B-128007, MAY 25, 1956

B-128007, MAY 25, 1956

TO ADMINISTRATOR, MARITIME ADMINISTRATION:

FURTHER REFERENCE IS MADE TO YOUR LETTER OF MAY 21 AND TO YOUR SUPPLEMENTAL LETTER OF THIS DATE, REGARDING THE PROPOSED CONTRACT (NO. MA- 1189) WITH THE ESSO SHIPPING COMPANY FOR THE PAYMENT, AS NATIONAL DEFENSE FEATURES, OF THE COSTS OF INCREASING FROM 16.3 KNOTS TO 18.3 KNOTS THE SPEED OF TWO NEW TANKERS TO BE CONSTRUCTED BY THAT COMPANY. YOUR LETTER OF MAY 21 REQUESTED OUR ADVICE AS TO WHETHER WE CONCURRED IN YOUR VIEW THAT, UNDER THE CIRCUMSTANCES IN THIS INSTANCE, THE COST OF THE EXCESS SPEED MAY BE PAID FROM THE FUNDS MADE AVAILABLE BY DEPARTMENT OF COMMERCE AND RELATED AGENCIES APPROPRIATION ACT, 1956 PUBLIC LAW 121, 84TH CONGRESS, 1ST SESSION, 69 STAT. 229.

IN OUR LETTER OF MAY 24, YOU WERE ADVISED THAT WE WOULD INTERPOSE NO OBJECTION TO THE PROPOSED USE OF THE FUNDS IN THE SUBJECT APPROPRIATION.

YOUR LETTER ALSO INVITED OUR ATTENTION TO THE PROVISION IN THE PROPOSED CONTRACT NO. MA-1189, A COPY OF WHICH WAS ENCLOSED, THAT THE OWNER MAY MAKE USE OF THE VESSELS WITHOUT RESTRICTION AS TO THE SERVICE, SPEED OR DRAFT, AND REQUESTED OUR ADVICE AS TO WHETHER WE APPROVED THE PROVISIONS OF THE PROPOSED CONTRACT. THE PROVISIONS OF CONTRACT NO. MA-1189 ARE CONSONANT WITH THE PROVISIONS OF A PRIOR CONTRACT WITH ESSO SHIPPING COMPANY (MA-930), TO WHICH NO OBJECTION WAS TAKEN IN OUR LETTER OF JULY 27, 1955, B-124468.

AS REQUESTED IN YOUR SUPPLEMENTAL LETTER OF THIS DATE, YOU ARE ADVISED THAT WE HAVE NO OBJECTION TO THE PROPOSED CONTRACT. WE REGRET OUR FAILURE TO HAVE SO ADVISED YOU IN OUR LETTER OF MAY 24.