note of May 4 was discussed.

It was noted that these contracts have since been

awarded to DAC for the current year.

mci 1

GREENLAND

AFFAIRS

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3. The American representatives reiterated their full agree-

ment with the principle of employment of only American or

Danish labor.

The following exception shall apply:

Employment of third country labor for emergency only.

The Danish authorities will be notified concurrent with the

emergency, and in any, event as promptly as possible.

It was pointed out that at neither Thule nor

Sondrestromfjord was third country labor employed, and even

though at present at arsarssuak, approximately 170 non-

clerical third country workers are employed, the principle

of employment of only American and Danish labor is fully

recognized.

4. The•Danish.position as to the use of American or Danish

labor hired to carry out maintenance and operations was

:restated. NEAC. will endeavor toreplace third country labor

by Danish or American labor to the fullest extent possible.

It was agreed that the Danish position would be made known

to Commander NEAC with the view of overcoming the obstacles

previously hindering the employment of Danish labor. NEAC

representatives will discuss this subject on their semi-

annual visit to Copenhagen In SEptember 1956.

5. With regard to the procedure to be followed for the

awarding of contracts for work in Greenland the American

representatives explained that the normal procedure is to

call for proposals for negotiations and to select the lowest

responsible proposal with a view of negotiating a contract

at a price not exceeding the proposal received in the first

instance.

The American representatives assured the Danish

representatives that conditions of tender will as in the

past be clearly and exactly formulated, including stipulation

that only Danish and American labor may be employed.

The Danish representatives took note of this statement,

and it was agreed that if it was felt that the nature of the

conditions was such as to place Dnish enterprises at a handi-

cap, consultation should take place between the contracting

officers and contractors with a view of ensuring that

proposals be submitted on an equal basis.

GREENLAND

AFFAIRS

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With particular reference to the procedure set out

above, the Danish representatives seated that broader con-

siderations of a general nature made it essential that full

recognition be given to the special Danish interest in the

observance of the principles contained in numbered para-.

graph 1. The American representatives took note of this

statement.

6. In the case of contracts concluded without a preceding

call for proposals, Danish enterprises shall be given con-

sideration in accordance with the principles stated in

numbered paragraph 1 above. If, however, the American

authorities deem it desirable to use an American enter-

-• prise, the Danish authorities shall be informed of the

considerations leading to he awardof such contract.

7. The two countries are prepared to discuss any'uestions

which may arise in connect ion with the provisions outlined

above.

Copenhagen, July 11th, 1956

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GREENLAND

AFFAIRS

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