United States dollars to the order of the United States of America in the amount specified in the contract as the initial payment required to be made upon the execution of the contract of sale, which will be not less than ten per cent of the purchase price and shall be retained as liquidated damages in the event the buyer defaults in his obligations to purchase the vessel under the terms of the contract. The applicant's check shall be certified by a bank or trust company authorized to do business under the laws of the United States, or any state, territory or possession thereof. After the contract of sale has been executed on behalf of the Administration, one of the counterparts will be sent to the applicant. Upon delivery of the vessel to the buyer, the buyer shall pay by certified check as described above a sum equal to the excess of the required down payment over the initial payment referred to above and the buyer shall also give to the Administration, if mortgage aid has been granted, negotiable promissory notes and a mortgage on the vessel equal to the excess of the purchase price over the total down payment. The contract of sale shall require that the balance of the down payment and the amount to be evidenced by the notes and secured by the mortgage and all amounts of insurance required by the mortgage shall be expressed in and payable in United States dollars at the Administration's office in Washington, D. C. The contract of sale shall otherwise be modified by the General Counsel as may be appropriate fully to protect the interest of the Administration with respect to sales to noncitizens.

(e) Other conditions. Notwithstanding any other provision of law, no warbuilt vessel will be sold to any person not a citizen of the United States, except in accordance with this section, or upon terms or conditions more favorable than those at which such war-built vessel is offered to a citizen of the United States, but where the vessel so sold is being transferred to foreign register and flag, the mortgage securing the unpaid balance of the purchase price and interest thereon shall contain provisions according to such mortgage the priorities over other liens and encumbrances accorded such mortgages on merchant vessels under the laws of such registry and flag.

(f) Transfer to foreign flag. If the vessel sold to a person not a citizen of

the United States is to be transferred to foreign register and flag, approval by the Administration of the application for purchase will also constitute approval, under section 9 or section 37 of the Shipping Act, 1916, as amended, to transfer such vessel when purchased, to foreign ownership, registry and flag.

§ 299.26 Spare parts and vessel equipment, stores, fresh water, and fuel. The Administration will provide and equip all vessels sold under the act both to citizens and non-citizens, unless otherwise agreed, in accordance with the following:

(a) Machinery spare parts—(1) Except for vessels sold "as is". Except for vessels sold "as is", the American Bureau of Shipping requirements, outstanding as of the date of the contract of sale, for on board machinery spare parts as contained in their publication, "Rules for Building and Classing Steel Vessels", will be met by the Administration.

The cost with respect to supplying deficiencies or repairing or renewing damaged parts already on board, shall be borne,

(i) On sales to citizens of the United States, in full by the Administration.

(ii) On sales to non-citizens, 50 percent by the Administration and 50 percent by the purchaser.

(2) Vessels sold "as is". For vessels sold "as is", the Administration will not comply with the American Bureau of Shipping requirements for machinery spare parts to the extent of insuring that the parts are actually aboard the vessels, but will, as to all such requirements outstanding as of the date of the contract of sale, grant an allowance based upon the estimated cost of supplying deficiencies or repairing or renewing damaged parts already on board, within the limits of section 3 (d) of the Merchant Ship Sales Act of 1946,

(i) On sales to citizens of the United States, equal to such estimated cost.

(ii) On sales to non-citizens, equal to 50 percent of such estimated cost.

(3) Spare parts list. Paragraph (e) of this section contains a listing of the American Bureau of Shipping required spare parts for steam reciprocating engines, steam turbines, internal combustion engines, boilers, machinery for refrigerated vessels, and for electrically driven vessels.

(b) Allowance list items, consumable stores, fresh water, and fuel-(1) Con

struction of "unbroached". For the purpose of this section, the following provisions shall apply in respect to the term "unbroached":

(i) Unbroached consumable stores except subsistence stores. In general, any item of consumable stores, which at the time of inventory may be given a condition valuation of 100 percent by the Administration's standards, i. e., that the item has not been used and has not lost any of its original value through age, rust, decay, or improper stowage, shall be considered unbroached. With respect to the contents of opened packages and containers, items normally supplied to vessels in bulk shall be considered first on the basis of condition and if meeting the above qualifications, the quantities as found shall be considered as unbroached. With respect to items normally packaged in small quantities of nominal value they shall be considered as broached where the containers have been opened and contents partially consumed.

(ii) Unbroached subsistence stores. All subsistence stores which are in 100 percent condition by the Administration's standards, as set forth in subdivision (i) of this subparagraph, shall be considered unbroached, regardless of whether stored in original packages or containers or whether part of the original amounts have been consumed.

(2) Vessels in operation. As to vessels in operation, the Administration assumes no obligation on sales to either citizens or non-citizens for delivery of vessels to purchasers fully equipped with items of an allowance list nature, expendables, or consumable stores (Spare machinery parts will be furnished as prescribed in paragraph (a) of this section). In this respect the vessels will be sold "as is", with the Administration neither adding or removing any such items, except as provided in paragraph (c) of this section. However, purchasers will be required to pay to the Administration an amount reflecting the full value, as indicated by the prevailing rate at the port where delivery is being made, for all unbroached consumable stores, fresh water, and fuel.

(3) Vessels from the reserve fleet or inactive status. As to vessels sold out of the reserve fleet or from inactive status, the Administration, when such vessels have been stripped of expendable equipment, will undertake to re-equip the vessels at its expense in accordance with the appropriate minimum standard allow

ance lists attached entitled "Standard Allowance List for Reoutfitting EC2, ZET1, VC2, C1, C2, C3, C4, R2, T2 and T3 Class Vessels sold under the Merchant Ship Sales Act of 1946" (paragraph (f) of this section) and "Standard Allowance List for Reoutfitting N3 and T1 Class Vessels sold under the Merchant Ship Sales Act of 1946" (paragraph (g) of this section). These allowance lists provide, in general, those minimum items of equipment and material necessary for the berthing of officers and crew, for the operation of pantries and galleys, and for instruments necessary for the safe navigation of the vessel. The Administration will not assume any obligations over and beyond those set forth in this paragraph on inoperative vessels. Purchasers will be required to pay to the Administration an amount reflecting the full value, as indicated by the prevailing rate at the port where delivery is being made, for all unbroached consumable stores, fresh water, and fuel.

(c) Removal of excesses. Items in the category of propellers, tailshafts, sections of line shafting, pinions and reduction gears for main propulsion units, bearings where found in quantity (except roller and ball types), rotors and rotating elements for turbines, and complete spare machinery components where in excess of American Bureau of Shipping requirements, will be removed. As to other items, where vessels are found to be stocked in excess of American Bureau of Shipping requirements or in excess of the standard allowance lists attached, such excesses will not be removed except where it is found that specific items or parts are of high intrinsic value or are in very short supply, thereby justifying the Administration's incurring expenditures for their removal and storage.

(d) Procedure-(1) Deficiencies in machinery spare parts. Within five days after a purchaser signs a contract of sale or an addendum to an existing contract of sale, involving the purchase of a vessel, or (if the vessel is at sea on the date of such signing or makes a voyage other than under bareboat charter to the purchaser after such signing) within five days after the return of the vessel to the United States port of final discharge, whichever is the later, the purchaser of such vessel shall furnish to the Local Head, Inventory Section, Office of Property and Supply, at the port nearest that of the vessel, a list of deficiencies

in machinery spare parts within the limits of paragraph (a) of this section. The Local Head, Inventory Section, shall verify whether or not such parts are on board. He shall promptly notify the purchaser in writing of the disapproval of such list or any portion thereof. Upon approval of such list or any portion thereof, he shall

(1) Except for a vessel sold "as is," forward such approved list to the nearest District Purchasing Officer, Office of Property and Supply, who shall obtain and deliver to such vessel such required spare parts.

(11) For a vessel sold "as is," proceed as set forth in subparagraph (3) of this paragraph.

Within

(2) Parts in need of repair. five days after a purchaser signs a contract of sale or an addendum to an existing contract of sale, involving the purchase of a vessel, or (if the vessel is at sea on the date of such signing or makes a voyage other than under bareboat charter to the purchaser after such signing) within five days after the return of the vessel to the United States port of final discharge, whichever is later, the purchaser of such vessel shall furnish to the Local Manager, Maintenance and Repair Division, at the port nearest that of the vessel, a list of damaged machinery spare parts, within the limits of paragraph (a) of this section. Such Local Manager shall verify whether or not such parts are damaged as alleged. He shall promptly notify the purchaser in writing of the disapproval of such list or any portion thereof. Upon approval of such list or any portion thereof, he shall

(1) Except for a vessel sold "as is," arrange, consistent with existing Maintenance and Repair Division requirements and instructions, for the effecting of the necessary repairs. If the expenditures for such repairs will exceed the cost of replacing any of the damaged parts, such Local Manager shall furnish to the nearest District Purchasing Offcer, Office of Property and Supply, a list of such damaged parts to be replaced as deficiencies in the manner prescribed in subparagraph (1) (i) of this paragraph. (i) For a vessel sold "as is", proceed as set forth in subparagraph (3) of this paragraph.

(3) Allowance for deficiencies in and repairs of machinery spare parts for vessels sold "as is". In the case of a vessel sold "as is", upon approval of the pur

chaser's list of deficiencies in machinery spare parts, or any portion thereof, pursuant to subparagraph (1) of this paragraph, the Local Head, Inventory Section, Office of Property and Supply, shall furnish to the Local Manager, Maintenance and Repair Division, an estimate of the cost of supplying such approved deficiencies. Such Local Manager, upon approval of the purchaser's list of damaged machinery spare parts, or any portion thereof, pursuant to subparagraph (2) of this paragraph, shall furnish to the Chief, Office of Ship Construction and Repair, an estimate of the cost of repairing such damaged parts, and the estimate of the cost of supply deficiencies. The Chief, Office of Ship Construction and Repair, shall furnish such estimates to the Chief, Office of Property and Supply so that allowances in accordance with paragraph (a) (2) of this section may be determined.

(4) Allowance list items, consumables, and expendables—(i) Operating vessels. When an operating vessel is sold, the Local Head, Inventory Section, Office of Property and Supply, at the port nearest to that of the vessel, shal! make a full inventory consistent with the provisions of paragraph (b) (2) of this section, and shall prepare an estimate of the value, at rates prevailing at such vessel's port of delivery, for all the unbroached consumable stores, fresh water, and fuel aboard the vessel, which estimate shall be furnished by the Chief, Inventory Section, Office of Property and Supply to the Chief, Ship Sales Branch, who shall be responsible for carrying out the provisions of paragraph (b) (2) of this section.

(11) Vessels from the reserve fleet or inactive status. When a vessel is sold out of the reserve fleet or inactive status, the Local Head, Inventory Section, Office of Property and Supply, Maritime Administration, at the port nearest to that of the vessel, shall make a full inventory consistent with the provisions of paragraph (b) (3) of this section and shall check and compare such inventory against the allowance lists attached. He shall furnish the nearest District Purchasing Officer the resulting list of deficiencies. Such Purchasing Officer shall obtain and deliver to such vessel such allowance list items.

The Local Head, Inventory Section, shall prepare an estimate of the value, at rates prevailing at such vessel's port of delivery, of all the unbroached con

sumable stores, fresh water and fuel aboard the vessel, which estimate shall be furnished by the Chief, Inventory section, Office of Property and Supply to the Chief, Ship Sales Branch, who shall be responsible for carrying out the provisions of paragraph (b) (3) of this section with respect to consumable stores, fresh water and fuel.

(e) List of American Bureau of Shipping spare parts and equipment for each ocean going vessel.

STEAM RECIPROCATING ENGINES

Two (2) crosshead bearing bolts and nuts. Two (2) crankpin bearing bolts and nuts. Two (2) main bearing bolts and nuts. One (1) set of piston rings where common rings are used.

Twenty-five (25) percent of piston springs. Six (6) follower ring studs and nuts. Six (6) cylinder cover studs and nuts. Six (6) valve chest cover studs and nuts. One (1) set of bearing pads for one singlecollar type thrust bearing where fitted.

One (1) set of bolts for each size coupling. One (1) set of propeller studs, if of special material.

One (1) set of valves for one feed pump. One (1) set of valves for one bilge pump. A set of bearing gauges.

Assorted bolts, nuts, and shim material. Bar and plate steel in various sizes.

No spare parts are required for auxiliaries which are fitted in duplicate when such duplication is in excess of that required by the rules.

STEAM TURBINES

One (1) set of springs for governor, relief, and maneuvering valves.

One-half (2) set of packing rings, or segments, with springs for each gland so fitted. Five (5) percent of bolts, or studs, and nuts of each size fitted in joints of turbine and gear casings.

One (1) set of thrust pads or rings, also springs where fitted for each size turbine thrust bearing.

Assorted shims and liners where fitted.

One (1) set of bolts and nuts for each size for turbine rotor, pinion, and gear bearings. Spare bearing bushings sufficient to replace all the bushings on any one turbine rotor, pinion and gear having sleeve type bearings or complete assemblies consisting of outer and inner races and cages complete with rollers or balls where these types of bearings are used.

One (1) set of coupling bolts of each size, for one coupling.

One (1) set of bearings pads for one single collar type main thrust bearing where fitted. One (1) set of studs, when made of special material, for one propeller.

Two (2) thermometers for the lubricating oil system.

One (1) set of valves for one feed pump. One (1) set of valves for the bilge pump.

One (1) set of valves for one lubricating oil pump.

Assorted bolts, nuts and shim material.
Bar and plate steel in various sizes.

No spare parts required for auxiliaries which are fitted in duplicate when such duplication is in excess of that required by the rules.

INTERNAL COMBUSTION ENGINES Spares for Main Propelling Machinery One (1) engine cylinder head complete with valves, cages, springs, etc.

One (1) piston complete with rings, etc. One (1) set of parts liable to damage or wear for the piston cooling, arrangement of one cylinder.

One (1) set of bearings pads for one single collar type main thrust bearing where fitted. One (1) set of studs, when made of special material, for one propeller.

Additional Spares for Main Engines and
Spares for Auxiliary Engines

One (1) set of valves for one (1) cylinder complete with cages, springs, etc.

Twenty-five (25) percent of fuel valve needles.

One (1) set of piston rings for one piston. One (1) set of main bearing brasses complete with bolts and nuts.

One (1) set of crankpin bearing brasses complete with bolts and nuts.

One (1) set of crosshead bearing brasses complete with bolts and nuts, when fitted or one wrist pin bushing where trunk pistons are used.

Where reduction gears are used there shall also be provided spare bearing bushings sufficient to replace all the bushings on any one piston and gear having sleeve type bearings, or complete assemblies consisting of outer and inner races, and cages complete with rollers or balls where these types of bearings are used.

One (1) complete set of the parts liable to damage or wear for the fuel oil pumps. One (1) complete set of rings for each size piston of air compressors and scavenging air pumps.

One (1) set of bolts or studs of each size for one cylinder cover or the engines and air compressors.

One (1) set of coupling bolts of each size for one coupling.

Twenty-five (25) per cent of each size of special gaskets and packing, at least one of each size.

One (1) set of templates and gauges for adjusting gear and aligning main bearings

A sufficient length of each size of pipe used for injection air, starting air and injection oil lines to replace the longest section of pipe.

Assorted bolts, nuts, pipe flanges and pipe couplings.

At least one (1) set of valves of each type and size for oil transfer pumps, fuel oil pumps, lubricating oily pumps, cooling water pumps and bilge pumps.

No spare parts are required for auxiliaries which are fitted in duplicate when such duplication is in excess of that required by the rules.

BOILERS

One (1) set of springs for one safety valve of each size.

Twelve (12) gauge glasses with packings per boiler if of the round gauge glass type.

Two (2) gauge glasses per boiler and one (1) frame for each two boilers if of the flat gauge glass type.

One-half (2) set of plain grate bars for one boiler (coal burning).

One (1) strainer basket of each size for fuel oil system.

Twenty-five (25) per cent of burner atomizer units for oil-fired boilers.

One (1) standard boiler presure gauge or gauge testing apparatus.

Five (5) per cent of each size and kind of tube for one fire-tube boiler.

Five (5) per cent of the tubes for one water tube boiler.

The number of each size and location in the boiler are to be as approved in connection with the design in each case.

Tube stoppers for twelve (12) generator, economizer and superheater tubes of each kind and size.

Necessary tools for operations.

REFRIGERATING MACHINERY REEFER CARGO VESSELS

(a) When duplicate machinery units are fitted so that each unit is separately connected to two or more refrigerated compartments, one set of spare gear will be required as follows:

One (1) crankshaft, complete, with eccentric sheaves or one-half shaft where interchangeable.

One (1) cover of each pattern for compressors, except where forged steel cover or screwed plugs are fitted.

One (1) piston and rod with nuts, complete of each pattern, for steam cylinders and compressors.

One (1) valve spindle and nut of each pattern.

One (1) pair of main bearing bushings complete.

Two (2) main bearing bolts.

One (1) set of piston rod and connecting rod bolts and bushings.

One (1) cylinder cover of each type for the steam cylinders.

One (1) eccentric strap and rod, complete. of each pattern.

Main and cut-off valves for steam cylinder. One (1) coupling for each type of compressor piston rod.

One (1) set of suction and delivery valves, complete with springs and casings, required for one compressor cylinder of each type and, in addition, 6 springs of each type.

One (1) set of metallic packing rings, if used, for compressors.

One (1) oil pump complete.

One (1) circulating pump bucket and rod, or one impeller and shaft of each type. One (1) set of suction and delivery valves for each type of circulating pump.

One (1) rod of each type for steam and water ends of piston brine pumps.

One (1) cylinder cover of each type for piston brine pumps.

One (1) impeller and shaft of each type for centrifugal brine pumps.

One (1) set of coupling bolts of each type for centrifugal brine pumps.

One (1) gas regulating valve, complete, if made of cast iron; one rod and cone if of mild steel.

One (1) distributing and one (1) collecting piece of each pattern, except where they are of forged steel.

Assorted valves, cocks, flanges and fittings. Blocks for making all leather packing.

Two (2) spare gauges with pressure and temperature scales and a sufficient supply of mercury thermometers.

Assorted lengths and bends of piping, together with flanges, couplings and screwing appliances.

A supply of assorted bolts, nuts, studs, packings, joint rings, compressor rings and leathers.

(b) In cases where independent cooling water pumps are not fitted and the cooling water is supplied by auxillary pumps, spare piston rings, pumps valves and rods are to be carried.

(c) Where independent surface condensers, with air, water, circulating and feed pumps, are fitted and there are no connections to the main engine pumps, the following additional spare gear is to be carried: One (1) crankshaft, complete with eccentric sheaves.

One (1) piston rod, complete of each pattern.

One (1) set of piston rings of each pattern for steam cylinders.

One (1) eccentric strap and rod of each pattern.

One (1) pump bucket and rod, complete of each pattern.

One (1) set of connecting rod and cross head bolts and nuts.

One (1) set of valves for each pump. Six (6) tubes and twenty-four (24) ferrules for the condenser.

(d) Where connections to the main engine pumps are provided in cases otherwise similar to that of the foregoing sub-paragraph (c) the spare required will be as follows:

One (1) pump bucket and rod, complete. of each pattern.

One (1) set of connecting rod and crosshead bolts and nuts.

One-half (2) set of valves for each pump (e) Spare gear required for vessel engaged in voyage of not more than three days' duration should be as follows:

One (1) piston of each type, complete, for steam and compressor cylinders.

One (1) piston of each type, complete with nuts for steam and compressor cylinders.