DEAR SIRS:

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP64B00346R000400040020-6
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 3
• Document Creation Date: December 20, 2016
• Document Release Date: September 20, 2007
• Sequence Number: 20
• Publication Date: November 19, 1958
• Content Type: LETTER

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DOE review
completed.
TAB
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 Approved For Release 2007/09/20: CIA-RDP64B00346R000400040020-6
STATES MARINE LINES
90 Broad Street, New York 4, N.Y.
November 19, 1956
Department of Commerce,
Maritime Administration,
Attention: Law Department Re: N.S. Savannah -_Agency Contract.
Washington, D.C.
United States Atomic Energy Commission,
Law Department,
Washington, D.C.
DOE review completed.
To each of you I am enclosing copy of "3d draft" of Service Agreement
for the operation of N.S. Savannah, which I have studied carefully and upon which
I have inserted notes and comments in pencil and typewriter. I believe that my
notes and comments are self-explanatory, but I wish to further bring to your atten-
tion two matters which require further consideration as follows:
Article 3 (a)
This has to do with our providing a qualified crew for training at our
own expense during the "construction stage". It is my understanding that only the
Engine Department crews are intended to be covered, but the language of this para-
graph as now drawn could indicate that we are required to train and pay salaries and
subsistence for Deck and Stewards Departments, etc. Reference to question 5 of the
Maritime Administration's communication of February 24, 1958 will show thatiNo
crews of Engine Department personnel only are intended to be covered by this oblig-
ation.
Also it seems to me that our obligation to support and train the Engin-
eering crew should have a more clear definition of what is meant by the "construction
stage". If the vessel should be delayed in completion beyond the contemplated period,
and the crews training should be completed in the meanwhile, would we be expected,
nevertheless, to keep them on our payroll and continue their subsistence. I realize
that it is difficult to draw a definite time limit, but for the reasons herein out-
lined, I think that further consideration should be given to the intent and wording
of this paragraph.
Article 6 - Insurance and Indemnification
I realize that Congress has set a ceiling of Five hundred million
dollars for indemnity of all public liabilities arising out of "nuclear incidents",
and it is my understanding that our public liability (if any should arise) could be
merely some share in such total fund. For example - if a "nuclear incident" should
arise in a foreign port, and the law of that country should be that we, as Agent
DOC REFERRAL NOT REQUIRED - On-file Instructions From DOC Apply.
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Page 2 November 19, 1958
Continued.
for the N.S. Savannah are liable for all consequences, would the indemnity provisions,
as now drafted, cover us fully? As the law stands at present I see no way out of the
difficulty, because neither the Atomic Energy Commission nor the Maritime Administra-
tion can alter the law. I think it should be understood, however, that the Government
will further explore the entire subject of Insurance and Indemnification. In this
connection I would refer you to the Legislative History of the law which Congress
passed to provide financial indemnification for "nuclear incident" (Public Law 85-256,
Amendment to Atomic Energy Act of 1944; Legislative History U.S. Code Congressional
and Administrative News 85th Congress 1st Session, 1957, Page 8, 10 et seq; Public
Law 85-602) relating to N.S. Savannah.
I think that my other notes and comments are self-explanatory. I shall
be glad to be at your'disposal at any time to come to Washington and confer with
you or be at your service in any other way I can to bring the agreement between
us into form for execution.
Yours very truly,
sgd. JOHN TILNEY CARPENTER
John Tilney Carpenter,
Vice President
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