Document NGzVM9mXXameE70mmVzJmR5kp

J_. A. Alley - B2SD_______________________________________ January 12, 1977 . " Final PCB Fluid Orders D. Wood B2SD 1. Recommendation. This is,< recommend a cover letter to go with acknowledgements on final orders to our customers. Attached is a draft of the letter with a blank acknowledge ment form and a form that is completed. Basically, the letter states that we consider the order firm and not subject to cancellation. . 2. Background. - a) Monsanto is vulnerable to manufacturing orders for customers and then having them cancelled before they are shipped. This could result in substantial costs to Monsanto for raw materials, manufacturing, and inciner ation. b) We plan to handle return of rail car planning through separate correspondence and discussions with our customers. c) Alternatives considered and reasons for rejection: 1. Take or pay agreements - Bob Potter has already stated that he prefers not to use this approach. 2. Liquidated damage; contracts - Rejected because it would require considerable time for legal processing by Monsanto and our customers. Our customers would EX P-3217 Page 1 of 2 00939^*1 PCB-ARCH0750037 D. Wood -2- January 12, 1977 find this approach distasteful, thus impairing our efforts to exit this business while maintaining good relations and acting in a responsible manner. I am certain that we would receive considerable verbal "flak from our customers, i.e., "after all of these years Monsanto doesn't trust us t6 place an order in good faith and with good intentions". 3. Action requested To proceed with a cover letter along the lines of the attachment. tmc Enclosure 00939*5 EX P-3217 Page 2 of 2 PCB-ARCH0750038