Proposed amendments to the "Law on Liability for Oil Pollution Damage, 1975"(Part 1) – In relation to the measures for abandoned ships on Japanese coast – 12 March 2004 No.03-022 On 24 February 2004, the Ministry of Land, Infrastructure and Transport (MLIT) reported that the Cabinet has approved the draft legislation to amend the existing Japanese domestic legislation entitled the "Law on Liability for Oil Pollution Damage, 1975". The purpose of the original legislation was to implement the CLC Convention. The amending legislation was then submitted to the159th ordinary session of the Diet. The purpose of this amendment is to incorporate the mechanism of the Protocol to the International Convention which establishes the International Fund for Compensation for Oil Pollution Damage, 1992 as a supplementary fund (3rd Tier Protocol to 92 FC) and includes measures for bunker spills and abandoned ships. In this circular we would like to provide Members with information about that part of the new legislation concerned with measures to deal with bunker spills and abandoned ships. With regard to the amendment to comply with the 3rd Tier Protocol to 92 FC, please refer to our separate circular No.03-023. Details of the draft legislation (Japanese version only) are available on the MLIT's website which can be found at http://www.mlit.go.jp/kisha/kisha04/10/100223_.html 1. Background Several accidents have recently occurred on the Japanese coast resulting in pollution from ships' bunkers, and, because of the lack of or insufficient insurance coverage, the owners neither made any payment towards the cost of cleaning up after the oil pollution nor removed the wreck. The "Chil Song" case at Hitachi, Ibaraki, in December 2002, hardened the Japanese attitude and caused the policymakers to immediately prepare measures for non-insured ships. The MLIT thus started working on how to ensure compensation was available after an accident. They came to the conclusion that the responsible ope