TNAG-0024-FCO40-60-Visits-by-nuclear-powered-ships-1968 — Page 140

Ed (2829).

Mr. Hall

CONFIDENTIAL

Reference.

SRN 小

Copy of minutes in the visit.

of NS SAVANNAIT to Hong Kong

It seems to me quite reasonable to use the' American Draft Note for, the visit of Savanna, but first we shall have to look at the 1964 agreement and get Mr. Berman's advice; I have this in hand.

I spoke to Mr. Noble (Economic General Dept., C.0.) who said he ad asked the Hong Tong Govt. He will about the "feasiblity". of the visit, let me know.

(a) (b)

whether H.K. want the Lavannah.

whether the liability agreement 18 0.K., by H.K.

(interim)

In the meantime, I suggest we reply to the U.S. Embassy. Draft

Attached.

Mc. Berman (Asst. Legal Advisor).

(T. N.YOUNG)

In the light of the previous agreement (at GN 1018/92) can you give any first reactions to the American Draft Note enclosed with Mr. Lyons's letter? The main difference seems to be that now SAVANNAH 18 operating under a "bare boat charter" (whatever that is) and is not operating directly under the U.S. Governmen'.

:

I have many more relevantipp on the 1964 case.

Mr. Butterfield is dealing with the C.0.7 Legal aspects, but presumably the main ones are for the F.0. since the note exchange would be U.K./U.S.

IN Young

Mr. Young

My first res tions are as follows.

9.7

2. I don't follow the unsubstantial assertich in Mr. Lyons's letter that the 1964 agreement is now

in force, "dormant"-" by which he resumably means but not apply able to in which the SAVANNAH,

# There is no indicati is not Gover ment-operated".

- Perhaps this

do Furthermore

in the agreement itself that, it all hinges on Government operation of the vessel. was the implicit understanding at the time; the other 1964 papers reveal anything? the agreement or tinues to make sense in the new context in that it operates as a U.S.. Government guarantee, on the intentional plans, -(a), that certain safety rules will be complicith by the ship and (b) o pay compensat `n for loss or damag arising out of a nuclear incident involving the SAVANNAH.

/3. There is

•CONFIDENTI