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RAD
Your reference: HKK 10/8 Our reference: EL/153/093
Dear Gaminara,
BOARD OF TRADE
CIVIL AVIATION
Shell Mex House, Strand, London W.C.2
Telex: 22110/22119 Telegrams: Civilair, London, Telex
Telephone: 01-836 1207, ext. 272
The Requisition of Ships Order 1955.
Thank you for your letter of 12 August 1969.
2 August 1969
The reasons advanced in 1955 for not extending the Order to cover the requisition of aircraft still remain valid and we can see no reason. 1 dissent from the views expressed at that time when the relative merits of requisitioning and chartering were considered.
are
17
As regards the point you raise concerning the possibility that aircraft owners might feel themselves to be at a disadvantage in matters of insurance if ships are requisitioned but aircraft are provided by arrangement, we inclined to discount this prospect. After all if a transport (sea or air) is requisitioned the owners lose effective control and have no say either in its destination, its routeing, or the use to which it is put. Against this the owner of a transport (sea or air) offered for charter is able to accept or decline a charter according to his commercial judgement and can quote a rate of hire which takes into account the premium called for from his under- writers to insure the transport for the charter in question. In the event that the insurance premium was so high that the charterer was unable or unwilling to pay the quoted charter rate it would then be for consideration whether the charterer should accept the liability to cover the transport owner by the insertion of a suitable clause in the hire contract indemnifying the owner against all loss or damage by third parties.
I believe that an indemnifying clause on these lines was considered by the Contracts Branch of Ministry of Defence at the time of the evacuation of Aden when it seemed likely that British United Airways underwriters would raise the company's insurance premium to unacceptable heights by the addition of a large supplement to cover war risk. In the event I understand that the supplement was not as much as was feared and the BUA charter flights were operated throughout on a standard contract basis.
A. W. Gaminara, Esq.
Hong Kong Department
Foreign & Commonwealth Office
London, S.W.1
LAST
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Your sincerely
D. 7. lile
D. F. RILEY
той четве Allsais
Cohie's sent to
J. blastin, BOT. RAR. & A.R Mixten moi?
K.271
SECRET
20
8.69
22/8
RECEIVED IN REGISTRY No.51
20 AUG 1969
HKK 10/9
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