NTER-GOVERNMENT AL MARrTlME :ONSULTATlVE ORGANIZATION LEG/OONl!'..5/0.1/SR.7

4 i:.prll·19~C Or1g1no.l : lllNGLISR/F.RliNOH

OO'ERN1.TIOl~UJ oo.NFlilIUiNCE ON LIMITl..TION OF LIAII+LI'l'Y FOR K.W'T:OOl OLUI.JS, 1976·' OOODitteo of'the whole

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SUMMtlRY nEoOltJj ~ THE SEi\1:mtmt MEB.f.L!ING '

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l1oJ,d·'o.t the 'Cuna,rd Intorna.t1oru;ll Hotel, HaCcersn1th, London W.6, 'J ' ' , 'on' '1'hur~, 4 Noveober 1976, o.t 2.30 p,o.

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Seoretory" ~ .. .roS. BUSlIA (IMOO Seoretnria.t)

o ' , III .. ' • \, \' ~ I'.

OON'lTlN.~S ... ,-

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£l&w.clA, Mea t6:~ O()psidero.t~op:;9.f !lroft Int,errllltionol . Oonvention on Lioito.tion of Liability

, , , I' for Mori t10e : OlMns (oont1nuGa)

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For re.lOn. of economy, this dOCIIlTMlnt is printed In 8 limited numb8~~ "elegatllt .r. kindlY askad to bring their copies fO meetings and nof to rlllU"t additional copirs,

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The 01IAIIlMl1N rooo.lled that, a.t its previous oeeting'~ tllG'.6ixloitt~h~~ . , , ' • ..,1.'

dooidod to Bet up a. ~lork1nB Gro\\p to deal with the questions ra1se{L by

ilrtiole ,(b) (oil pollution d.oJ::u:I.8e) mld the proposals rela.tod thereto. In

8olooting the oooborab1p of the l<lorldng Gro~, her aim bad been to onsuro M

oquitc.blo geogrephiQal d1st:r:ib~t.ton and oain~Biq aboJ.CJn0e betwoen the various

intoroste involved. She hoped' tha.t the Group DOClbors would keop in oontnot .. ' " ..' '. (I: . ."'.. :',

with the other 4~l.BIlt~one ill j~~e~ :to .tomul~to propps~s oooopta.ble ·to tho CotlI.l1 ttoe of 'the Whole.

She ,proposed tha.t the wo~ -orOUP:-be' o_oeed ot repreaento:tiive'S ot the

follo\f:tng 'O~t~i~)f.~' . Arsent~,c~, ':~l:\8 F.edero.l.n~publio of ,Q9~ • ... ' ~. e' 1 " • , '." ~.J, ..

Liboritl, NorwD¥~ Poland, tho. united Klngdoo ~ the Unitad Sta.tes.

AGElID.c. ITlllvI 6 - CONSIDEI11.!t'ION OF ~'r IN.mlNATIONllL CONVEtfrION ON LDIITATION OF LIIll3ILITY FOR MtJU'l'IME CL.ll.1NS (LOO/CONF. 5/4, LlOO/CONF. 5/4/.Md .. l-3, LOO/CONF. 5/ 4/C.l/yfP. 35) (oont1nu&d)

~iSte ~ - ;he sqnergl lioits

The ClLUIlMIlN 1nvitad the Cot:lo1ttoe, in o.ooordOnoe with the t10e sohedule

roi! its work prog1:atJlJe (r..:oo./CON;F.5/C.l!lrI.P.4), to-tum its o.ttention to tlle

DOIst ioportant issue to be sattled iA- tb~ .Obriwmtion - nnoe11 ..... ~ol

lioits of lia.bility. 1bo OOOl:lj,~:t~'Sdel.i.p.~~tJ.one shou:tA a.t the present

stege servo o.s the ba.s1s for subsequent IlOre doto.iled negotia.tions. The

gonerlll dobate had alreody indioa.ted. thtJ.t there W!lS a. desire to produce 11

Convention which provided a. unifor.o and universally ~pplioa.ble solution.

Soverlll dolego.tions ha.d aleo voiced tho opinion toot the 1101 ta.t1on syeteo

should be ba.eed on the prinoiple of insura.bili ty. The oa.jori ty view se8ll8d to be that cla.ios under the hea.d1ng of dcJ.t:loBe oa.used to ho.rboUl· works or wreck:

raoova.l should be subjeot to l101ta.tion but possibly be Biven priority stOotuB

a.s o.gn.inst other property olaios. Motlbers of the Coco! ttoe should D~W stOote

wothor thoy preferred the ba.aic text of d.:ra.f't Artiole 6 or the proposed

oltorno.tiva.

Mt-. NADl (India.) thouaht that the lioit of lia.bi11ty should bo kept o.t a.

reasonAble level, so that adverse offoots on the oost of servioes providod by

ahipownors, would not be the reoult. Totol l101to.tion should not be Doro

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... , - LOO/O~, ~/C.lI.SH. 7

tba.n dmlble the OOO\lt\t lo.1d down in the 1957 Convention. Personal Qlo.ina , " . ~ I.. ' •

aoall ,~w.d be "11 aside for ~ l~tter. ooto8Ory. .l '

While the CatD1tta~ niabt well trike the nltema.Uw aa ~'bns1B for

discussions, he would prefer l!rl1ta.tiori to be ooloula.ted ill· three tl&:t'S'instead

of tho two provided for in the dro.:f't. Ships oould be divided !ntQthree

oategoriea: thoae 1rIith tontlC8'08 of 30,000 or less, thoBe with ,0,000 to 70,000

Illld those ovor 70,000. For personal olaios the bnsio mte WoUld be $300"1)* ton

up to 30,000 tqns, $200 for evGr:l ad<U.t;L~ tOll in the C(l.pe of ships in

Co;tft8'9X'f;I;L, ond$lOO per ton· .1.n a;x:qpss,of 70,000 tons tor shipe in C~~oaor.r III.

Th({ Oor.Nf#~ ,tigurGB . fOll WOp~.clq.1n~ would 00$100, $7~ Jlnd $50

reeppotivoly. F021' Ql:l. personal ond :;>ro,porty. ola.iP.e arising f:;oo Q. .. ein($l.e

incident, he suggG,sted fl 0ll,X,10u0 liability l~t of ~50 J:?illiQn, t!I, fieure Wli~,

thoUBh .. ooe~t D;t'b,iI. tra.l.7 t" tq*aoooun.t of the 1101 te ofinaurnpili ty.

" Tho' ctLmi'MIlN suggested"tl1o.t c'l.~lego.tions' oonf1ne thooso1ws at the prosont

sto.go to stl.\t:.1.ng thEir reosQns fa:r:thcdr' deo'ision to opt for the btlSic to:X:t or

tho alternative.

Lorcl DIPLq<lK (Unite<1 Kin8dou)' ~4ed deloantions thflt it wo.s the British

doloant1on wllioh had prJPosed the olterno.tive text :Cor .Artiole (; to meors 'Lo8Ql COlJI:l1ttee. The oriGinal OM! dr~t hlli(aleo SUBB'Osted two sepor~te tund.s

w1thou~, however, stipulatinG tha't the fund tor property olaina oould bo drawn , . '

upon 1f personal olnico exoo~dod the oapacity of the fund earonrkod for thee.

The toxt subo1ttad by the tlnited Kingdoo'provided for a spillover betwean tho .. ;, .. )

It wos a seneral1y acoepted prinoiple that priority Should be given to i,

perso~ o;Laims, espeoially in vi€:lW of the foot tha.t it wo.snot theu.su.al

pro.ot1oe for a. person to insure his life, whereas insurarioe. of property was

oommonplo.ce. As the repra s ont at i va 0:£ India. hod pointed' out. ona of tho

£l:t"gaments a.go.:I.nst tho bo.eio torlwo.s that a. single fund. might ·bo devoted

entirely to moattng'personol olaims loa.ving nothing for proPerty Ol~8. ThAt

would be an unaesiro.b19 situation •. The tlltat'mtiva text was 'designed to make

la:ts9r . irUx:1 o:v~.l(l.bl-G for property claims;' which wore the most numerous and

wouldprobnbly rema.in so," whorea.s persohololaJ.ms would very rarely :zteo.oh thG

l1mi ts :lttd1oo.tOd·. If only OnelWt were to ~ prOVided fCir both'. types of .

olo.:lm, the cost" ot~· ~oWOUld. 'bttb1gher than under th6 oonditions,

specified in the alterntl.tive text.

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Hrt. S1niVIG(N~) introduced LOO/OONJ'.5/c.l,t\lP.'5 on bohAV of hts own delogntion oM tho.t Of SwodGn. From the »Urely' teoluU.otU8Zl8'1e; nej.th~r ton'

proposed for .ArtiolQ 6 soemod to offer tJll'3' d1st1i1ot o.dVBZ1ta.eo. The key 1

oons1d.~t~on WJII.I. ~ ,1.eVQ,l ,otlicW~a.1 ty ,;whi,Qb., ~d rqsul t f:uon :the '

a.ppl~:9Q.t~~ of ~,g1~ ,f'o:t'UQla. Whoil!OM :f'~eure8 which w~!1 have tbo offoct

of prQduq1ng I) oore .or: le819 equivalent l~vel,of ~Q.bll1'by oould etlBlly be

witton in~o both tho bcqio and. oJ. ternnUvo . teats, .1 t w,uld bo 1I:lposeible to '" , I ' " ' • '. "

~~yao.t an' oquQl., lowl of lillbP.ity..

He ,P'teforred the bnsioteX'b. which w<:>uld prOvide better oOVGrQ8G tor both

proportT'oltiio.s ,tim. personal ola.:l.os, d we' the%'el'o~ core in keeping 'With ' i

tho oonoept' at ,ttlobcl l1D1,ta.tion, ,It should thu.S be pdalll1ble: "'to G\'O:f.CL· htl.vi118. to oako roservntions' 02.' esto.blilJh \aepa;rotel1tl1ta of liabiliti fcm·o~Gin ',''-

I ollte.goriea ot ola.:los. By and lo.rse the'SUb o.vo.ila.ble fot prope2:'t,r· ola.iJ:ls

would be scaller'H' the nlterno.tive 'Were Ml!lp'ted. " Unlike :tbe reprosmt;o.tivo

of thQ UJ;l[l.t~ ~Otl, hedoubt$d ~e'bhel: prope~~ olo..i.t:ls were alWQ¥8 ,oovored by 1nsu.1nmoo,; asa gEltlera;I. rule, ,th,1¢ ~iY' 9~aJ.oa for ~, otl.used .e»;l la.nd.

or a.rising £roo pollution were not so oovered. Tho basio toxt ~ b!3Gll

orit1oizQd for~ving c.bsolute priority to personol ola.:losJ but. o.s Swedon

had, po:Lntod . out ,(Loo/CONF.5/4,pago 16), swe' pc.rt of the 1.101.to.t10n Ql:lount

oould be eet o.side for property eiilioe;'Doounent LOO/CONF.5/C.l/VIP.,' had boon • 'I" I. " ". ,

drn£ten before oQn8ideration' of the qUestion of priorities in ooqpenso.tian for

~ 'oo.~od to h/lrbour wo~ke, but ~re w~ no raMon why the bll.8:lo' toxt ah~d 710t ~~o inolud~ tl p;oV1'!1ion ooveri~ tho.t ;point. .) ','.

l'lr. FELIil.NEI1I (Finland) noted toot the inolusion of oertc..:1n ~~s ,of

010..:10£1 in .Artiole 2 would depend. on the lim. ts of lia.bili ty to be fixod by • I ' ,~ . ,

.n-tiole .6.- He wne in fo.vour of the proposal presented by thaNOrweGia.tl end.

Swedish deloga.tions, whioh. prov1dod for 0. substantial rise in the Ho.b.tl1 ty

linit f9r property elo.ine.

l-lJ:. 1~~KY (USSR) pref~d tho o.lto1'llQt1ve text as being in l~le ,with

the p~st.ons ot ,tl;le 1957 ,Coo.vention, which had beerJ. rCl.tifi~d by 0.: loo~B'O .

, .. nU.Q'bo:r:: o,(.,J3t~1;~ '£lZld had stop(]. .. 1*e test· of ~J,oe. J~ would bo r1~ to

o.bGnd.<m ,o"JJY$telil,tha.t ~,~ B~tisfo.ct~,. The ,bo.sio text ha.d. 1W-o '~"Cl:t ,t1~WbQC~,~ llrt;1.f:f.oif;1l1y raJ,8~ t~ l1n.blliW:Umt, for property ol,.o.itls.,

Inproctioe,·: tbe olo.:f.tls for pe~~ ·inj~ vero fewer than those, tor ~ i

to property,.. ,l;IIldtlw8~ oov~" bll~rt:1o:l.' ,6 wo~4 in b,i tUture be f'~:

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stUl, ,$1pQe ./'l.rt;tQl$ ,7. ~ded tor G l.im.i.t ~~ po,asenger olQims, which lIleant

that !~l,olQ" 6 would \QPJ)l;y ~ .. :tl1~. mcin to prQpqrt;y olQ.ims. ,.'1'0 .~,a.lte t~ f'igure

of ~720\sugge8ted to. the NQrWQB1Q.P".Md SwedifiJ11., proposal would.~~'.~1iip~·.

by nine the l.:Lm.$.:ta.tion provided for in the 1957 Convention. Tho USSR doubted . ',., ',' ,

whether FJUOh o.p. inoreo.se ~s neoessary ~ raa.sonnble, and had alre~a.skO(.L, . '. ,"",. ',', in the LeeoJ. Committee, ,for proof thllot the 1957 Convention f'igure wa.s

il::Illdequa.te - and 'fl.O' ~ 1:wl been a.blo to aupp1y it. The foot wnS 'thv.t, dospi to . . , , .. ' ~, '

inf'la.tiOll, the l1r.lit laid down in tha.t Convention rer.:u:dnod perf'~otlY ade9;ua.te.

Tho only poople to bapef!t from tho sort of provision proposed in the b~Bio , , • I' ,. "

toxt would be tho insurers; but it wa.S not on tho:l'.r oooount 'tha.t tho Convention . :..';.. , , ,; ..' ,', , ., , ~

l1t1.S being drafted.

It woulc1 ~ o!J,(Jy' to ~ude Or prp~Bj.on in ti.a.e alternutive .~o;1i giyin8'. priority to ,the settletlQp~ pt·ploJ.os ariSing out at ~ to, ha.rbour, works,

and tho reoovol of' wreckq,

11r. BERBER (Federal Republio of Gemany) alao favoured the alternative

toxt wb1oh, to his n1ncl .. ond J.X?iEI!3Pootive of the a.otuol figures adopted,

,,~px{J"1onted. tb.a onJq XGas~le end eq:&p.:table so~utio~. ,Like the 1957 Convention,

tho nJ.tol."!'lL\tive, t~xt p:oovidad f'or a. OOClpensa.tOry ,pystao /lS, betwo~ th$ lioi~a.1:+pn

ZundI:J fQr porl;Janol 'and pro~rty olqios,. 'l'wo.f'uncle nt l,ea.s·t wo~~oubte<Uy

nooos~y; fo:,:. a. single :t'und lEWSQ enough to Ileot both oa.te80rieEl. of ola.iDs

"roulQ. oo~t on eOQn~o::J.ly, ~1tU8tif1o.~le, llPount if -it, were,used otU,¥ i'()r

pl'OlJGrby ollJ.inih T4a o~ti.on of two ~19'WO\1ld l,isbten the burden on S¥l?Own,rs •

. ~; IT.NILEB (Awttro.lia.) ·i.rosinfa.vour, of the baSic text. To hi. oind,

priority stiould be gi van to third. partiEis who had personal elnios· and were '

not 'insured.; If persOndL olo.iI:le were· few in 'rwobttr' the anount a.va.ila.ble

to neot proPerty'ola1'Oa would be all the ',larger';' He was a.go.inet tho oddit1on·

of' sub-pa.ragra.ph (d), for he oonsidered it inequi ta.ble to gi vo publio or

sooi-publio bodies priorit,y over individual olaioante.

Mr. CrmON (~otherlands) was in favour of the alto:rntl.tive text, for all

tho rOllB,onsal;oeady ac1vanoed dur1n8 the disoussion by ita suppot-tors. Hia

delogation, as ! t i hD.d olroady indioated in the Legal CODOi ttee, was conoerned.

a.bove all with tho level of' insuranoe preciuos. Sinoe tho tiDe tha.t COIJr.litteo

ho.d nOt, oars deloga.·bione hOd beocX:lo'lUivs to tho probleo. The SoViet

roprosonta.tive hod' JUSt poirrtea.i

out, for extlOplo,thllt olaJ.Ds oostly M'OSG

£roo dnl::II:\go to property, and tha.t al thOUSh the vert la.rge BU[l provided tor

ImjOONF. 5/0.1/SR., 7 - 6 -

peraono.l ola.1.ma, 'WOUld indeed be a:vn:f.la.ble tor pX'oper(r,J olatma also, ilhe etteot

wmaa be to ra180 insuranoo preId.um rates, Moreovar, the bna:f.o text gnve

o.baolute priority ,to p$1'sonol olaimo; butthnt' wail not BO important a. po1ilt.

HO hilI.'\ doubts OG'to the 1.Utorproto.t:f.on t~ be g:f. ven to' thO fieu;res in tho

.il.nnc:.:: to LJ1X}/CoNF. S/C.l,!WP. 35.' 'Tho Norwegia.n cmd ~sh delego.tiona thought'

toot the am~tl3 in respeot of property olo.ims OUBht to b() Bet o:t' a. hi8il

tieure. Th~ 'was no question ot minimizing the importa.noo ot auoh ola.1Ilis~ but it Md to be' remembered thn.t in most oa.aos doma8e to property we 1risurod'

~a.a per~ontll ~Jury wos not nl~s insured. In order to' observe the' ','" , ", " \

:Prinoiple of'1nsurab1l1ty, thorofore, the oommittee should'to.lco" Ct:l1'O not to set

tho total amount of promiurns too h1e;b.. To do so would have cone1dera.b1e

roporoussions on 8h1ppine' ooste, and tho.t eor1ous disadvantage WOUld :make ~ ~tB hesitato to sign tho -Oonvention however CUoh thai W'l.ahod t()~ The

Nethorlands deleention accordingly ca.!nto.:1nod. :1 te strolJa' pr&ferenoe tor tho

01. torno.t1ve t~.

Mr. Nfl.IRll.O (Pra.noe) endOrsod the o.rgunants in favour, of the OOs1c text

of Artiole 6. The arlountl!leua.rantaod under the al terrllltive ,for personal .tn~,

. 'Wbioh wore ola.:f.r:lad to be loree. wore net in fe.ot DUOh lo.r80rthtm thoBe'

arrived a.tin the ba.aic ton' thro'uehtho operation 'Of absolute priority. The

indGCinificatiOtl tor property cla.1.tls we Very 1nM.eq1mte Il1'ld seeood to hIlve

boon dol1boro.tely' Oo.de so. Howover, B nucber ot 4elego.tiona'~ in()lud1ns that·

of the USSR. ho.d. stressed the size ot thct figure tor SUCh ola.1rls, whiahoisbt

wall £J:O on 1norea.e~. ' It bo4 ~ sc1d th4t 'the tiSUl'ee iu the 1957 Convention OU8htto be doubled. If: they were IJUltipl1ed by-2.5, with tho 11!lits sot for

property cla.iI:la, the ao0Utl1S oQ:t~d would. ?e ~ hishor than ,those in the

altorno.tivo text, whiah were' ho~~,~+y ~!i'qua.to.,!l'p.e, No~g1!lZl .0fl4 ' United sto.tea delesations had stressed tho.t account Should be taken of tho

a.otual possibilitios of tho insuranoo narket and o~ reasonablel1D1ta for

instJronce oosta. 1l l."Ocont study Showed tha.t tor all olo.1os taken together

tho 1957 systOJ:l' with it~ l1D1to.tions, wo.s in Dost 0080S so,tisf'o.ctory.VI1th

0. little ettort,1lll t,).Ooe:p~o.ble ByElbOLJ. for all types of 010.i0 coUld thorotore

bo found.

The honah delogo.t!on,,'wo.s in fQ.v01,U;' of 1nolu.d.in8 a. priority for oln1os

tor ~ to l:lt.\:rb~ workB~ .. the totolHo1 ta.tioo QtlOUtlt ae~ .in the baldc

text. ·

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Mr. '1'MlItAWL (Japarl) rerJ.atend h!Le delesat10b t. pretet'ellOe for the

al t01'Dative text. With ... bulo text, the lim1ta·· tor proPQ'bti oloJms would

incxreRse six-told or, marf1J· lIu:b. moat property OltWna wreoovend 07 1nau:rtmoe.

Hi. 4el.t1~ wns QJ.80 D$ldnot' pi'1bJ.1I'b7 tor. o1a1mator: ~ to bar~ ,.,t.

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Mr. REIN' (observer, cr.tt)~POnktllg o,t tb~f 1nv1to.tion of the 'Cha11'nWJl,

reoallod tbo.t at the OM! OOnt~~oe':t.n B'am'bu:t-g in 1974, it had bGon'a-ooldod .' , ,

to sot up two ont1roly S6p.c.rI:Lto funds with no possible spl11ove~. Subsequently,

the aMI IntOrntlt1ontll Working' ~ hnd finollt adopted t\ quits di.tteront

BOlut1an i- IIL\DI8l¥,Q,.JWlgle 'fud: bu1J t4tb lmj;orJ:t;1ee. l1na.n1m1ty had Poon

reGObed in tavour ottbllt. solU!bJ.on, . 'Which tiM .. preferable· bGOtlUfJG JL'tJ: allQ)le(l .'

bettor 'use. of OXiat1bg onpaol:t)t .·d' &0.0' beonuse it 'WQ.S les8 expensive a.t.a. given lovol,,, Totql C<:JV'f¢ we .olea.rlyloworfo:r., a 81I16le ·fund. IN.'tJ 1ns'u:rers

f1xod 'U:w:I.:D· p~uma in tema of total oover. In OG8eBot olD4J:l8 for

pro~ alone or porsonal 1n.j\'Iry a+one .. the l1nd:tws luI.rdly evar invoked •.

M.l:t'e often than not a. aingle inoident 1nvQl~.~ in both oo:tegpJ:1e.J, '.

whiM were all oovered. Only in extreoe OMall did slzea.ble 10B.ses of bUlllM, .. . .,

lito exha.ust tho. tund, tl':I,u.I3. en~r1r.lg the interests ot property olo.:1IllOZ'lts, " ,.',' . '

tl Qi tuntion which thf;) p11l>l~Q \U'lQ,elistooc1 perfeot17 well. There was no •• -< .1 r,' " ,.' '.

d1sodvaut!lg'e In sottJ.ng tho CIOount o.t a. h1sh lovel, if l1t!dta.tlons wore f1xod. . . " .: . . .' I.: .

Whe 1opwlilll'lt :po1nt we to.~fIotltoe the pr;tno!pl,e of 1nsurapll~ ty at. roaao~ble qoet.

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Uri OARVELL (Cone.dn)~· with those delegntlons which had spoken :in.'. ftlVOUt' of tha basl0 text; ahd thankod the ob!l~r for the CMI tor his point~

o£ ola:r:1£1oc.t1on. Ria delego.tlori WDSy,u.:he so.t1Bf'lod with tho. axplono.tlcnQ

given'by" N01"WO\Y'ond Sweden, a.nd their proposals JJbould duly be>1'ound to be

widoly a.ooopta.ble. The . bul0 text provided forbet.tor oover for tho VQ.l'1ous:

types of olo.1ms, and a. 1'und set .up . along the SU8'8'estod lines would 1'Ql.levo.· .

tho oonoor.n felt by the CQnad10n dolesntion with regQrd to .tho inolusion of 'I .•

Q. ol/lUSe on roservatiqns in ffl~peot o~ priorl t;Les for ola.1o.s for ~ .. to . '. '. . . '. ." ','

bLl.'t'bour works. '

.Mr. morz (Gomoz1DQPocrBtio iepublio)subm.1tted tbat., t.o~ lUs dela~1on,

tlD:ee problOI:lS. wore: involved. . Justly. tbB lim1 ta.tion . 'QQO'QA1;s dopended. ;Oll .

whotber the .fund wo.s oonetl tuted so o.a to QO'V8r ola:l.t:lS tor.persona..l injl1'l:Y

or not, there W'DS no rea.son to sot the StU:lO high lovels £01' tho fund If

LI&/COO'. 5/O.l/BR. 7 ... 8 ...

only p:rope;r:ty ola1Ju, were' to be oOV'8l.'ed. Seoond].y. aerta1n property olaims

(t'l.oJraace to ha'rbow: YOrke, wreak: removol) ehould roak before other properiy

ola1m8.' La8tlT, the priority ofoerbain olaims. shOlild not result in other

proporty olo.1ms remaining oomplete.ly \1il8ettl'8d. ' Be recalled h:La delegation' II

earlier SUB'B'Ostion that a portion ot the fund should be reserved tor priority

ola.ime QZld ~other for non-pr10ril7 olq.!m$. ,Nei ther the bado nor the

oJ.t~~fve tuxts oould solve aJ,1 theso probletllS, but the alternative text

soomodto be the bettor basis tor a. solution. ,!U.s delogntion noted with intere~t ~,Swedish proposal ~P~ ooloula.Uon ot, the lia.bility amounts,

. . . .

Mr. ,'stJOlro.RZJi.WS (Poland) "em, IllNlIY reasdns lor tavourin&" the aJ.tGrilntivo

toxt. First and foremost, the prinoiple ~ which ,the 1957 Oonvention WQS

based had stood the test andsb:ould be retained. . JUs delegation endo:t'sod

the romo.rks ot the repreeontative ot the lJ:n.ited K.1.nsda:l, espeoially with

regard to the insurnb:L11ty ot proporty ola.1ms. Personal oloims should be

se4;tled first 'ot 0.1.1, after which, priority wl,)'llld be' Biven to olo.1ms for d.tJ.tno8e to ha;rbou.r'WOrks over other property olo.ima.

Mr. SELVIG (No~), roferr:l.ng'to the figures in the Norwegian and Swodish

proposal, expJ.uinod that the' lowerlWt, whi6h applied to BDlOll sh:1psin

OMOS whero the.:re were only property olaims or personal. ola.tms, WBS higher

than tho figuro in the bOS10 text. 'It hod been ropea.tedly a.sserted tha.t most

proporty d.atnIlgo 'WllS insured. '1'hn.t was, howev~, bot true of dotnngo oa.usod.

outside the sh1p, which WOB olwa;y's imdoquo.tely oovered. 'l.'he proteotion' ot ];l»O'.Porty ola.1ms would, it had been stated, ho.ve the ,effeot of inoro~iIlg

protl1U1:lS. Howwer, do.to. rolo.t1ng to Il periodoi' ton yearaand 5,000 eh:I.pe,

showed tho.t the mended oovera,seresul ted in an, inorea.se in the region' ot 5 per oont only. Those QSsGrt:Lons were therofore e~rated. 'rhoro \me

no point in raising the litu.ts, but there ~ no doubt that the systeo in

fO»6O very otten did not work so.tistootor1ly.

].\fr. DUDER (tibar1.a) soid that he had studiod with great interest the oost

of tho varlous preposa.ls and'thel Ilriotmts indioatedby the IOMI. The CMI and'

the Noro'18g1an delegation had given tho Cooc1ttae to understand thAt tho

solu.t1on o£f~ .tnthe~iotext would be leas expansive"and ha.d oited tho

op1ni0%lS ot the P.' ,and I. olUbs. B'e rOQUGsted the observer for. the ItJMI to

prWide oonti1'ctl.t1on of 1ibo.t View,'

- 9 ;;.

, .' Hr. AlWl'SUI (Ghi:wa) expressed eupporltor the bl\8io prinoiple of

~b'llv.Tho bc.sio text would be lese expensive but loft 800~ doubts'

o.bout p~ ola.:1os, which tho olterno.tive text did not.' Ris dologa,tion

endorsod. tho Ind1N"l fJU88OBtion, and. wna 'in favourof' 1Ihe alternGtivtt toXt;

supjQot, to ar:l~t8 on point/3 of dete.il.

Mr ... ,PERRAXlS «()Roeae) said tha.t o.t the Legal OorDittee he had thOUGht it

pOBs1 blo to opt fO:l' the, bQsio tart, ina.sI::lu@ as it· would not Mve kvol vod.

o;ry ,~roo.so in insuranoe, oostQ. However, he wo.enov inolined to prefer the

~ to;t"llQ.t~ve text despUo, ,th~ :,o.rBUDents put.f~rwrd by' thEt observer ,.for tho

crt[ and the Norwegian represento.tive. • .! ". ,} " r ,. ,.

Mr' .. lAGES (Obs~rver, IAPR),epetl.k1ng at the 1nvito.tio~ of' tho Cbct.il:tlOn" said ~t the que~~ion,und.el: oonaidero.tion WIlS of' sreo.t intEFest to port

, . .. '. . " .." . ,

o.u~h~~tios., It .f~quontlf.'Ha.l?penQd tho.t port eoplo~essu.f'£ered personal inj'1.l:C';Y, ,(lJld wbour wor~e ,l(O:r;e d.at:la8Gd whon oo.to.st~ophea ooou,rred. !ns1de, ports.

Not alwa.,ya "aro porla run by powor:tul sto.tes. In tlll.tlY oo.seB they wore run tI';. " • ,~ . ,

by SOQll orgcn1zo.tionsw1th.linited .financial,resouroes.

His Assooiation reoosniled, of oO'\tt'se, tho.t priority trUStbo given to

;POJ:s~ olo.ioo, but wonderod whether o.s far o.s :pro,pert,y olaine wero oonoarned

it wo.s in ,fo.ot 0. quest:1,on of' insuro.blo or; ratho~ of' insured oloiIls. If' ~t was "~ oo.se of' the lo.tter,the:t'e WOBno reo.son why the, viotiIl rather thon thQ.

;J.ns1n'o.noo ooopo.ny should asBUOO ro~o.ns1bil1'tlr tor the daco.ge • .He ~

l1G,t.enod to the explano.t!~ ot the observer tOll the CMI :who, had enid tht\t ./ '.' ':" "

,. ~~littiqgo.,£und ~ into d!t.ferent tiars was not 0. go~eol~tion, sinoo '., • j . '

po.rt1oulo.r tiorao1gbt be unusod while others ran out. Furthemo~e, tho t9tal

ooo,t ,of'~anoe ·wns oaloula.ted in relation to the whole, i.e. indol)ondontly .,' - ..', '

of tiers. In tho propoaed,altorno.t!vo, a spillover e;ysteo ha.d in .foctboen

p:J.'ovidod for. ILIPH sa.w no dl:awba.ok in o.ooopting the alternative to~, l)1'ovided

the spillover worko~ both ways • • 4 ,r

\-lith reanrd to insuranoe oosts,the UPH .felt that the Vic'tin's possibility

of 1ndeon1f'1oa.tion prQaupposed, that the persons who oBUSed tho doollB'O 'ofOro '

solvont oncl insured. M:lreover, it believed tho.t the present lWta'bion aoounts

woo:o aq,eqU.O.tfl to cover Illl, CllSGS o.f, dat'ltlae in ~boure. '. . .• .". ".j,

, To talk. a.bout kee;?inginuuranoo'prooiUtJ8 M ldw IlS possible WD.8 to poso

tho problOtl in the wrong wo.y. Who.t we needed WQ.8 to know 'Whethor or not the

rm/CONJ'.5/c.~/sa.1 - 10 "!"

,mole olaim VQ.8 ,oovere4 br ~a.a.o,. It it WI not, there wos Do 'bo:a.afer ot rospOM.1.b1l1t,' from thG shlppWnOr to the sbJ.ppor" the pori auth~1t1e.o3L1Jhe

port ,~a. ' Tbe tliq1 Bhoull\ ~tore be to red\toe ,Ol~8 to th., lowest

p08B1~1. lQ~l W,lw"4ne the ,.~ ~epQlle1ble, ~ tor them •. , - . !' 'wi

M7:. BEND.J"ENNA (AlgeX'1Il) so.id his' delego,t1on 1m8 stili in' favour' ot' £1x.1rlg

tho 11m1t:,~ ;l;io.qiJ,;ll,~t 0. ~(lSona.ble .. tiBUJ:$_, In l;rJ.s v4.ew, the ,'1957 ,Oonvontion,

to 'Wh1oh,Alsor~~ ~ 0. fa.:ct1; sbo1ll4 no:J; be inBflt'dQcl:ae 'out ot date.

His delogation was i'ritovour of tho oltertllltive teXt ot pa:rogro.ph' (1) ot JUot1olo 6"and 060inetl giV1ng'prioritYto oloimS in ~speot bt htd':b~~.

, \ . l~ r •

I>lr. \lILLUMS (Obaorvor, IUMI), spe~' at th~'kitQ,tion of tho 0002man, fJt.\1d tho.t when assoseing '0. given e!tunt.1on, 1nsurershM'al~s to t~o: into

oooount the extent,of the linb!lities theyI1f.gbt haVe 'td tb:cse;' ~ s!:.i!;/ot

the ~'Ut1a, tha'deg.i:oOe mel troq'ltOnoy: ot the risks,'io:rui the ma.'Xi%!nlnf"ioasee

thoy tlisht 11llV9 to incUr. "'1th rego,rd to tho oost dt tbe'1nSura.noe, \Jhdi: they

hod to do WM 'tb Work 'out how best to' oover the olientnt t.\ :!ieQ,sot1a.blb' prioe.

It wo.s the insurer's view that the' ol terno.t1ve text proposed for J\.rtj,olia 6 '

s~ 'to,ott.er the oliEu.lt ·the 'best lQrQteot.1on at.the ,ooat. rOllSona.ble ~ioo.

z,1:t' .. lJ.101iOSO (Italy] 'telt tho.t tbeohoioe between the tW() texts d~l"e:nld~ on

tho anountsto be ult!mteiy setr ho would havO ;Preferred to btl.ve hb.d. ti f '

sto.tistioal. ·stUd.1 DOdo 'beto~, 'o.e .1 t would' be.v~ 'ta.eil!to.ted. th~ CCXll!l.1 tteo' s

work. Thd bt.\Oio text WIl8 perhaps oloarer and oiSht·'oonOeivo.bly otter ~O:te1' possibilities tor tl~eting 610.i0s tor parsonol injtXry, buth1s dologntion 'wns also oono~ With the question ot oosts. It tho' presQr1t l1o.bll.1ty lidittition hM'to be riult1plied.·by·two or tllroo tor the new Convention, it would be better

to chooso tho oJ. terna:t1 va teXt _ His dolegation' SUG'.g'ested tha.t Q.' odttpo.ro.ti'V'e

stuCly benade on thebas1s ot the tlodel in LEG/CoJiiF.5/c.i,/wP.35 PrGpa.red',;y tho , ,

Norwogilln ohd Swedish delego,tiona. The to.ek COuld be entrusted to Q, worl.d.nc! group, Q.BDisted by tho insurance experts and oooposod ot reprosonto.t1voe llhO

hod stl;pp~e4 ·the 'bo.eiO and QJ.tGr.na.t;LYQ.tq~e respectively_ Tho COJJI:littee oould than reQ,Ob a oom,prooi$G 801'\11:11011 011 the b.asis ct· the statistioold.o.t.a.

Mr. BEDTA (Cyprus)' WtlS in 'to.vour ot the olte:tlna.t1ve text for the tirst· P~£I8I."o,phs of~;Lole 6. ,While :r:eooGnizing that priQlrl,ty should be 8ivon to

porsonal',oJ.~. he .~ed, proper1liY. olo.ios o.s, olso beinG of iqporta.noo.

- 11 -

The qatam provided tor ill the 1957 Oonvention did not .eem to ho.ve ra.1884 ~

problems BO tar, 'and his delego.t1on agreed with the 1'8prGllentQtiws of the USSR

at\d Polo.nd in thirlki1'l8' th4'b it cOuld oontim.Je' to be 'D.p1X1.1ed.. '

, Mr. :amCH mmwri>SON (ObsorvO.r,' ~), spenki:ng Qt the !n~ito.t1onot the \ " , '

ChaJ l:'DDn, ottared olar1,(ioo.t1on on, one point in Mr. Roin t s sto.temGnt'~ The

t~' ,dra.wn up o.t the ].974 Bamburg Co~oronoe ot the 00 provided for two tunds, I '

te? oovor persOnal olaims' und Property olaims respeotivaly. 'Lo.ter~ 0. \lOr~ ;o.rty set up by the m-tt to :reoon£i1dorthe toxt ho.d.oonoluded that tho pOb1t1on

~ rogc.rd to thoe.~',maJd.M porsonOl olaims wt.\8 unSo.t1sfootory.' The '~rk:t.ng pariy had reported to 000 in Deoember 1974, its oonclus'ion being thAt tho

"bo.G1o text 'ot I~ioie' 6 provj.d:lngfor 0. aingle fund wM, to be.p:Nt~. 'However, thb.t w.s:mOrolY 0. ~stion by the worldngparty and,had not boen

approved by tho OMI. The only offioial'text wostbeone ,dro.wn up in B'Jlmburg.

Mr. FILIPOVIC (Xugoslo.vio.)' expressed his ~elesnti,on' s ~terenoe for the

tlJ"torno;U va text. It WtlB not in' tavour of g1 ving prior! ij- to' olo.:Ltne in . . ' , .

respo.pt of ~ to ha.rbO'll%- works.

The ,aHIlIRMAN' SU8BGBt~~t the Committe. stupy the othe:r:: ba.sio iaeuos ro1o.tod to tho 1iDi tat10n systec before deQiding between the basio and . . . - .

Qlte:r:"Do:tivo texts of its ~pon1ng po.rogra.phe. It was only a.f'ter suoh 0. .full

s~ toot ~t would be' po~sib~e to decide on tho Italian repres$nto.tivo's

~P9Solto ,set upa wor~ porty.

Mr. VONll.U (PQ10Dd)thoue;bt be wo.s cOrrGet in sta.tin8 tha.t fourtGen

delosntions had nlroa4¥ qxpress~d a prqfe;'fmoe for the altorna.t1w ten, o.s

QGDJilBt six for tho bQS;i.o teJ;t. Trul ,alternative text had. 0.100 reoeivod tho

au;ppcmt of the Qbaerver for .the IOMI., The, first paragraph of .L),rticle 6 800000., to h10 to be ElSSfmtiol t and he thought tho Italian represonto.ti ve I 8

proposa:l. 0. good one. He ,Mlced theCho.i1'DCl.Il to toke an indioo.tive' vote to

asoorto.in tho views of tho oojori ty • :. '.!'" ,I ,.'" • I .

Mr. lI.ffiKOVSK:Y (USSR) did not r.9jeot the Itolian propoaa.1, which aeetWd to

hio. to be reason;-'.11o, bu.t thouaht it preno;t~. The irlporta.nt thing, for tho , . . ". '

t.lOCI.Ollt, was tho;i; o.lno:J'ii all tho representatives wo had spoken bad exproeoed

a prGforenoo for one or other of the two texts.

I~. JliJMmlj[, (hallOO) etressod the foot that the COIlCi tteo wa.s dealinG

with one of the Dost itlportant points in the Convention. Ho oareed with

- 12 ":'

. the Ohnj:x:tlDn, tbGt 1t would be ~tu;t'O to U7tonooplote one pari ~ the

di80'Q8sion W1tbout ba~ G:zatUnoo tho other, PArqarClrPh. of lJ.l"tiole 6. !Lbe pu:rpooo of the ,OOUV'~:tioD \\Z¥i~ oou.sidero.tion was not Der6ly to s(ltiofy the

$tl)tos rq~oantod at tho ~Or.Ife;t'onoa, but to find solutions toot would ona.ble

Doot BOvorncente to boOOIlO Parties to tho Convontion. To' do thll.t, it wc.s :neOQ8sa.ry to oonsidir all tho eleoants involved. His own dalo{3'O.tion WIlS '

,:P:r:oP~d, ~ea.nwh!lo, to ~pport tho I~Dlia.nproposDl, which m.(~t prov1dO thou

~th SODO us~tul eubstantivo d.a.~a, for' the atatOIlenta Dade 'a.bout insuranoe

oosts badlj10t been ba.sO<,1 on prooise fi6lU'Os but representod Dare opinions 'Which , '

it WO\lld be rosh to take as ~ b~ie £roo which to dmw f.:1mlJ. oonolusiono • • ' '1 I! :, ' ,.',' '\,' .'" .,'.

. ,MI:. , lilitfl.1iml (Belgiw) reoo.lled tbo.:t;a.t, the beG'inJlirlG of the, CC?PfG:J.'l1"90,

lUs dologatian' ht.\d ,said thet :Lt wo.s 111 favCtU:t:. of th,& ba.f;Jio, toxt, wh1~ lUld

seecod to otfer','gneo.tor posaibll:ltios fo~~ovid.in8 S!!.~:J.stQ.Otory 1nQ.~:J.oo.tion

o.t Q. rGa.sOllllb;I.oe,oonooio prioe,. ,1J. th~ h:J.s clologn.tion ho.d not spoken in

the prosont <UsQ~si~, it at,ill reno.ined.' unoonvinoed. by the a.r~ts a.dvnnood

aantnst the solution in the bo.sio text ~ , , H9 agreed with the ropresenta.t!ve

of ItDly that tho choioe between tho tWo texts 'de~ on the ODoUnts

providod for tind th~' structUre of 'the lirl1 to.tian fund. He thGrefa:t'$ supported

tho SU6'8Gstion oado bY tho Italian dele(JO,tion ..

!L'he ~ repo~tedtho.t' to Ont1Ur8 thO production· of a. drttt COJ:l"rtmtion

aoooptable to tho lo.r~st possible nuober of aovornoents, it Would be·

profora.blo not to take an inoediato ":octo on the first pa.ra.ara.r.h ot .l:I:.et101e 6. It would bo b~tter to spend the noxt Iloet1nG'conl'Jidering i t9Il 2 of tho aeondn

outl!nod· in rm/CONF.5/C.ljt·IP.4. l!.e tho representative of Poland. hod po;lJlted.,

out~ it' o.ppol.iJ.'Odtha.t Dore deloeo.t10ns ware' in favour of. the o.lterntll.t1vo toxt,

o.nd Ocoount would be token of tha.t clur:1nB'the subsequent. discussion.

Mr:. vow..u (P9la.nd) drew a.ttention, for futuro roferenoo, to tho proposals

in LOO/CONF.5/C.ljw.P.4 and to Rules 40 and 34C~) of the Rules ot Proooduro,

but would not insist on his earlier Dotion ~t a vote be takon. '"

~ "