Navy threat to seize yards

Press, 15 March 1978, Page 9

Navy threat to seize yards

NZPA-Reuter Washington The United States Navy Secretary (Mr Graham Claytor) said yesterday that the Ntvy—if necessary — would seize the electric-boat shipyards of General Dynamics Corporation and complete 16 nuclear submarines if it was unable to settle a dispute over cost over-runs. “We will do whatever we have to to see that these submarines are finished,” Mr Claytor said. In a dispute over SL'SS44M I in cost over-runs, General ’Dynamics has threatened to | halt work at Groton, Connecticutt, on April 12 on 16 !SSN6BB-class attack sub-

i marines, jeopardising the jobs of 14,000 employees. / Mr Claytor said if the work . was stopped at the electricboat shipyards, it would be e considered defaulting on the d contract. That could lead to >- invoking a contract provis sion permitting the Govern--6 ment to “take it over and s finish it ourselves." e A second possibility, Mr Claytor said, would be to e ask a Federal Court to order e the work finished. r A third—one of the governors of Connecticut and 1 Rhode Island warned the 1 Navy against — would be to 3 consider the contract terminated and let a new contract 6 for the work to some other i- shipyard in another state.