detail to enable allocations to be made, upon return

of craft to the Navy, of repair costs properly
chargeable to each party in conformance with this

agreement. These reports will be forwarded to the
Bureau of Ships via the Naval command from which the

craft are obtained and the Commander in Chief, U.S.

Pacific Fleet with copies of the original and all

-endorsements to the Chief of Naval Operations, AEC

Washington, other AEC agencies and Naval material
bureaus as appropriate. The work to be performed in
repairing craft and allocation of costs properly
chargeable to each party for that work will be re-

solved by the above boards in the field, and only
such items which cannot be resolved satisfactorily
by them will be referred to the Chief of Naval Operations and the Atomic Energy Commission.

The AEC is

responsible for funding only the costs necessary to
restore craft to a material condition comparable to
that existing when received. In determining the

costs chargeable to AEC consideration will be given
to the effects of normal wear and tear. Subsequent
to July 1, 1953, normal overhead will be included in
computing costs chargeable to the AEC.
b. If subsequent to commencing repairs on craft the
Navy determines that additional work is necessary
beyond that agreed to initially by the above joint

boards, the AEC shall not be responsible for any
portion of the funds covering the additional work
until such time as a joint board as outlined above

has convened

and agreed to an apportionment of the

sion and the Navy.

c. The Atomic Energy Commission shall not be liable
for payment for loss of Naval craft in its custody.
Final action by the Department of the Navy to strike

Pua

additional costs between the Atomic Energy Commis-

a craft will likewise relieve the AEC from obligation

Any craft loaned to the AEC, 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.'

wm

to effect repairs to that particular naval craft.

established by Navy and MSTS directives.

Cross-servicing is authorized between elements of the Department

of Defense and the AEC and its contractors. Specific authorization will be issued in accordance with standards mutually agree=able to the Santa Fe Operations Office and the Joint Task Force.

K-II-=3
Rev.

9-28-58

Chd

wer 3

The transfer of subsistence in kind at the Pacific Proving Ground
between the AEC and the military is authorized. Each agency will
reimburse the other at prices established by mutual agreement for
meals eaten ashore by its personnel in the messes of the other.
To this end, appropriate records will be kept at both AEC and
Armed Forces messes which will permit periodic reconciliation of
accounts. Reimbursement for meals furnished on board ship will be

Select target paragraph3