Decision ID: 000889

In April 1998 the 1971 Fund Executive Committee considered that if the removal of the oil from the wreck were successfully completed without any significant release of oil and only a minor quantity of oil remained in the wreck, there would no longer be any risk of the total amount of the claims exceeding the maximum amount of compensation available under the 1969 Civil Liability and 1971 Fund Conventions, i.e. 60 million Special Drawing Rights (SDR). The Committee therefore decided to authorise the Director to increase the payments to 100% of the established claims once he was satisfied that the above conditions had been fulfilled and that the amount laid down in the contract to remove the oil would not create any risk of the total amount of the claims exceeding 60 million SDR, provided that the Korean Government had given an undertaking to the effect that, if and to the extent that a claim by the Korean Government for the cost of the removal of the wreck were to result in the total amount of the established claims arising out of the incident exceeding the maximum amount of compensation available, the Government would not pursue that claim, in its entirety or in part, against the Fund.

Date: 31.03.1998
Category: Preventive measures
Subject: Removal of oil from sunken wrecks