Monday, 20 July 2020

Christie Negotiations

"Discussion between comrade Khalepskiy and Mr. Christie in comrade Petrov's office on April 18th, 1930 at 3 pm.

Christie: We had a board of directors meeting and the following proposal was arrived at: $15,000 monthly over the course of 4 months for the sale of 2 tractors worth $60,000

Khalepskiy: I consider that the price of $60,000 is high. I propose $50,000 with the following conditions of payment: 10% on signing, 15% after the materials are produced, 25% after assembly is finished, and 50% after trials and acceptance.

Christie: Due to the expenses associated with the start of production, we need 25% of the price in advance to pay for blueprints and other production costs. As a rule, even the American government pays 25% and then 75% over the course of the delivery process, with the final 25% of it only awarded at the very end (shows contract with American government). I can show you the contract with Poland (shows the part of the contract with the price and conditions of payment. Conditions: $30,000 per tractor, $10,000 of which is paid up front, $10,000 paid at 60% completion, and $10,000 after trials). In any case, all materials necessary for the production of the vehicles will be ready in two weeks.

Khalepiskiy: If your materials will be ready at the factory in two weeks, then I propose the following conditions: 25% up front, 25% during assembly, 50% after trials and acceptance.

Christie: Agreed.

Khalepskiy: When we sign and pay 25% you will need to provide us with an official written permission from Washington to allow the vehicles to be exported.

Christie: As a rule, no permission is needed, since I have one universal permit from the government to export my vehicles to Europe, I consider that sufficient to export to the USSR. If you insist, I ask you to write a small letter with a request for such a permit, tomorrow I will be in Washington where I can get it for you.

Khalepskiy: What are the timelines for the two tractors?

Christie: 4 months.

Khalepskiy: Our representative will have to be present at the factory during assembly.

Christie: Any time, except when the Polish representative is present.

Khalepskiy: What is the conclusion regarding technical assistance?

Christie: We have plenty of time to negotiate while the tractors are built. The price is already established (shows a contract with Poland paying $90,000, $40,000 in cash on December 31st, 1930, $25,000 after 4 months, and $25,000 after 8 months).

Khalepskiy: What is your definition of technical aid?

Christie: On Monday I will bring you the specifications of technical aid offered to Poland. In addition, I understand that you need not just the overall blueprints, but the copy paper with detailed blueprints and other blueprints, as well as the copies of the blueprints with the changes we made to the Liberty engine.

Khalepskiy: You understand, of course, that we are not about to pay more than others pay!

Christie: It was a mistake to show you the agreement, I must say that I cannot write $90,000 in the agreement with you and I will have to write $100,000 on the contract and give you a separate $10,000 credit, as the board of directors decreed that $90,000 is a special price for Poland as a first customer. Additionally, Poland asked to not sell these vehicles to you at all.

Khalepskiy: My government gave me a limit, and I ask Mr. Christie to talk to his board to drive the price down and give more favourable credit terms.

Christie: The price is final and not up for discussion. I must warn you that if you do not make an order by May 8th, I may have to decline your offer as that is when an order for Japan is expected to come in.

Khalepskiy: Then perhaps it will be acceptable to agree to $90,000 from us under the following terms: $40,000 in cash, $25,000 in a year, and $25,000 in two years.

Christie: Agreed.

Khalepskiy: Will you be able to travel for some time in order to set up production and consult?

Christie: Naturally, this is necessary, and I agree to spend 6 weeks in your country as a consultant. If my health prevents me from coming, I will send my chief engineer, Mr. Andersen. Tomorrow I will travel to Washington, I ask you to give me the letter of which we spoke.

A letter with the aforementioned content was typed up, signed by comrade Gobar, and given to Mr. Christie.
The next meeting with Christie is scheduled for Monday, April 21st, 1:30 pm.

Approved [Signature]
New York"

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