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$45-Million Subsidy Repayment Approved The Maritime Subsidy Board (MSB) has approved the applica- tions of Wilmington Trust Com- pany to repay approximately $45 million in construction-differen- tial subsidies (CDS) which the Maritime Administration previ- ously awarded for the construc- tion of two liquefied natural gas (LNG) vessels. The MSB also granted permission for the two vessels to be employed in the carriage of LNG between Indo- nesia and Japan. In addition, the owners would be required to pay interest at the Treasury rate on the subsidy funds expended in construction of the vessels. The interest is es- timated to be $2.7 million on one vessel and $2.3 million on the other. The estimated actual cost of the vessels are approximately $104.6 million and $105.4 million, respectively. These vessels, each with a ca- pacity of 125,000 cubic meters, were part of a three-ship pro- gram contracted for in Septem- ber 1972 with the Quincy, Mass., shipyard of General Dynamics Corp., to be used for the impor- tation of LNG from Algeria to New England and New York. However, that gas importation project (known as Easco) was canceled earlier this year, result- ing in the transfer of these two vessels to the Indonesia-Japan trade. The repayment of CDS plus in- terest, which would be deposited in the United States Treasury upon delivery of the vessels, is due to this change in employment of the vessels from U.S. foreign trade to a foreign-to-foreign op- eration. The two vessels, as yet unnamed, are tentatively sched- uled for delivery in late 1977. The Wilmington Trust Com- pany is the owner-trustee of both vessels under trust agreements with the equity owners, consist- ing of subsidiaries of Citibank, N.A., First Chicago Leasing Cor- poration, and GATX Corporation. The vessels are bareboat char- tered to U.S. citizen operating companies—Summit II and Sum- mit III — and time-chartered to domestic subsidiaries of Burmah Oil Shipping, Inc., a Delaware corporation, which is a subsidiary of Burmah Oil Company, Ltd., a British corporation. Under the revised agreement, Burmah would use the two ves- sels under a Transportation Agreement with the Indonesian national energy company, Perta- mina, to carry LNG from Indo- nesia to Japan. These two ships would replace two other LNGs that had been contracted for in April 1976, also to be built by the General Dynamics Quincy shipyard. The contracts for these two vessels would be canceled. In granting the approvals, the MSB established the additional conditions that the Government retain the right to the design and engineering data for the vessels and that the ships be subject to the purchase and requisition rights of the United States under the same compensation basis as for other vessels constructed un- der CDS. The vessels would con- tinue to be owned by an American company and operated under the U.S. flag with American crews. In a companion action, the As- sistant Secretary approved an in- crease in the Title XI guarantees for the two vessels. If CDS were repaid, the maximum Title XI guarantee would increase from 75 percent to 87 y2 percent, as pro- vided by Section 1104 of the Mer- chant Marine Act of 1936, as amended. Based on redetermined actual costs, including the inter- est payments, the Title XI guar- antees will be about $91.5 million for one ship and $92.2 million for the other. Raytheon makes Doppler Systems for small big slow fast ships. DEPTH BELOW KEEL FO*£'AFT SPEED And for every size and speed in between. In fact, no matter what your ship—tug, LNG, RO-RO, containership-you can upgrade r your shipboard navigational capability and increase the margin of safety with one of these modular doppler systems from Raytheon: The DSN-400. For maximum shipboard navigation capability with simultaneous and continuous fore/aft and lateral speed indication and depth measurement. The DSL-300. For fore/aft speed monitoring with switch-selectable lateral speed indication and optional depth measurement. DCPT BELO KeEL The DSL-200. If your requirement is merely for a single-axis speed log with optional depth measurement. A Raytheon Doppler System for every shipboard requirement -all with these common benefits: easy installation...high visibility digital readout... bottom tracking to 1000 feet with automatic switchover to water mass tracking... flexibility of repeater design and installation...full compatibility with other shipboard electronics such as true motion radar, navigation computers and athwartship sp«d collision avoidance systems... highly reliable solid state digital / /' I' I circuitry to keep initial cost and operating cost exceptionally low. Raytheon's family of doppler systems is backed by Raytheon's reputation for dependability in marine electronics. Over 75 years of experience make Raytheon the leader in the field. So upgrade your shipboard navigational capability—and navigational safety —with a Raytheon Doppler System. Your small big slow fast ship will be better for it. rRAYTHEONj For details write Marketing Manager, Raytheon Maritime Systems, Portsmouth, R.I. 02871, U.S.A. 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