‘Mr. Stanley S, Carpenter - 2 - 7. Replacement of "INCLUDES" by "SHALL INCLUDE" is accepted. 8. The descendants are a poorly defined group at this time and cannot be-included in Dr. Conard's roster for his study. Since this program of reimbursement of expenditures incurred under P.L. 5-52 must in some manner be related to Dr. Conard's scientific study to justify AEC funding, reimbursement cannot be provided for persons not included in Dr. Conard's roster such as the off- ‘spring of exposed and/or control persons. Furthermore, the addition of descendants to Dr. Conard's roster might in the future so overburden the program that both Dr. Conard's medical surveys and the reimbursement provided in this Agreement would be placed in jeopardy. 9. The words "UNRELATED TO IRRADIATION" are accepted. Since this addition may pose practical problems in implementation of the law, the special Joint Committee of the Congress may wish to reconsider its inclusion. However, AEC is prepared to accept the additional words if that is the wish of the Committee. 10. Addition of "$9.00" is accepted. ll. Submission of a report of activities conducted under a contract at a specified interval prior to renewal is customary in AEC contracts. 12. The AEC cannot assume liability for the original irradiation of the inhabitants of the Marshall Islands since the U.S. Government did not acknowledge liability in P.L. 88-485. Accordingly, the indemnification clause is appropriate and is required for an agreement of this kind. Item 5 in the Agreement provides that "this indemnification provision shall not apply to the extent that such liability, injury, loss or damage shall have resulted from the fault or negligence of the Commission, its contractors or employees.'' We interpret this statement to mean that the Trust Territory does not hold harmless the Commission, its contractors and employees if liability, injury, loss or damage shall have resulted from the fault or negligence of the Commission, its contractors or employees. A revised draft incorporating the above changes is enclosed. On June 12, 1974, a meeting was held in Washington between Senator Kendall, Representative Sigrah and Mr. Farley of the Congress of Micronesia, Mr. Brown of the Department of the Interior and Drs. Burr, Marks and Stuart and Mr. Greenleigh of AEC. The meeting was most rewarding in arriving at a mutual understanding relative to the enclosed draft. an 5008543