The_Open_Door_deel1

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depreciation of (capital) equipment (investments) as well.
Obviously, the deduction of both debt amortization and
depreciation resulted in double-counting as these loans had been
used for the acquisition of capital goods which subsequently
were depreciated every year. This certainly was not in accordance
with generally accepted accounting principles as specified in
Section 11 of the 1960 Concession Agreement.
TABLE 12
THE FINANCING OF LAMCO'S PARTICIPATION
IN THE LAMCO JOINT VENTURE
(in thousands of U.S. dollars)
LAMCO's Class B Shares $ 1,000
(paid and held by L.1.0.)
"Entrance Fee" paid by Bethlehem Steel 4,500
Advances made prior to 1960 by I.A.A.C 10.250
and the Swedish LAMCO Syndicate
("Capital Obligation to L.1.0.")
The Swedish LAMCO Syndicate (25 Year 38,000
Subordinated Debentures at 6.25?)
Kreditanstalt fur Wiederaufbau (20 Year 52,112
First Lien Collateral Bonds at
6.75?); DM 208,450,000
Export-Import Bank (20 Year First Lien 30,000
Collateral Bonds at 5.75?)
First National City Bank of New York 5,700
(15 Year Secured Notes at 6? due 1967)
LAMCO contribution through sale of ore 10,590
(1963 and 1964) _____
GRAND TOTAL $ 152,152
Source;
- Tarpeh: 1978, p.190