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The declaration by the shipper as to the nature and value of any goods declared shall be prima facie evidence, but shall not be binding or conclusive on the carrier.

6. Neither the carrier nor the ship shall be responsible in any event for loss or damage to or in connection with goods if the nature or value thereof has been wilfully misstated by the shipper in the bill of lading.

7. Goods of an inflammable or explosive nature, or of a dangerous nature, the nature and character whereof are unknown to the carrier before shipment and to the shipment whereof the carrier, master, or agent of the carrier has not consented, may at any time before delivery be destroyed or rendered innocuous by the carrier without compensation to the shipper, and the shipper of such goods shall be liable for all damages and expenses directly or indirectly arising out of or resulting from such shipment. If any such goods shipped with such knowledge and consent shall become a danger to the ship or cargo, they may in like manner be destroyed or rendered innocuous by the carrier without liability on the part of the carrier except to general average if any.

ARTICLE V

A carrier shall be at liberty to surrender in whole or in part all or any of his rights and immunities under these rules, provided such surrender shall be embodied in the bill of lading issued to the shipper.

ARTICLE VI.-SPECIAL CONDITIONS

Notwithstanding the provisions of the preceding articles, a carrier, master, or agent of the carrier and a shipper shall in regard to any particular goods be at liberty to enter into any agreement in any terms as to the responsibility and liability of the carrier for such goods, and as to the rights and immunities of the carrier in respect of such goods, or his obligation as to seaworthiness, or the care or diligence of his servants or agents in regard to the receipt, handling, loading, stowage, carriage, custody, care, unloading, and delivery of the goods carried by sea, provided that in this case no bill of lading has been or shall be issued and that the terms agreed shall be embodied in a receipt which shall be a nonnegotiable document and shall be marked as such.

Any agreement so entered into shall have full legal effect.

Provided that this article shall not apply to ordinary commercial shipments made in the ordinary course of trade, but only to other shipments where the character or condition of the property to be carried or the circumstances, terms, and conditions under which the carriage is to be performed are such as reasonably to justify a special agreement.

ARTICLE VII.-LIMITATIONS ON THE APPLICATION OF THE RULES

Nothing herein contained shall prevent a carrier or a shipper from entering into any agreement, stipulation, condition, reservation, or exemption as to the responsibility and liability of the carrier or the ship for the loss or damage to or in connection with the custody and care and handling of goods prior to the loading on and subsequent to the delivery from the ship on which the goods are carried by sea.

ARTICLE VIII. LIMITATION OF LIABILITY

The provisions of these rules shall not affect the rights and obligations of the carrier under any statute for the time being in force relating to the limitation of the liability of owners of seagoing vessels.

EXHIBIT C.-RULES FOR THE CARRIAGE OF GOODS BY SEA

[As amended by the Comité Maritime International, London, October 9-11, 1922]
THE HAGUE RULES, 1922

In these rules

ARTICLE I.-DEFINITIONS

(a) "Carrier" includes the owner or the charterer who enters into contract of carriage with a shipper.

(b) "Contract of carriage" means a bill of lading or any similar document of title in so far as such document relates to the carriage of goods by sea.

(c) "Goods" includes goods, wares, merchandises, and articles of every kind whatsoever except live animals and cargo which by the contract of carriage is stated as being carried on deck and is so carried.

(d) "Ship" [includes] means any vessel used for the carriage of goods by sea. (e) 'Carriage of goods" covers the period from the time when the goods are loaded on to the time they are [delivered] discharged from the ship.

ARTICLE II.-RISKS

Subject to the provisions of Article VI, under every contract of carriage of goods by sea the carrier, in regard to the [receipt,] loading, handling, [loading,] stowage, carriage, custody, care, [unloading] and [delivery] discharge of such goods shall be subject to the responsibilities and liabilities and entitled to the rights and immunities hereinafter set forth.

ARTICLE III.-RESPONSIBILITIES AND LIABILITIES

1. The carrier shall be bound before and at the beginning of the voyage to exercise due dilligence to

(a) Make the ship seaworthy;

(b) Properly man, equip, and supply the ship;

(c) Make the holds, refrigerating and cool chambers, and all other parts of the ship in which goods are carried, fit and safe for their reception, carriage, and preservation.

2. Subject to the provisions of Article IV, the carrier shall properly and carefully load, handle, [load,] stow, carry, keep, care for, [unload] and [deliver] discharge the goods carried.

3. After receiving the goods into his charge the carrier or the master or agent of the carrier shall on demand of the shipper issue to the shipper a bill of lading showing, amongst other things:

(a) The leading marks necessary for identification of the goods as the same are furnished in writing by the shipper before the loading of such goods starts, provided such marks are stamped or otherwise shown clearly upon the goods if uncovered, or on the cases or coverings in which such goods are contained, in such manner as should ordinarily remain legible until the end of the voyage; (b) [The] Either the number of packages or pieces, or the quantity or weight, as the case may be, as furnished in writing by the shipper;

(c) The apparent order and condition of the goods:

Provided that no carrier, master, or agent of the carrier shall be bound to [issue] state or show in the [a] bill of lading [showing] any [description,] marks, number, quantity, or weight which he has reasonable ground for suspecting not accurately to represent the goods actually received or which he has had no reasonable means of checking.

4. Such a bill of lading shall be prima facie evidence of the receipt by the carrier of the goods as therein described in accordance with section 3 (a), (b), and (c).

5. The shipper shall be deemed to have guaranteed to the carrier the accuracy at the time of shipment of the [description,] marks, number, quantity, and weight, as furnished by him, and the shipper shall indemnify the carrier against all loss, damages, and expenses arising or resulting from inaccuracies in such particulars. The right of the carrier to such indemnity shall in no way limit his responsibility and liability under the contract of carriage to any person other than the shipper.

6. Unless notice of [a claim for] loss or damage and the general nature of such [claim] loss or damage be given in writing to the carrier or his agent at the port of discharge before or at the time of the removal of the goods into the custody of the person entitled to delivery thereof under the contract of carriage, such removal shall be prima facie evidence of the delivery by the carrier of the goods as described in the bill of lading and in any event the carrier and the ship shall be discharged from all liability in respect of loss or damage unless suit is brought within two years 1 after delivery of the goods or the date when the goods should have been delivered.

In the case of any actual or apprehended loss or damage the carrier and the receiver shall give all [possible] reasonable facilities to each other for inspecting and tallying the goods.

1 The time when notice should be given of loss or damage sustained and the time limit for bringing suit shall be fixed by the diplomatic conference.

7. After the goods are loaded the bill of lading to be issued by the carrier, master, or agent of the carrier to the shipper shall, if the shipper so demands, be a "shipped" bill of lading, provided that if the shipper shall have previously taken up any document of title to such goods, he shall surrencer the same as against the issue of the "shipped” bill of lading, but at the option of the carrier such document of title may be noted at the port of shipment by the carrier, master, or agent with the name or names of the ship or ships upon which the goods have been shipped and the date or dates of shipment, and when so noted the same shall, for the purpose of this rule, be deemed to constitute a "shipped" bill of lading.

8. Any clause, covenant, or agreement in a contract of carriage relieving the carrier or the ship from liability for loss or damage to, or in connection with, goods arising from negligence, fault, or failure in the duties and obligations provided in this article, or lessening such liability otherwise than as provided in these rules, shall be null and void and of no effect. A benefit of insurance or similar clause shall be deemed to be a clause relieving the carrier from liability.

ARTICLE IV.-RIGHTS AND IMMUNITIES

1. Neither the carrier nor the ship shall be liable for loss or damage arising or resulting from unseaworthiness unless caused by want of due diligence on the part of the carrier to make the ship seaworthy, and to secure that the ship is properly manned, equipped, and supplied, and to make the holds, refrigerating and cool chambers, and all other parts of the ship in which goods are carried, fit and safe for their reception, carriage, and preservation. Whenever loss or damage has resulted from unseaworthiness the burden of proving the exercise of due diligence shall be on the carrier or other person claiming exemption under this section.

2. Neither the carrier nor the ship shall be responsible for loss or damage arising or resulting from:

(a) Act, neglect, or default of the master, mariner, pilot, or the servants of the carrier in the navigation or in the management of the ship.

(b) Fire.

(c) Perils, dangers, and accidents of the sea or other navigable waters.

(d) Act of God.

(e) Act of war.

(f) Act of public enemies.

(g) Arrest or restraint of princes, rulers, or people, or seizure under legal process.

(h) Quarantine restrictions.

(i) Act or omission of the shipper or owner of the goods, his agent or representative.

(j) Strikes or lockouts or stoppage or restraint of labor from whatever cause, whether partial or general.

(k) Riots and civil commotions.

(1) Saving or attempting to save life or property at sea.

(m) Inherent [liability for] wastage in bulk or weight or inherent defect, quality, or vice of the goods.

(n) Insufficiency of packing.

(0) Insufficiency or inadequacy of marks.

(p) Latent defects not discoverable by due diligence.

(q) Any other cause arising without the actual fault or privity of the carrier, or without the fault or neglect of the agents, or servants [or employees] of the carrier, but the burden of proof shall be on the person claiming the benefit of this exception to show that neither the actual fault or privity of the carrier nor the fault or neglect of the agents or servants [or employees] of the carrier contributed to the loss or damage.

3. The shipper [to the same extent as the carrier] shall not be responsible for loss or damage sustained by the carrier or the ship arising or resulting from any [of the causes particularized in the above section 2 under the headings (b), (c), (d), (e), (f), (g), (h), (j), (k), (p), and (q)] without the act, fault, or neglect of the shipper, his agents, or his servants.

4. Any deviation in saving or attempting to save life or property at sea, or any deviation authorized by the contract of carriage (provided that such deviation shall be reasonable, having regard to the service in which the ship is engaged), shall not be deemed to be an infringement or breach of these rules or of the contract of carriage, and the carrier shall not be liable for any loss or damage resulting therefrom.

5. Neither the carrier nor the ship shall be responsible in any event for loss or damage to or in connection with goods in an amount beyond £100 per package or unit, or the equivalent of that sum in other currency unless the nature and value of such goods have been declared by the shipper before the goods are shipped and have been inserted in the bill of lading.

By agreement between the carrier, master, or agent of the carrier and the shipper another maximum amount than mentioned in this paragraph may be fixed, provided that such maximum shall not be less than the figure above named. The declaration by the shipper as to the nature and value of any goods declared shall be prima facie evidence, but shall not be binding or conclusive on the carrier.

6. Neither the carrier nor the ship shall be responsible in any event for loss or damage to or in connection with goods if the nature or value thereof has been willfully misstated by the shipper in the bill of lading.

7. Goods of an inflammable or explosive nature, or of a dangerous nature [the nature and character whereof are unknown to the carrier before shipment and] to the shipment whereof the carrier, master, or agent of the carrier has not consented with knowledge of their nature or character may at any time before [delivery] discharge be landed at any place or destroyed or rendered innocuous by the carrier without compensation to the shipper, and the shipper of such goods shall be liable for all damages and expenses directly or indirectly arising out of or resulting from such shipment. If any such goods shipped with such knowledge and consent shall become a danger to the ship or cargo they may in like manner be landed at any place, or destroyed or rendered innocuous by the carrier without liability on the part of the carrier except to general average if any.

ARTICLE V

A carrier shall be at liberty to surrender in whole or in part all or any of his rights and immunities under these rules, provided such surrender shall be embodied in the bill of lading issued to the shipper. Nothing in these rules shall prevent or control the making of any charter-party or the issuing of bills of lading thereunder, but no provision in such bills of lading shall violate the terms of these rules.

ARTICLE VI. SPECIAL CONDITIONS

Notwithstanding the provisions of the preceding articles, a carrier, master, or agent of the carrier and a shipper shall in regard to any particular goods be at liberty to enter into any agreement in any terms as to the responsibility and liability of the carrier for such goods, and as to the rights and immunities of the carrier in respect of such goods, or his obligation as to seaworthiness, or the care or diligence of his servants or agents in regard to the [receipt], loading, handling, loading,] stowage, carriage, custody, care, [unloading,] and [delivery discharge of the goods carried by sea, provided that in this case no bill of lading has been or shall be issued and that the terms agreed shall be embodied in a receipt which shall be a nonnegotiable document and shall be marked as such.

Any agreement so entered into shall have full legal effect.

Provided that this article shall not apply to ordinary commercial shipments made in the ordinary course of trade, but only to other shipments where the character or condition of the property to be carried or the circumstances, terms, and conditions under which the carriage is to be performed are such as reasonably to justify a special agreement.

ARTICLE VII.-LIMITATIONS ON THE APPLICATION OF THE RULES

Nothing herein contained shall prevent a carrier or a shipper from entering into any agreement, stipulation, condition, reservation, or exemption as to the responsibility and liability of the carrier or the ship for the loss or damage to, or in connection with, the custody and care and handling of goods prior to the loading on, and subsequent to, the [delivery] discharge from the ship on which the goods are carried by sea.

ARTICLE VIII.-LIMITATION OF LIABILITY

The provisions of these rules shall not affect the rights and obligations of the carrier under any statute for the time being in force relating to the limitation of the liability of owners of seagoing vessels.

EXHIBIT D.-RECOMMENDATIONS FROM REPORTS OF NATIONAL ASSOCIATIONS IN REGARD TO IMMUNITY OF STATE-OWNED AND STATE-CHARTERED VESSELS

BELGIUM

We are of opinion that it behooves to subject to the rules of common law, as well in respect of jurisdiction as of arrest (whether conservatory or arrest for execution) any property of maritime kind which is State-owned, with the sole exception of warships and of State-owned ships exclusively employed for services of public interest. With regard to this latter class of ships, it would be desirable that special agreements should be entered into by all-or at any rate by some- -States signatories of the international convention to be arrived at, which should include some provisions as to guarantees given beforehand, so as to render useless any arrest of warships or of vessels exclusively employed for public services. In this manner, any rights of parties interested, namely as regards collision and salvage, would be safeguarded. It should be observed that such arrangements would imply also some regulations to be agreed upon as to jurisdiction which the States signing such special agreements would reciprocally recognize to their courts.

The Belgian Association, when limiting the immunity to warships and to State-owned vessels exclusively employed on public service, has followed the wording used in the convention of 23d September, 1910, on collision (article 11) and on salvage (article 14).

DENMARK

In Denmark the feeling that it is but fair that State-owned ships should be treated before the courts in the same manner as privately-owned vessels, is so deeply rooted that, in our opinion, the contrary rule according to which the State should not be subjected to the jurisdiction of its own courts against its will, would appear as affording insufficient security.

FRANCE

Rule I.-The actions directed against a foreign State by reason of the management of ships owned or managed by it and also actions in rem relating to such ships (war vessels being excluded in both cases) can be brought before the courts which would have jurisdiction for deciding on any actions against a foreign shipowner or against a ship belonging to a foreign owner.

Rule II.-War vessels and ships owned or chartered by a State and affected, in that State, to the carrying out of a public service can not be subject to any arrest in another country for any cause whatever. On the other hand, the State can not avail itself of the legal provisions limiting the shipowners' liability in respect of the obligations arising from the management of such ships.

Rule III.-Commercial ships belonging to a State can be arrested in all countries as a guarantee for the claims arising by reason of the management of such ships.

Rule IV.-Shall be considered as State-owned commercial ships any vessels employed to the carriage of passengers or of goods, even if the State should affect them to the transport of cargoes belonging to itself, except in the case where such goods are intended to the needs of the public services of such State.

Rule V. The cargoes belonging to a State can be arrested as a guarantee for claims against such State arising by reason of their transport, unless they be intended to a public service of that State.

GREAT BRITAIN

MARITIME LAW COMMITTEE OF THE INTERNATIONAL LAW ASSOCIATION

We are in favor of the abolition of any immunity granted either to (a) war vessels, or (b) any of the other vessels mentioned in questions I and II of the questionnaire, because

(a) It is liable to interfere with the various measures internationally adopted for the promotion of safety at sea. The rules of navigation can not be properly safeguarded if one class of vessels is exempt from the consequences of failure to observe them, however well trained the ship's personnel and however severe the discipline observed on board ship;

(b) Uncertainty as to disabled vessel's chances, and therefore, as to whether salvage services rendered would meet with any reward tends to create at sea

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