XN000022-1976-02-12 — Page 3

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THURSDAY, FEBRUARY 12, 1976

THIS RESULTED IN IMCO ADOPTING THE FUND CONVENTION, WHICH HAS THE FOLLOWING AIMS:

(A)

TO PROVIDE COMPENSATION FOR OIL POLLUTION DAMAGE TO THE EXTENT THAT THE PROTECTION AFFORDED BY THE CIVIL LIABILITY CONVENTION IS INADEQUATE= AND

(B) TO GIVE RELIEF TO SHIPOWNERS IN RESPECT OF THE ADDITIONAL FINANCIAL BURDEN IMPOSED ON THEM BY THE CIVIL LIABILITY CONVENTION.

THE FUND CONVENTION IS OPEN ONLY TO PARTICIPANTS IN THE CIVIL LIABILITY CONVENTION.

UNDER THIS CONVENTION, OIL IMPORTERS IN MEMBER STATES

WHO RECEIVE NOT LESS THAN 150,000 TONS OF CRUDE AND HEAVY OILS BY SEA IN A PARTICULAR YEAR MUST CONTRIBUTE TO A FUND ADMINISTERED BY IMCO. CONTRIBUTIONS WILL BE APPROXIMATELY 20 CENTS PER TON.

IN RETURN, VICTIMS OF OIL POLLUTION DAMAGE ARE ABLE TO RECOVER UP TO 450 MILLION FRANCS IN AGGREGATE UNDER THE FUND CONVENTION AND THE CIVIL LIABILITY CONVENTION FOR ANY SINGLE INCIDENT (12.3 MILLION POUNDS STERLING AT THE OLD FIXED PARITY).

THE FUND ALSO PROVIDES SOME RELIEF TO THE SHIPOWNER,

BY INDEMNIFYING HIM AND HIS GUARANTOR FOR THAT PORTION OF HIS AGGREGATE LIABILITY UNDER THE CIVIL LIABILITY CONVENTION WHICH IS IN EXCESS OF 125 MILLION FRANCS.

IN ADDITION, THE FUND CONVENTION PROVIDES FOR COMPENSATION IN CASE OF CERTAIN OIL POLLUTION INCIDENTS NOT COVERED BY THE CIVIL LIABILITY CONVENTION.

THESE INCLUDE ACTS OF GOD, INTENTIONAL ACTS OF THIRD PARTIES AND THE NEGLIGENT OR WRONGFUL ACTS OF AUTHORITIES RESPONSIBLE FOR MAINTAINING NAVIGATIONAL AIDS.

THE ONLY CIRCUMSTANCES IN WHICH THE FUND CONVENTION WILL NOT APPLY, ONCE IT IS PROVED THAT THE DAMAGE WAS CAUSED BY A SHIP CARRYING BULK OIL AS CARGO, ARE WHERE THE SHIP WAS A WARSHIP OR OTHER GOVERNMENT-OWNED VESSEL OPERATING IN A NON-COMMERCIAL CAPACITY, OR WHERE THE SPILLAGE WAS CAUSED BY AN ACT OF WAR.

NOTE TO EDITORS:

WHEN +FRANCS+ ARE MENTIONED, IT REFERS TO GOLD FRANCS EACH OF WHICH IS TAKEN AS A UNIT OF 65-1/2 MILLIGRAMS OF GOLD OF MILLESI MAL FINENESS 900.

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