joint AEC-Department of Navy agreement outlined in OPNAV 4000.10A (7-1-53) as follows: ‘Effective this date, the following terms and conditions will apply to any loans of craft made in the future by the Navy Department to the Atomic Energy Commission. In addition, these terms and conditions will be applicable to Navy craft in the custody of the Atomic Energy Commission as of this date, insofar as applicable. 1. The Navy Department, upon request of the Atomic Energy Commission, will lend to the AEC such craft as can be made available and as are required in the prosecution of projects which are the responsibility of the AEC. Loan of such craft shall be made on custody receipt without charge for the capital value of the craft. 2 eo The AEC will provide funds on request by the Navy for activation, if required, and for preparing for operation and tow, if necessary, any craft made available to the AEC, including funds to procure additional spare parts and accessories required for operation of the craft. Normal overhead will be charged for this work. Delivery of craft that are loaned to the AEC under this agreement will be on a "where is" basis. delivery of these craft will be at the point of original transfer or at a point mutually agreed upon. he | Where practicable, available Navy transport will be used to redeploy craft. However, any expenses beyond normal Navy operating expenses, incurred in redeployment of craft, will be borne by AEC. Return a. The Atomic Energy Commission shall be responsible for the operation, protection, security, repair, and maintenance of all craft loaned to it by the Navy while such craft are in its custody or the cus- tody of others acting for the Commission. To assure that craft in the custody of the Atomic Energy Commission under the terms of this agreement are maintained at satisfactory Navy stan- rw b. dards, they will be subject to the routine materiel inspection normally conducted by the Navy for naval craft. The scheduling of these inspections will be mutually agreed upon by representatives of the Navy and the AEC in the field. a. Upon transfer of Naval craft from the Navy to the AEC and return of such craft to the Navy by the AEC, joint inspections of craft so transferred or returned will be conducted. Such inspections will be conducted by an appropriate board appointed by the Commander in Chief, U.S. Pacific Fleet and composed of both Navy and AEC members. The reports of the above board will be itemized in sufficient K-IJ~2 Rev. 9525-53 ChL wry 5e