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1974/12/06 SJR248 Compensation for Nuclear Powered Warship Accidents

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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 Gerald R. Ford donated to the United States of America his copyrights in all of his unpublished writings in National Archives collections.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.

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    "title": "1974/12/06 SJR248 Compensation for Nuclear Powered Warship Accidents",
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    "ocrText": "The original documents are located in Box 14, folder \"1974/12/06 SJR248 Compensation\nfor Nuclear Powered Warship Accidents\" of the White House Records Office: Legislation\nCase Files at the Gerald R. Ford Presidential Library.\nCopyright Notice\nThe copyright law of the United States (Title 17, United States Code) governs the making of\nphotocopies or other reproductions of copyrighted material. Gerald R. Ford donated to the United\nStates of America his copyrights in all of his unpublished writings in National Archives collections.\nWorks prepared by U.S. Government employees as part of their official duties are in the public\ndomain. The copyrights to materials written by other individuals or organizations are presumed to\nremain with them. If you think any of the information displayed in the PDF is subject to a valid\ncopyright claim, please contact the Gerald R. Ford Presidential Library.\nExact duplicates within this folder were not digitized.\nDigitized from Box 14 of the White House Records Office Legislation Case Files at the Gerald R. Ford Presidential Library\nAPPROVED DEC-6 1974\nEXECUTIVE OFFICE OF THE PRESIDENT\nOFFICE OF MANAGEMENT AND BUDGET\nWASHINGTON, D.C. 20503\nDEC 2 1974\nposted\n12/7\nMEMORANDUM FOR THE PRESIDENT\nToarching To 12/9\nSubject: Enrolled Resolution S.J. Res. 248 - Compensation\nfor nuclear-powered warship accidents\nSponsor - Sen. Pastore (D) Rhode Island\nLast Day for Action\nDecember 7, 1974 - Saturday\nPurpose\nWould establish procedures for compensation for damages in\nforeign countries caused by nuclear incidents involving the\nnuclear reactor of a United States warship and thus facilitate\nthe entry of U.S. nuclear-powered warships into foreign ports.\nAgency Recommendations\nOffice of Management and Budget\nApproval\nDepartment of Defense\nApproval\nDepartment of State\nApproval\nAtomic Energy Commission\nApproval\nDiscussion\nThe Department of the Navy uses nuclear-powered reactors for\npropulsion of a number of warships. Concern over liability\nin the event of a reactor incident has caused several nations\nto restrict access of these ships to their ports. Navy staff\nhas informally advised us that Australia, France, New Zealand,\nSpain and Turkey currently deny entry to some, if not all,\nU.S. nuclear-powered warships. The Navy believes that this\nresolution would greatly assist their efforts in obtaining\napproval for future entry into some ports currently denied to\nthem.\nLegislation was originally introduced by Rep. Hosmer as H.J.\nRes. 1089. Defense proposed several language changes in its\nFORD LIBRA\n2\nreport to the Joint Committee on Atomic Energy (JCAE) and\nstated that with those changes the bill would be consistent\nwith the Administration's program. S.J. Res. 248 incorporates\nall of the changes recommended in Navy's report.\nThe bill would:\n-- establish the policy that the U.S. will pay\nfor bodily injury or death or damage or loss\nto real or personal property resulting from\nincidents involving reactors on U.S. warships,\nunless the loss results from armed hostilities\nor civil insurrection, and\n-- authorize the President to pay these claims or\njudgments from any contingency funds available\nto the Government or by certifying them to\nCongress for appropriation of the necessary\nfunds.\nThe JCAE's report states that the resolution contemplates suf-\nficient flexibility in the President and Defense to set certain\nconditions on claims settlement, including:\n-- designation of the Secretary of the Navy as\nadministrator of any claims\n-- provision for a statute of limitations on sub-\nmission of claims\n-- exclusion of claims for damages which were\nintentionally caused, and\n-- exclusion of claims not directly involving\nnuclear damage; e.g., collision of a nuclear-\npowered warship with no resultant nuclear incident.\nFrom the beginning of the commercial nuclear power program, the\nCongress has recognized the need for liability provisions as a\nprerequisite to national acceptance of the new power reactors.\nThe principle of strict or absolute liability for commercial\nreactor accidents is incorporated in the Atomic Energy Act.\nThis was extended to the NS Savannah, our first nuclear-powered\nmerchant ship and was instrumental in achieving its entry into\nforeign ports. In this connection, the JCAE's report states:\n\"The U.S. has clearly adopted a standard practice for reactor\naccident liability in every area except nuclear-powered warships.\"\n3\nIn its views letter on the enrolled bill, State comments:\n\"The Department of State has been conducting\nnegotiations with a number of foreign govern-\nments, in recent years, concerning the question\nof visits by US nuclear powered warships to\nforeign ports. The reluctance of some countries\nto grant entry by our nuclear powered ships has\nbeen caused in part by our inability to provide\nwhat some governments regard as adequate assurances\nfor liability and indemnification. We believe that\napproval of S.J. Res. 248 would provide us with\nadditional negotiating flexibility which would be\nhelpful in resolving this issue.\"\nIn its views letter, Defense states:\n\"This resolution would greatly assist the Navy in\nobtaining nuclear powered warship entry into many\nports currently denied the United States.\"\nAssistant Director for\nLegislative Reference\nEnclosures\nTHE WHITE HOUSE\nACTION\nLast Day: December 7\nWASHINGTON\nDecember 4, 1974\nMEMORANDUM FOR\nTHE PRESIDENT\nFROM:\nKEN COLE\nC\nSUBJECT:\nEnrolled Resolution S.J. Res. 248\nCompensation for Nuclear-powered\nWarship Accidents\nAttached for your consideration is Enrolled Resolution\nS.J. Res. 248, sponsored by Senator Pastore, which\nwould establish procedures for compensation for damages\nin foreign countries caused by nuclear incidents involving\nthe nuclear reactor of a United States warship and thus\nfacilitate the entry of U.S. nuclear-powered warships\ninto foreign ports.\nOMB recommends approval and provides you with additional\nbackground information in its enrolled bill report (Tab A).\nPhil Areeda, Bill Timmons and the NSC all recommend approval.\nRECOMMENDATION\nThat you sign S.J. Res. 248 (Tab B).\nDEPARTMENT (if DEFINST DE\nDEPARTMENT OF THE NAVY\nOFFICE OF THE SECRETARY\nWASHINGTON, D. C. 20350\n2 December 1974\nSTATE E\nDear Mr. Ash:\nYour transmittal sheet dated 26 November 1974, enclosing a facsimile of\nan enrolled bill of Congress, S. J. Res. 248, \"Assuring compensation for\ndamages caused by nuclear incidents involving United States nuclear\npowered warships,\" and requesting comment of the Department of Defense,\nhas been received. The Department of the Navy has been assigned the\nresponsibility for the preparation of a report thereon expressing the\nviews of the Department of Defense.\nThis resolution, as the title indicates, creates a new and separate settle-\nment authority, pursuant to which U.S. warship nuclear reactor related\nclaims could be paid out of contingency funds or by special appropriation\nin accordance with procedures, and subject to conditions to be promulgated\nby the President. This resolution would greatly assist the Navy in obtain-\ning nuclear powered warship entry into many ports currently denied the\nUnited States.\nThe Department of the Navy, on behalf of the Department of Defense,\nrecommends approval of S. J. Res. 248.\nSincerely yours,\nJhrlliam\nJ. William Middendorf II\nSecretary of the Navy\nHonorable Roy L. Ash\nDirector, Office of Management and Budget\nWashington, D. C. 20503\nDEPARTMENT OF STATE\nWashington, D.C. 20520\nNOV 27 1974\nHonorable Roy L. Ash\nDirector\nOffice of Management and Budget\nWashington, D.C.\nDear Mr. Ash:\nMr. Rommel, in his memorandum of November 26, has requested\nthe Department's views and recommendations on S. J. 248.\nThis resolution, introduced by Congressman Craig Hosmer\nand which recently passed in the Congress, concerns the\nliability of US nuclear powered warships. If approved,\nS. J. 248 would provide assurance to foreign countries\nthat it is the policy of the United States to pay claims\nor judgments for damages or losses proven to be the result\nof a nuclear incident involving the nuclear reactor of a\nUS warship.\nThe Department of State has been conducting negotiations\nwith a number of foreign governments, in recent years,\nconcerning the question of visits by US nuclear powered\nwarships to foreign ports. The reluctance of some\ncountries to grant entry by our nuclear powered ships has\nbeen caused in part by our inability to provide what some\ngovernments regard as adequate assurances for liability\nand indemnification. We believe that approval of S. J.\n248 would provide us with additional negotiating flexibi-\nlity which would be helpful in resolving this issue.\nSince these visits are becoming more and more important\nas our nuclear fleet is increased, the Department of State\nsupports S. J. Res. 248.\nLinwood Holton Holton\nAssistant Secretary\nfor Congressional Relations\nATOMI ENERGY COMMISSION\nUNITED STATES\nATOMIC ENERGY COMMISSION\nWASHINGTON, D.C. 20545\nUNITED STATES OF\nNOV 29 1974\nMr. Wilfred H. Rommel\nAssistant Director for\nLegislative Reference\nAttn: Mrs. Louise Garziglia\nLegislative Reference Division\nOffice of Management and Budget\nDear Mr. Rommel:\nThe Atomic Energy Commission is pleased to respond to your\nrequest for its views and recommendations on Enrolled\nS.J. RES. 248, \"[A]ssuring compensation for damages caused\nby nuclear incidents involving the nuclear reactor of a\nUnited States warship.\"\nThe Atomic Energy Commission recommends that the President\nsign the enrolled resolution.\nThe purpose of this resolution is to create a new and separate\nauthority, pursuant to which U. S. warship nuclear reactor\nrelated claims could be paid out of Department of Defense\ncontingency funds or by special appropriation in accordance\nwith procedures, and subject to conditions, to be promulgated\nby the President. While we would defer on the merits to the\nNavy as the primary interest agency, it would appear that\nthis proposed legislation would facilitate the entry into\nforeign ports of U. S. nuclear powered warships.\nSincerely,\nChairman\nEXECUTIVE OFFICE OF THE PRESIDENT\nOFFICE OF MANAGEMENT AND BUDGET\nDrawn Hudrida\nWASHINGTON, D.C. 20503\nDEC 2 1974\n12- 2:10pm.\nMEMORANDUM FOR THE PRESIDENT\nSubject: Enrolled Resolution S.J. Res. 248 - Compensation\nfor nuclear-powered warship accidents\nSponsor - Sen. Pastore (D) Rhode Island\nLast Day for Action\nDecember 7, 1974 - Saturday\nPurpose\nWould establish procedures for compensation for damages in\nforeign countries caused by nuclear incidents involving the\nnuclear reactor of a United States warship and thus facilitate\nthe entry of U.S. nuclear-powered warships into foreign ports.\nAgency Recommendations\nOffice of Management and Budget\nApproval\nDepartment of Defense\nApproval\nDepartment of State\nApproval\nAtomic Energy Commission\nApproval\nDiscussion\nThe Department of the Navy uses nuclear-powered reactors for\npropulsion of a number of warships. Concern over liability\nin the event of a reactor incident has caused several nations\nto restrict access of these ships to their ports. Navy staff\nhas informally advised us that Australia, France, New Zealand,\nSpain and Turkey currently deny entry to some, if not all,\nU.S. nuclear-powered warships. The Navy believes that this\nresolution would greatly assist their efforts in obtaining\napproval for future entry into some ports currently denied to\nthem.\nLegislation was originally introduced by Rep. Hosmer as H.J.\nRes. 1089. Defense proposed several language changes in its\nTHE WHITE HOUSE\nACTION MEMORANDUM\nWASHINGTON\nLOG NO.: 758\nDate: December 2, 1974\nTime: 6:00 p.m.\nFOR ACTION: Mike Duval O.K.\ncc (for information) Warren Hendriks\nBill Timmons O.K.\nJerry Jones\nPhil Areeda no obj.\nNSC/S\no.k. Huberman\nFROM THE STAFF SECRETARY\nDUE: Date: December 4, 1974\nTime: 3:00 p.m.\nSUBJECT:\nEnrolled Resolution S.J. Res. 248\nCompensation for nuclear-powered\nwarship accidents\nACTION REQUESTED:\nFor Necessary Action\nFor Your Recommendations\nPrepare Agenda and Brief\nDraft Reply\nFor Your Comments\nDraft Remarks\nREMARKS:\nPlease return to Judy Johnston, Ground Floor, West Wing\nPLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED.\nIf you have any questions or if you anticipate a\ndelay in submitting the required material, please\nK. R. COLE, JR.\ntelephone the Staff Secretary immediately.\nFor the President\nTHE WHITE HOUSE\nACTION MEMORANDUM\nWASHINGTON,,\nLOG NO.: 758\nDate: December 2, 1974\nTime: 6:00 p.m.\nFOR ACTION: Mike Duval\nCC (for information): Warren Hendriks\nBill Timmons\nJerry Jones\nPhil Areeda\nNSC/S\nFROM THE STAFF SECRETARY\nDUE: Date: December 4, 1974\nTime: 3:00 p.m.\nSUBJECT:\nEnrolled Resolution S.J. Res. 248\nCompensation for nuclear-powered\nwarship accidents\nACTION REQUESTED:\nFor Necessary Action\nX\nFor Your Recommendations\nPrepare Agenda and Brief\nDraft Reply\nX\nFor Your Comments\nDraft Remarks\nREMARKS:\nPlease return to Judy Johnston, Ground Floor, West Wing\nOK Mahe Dural 12/3\nPLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED.\nIf you have any questions or if you anticipate a\ndelay in submitting the required material, please Warren K. Hendriks, Jr.\ntelephone the Staff Secretary immediately.\nFor the President\nTHE WHITE HOUSE\nWASHINGTON\nDecember 4, 1974\nMEMORANDUM FOR: MR. WARREN HENDRIKS\nFROM:\nWILLIAM E. TIMMONS P\nSUBJECT:\nAction Memorandum - - Log No. 758\nEnrolled Resolution S.J. Res. 248\nCompensation for nuclear-powered\nwarship accidents\nThe Office of Legislative Affairs concurs in the attached\nproposal and has no additional recommendations.\nAttachment\nTHE WHITE HOUSE\nCTION MEMORANDUM\nWASHINGTON\nLOG NO.: 758\nDate: December 2, 1974\nTime: 6:00 p.m.\nFOR ACTION: Mike Duval\nCC (for information): Warren Hendriks\nBill Timmons\nJerry Jones\nPhil Areeda\nNSC/S\nFROM THE STAFF SECRETARY\nDUE: Date: December 4, 1974\nTime: 3:00 p.m.\nSUBJECT:\nEnrolled Resolution S.J. Res. 248\nCompensation for nuclear-powered\nwarship accidents\nACTION REQUESTED:\nFor Necessary Action\nX\nFor Your Recommendations\nPrepare Agenda and Brief\nDraft Reply\nx\nFor Your Comments\nDraft Remarks\nREMARKS:\nPlease return to Judy Johnston, Ground Floor, West Wing\nNo objection\nP.Aued P.\nPLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED.\nIf you have any questions or if you anticipate a\ndelay in submitting the required material, please Warren K. Hendriks, Jr.\ntelephone the Staff Secretary immediately.\nFor the President\nCalendar No. 1216\n93d Congress\n2d Session\n}\n{\nREPORT\nSENATE\nNo. 93-1281\nTO FACILITATE THE ENTRY INTO\nFOREIGN PORTS OF UNITED STATES\nNUCLEAR WARSHIPS\nREPORT\nBY THE\nJOINT COMMITTEE ON ATOMIC ENERGY\n[To accompany S.J. Res. 248]\nOCTOBER 16, 1974.-Ordered to be printed\nU.S. GOVERNMENT PRINTING OFFICE\n38-010 0\nWASHINGTON : 1974\nCONTENTS\nJOINT COMMITTEE ON ATOMIC ENERGY\nPage\nBackground\n1\nMELVIN PRICE, Illinois, Chairman\nNeed for resolution\n2\nJOHN O. PASTORE, Rhode Island, Vice Chairman\nAnalysis of proposed resolution\n3\nCHET HOLIFIELD, California\nHENRY M. JACKSON, Washington\nSource of funds\n5\nJOHN YOUNG, Texas\nSTUART SYMINGTON, Missouri\nCost of legislation\n5\nTENO RONCALIO, Wyoming\nALAN BIBLE, Nevada\nAppendix A: Department of Defense letter of September 4, 1974\n7\nMIKE McCORMACK, Washington\nJOSEPH M. MONTOYA, New Mexico\nAppendix B: Department of State letter of September 17, 1974\n8\nCRAIG HOSMER, California\nGEORGE D. AIKEN, Vermont\nJOHN B. ANDERSON, Illinois\nWALLACE F. BENNETT, Utah\n(III)\nORVAL HANSEN, Idaho\nPETER H. DOMINICK, Colorado\nMANUEL LUJAN, JR., New Mexico\nHOWARD H. BAKER, JR., Tennessee\nEDWARD J. BAUSER, Executive Director\nGEORGE F. MURPHY, Jr., Deputy Director\nJAMES B. GRAHAM, Assistant Director\nNORMAN P. KLUG, Technical Consultant\nCol. SEYMOUR SHWILLER, USAF (Ret.), Technical Consultant\nALBION W. KNIGHT, Jr., Professional Staff Member\nRANDALL C. STEPHENS, Assistant Staff Counsel\nWILLIAM J. MINSCH, Jr., Special Counsel\nCHRISTOPHER C. O'MALLEY, Printing Editor\n(II)\n93D CONGRESS\nSENATE\nREPORT\n2d Session\nNo. 93-1281\nTO FACILITATE THE ENTRY INTO FOREIGN PORTS OF\nUNITED STATES NUCLEAR WARSHIPS\nOCTOBER 16, 1974.-Ordered to be printed\nMr. PASTORE, from the Joint Committee on Atomic Energy,\nsubmitted the following\nREPORT\n[To accompany S.J. Res. 248]\nThe Joint Committee on Atomic Energy, having considered S.J.\nRes. 248, a resolution to clarify congressional intent relative to the\nassumption of liability in the event of any reactor incident involving\na United States nuclear warship propulsion reactor in a foreign\nport, hereby report without amendment the resolution and recom-\nmend that the resolution do pass.\nBACKGROUND\nThe Joint Committee has received testimony at various times\nconcerning restrictions on entry of U.S. nuclear warships into ports of\nforeign countries. Concerns over liability in the event of a reactor\naccident have been offered by some nations, as a reason for restricting\naccess to their ports. Hearings on this matter were held on June 14,\n1972, at which time testimony was received from the following\nindividuals:\nAdmiral Elmo R. Zumwalt, Chief of Naval Operations;\nHon. U. Alexis Johnson, Under Secretary of State for Political\nAffairs;\nAdmiral Hyman G. Rickover, Deputy Commander for Nu-\nclear Propulsion, Naval Warships Systems Command, Navy\nDepartment; Director, Division of Naval Reactors, AEC; and\nMr. Benjamin Forman, Assistant General Counsel for Inter-\nnational Affairs, Department of Defense.\nOn July 16, 1974, Rep. Craig Hosmer filed a proposed joint resolu-\ntion (H.J. Res. 1089) which was aimed at removing any question of\n(1)\nS.R. 1281\n2\n3\ncongressional intent relative to the assumption of liability in the event\nsimple solution. Certainly, the Joint Committee never intended to\nof a reactor incident in a foreign port. The Joint Committee expressed\ninterpose any legal difficulties for the nuclear fleet, which carries such a\na desire to receive the views of the Departments of State and of\nnational security burden on behalf of this country and the free world.\nDefense concerning this problem before proceeding on the resolution.\nDuring the past decade, the nations of the world have begun to\nBy letter dated September 4, 1974, (see Appendix A) the Secretary\nutilize nuclear-powered generating stations in ever increasing numbers.\nof Defense expressed his Department's support of the resolution,\nFollowing the lead of the United States, these countries have enacted\nand suggested minor alterations in language. By letter dated Sep-\nnational legislation to stipulate the liability and indemnity arrange-\ntember 17, 1974 (Appendix B) over signature of Ambassador-at-Large\nments which will assure prompt and adequate compensation for\nMcCloskey, the Department of State supplied its comments on the\nnuclear damage in the event of a nuclear accident involving their\nresolution. Finally, on September 26, 1974, in testimony before the\nvarious nuclear facilities. Many of the laws extend the liability pro-\nJoint Committee in executive session, Secretary of Defense Schles-\nvisions to include nuclear substances in transit and to nuclear ships,\ninger and Dr. Dixy Lee Ray, Chairman, AEC, expressed their support\nboth merchant and warship, in the territorial waters or ports of the\nof the resolution and termed it necessary and urgent.\ncountry.\nOn October 9, 1974, \"clean\" resolutions, incorporating the DOD\nThe general standard of liability prescribed in the various national\nrecommendations, were introduced in the Senate by Vice-Chairman\nlegislation or international conventions relative to nuclear accidents is\nPastore as S. J. Res. 248, and in the House of Representatives by\none in which the operator of a nuclear installation is liable for resulting\nMr. Hosmer, as H.J. Res. 1161. These resolutions were referred to\ndamage without fault or negligence. This standard is generally referred\nthe Joint Committee. On October 10, 1974, the Joint Committee\nto as absolute liability. Section 170 of the Atomic Energy Act of 1954,\nmet in executive session and voted unanimously to approve these\nas amended, achieves an analogous result by requiring waivers of\nresolutions and to adopt this report.\navailable defenses. The indemnity provisions of the Act, however, do\nnot extend to U.S. nuclear warships.\nNEED FOR RESOLUTION\nAs a result of national legislation or International Conventions such\nas the Paris Convention of Third Party Liability in the Field of\nIn the opinion of the committee, this resolution is long overdue.\nNuclear Energy of July 29, 1960, as amended, many nations have\nWhile the Navy has been negotiating foreign port entry of U.S.\nquestioned the United States concerning the liability of U.S. nuclear\nnuclear powered warships for nearly twenty years, it has done SO\npowered warships with respect to a nuclear accident. Some have\nwithout the aid of the legal assurance of liability protection it provides\nmade a guarantee of absolute liability by the U.S. a prerequisite\nfor. That this could be done is a tribute to the remarkable safety record\nfor nuclear powered warship port visits to their country. Others have\nof these ships. With 127 naval reactors currently in operation, naval\naccepted nuclear powered warships into their ports in support of\nreactors have amassed over 1,200 years of nuclear accident free oper-\nfree world security interests, but have indicated a strong desire for\nation. This unblemished safety record is especially remarkable in light\nclarification of this liability aspect. The good faith and ability of the\nof the fact that the naval nuclear power program is the oldest and larg-\nUnited States to pay claims for nuclear damage is not at issue. Rather,\nest power reactor program in the world.\nforeign governments have indicated a desire to satisfy a national\nFrom the beginning of the commercial nuclear power program the\nlegislative requirement or to avoid any possible question over the\nCongress recognized the need to establish liability provisions for\nliability aspects of a nuclear powered warship visit.\npotential reactor accidents as a prerequisite to national acceptance\nThe ability of the Executive Branch to provide such a guarantee\nof this new technology. Based on the almost unanimous opinion of\nwould greatly facilitate the entry of nuclear powered warships, in\nlegal experts in the technically advanced countries, the principle of\nsupport of national policy, to foreign ports throughout the world.\nstrict or absolute liability for commercial reactor accidents was incor-\nHowever, existing U.S. law does not provide a basis to guarantee to\nporated into the U.S. Atomic Energy Act. This principle was further\nfriendly foreign governments that the U.S. will pay valid claims for\nextended to cover the NS Savannah, our first nuclear powered mer-\nnuclear damage involving its nuclear powered warships promptly and\nchant ship, and became part of the guarantee the United States gave\non a fair and equitable basis, applying the same standard of absolute\neach country with whom a bilateral agreement for its port entry was\nliability used for other reactor applications. The proposed resolution\nnegotiated. The U.S. has clearly adopted a standard practice for\nwould accomplish this purpose.\nreactor accident liability in every area except nuclear powered war-\nships.\nANALYSIS OF PROPOSED RESOLUTION\nAmerica's nuclear powered submarines and surface warships repre-\nsent the most versatile and potent element of United States seapower.\nThe intent of the Resolution is to enable the U.S. to give a straight-\nThese ships operate at a higher tempo than any other ships in the\nforward, unqualified assurance that any nuclear damages claims\nfleet. Foreign port access is therefore essential to efficient ship utiliza-\ninvolving the reactor of a nuclear powered warship would be handled\ntion and to provide a place for the members of the crew to rest from\non an absolute liability basis regardless of whether or not a foreign\ntheir demanding duty. These ships should not be denied access to the\ngovernment had enacted legislation to that effect. The normal excep-\nports of our friends and allies over a legal question for which there is a\nS.R. 1281\nS.R. 1281\n4\n5\ntion in the case of damages incurred by acts of war or civil insurrec-\nconsider that there is a need to encumber funds available to the\ntion is included. The operative portion of the Resolution applies to\nPresident and the agencies.\ndomestic as well as foreign accidents.\nThe Resolution would merely sanction the use of available money\nThe Resolution would authorize the President and, in turn, the\nto pay an agreed settlement and would indicate that the Congress\nDefense Department, the necessary discretion on subsidiary aspects\nwould not reject a request for additional appropriations simply be-\nof settling claims. Specific terms and conditions contemplated include\ncause the case was being disposed of on the basis of absolute liability.\nthe following:\nThe Resolution would not alter agency authority under existing\n(a) Designation of the Secretary of the Navy as agent for ad-\nclaims settlement and payment legislation. All such authorities would\nministration, settlement, and payment of claims submitted under\nremain intact. The authority under the Resolution would simply sup-\nthis resolution.\nplement that provided by other legislation.\n(b) Provision for a statute of limitations for submission of\nThe Resolution would not preclude the Congress from questioning\nclaims.\nthe amount of a proposed settlement or the merits of the findings on\n(c) Provision to prevent a person or his heirs or assignees from\ndamages or causal connection, if the Congress felt the agencies had\nrecovering damages from a nuclear accident which he intentionally\nnot done their job properly.\ncaused.\nThe Resolution avoids mentioning any particular dollar ceiling on\n(d) Provision to exclude claims not directly related to nuclear\nthe amount of U.S. liability. It is important to be flexible on this so\ndamage. It is intended that claims not resulting from the haz-\nthat domestic needs are not governed by practice in other countries.\nardous properties of nuclear material will be treated or adminis-\nA specific sum would serve only as a target, and the U.S. Government\ntered in the manner otherwise prescribed or available for such\nhas stated that it will take care of whatever damage its ships cause.\nclaims. For example, a claim resulting from a collision involving\nThe absence of a figure does not jeopardize the congressional role,\na nuclear powered warship but which did not result in a nuclear\nsince the Executive will necessarily have to obtain congressional\naccident would be determined by application of a normal liability\naction on payment of claims which exceed the contingency funds\nstandard. If, as a result of such collision and resultant damage,\navailable to the Defense Department.\nsuit were brought in Admiralty in a U.S. court, proof of fault on\nthe part of the United States would have to be established and the\nCOST OF LEGISLATION\nU.S. Government would be entitled to all exemptions and limita-\ntions of liability extended to other ship owners or operators.\nIn accordance with section 252(a) of the Legislative Reorganiza-\n(e) Provision to insure that technical and security information,\ntion Act of 1970 (Public Law 91-510), the Joint Committee states\ndisclosure of which is prohibited by U.S. statute or administrative\nthat this resolution does not authorize the expenditure of any new\nregulation, is not disclosed to or exchanged with unauthorized\nfunds, but merely sanctions the use of contingency funds available\npersons in the course of investigations or proceedings resulting\nwithin the Department of Defense, with the understanding that\nfrom a nuclear accident.\nseparate congressional authorization would be required for payments\n(f) Provision to take into account the variations in arrange-\nin excess of such funds.\nments the U.S. has with allies on the mechanics for handling\nclaims arising out of U.S. armed forces activities in peacetime, i.e.\n(1) authorization to reimburse a foreign country for a\npro rata share, including costs, of claims which are processed\nand settled either administratively or judicially by the foreign\ncountry according to its laws and regulations.\n(2) alternatively, authorization to process and pay meri-\ntorious claims directly to the claimant up to full value of the\nclaim.\n(g) Authorization to use contingency funds, in an amount not\nexceeding that budgeted by the Department of Defense for con-\ntingency payments for that fiscal year, to pay meritorious claims.\nSOURCE OF FUNDS\nThe Resolution is intended strictly as a claims settlement authority\nand does not authorize any new funds. Nuclear powered warships\nhave an unparalleled safety record and all possible precautions are\ntaken to reduce any possibility of a nuclear accident. Since the likeli-\nhood of such an accident is extremely remote, the committee does not\nS.R. 1281\nS.R. 1281\nAPPENDIX A\nTHE SECRETARY OF DEFENSE,\nWashington, D.C., September 4, 1974.\nHon. MELVIN PRICE,\nChairman, Joint Committee on Atomic Energy, House of Representatives,\nWashington, D.C.\nDEAR MR. CHAIRMAN: Reference is made to your request for the\nviews of the Department of Defense on H. J. Res. 1089, 93d Congress,\na joint resolution \"Assuring compensation for damages caused by\nnuclear incidents involving United States nuclear powered warships.\"\nThe purpose of this resolution is to create a new and separate\nsettlement authority, pursuant to which U.S. warship nuclear reactor\nrelated claims could be paid out of contingency funds or by special\nappropriation in accordance with procedures, and subject to condi-\ntions, to be promulgated by the President.\nThis resolution would greatly assist the Navy in obtaining nuclear\npowered warship entry into many foreign ports currently denied the\nUnited States.\nIt is recommended that the resolution be amended as follows:\n(1) the title, by deleting \"United States nuclear powered\nwarships\" and inserting in lieu thereof, \"the nuclear reactor of a\nUnited States warship\";\n(2) the third clause of the preamble, by deleting \"utilization of\nnuclear equipment\" and inserting in lieu thereof, \"operation of a\nnuclear reactor\";\n(3) the fourth clause of the preamble, by deleting \"United States\nnuclear powered warships\" the first time it appears, and inserting\nin lieu thereof, \"nuclear reactor of a United States warship\";\n(4) line 5 on page 2 of the resolution by deleting \"resulting\" and\ninserting in lieu thereof, \"proven to have resulted\";\n(5) lines 6 and 7 on page 2 of the resolution by deleting \"a\nutilization facility in a United States nuclear powered\" and\ninserting in lieu thereof, \"the nuclear reactor of a United States\";\nand\n(6) line 8 on page 2 of the resolution by deleting \"or\" and\ninserting following \"damage\", \", or loss\".\nSubject to the above, the Department of Defense strongly supports\nthe joint resolution.\nThe Office of Management and Budget advises that, from the\nstandpoint of the Administration's program, there is no objection to\nthe presentation of this report for the consideration of the Com-\nmittee, and that enactment of this proposal would be consistent with\nthe Administration's program.\nSincerely,\nJ. R. SCHLESINGER.\n(7)\nS.R. 1281\nAPPENDIX B\nDEPARTMENT OF STATE, AMBASSADOR AT LARGE,\nWashington, D.C., September 17, 1974.\nHon. MELVIN PRICE,\nChairman, Joint Committee on Atomic Energy, House of Representatives.\nDEAR MR. CHAIRMAN: The Joint Committee has asked for the\nDepartment's views on the draft resolution (H.J. Res. 1089) which\nhas recently been introduced concerning the liability of U.S. nuclear\npowered warships in the event of a nuclear incident.\nThe Department of State has in recent years been involved in\nnegotiations with a number of foreign governments concerning the\nquestion of visits by U.S. nuclear powered warships to foreign ports.\nThese visits are important to us in maintaining the effectiveness of\nour growing nuclear fleet. Some governments have been reluctant to\naccept the ships in their ports because of our inability to give assur-\nances concerning liability and indemnification which they consider\nadequate. I believe that in a number of cases, by confirming Congres-\nsional support for the policy of paying claims and judgments, the\nproposed resolution might effectively resolve this problem and permit\nvisits to take place.\nAs you know, the nuclear warship liability question has been raised\nin connection with the renegotiation of the Spanish Base Agreement.\nPrompt Congressional action on the resolution would provide us with\nan additional negotiating flexibility and might make possible a mu-\ntually acceptable resolution of this issue.\nFor these reasons the Department of State supports H.J. Res.\n1089, and I am grateful to you for inviting us to comment upon it. I\napologize for the tardiness of this reply.\nSincerely,\nROBERT J. McCLoskey.\n(8)\nS.R. 1281\nS. J. Res. 248\nAinety-third Congress of the United States of America\nAT THE SECOND SESSION\nBegun and held at the City of Washington on Monday, the twenty-first day of January,\none thousand nine hundred and seventy-four\nJoint Resolution\nAssuring compensation for damages caused by nuclear incidents involving the\nnuclear reactor of a United States warship.\nWhereas it is vital to the national security to facilitate the ready\nacceptability of United States nuclear powered warships into\nfriendly foreign ports and harbors; and\nWhereas the advent of nuclear reactors has led to various efforts\nthroughout the world to develop an appropriate legal regime for\ncompensating those who sustain damages in the event there should\nbe an incident involving the operation of nuclear reactors; and\nWhereas the United States has been exercising leadership in develop-\ning legislative measures designed to assure prompt and equitable\ncompensation in the event a nuclear incident should arise out of the\noperation of a nuclear reactor by the United States as is evidenced\nin particular by section 170 of the Atomic Energy Act of 1954, as\namended; and\nWhereas some form of assurance as to the prompt availability of\ncompensation for damage in the unlikely event of a nuclear incident\ninvolving the nuclear reactor of a United States warship would, in\nconjunction with the unparalleled safety record that has been\nachieved by United States nuclear powered warships in their opera-\ntion throughout the world, further the effectiveness of such war-\nships: Now, therefore, be it\nResolved by the Senate and House of Representatives of the United\nStates of America in Congress assembled, That it is the policy of\nthe United States that it will pay claims or judgments for bodily\ninjury, death, or damage to or loss of real or personal property proven\nto have resulted from a nuclear incident involving the nuclear reactor\nof a United States warship Provided, That the injury, death, damage,\nor loss was not caused by the act of an armed force engaged in combat\nor as a result of civil insurrection. The President may authorize, under\nsuch terms and conditions as he may direct, the payment of such claims\nor judgments from any contingency funds available to the Govern-\nment or may certify such claims or judgments to the Congress for\nappropriation of the necessary funds.\nSpeaker of the House of Representatives.\nVice President of the United States and\nPresident of the Senate.\n1\nNovember 26, 1974\nDear Mr. Director:\nThe following bills were received at the White\nHouse on November 26th:\nB.J. Res. 248\nS. 3802\nPlease let the President have reports and\nrecommendations as to the approval of these\nbills as soon as possible.\nSincerely,\nRobert D. Linder\nChief Executive Clerk\nThe Honorable Roy L. Ash\nDirector\nOffice of Management and Budget\nWashington, D. C."
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