. : ware oa (a) The Navy Department, upon request of the Atomic Energy Commission, will lend to the AEC such vessels as can be mide available and as are required in the prosecution of projects which are the responsibility'of the AEC. Loan of such vessels shall be made on custody receipt without charge for the capital value of the vessel. (b) The AEC will provide funds on request by the Navy for activation, if required, and for preparing for operation and tow, if necessary, any vessels made available to the AEC, including funds to procure additional spare parts and aecessories required for operation of the vessel. Normal overhead will be charged for this work. (c) The Navy Department will deliver to its destination as desired by the AEC, any vessel loaned to the AEC, if such delivery is deemed to be practicable by the Department. Otherwise, the AX will arrange seperately for delivery of the vessel. : (a) The ARC shall be responsible for the operation, protection, security, repair, and maintenance of all vessels loaned to it by the Navy while such vessels are in ite custody or the custody of others acting for the Commission. If normal maintenance of certain vessels is impractical due to lack of suitable tender or shipyard overhaul, or drydock, facilities, the AEC will provide funds for accomplishing the delinquent maintenance upon return of the vessels to naval custody and submission te the AEC by the Navy Department of a detailed estimate of costs _ based upon a joint physical inspection. (e) In the event of loss, serious damage, or return in poor material condition, a survey shall be made by appropriate naval authority. Representatives of the AEC shall be invited to attend this survey. Decision of such survey to strike the vessel in question, or to repair same, will be based on considerations of minimising loss to the Government. In the event economical repair ean be made, the AEC shall provide funds to pay the expenses thereof, except that such expenses shall not include any overhead expenses. It is understood that the AEC will pay the expenses of returning the vessel to the same condition that it was in when assigned to the AEC. The AW shall not be liable for payment for loss of vessels, but shall exercise all due care and diligence for their care and security. — (f) Any vessels loaned to the AIC, if required for Navy use prior to completion of the work for which obtained, shall be returned to Navy custody upon request. on thirty days' notice. we sare? TASK GROUP 7.4 OPRS ORDER NO. 1-53 ANNEX J, APNDX 1 anal ° ed pod pir 520049 peciossifi