To: Members of the AssociationMarch 14, 1997

Dear Member:Circular No. 5/97

1997 Release Calls

Reference is made to Circular No. 10/96 of December 17, 1996 in which Members were advised of the introduction of a Release Call provision into the new By-Laws and Rules of the Club which took effect on February 20, 1997. This provision is contained in Rule 4, Section 5.

At its last meeting on March 13, 1997 in New York, your Board gave consideration to the percentage margin over and above the currently estimated Supplementary Call at which the 1997 Release Call should at present be fixed.

Having considered a variety of factors, it was decided that the Club's 1997 Release Call should presently be set at a margin of 25% of the Advance Call over and above the currently estimated Supplementary Call requirement for this Policy Year. Accordingly, Release Calls for 1997 will henceforward be levied at 50% of relevant Advance Call values for the year.

Members are asked to mark their records accordingly. The Release Call value will be subject to regular review as the 1997 Policy Year develops over time, and Members will be given notice of any changes to the figure as might in the future be made.

Yours faithfully,

Shipowners Claims Bureau, Inc., Manager

for THE AMERICAN CLUB

Joseph E.M. Hughes

Chairman & CEO

VAPS IGA\CIRCULR5.97