RESTRICTED
(SRN 1/4/1)
Dear Butterfield,
N.S. "SAVANNAH"
Meli
FOREIGN OFFICE,
LONDON, S.W.1.
17 May, 1967.
5/8/
Jef
Visit to Hong Kong
In your letter of 15 May to Mr. Berman you gave your views on the draft Note extending and amending the 1964 agreement.
2.
We agree with the point you make in paragraph 2 that the State Department's insertion in the fourth paragraph of the Note ("against FAST or other private operator") should not be accepted, since it pre-supposes that FAST will have taken full responsibility. I enclose a copy of a new draft, and have underlined two insertions we should like in this paragraph.
3. The State Department amendment to paragraph 5 would require an extra article in the Agreement, and this would complicate matters. The amendment demonstrates American concern to remove private operators from government responsibility. This is inappropriate since we must retain right of ultimate recourse to governments in matters of nuclear liability. We should prefer the two underlined insertions.in paragraph 5.
4. The American Embassy has said that the Note should contain provision for termination with two or three months notice, as opposed to the six months of the main Agreement. This poses no difficulties.
5. I also enclose a copy of a draft letter which FAST could send to H.M. Ambassador in Washington.
5. There is a.further question on which I should be grateful for your and Mr. Noble's opinion. The present draft contains provision for both extension and amendment. In the event of further visits by "Savannah" or other nuclear ships under private operators to ports in Dependent Territories, we should have to provide again for the amendments. This would not be necessary if in the present case, two separate notes are exchanged, one on the extension and the other on the amendments. My own inclination is to use the
C. H. Butterfield, Esq., COMMONWEALTH OFFICE. .
93
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