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The original documents are located in Box 14, folder "1974/12/06 SJR248 Compensation
for Nuclear Powered Warship Accidents" of the White House Records Office: Legislation
Case Files at the Gerald R. Ford Presidential Library.
Copyright Notice
The copyright law of the United States (Title 17, United States Code) governs the making of
photocopies or other reproductions of copyrighted material. Gerald R. Ford donated to the United
States of America his copyrights in all of his unpublished writings in National Archives collections.
Works prepared by U.S. Government employees as part of their official duties are in the public
domain. The copyrights to materials written by other individuals or organizations are presumed to
remain with them. If you think any of the information displayed in the PDF is subject to a valid
copyright claim, please contact the Gerald R. Ford Presidential Library.
Exact duplicates within this folder were not digitized.
Digitized from Box 14 of the White House Records Office Legislation Case Files at the Gerald R. Ford Presidential Library
APPROVED DEC-6 1974
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
DEC 2 1974
posted
12/7
MEMORANDUM FOR THE PRESIDENT
Toarching To 12/9
Subject: Enrolled Resolution S.J. Res. 248 - Compensation
for nuclear-powered warship accidents
Sponsor - Sen. Pastore (D) Rhode Island
Last Day for Action
December 7, 1974 - Saturday
Purpose
Would establish procedures for compensation for damages in
foreign countries caused by nuclear incidents involving the
nuclear reactor of a United States warship and thus facilitate
the entry of U.S. nuclear-powered warships into foreign ports.
Agency Recommendations
Office of Management and Budget
Approval
Department of Defense
Approval
Department of State
Approval
Atomic Energy Commission
Approval
Discussion
The Department of the Navy uses nuclear-powered reactors for
propulsion of a number of warships. Concern over liability
in the event of a reactor incident has caused several nations
to restrict access of these ships to their ports. Navy staff
has informally advised us that Australia, France, New Zealand,
Spain and Turkey currently deny entry to some, if not all,
U.S. nuclear-powered warships. The Navy believes that this
resolution would greatly assist their efforts in obtaining
approval for future entry into some ports currently denied to
them.
Legislation was originally introduced by Rep. Hosmer as H.J.
Res. 1089. Defense proposed several language changes in its
FORD LIBRA
2
report to the Joint Committee on Atomic Energy (JCAE) and
stated that with those changes the bill would be consistent
with the Administration's program. S.J. Res. 248 incorporates
all of the changes recommended in Navy's report.
The bill would:
-- establish the policy that the U.S. will pay
for bodily injury or death or damage or loss
to real or personal property resulting from
incidents involving reactors on U.S. warships,
unless the loss results from armed hostilities
or civil insurrection, and
-- authorize the President to pay these claims or
judgments from any contingency funds available
to the Government or by certifying them to
Congress for appropriation of the necessary
funds.
The JCAE's report states that the resolution contemplates suf-
ficient flexibility in the President and Defense to set certain
conditions on claims settlement, including:
-- designation of the Secretary of the Navy as
administrator of any claims
-- provision for a statute of limitations on sub-
mission of claims
-- exclusion of claims for damages which were
intentionally caused, and
-- exclusion of claims not directly involving
nuclear damage; e.g., collision of a nuclear-
powered warship with no resultant nuclear incident.
From the beginning of the commercial nuclear power program, the
Congress has recognized the need for liability provisions as a
prerequisite to national acceptance of the new power reactors.
The principle of strict or absolute liability for commercial
reactor accidents is incorporated in the Atomic Energy Act.
This was extended to the NS Savannah, our first nuclear-powered
merchant ship and was instrumental in achieving its entry into
foreign ports. In this connection, the JCAE's report states:
"The U.S. has clearly adopted a standard practice for reactor
accident liability in every area except nuclear-powered warships."
3
In its views letter on the enrolled bill, State comments:
"The Department of State has been conducting
negotiations with a number of foreign govern-
ments, in recent years, concerning the question
of visits by US nuclear powered warships to
foreign ports. The reluctance of some countries
to grant entry by our nuclear powered ships has
been caused in part by our inability to provide
what some governments regard as adequate assurances
for liability and indemnification. We believe that
approval of S.J. Res. 248 would provide us with
additional negotiating flexibility which would be
helpful in resolving this issue."
In its views letter, Defense states:
"This resolution would greatly assist the Navy in
obtaining nuclear powered warship entry into many
ports currently denied the United States."
Assistant Director for
Legislative Reference
Enclosures
THE WHITE HOUSE
ACTION
Last Day: December 7
WASHINGTON
December 4, 1974
MEMORANDUM FOR
THE PRESIDENT
FROM:
KEN COLE
C
SUBJECT:
Enrolled Resolution S.J. Res. 248
Compensation for Nuclear-powered
Warship Accidents
Attached for your consideration is Enrolled Resolution
S.J. Res. 248, sponsored by Senator Pastore, which
would establish procedures for compensation for damages
in foreign countries caused by nuclear incidents involving
the nuclear reactor of a United States warship and thus
facilitate the entry of U.S. nuclear-powered warships
into foreign ports.
OMB recommends approval and provides you with additional
background information in its enrolled bill report (Tab A).
Phil Areeda, Bill Timmons and the NSC all recommend approval.
RECOMMENDATION
That you sign S.J. Res. 248 (Tab B).
DEPARTMENT (if DEFINST DE
DEPARTMENT OF THE NAVY
OFFICE OF THE SECRETARY
WASHINGTON, D. C. 20350
2 December 1974
STATE E
Dear Mr. Ash:
Your transmittal sheet dated 26 November 1974, enclosing a facsimile of
an enrolled bill of Congress, S. J. Res. 248, "Assuring compensation for
damages caused by nuclear incidents involving United States nuclear
powered warships," and requesting comment of the Department of Defense,
has been received. The Department of the Navy has been assigned the
responsibility for the preparation of a report thereon expressing the
views of the Department of Defense.
This resolution, as the title indicates, creates a new and separate settle-
ment authority, pursuant to which U.S. warship nuclear reactor related
claims could be paid out of contingency funds or by special appropriation
in accordance with procedures, and subject to conditions to be promulgated
by the President. This resolution would greatly assist the Navy in obtain-
ing nuclear powered warship entry into many ports currently denied the
United States.
The Department of the Navy, on behalf of the Department of Defense,
recommends approval of S. J. Res. 248.
Sincerely yours,
Jhrlliam
J. William Middendorf II
Secretary of the Navy
Honorable Roy L. Ash
Director, Office of Management and Budget
Washington, D. C. 20503
DEPARTMENT OF STATE
Washington, D.C. 20520
NOV 27 1974
Honorable Roy L. Ash
Director
Office of Management and Budget
Washington, D.C.
Dear Mr. Ash:
Mr. Rommel, in his memorandum of November 26, has requested
the Department's views and recommendations on S. J. 248.
This resolution, introduced by Congressman Craig Hosmer
and which recently passed in the Congress, concerns the
liability of US nuclear powered warships. If approved,
S. J. 248 would provide assurance to foreign countries
that it is the policy of the United States to pay claims
or judgments for damages or losses proven to be the result
of a nuclear incident involving the nuclear reactor of a
US warship.
The Department of State has been conducting negotiations
with a number of foreign governments, in recent years,
concerning the question of visits by US nuclear powered
warships to foreign ports. The reluctance of some
countries to grant entry by our nuclear powered ships has
been caused in part by our inability to provide what some
governments regard as adequate assurances for liability
and indemnification. We believe that approval of S. J.
248 would provide us with additional negotiating flexibi-
lity which would be helpful in resolving this issue.
Since these visits are becoming more and more important
as our nuclear fleet is increased, the Department of State
supports S. J. Res. 248.
Linwood Holton Holton
Assistant Secretary
for Congressional Relations
ATOMI ENERGY COMMISSION
UNITED STATES
ATOMIC ENERGY COMMISSION
WASHINGTON, D.C. 20545
UNITED STATES OF
NOV 29 1974
Mr. Wilfred H. Rommel
Assistant Director for
Legislative Reference
Attn: Mrs. Louise Garziglia
Legislative Reference Division
Office of Management and Budget
Dear Mr. Rommel:
The Atomic Energy Commission is pleased to respond to your
request for its views and recommendations on Enrolled
S.J. RES. 248, "[A]ssuring compensation for damages caused
by nuclear incidents involving the nuclear reactor of a
United States warship."
The Atomic Energy Commission recommends that the President
sign the enrolled resolution.
The purpose of this resolution is to create a new and separate
authority, pursuant to which U. S. warship nuclear reactor
related claims could be paid out of Department of Defense
contingency funds or by special appropriation in accordance
with procedures, and subject to conditions, to be promulgated
by the President. While we would defer on the merits to the
Navy as the primary interest agency, it would appear that
this proposed legislation would facilitate the entry into
foreign ports of U. S. nuclear powered warships.
Sincerely,
Chairman
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
Drawn Hudrida
WASHINGTON, D.C. 20503
DEC 2 1974
12- 2:10pm.
MEMORANDUM FOR THE PRESIDENT
Subject: Enrolled Resolution S.J. Res. 248 - Compensation
for nuclear-powered warship accidents
Sponsor - Sen. Pastore (D) Rhode Island
Last Day for Action
December 7, 1974 - Saturday
Purpose
Would establish procedures for compensation for damages in
foreign countries caused by nuclear incidents involving the
nuclear reactor of a United States warship and thus facilitate
the entry of U.S. nuclear-powered warships into foreign ports.
Agency Recommendations
Office of Management and Budget
Approval
Department of Defense
Approval
Department of State
Approval
Atomic Energy Commission
Approval
Discussion
The Department of the Navy uses nuclear-powered reactors for
propulsion of a number of warships. Concern over liability
in the event of a reactor incident has caused several nations
to restrict access of these ships to their ports. Navy staff
has informally advised us that Australia, France, New Zealand,
Spain and Turkey currently deny entry to some, if not all,
U.S. nuclear-powered warships. The Navy believes that this
resolution would greatly assist their efforts in obtaining
approval for future entry into some ports currently denied to
them.
Legislation was originally introduced by Rep. Hosmer as H.J.
Res. 1089. Defense proposed several language changes in its
THE WHITE HOUSE
ACTION MEMORANDUM
WASHINGTON
LOG NO.: 758
Date: December 2, 1974
Time: 6:00 p.m.
FOR ACTION: Mike Duval O.K.
cc (for information) Warren Hendriks
Bill Timmons O.K.
Jerry Jones
Phil Areeda no obj.
NSC/S
o.k. Huberman
FROM THE STAFF SECRETARY
DUE: Date: December 4, 1974
Time: 3:00 p.m.
SUBJECT:
Enrolled Resolution S.J. Res. 248
Compensation for nuclear-powered
warship accidents
ACTION REQUESTED:
For Necessary Action
For Your Recommendations
Prepare Agenda and Brief
Draft Reply
For Your Comments
Draft Remarks
REMARKS:
Please return to Judy Johnston, Ground Floor, West Wing
PLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED.
If you have any questions or if you anticipate a
delay in submitting the required material, please
K. R. COLE, JR.
telephone the Staff Secretary immediately.
For the President
THE WHITE HOUSE
ACTION MEMORANDUM
WASHINGTON,,
LOG NO.: 758
Date: December 2, 1974
Time: 6:00 p.m.
FOR ACTION: Mike Duval
CC (for information): Warren Hendriks
Bill Timmons
Jerry Jones
Phil Areeda
NSC/S
FROM THE STAFF SECRETARY
DUE: Date: December 4, 1974
Time: 3:00 p.m.
SUBJECT:
Enrolled Resolution S.J. Res. 248
Compensation for nuclear-powered
warship accidents
ACTION REQUESTED:
For Necessary Action
X
For Your Recommendations
Prepare Agenda and Brief
Draft Reply
X
For Your Comments
Draft Remarks
REMARKS:
Please return to Judy Johnston, Ground Floor, West Wing
OK Mahe Dural 12/3
PLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED.
If you have any questions or if you anticipate a
delay in submitting the required material, please Warren K. Hendriks, Jr.
telephone the Staff Secretary immediately.
For the President
THE WHITE HOUSE
WASHINGTON
December 4, 1974
MEMORANDUM FOR: MR. WARREN HENDRIKS
FROM:
WILLIAM E. TIMMONS P
SUBJECT:
Action Memorandum - - Log No. 758
Enrolled Resolution S.J. Res. 248
Compensation for nuclear-powered
warship accidents
The Office of Legislative Affairs concurs in the attached
proposal and has no additional recommendations.
Attachment
THE WHITE HOUSE
CTION MEMORANDUM
WASHINGTON
LOG NO.: 758
Date: December 2, 1974
Time: 6:00 p.m.
FOR ACTION: Mike Duval
CC (for information): Warren Hendriks
Bill Timmons
Jerry Jones
Phil Areeda
NSC/S
FROM THE STAFF SECRETARY
DUE: Date: December 4, 1974
Time: 3:00 p.m.
SUBJECT:
Enrolled Resolution S.J. Res. 248
Compensation for nuclear-powered
warship accidents
ACTION REQUESTED:
For Necessary Action
X
For Your Recommendations
Prepare Agenda and Brief
Draft Reply
x
For Your Comments
Draft Remarks
REMARKS:
Please return to Judy Johnston, Ground Floor, West Wing
No objection
P.Aued P.
PLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED.
If you have any questions or if you anticipate a
delay in submitting the required material, please Warren K. Hendriks, Jr.
telephone the Staff Secretary immediately.
For the President
Calendar No. 1216
93d Congress
2d Session
}
{
REPORT
SENATE
No. 93-1281
TO FACILITATE THE ENTRY INTO
FOREIGN PORTS OF UNITED STATES
NUCLEAR WARSHIPS
REPORT
BY THE
JOINT COMMITTEE ON ATOMIC ENERGY
[To accompany S.J. Res. 248]
OCTOBER 16, 1974.-Ordered to be printed
U.S. GOVERNMENT PRINTING OFFICE
38-010 0
WASHINGTON : 1974
CONTENTS
JOINT COMMITTEE ON ATOMIC ENERGY
Page
Background
1
MELVIN PRICE, Illinois, Chairman
Need for resolution
2
JOHN O. PASTORE, Rhode Island, Vice Chairman
Analysis of proposed resolution
3
CHET HOLIFIELD, California
HENRY M. JACKSON, Washington
Source of funds
5
JOHN YOUNG, Texas
STUART SYMINGTON, Missouri
Cost of legislation
5
TENO RONCALIO, Wyoming
ALAN BIBLE, Nevada
Appendix A: Department of Defense letter of September 4, 1974
7
MIKE McCORMACK, Washington
JOSEPH M. MONTOYA, New Mexico
Appendix B: Department of State letter of September 17, 1974
8
CRAIG HOSMER, California
GEORGE D. AIKEN, Vermont
JOHN B. ANDERSON, Illinois
WALLACE F. BENNETT, Utah
(III)
ORVAL HANSEN, Idaho
PETER H. DOMINICK, Colorado
MANUEL LUJAN, JR., New Mexico
HOWARD H. BAKER, JR., Tennessee
EDWARD J. BAUSER, Executive Director
GEORGE F. MURPHY, Jr., Deputy Director
JAMES B. GRAHAM, Assistant Director
NORMAN P. KLUG, Technical Consultant
Col. SEYMOUR SHWILLER, USAF (Ret.), Technical Consultant
ALBION W. KNIGHT, Jr., Professional Staff Member
RANDALL C. STEPHENS, Assistant Staff Counsel
WILLIAM J. MINSCH, Jr., Special Counsel
CHRISTOPHER C. O'MALLEY, Printing Editor
(II)
93D CONGRESS
SENATE
REPORT
2d Session
No. 93-1281
TO FACILITATE THE ENTRY INTO FOREIGN PORTS OF
UNITED STATES NUCLEAR WARSHIPS
OCTOBER 16, 1974.-Ordered to be printed
Mr. PASTORE, from the Joint Committee on Atomic Energy,
submitted the following
REPORT
[To accompany S.J. Res. 248]
The Joint Committee on Atomic Energy, having considered S.J.
Res. 248, a resolution to clarify congressional intent relative to the
assumption of liability in the event of any reactor incident involving
a United States nuclear warship propulsion reactor in a foreign
port, hereby report without amendment the resolution and recom-
mend that the resolution do pass.
BACKGROUND
The Joint Committee has received testimony at various times
concerning restrictions on entry of U.S. nuclear warships into ports of
foreign countries. Concerns over liability in the event of a reactor
accident have been offered by some nations, as a reason for restricting
access to their ports. Hearings on this matter were held on June 14,
1972, at which time testimony was received from the following
individuals:
Admiral Elmo R. Zumwalt, Chief of Naval Operations;
Hon. U. Alexis Johnson, Under Secretary of State for Political
Affairs;
Admiral Hyman G. Rickover, Deputy Commander for Nu-
clear Propulsion, Naval Warships Systems Command, Navy
Department; Director, Division of Naval Reactors, AEC; and
Mr. Benjamin Forman, Assistant General Counsel for Inter-
national Affairs, Department of Defense.
On July 16, 1974, Rep. Craig Hosmer filed a proposed joint resolu-
tion (H.J. Res. 1089) which was aimed at removing any question of
(1)
S.R. 1281
2
3
congressional intent relative to the assumption of liability in the event
simple solution. Certainly, the Joint Committee never intended to
of a reactor incident in a foreign port. The Joint Committee expressed
interpose any legal difficulties for the nuclear fleet, which carries such a
a desire to receive the views of the Departments of State and of
national security burden on behalf of this country and the free world.
Defense concerning this problem before proceeding on the resolution.
During the past decade, the nations of the world have begun to
By letter dated September 4, 1974, (see Appendix A) the Secretary
utilize nuclear-powered generating stations in ever increasing numbers.
of Defense expressed his Department's support of the resolution,
Following the lead of the United States, these countries have enacted
and suggested minor alterations in language. By letter dated Sep-
national legislation to stipulate the liability and indemnity arrange-
tember 17, 1974 (Appendix B) over signature of Ambassador-at-Large
ments which will assure prompt and adequate compensation for
McCloskey, the Department of State supplied its comments on the
nuclear damage in the event of a nuclear accident involving their
resolution. Finally, on September 26, 1974, in testimony before the
various nuclear facilities. Many of the laws extend the liability pro-
Joint Committee in executive session, Secretary of Defense Schles-
visions to include nuclear substances in transit and to nuclear ships,
inger and Dr. Dixy Lee Ray, Chairman, AEC, expressed their support
both merchant and warship, in the territorial waters or ports of the
of the resolution and termed it necessary and urgent.
country.
On October 9, 1974, "clean" resolutions, incorporating the DOD
The general standard of liability prescribed in the various national
recommendations, were introduced in the Senate by Vice-Chairman
legislation or international conventions relative to nuclear accidents is
Pastore as S. J. Res. 248, and in the House of Representatives by
one in which the operator of a nuclear installation is liable for resulting
Mr. Hosmer, as H.J. Res. 1161. These resolutions were referred to
damage without fault or negligence. This standard is generally referred
the Joint Committee. On October 10, 1974, the Joint Committee
to as absolute liability. Section 170 of the Atomic Energy Act of 1954,
met in executive session and voted unanimously to approve these
as amended, achieves an analogous result by requiring waivers of
resolutions and to adopt this report.
available defenses. The indemnity provisions of the Act, however, do
not extend to U.S. nuclear warships.
NEED FOR RESOLUTION
As a result of national legislation or International Conventions such
as the Paris Convention of Third Party Liability in the Field of
In the opinion of the committee, this resolution is long overdue.
Nuclear Energy of July 29, 1960, as amended, many nations have
While the Navy has been negotiating foreign port entry of U.S.
questioned the United States concerning the liability of U.S. nuclear
nuclear powered warships for nearly twenty years, it has done SO
powered warships with respect to a nuclear accident. Some have
without the aid of the legal assurance of liability protection it provides
made a guarantee of absolute liability by the U.S. a prerequisite
for. That this could be done is a tribute to the remarkable safety record
for nuclear powered warship port visits to their country. Others have
of these ships. With 127 naval reactors currently in operation, naval
accepted nuclear powered warships into their ports in support of
reactors have amassed over 1,200 years of nuclear accident free oper-
free world security interests, but have indicated a strong desire for
ation. This unblemished safety record is especially remarkable in light
clarification of this liability aspect. The good faith and ability of the
of the fact that the naval nuclear power program is the oldest and larg-
United States to pay claims for nuclear damage is not at issue. Rather,
est power reactor program in the world.
foreign governments have indicated a desire to satisfy a national
From the beginning of the commercial nuclear power program the
legislative requirement or to avoid any possible question over the
Congress recognized the need to establish liability provisions for
liability aspects of a nuclear powered warship visit.
potential reactor accidents as a prerequisite to national acceptance
The ability of the Executive Branch to provide such a guarantee
of this new technology. Based on the almost unanimous opinion of
would greatly facilitate the entry of nuclear powered warships, in
legal experts in the technically advanced countries, the principle of
support of national policy, to foreign ports throughout the world.
strict or absolute liability for commercial reactor accidents was incor-
However, existing U.S. law does not provide a basis to guarantee to
porated into the U.S. Atomic Energy Act. This principle was further
friendly foreign governments that the U.S. will pay valid claims for
extended to cover the NS Savannah, our first nuclear powered mer-
nuclear damage involving its nuclear powered warships promptly and
chant ship, and became part of the guarantee the United States gave
on a fair and equitable basis, applying the same standard of absolute
each country with whom a bilateral agreement for its port entry was
liability used for other reactor applications. The proposed resolution
negotiated. The U.S. has clearly adopted a standard practice for
would accomplish this purpose.
reactor accident liability in every area except nuclear powered war-
ships.
ANALYSIS OF PROPOSED RESOLUTION
America's nuclear powered submarines and surface warships repre-
sent the most versatile and potent element of United States seapower.
The intent of the Resolution is to enable the U.S. to give a straight-
These ships operate at a higher tempo than any other ships in the
forward, unqualified assurance that any nuclear damages claims
fleet. Foreign port access is therefore essential to efficient ship utiliza-
involving the reactor of a nuclear powered warship would be handled
tion and to provide a place for the members of the crew to rest from
on an absolute liability basis regardless of whether or not a foreign
their demanding duty. These ships should not be denied access to the
government had enacted legislation to that effect. The normal excep-
ports of our friends and allies over a legal question for which there is a
S.R. 1281
S.R. 1281
4
5
tion in the case of damages incurred by acts of war or civil insurrec-
consider that there is a need to encumber funds available to the
tion is included. The operative portion of the Resolution applies to
President and the agencies.
domestic as well as foreign accidents.
The Resolution would merely sanction the use of available money
The Resolution would authorize the President and, in turn, the
to pay an agreed settlement and would indicate that the Congress
Defense Department, the necessary discretion on subsidiary aspects
would not reject a request for additional appropriations simply be-
of settling claims. Specific terms and conditions contemplated include
cause the case was being disposed of on the basis of absolute liability.
the following:
The Resolution would not alter agency authority under existing
(a) Designation of the Secretary of the Navy as agent for ad-
claims settlement and payment legislation. All such authorities would
ministration, settlement, and payment of claims submitted under
remain intact. The authority under the Resolution would simply sup-
this resolution.
plement that provided by other legislation.
(b) Provision for a statute of limitations for submission of
The Resolution would not preclude the Congress from questioning
claims.
the amount of a proposed settlement or the merits of the findings on
(c) Provision to prevent a person or his heirs or assignees from
damages or causal connection, if the Congress felt the agencies had
recovering damages from a nuclear accident which he intentionally
not done their job properly.
caused.
The Resolution avoids mentioning any particular dollar ceiling on
(d) Provision to exclude claims not directly related to nuclear
the amount of U.S. liability. It is important to be flexible on this so
damage. It is intended that claims not resulting from the haz-
that domestic needs are not governed by practice in other countries.
ardous properties of nuclear material will be treated or adminis-
A specific sum would serve only as a target, and the U.S. Government
tered in the manner otherwise prescribed or available for such
has stated that it will take care of whatever damage its ships cause.
claims. For example, a claim resulting from a collision involving
The absence of a figure does not jeopardize the congressional role,
a nuclear powered warship but which did not result in a nuclear
since the Executive will necessarily have to obtain congressional
accident would be determined by application of a normal liability
action on payment of claims which exceed the contingency funds
standard. If, as a result of such collision and resultant damage,
available to the Defense Department.
suit were brought in Admiralty in a U.S. court, proof of fault on
the part of the United States would have to be established and the
COST OF LEGISLATION
U.S. Government would be entitled to all exemptions and limita-
tions of liability extended to other ship owners or operators.
In accordance with section 252(a) of the Legislative Reorganiza-
(e) Provision to insure that technical and security information,
tion Act of 1970 (Public Law 91-510), the Joint Committee states
disclosure of which is prohibited by U.S. statute or administrative
that this resolution does not authorize the expenditure of any new
regulation, is not disclosed to or exchanged with unauthorized
funds, but merely sanctions the use of contingency funds available
persons in the course of investigations or proceedings resulting
within the Department of Defense, with the understanding that
from a nuclear accident.
separate congressional authorization would be required for payments
(f) Provision to take into account the variations in arrange-
in excess of such funds.
ments the U.S. has with allies on the mechanics for handling
claims arising out of U.S. armed forces activities in peacetime, i.e.
(1) authorization to reimburse a foreign country for a
pro rata share, including costs, of claims which are processed
and settled either administratively or judicially by the foreign
country according to its laws and regulations.
(2) alternatively, authorization to process and pay meri-
torious claims directly to the claimant up to full value of the
claim.
(g) Authorization to use contingency funds, in an amount not
exceeding that budgeted by the Department of Defense for con-
tingency payments for that fiscal year, to pay meritorious claims.
SOURCE OF FUNDS
The Resolution is intended strictly as a claims settlement authority
and does not authorize any new funds. Nuclear powered warships
have an unparalleled safety record and all possible precautions are
taken to reduce any possibility of a nuclear accident. Since the likeli-
hood of such an accident is extremely remote, the committee does not
S.R. 1281
S.R. 1281
APPENDIX A
THE SECRETARY OF DEFENSE,
Washington, D.C., September 4, 1974.
Hon. MELVIN PRICE,
Chairman, Joint Committee on Atomic Energy, House of Representatives,
Washington, D.C.
DEAR MR. CHAIRMAN: Reference is made to your request for the
views of the Department of Defense on H. J. Res. 1089, 93d Congress,
a joint resolution "Assuring compensation for damages caused by
nuclear incidents involving United States nuclear powered warships."
The purpose of this resolution is to create a new and separate
settlement authority, pursuant to which U.S. warship nuclear reactor
related claims could be paid out of contingency funds or by special
appropriation in accordance with procedures, and subject to condi-
tions, to be promulgated by the President.
This resolution would greatly assist the Navy in obtaining nuclear
powered warship entry into many foreign ports currently denied the
United States.
It is recommended that the resolution be amended as follows:
(1) the title, by deleting "United States nuclear powered
warships" and inserting in lieu thereof, "the nuclear reactor of a
United States warship";
(2) the third clause of the preamble, by deleting "utilization of
nuclear equipment" and inserting in lieu thereof, "operation of a
nuclear reactor";
(3) the fourth clause of the preamble, by deleting "United States
nuclear powered warships" the first time it appears, and inserting
in lieu thereof, "nuclear reactor of a United States warship";
(4) line 5 on page 2 of the resolution by deleting "resulting" and
inserting in lieu thereof, "proven to have resulted";
(5) lines 6 and 7 on page 2 of the resolution by deleting "a
utilization facility in a United States nuclear powered" and
inserting in lieu thereof, "the nuclear reactor of a United States";
and
(6) line 8 on page 2 of the resolution by deleting "or" and
inserting following "damage", ", or loss".
Subject to the above, the Department of Defense strongly supports
the joint resolution.
The Office of Management and Budget advises that, from the
standpoint of the Administration's program, there is no objection to
the presentation of this report for the consideration of the Com-
mittee, and that enactment of this proposal would be consistent with
the Administration's program.
Sincerely,
J. R. SCHLESINGER.
(7)
S.R. 1281
APPENDIX B
DEPARTMENT OF STATE, AMBASSADOR AT LARGE,
Washington, D.C., September 17, 1974.
Hon. MELVIN PRICE,
Chairman, Joint Committee on Atomic Energy, House of Representatives.
DEAR MR. CHAIRMAN: The Joint Committee has asked for the
Department's views on the draft resolution (H.J. Res. 1089) which
has recently been introduced concerning the liability of U.S. nuclear
powered warships in the event of a nuclear incident.
The Department of State has in recent years been involved in
negotiations with a number of foreign governments concerning the
question of visits by U.S. nuclear powered warships to foreign ports.
These visits are important to us in maintaining the effectiveness of
our growing nuclear fleet. Some governments have been reluctant to
accept the ships in their ports because of our inability to give assur-
ances concerning liability and indemnification which they consider
adequate. I believe that in a number of cases, by confirming Congres-
sional support for the policy of paying claims and judgments, the
proposed resolution might effectively resolve this problem and permit
visits to take place.
As you know, the nuclear warship liability question has been raised
in connection with the renegotiation of the Spanish Base Agreement.
Prompt Congressional action on the resolution would provide us with
an additional negotiating flexibility and might make possible a mu-
tually acceptable resolution of this issue.
For these reasons the Department of State supports H.J. Res.
1089, and I am grateful to you for inviting us to comment upon it. I
apologize for the tardiness of this reply.
Sincerely,
ROBERT J. McCLoskey.
(8)
S.R. 1281
S. J. Res. 248
Ainety-third Congress of the United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Monday, the twenty-first day of January,
one thousand nine hundred and seventy-four
Joint Resolution
Assuring compensation for damages caused by nuclear incidents involving the
nuclear reactor of a United States warship.
Whereas it is vital to the national security to facilitate the ready
acceptability of United States nuclear powered warships into
friendly foreign ports and harbors; and
Whereas the advent of nuclear reactors has led to various efforts
throughout the world to develop an appropriate legal regime for
compensating those who sustain damages in the event there should
be an incident involving the operation of nuclear reactors; and
Whereas the United States has been exercising leadership in develop-
ing legislative measures designed to assure prompt and equitable
compensation in the event a nuclear incident should arise out of the
operation of a nuclear reactor by the United States as is evidenced
in particular by section 170 of the Atomic Energy Act of 1954, as
amended; and
Whereas some form of assurance as to the prompt availability of
compensation for damage in the unlikely event of a nuclear incident
involving the nuclear reactor of a United States warship would, in
conjunction with the unparalleled safety record that has been
achieved by United States nuclear powered warships in their opera-
tion throughout the world, further the effectiveness of such war-
ships: Now, therefore, be it
Resolved by the Senate and House of Representatives of the United
States of America in Congress assembled, That it is the policy of
the United States that it will pay claims or judgments for bodily
injury, death, or damage to or loss of real or personal property proven
to have resulted from a nuclear incident involving the nuclear reactor
of a United States warship Provided, That the injury, death, damage,
or loss was not caused by the act of an armed force engaged in combat
or as a result of civil insurrection. The President may authorize, under
such terms and conditions as he may direct, the payment of such claims
or judgments from any contingency funds available to the Govern-
ment or may certify such claims or judgments to the Congress for
appropriation of the necessary funds.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.
1
November 26, 1974
Dear Mr. Director:
The following bills were received at the White
House on November 26th:
B.J. Res. 248
S. 3802
Please let the President have reports and
recommendations as to the approval of these
bills as soon as possible.
Sincerely,
Robert D. Linder
Chief Executive Clerk
The Honorable Roy L. Ash
Director
Office of Management and Budget
Washington, D. C.