We refer to our circular No.02-018 dated 17 February 2003 entitled "P&I War Risk Cover and US Terrorism Insurance Act 2002".

We incorporate the terms of resolution of our Board on 17 February 2003 in respect of the P&I War Risks special cover of the 2003 policy year, into the P&I War Risks Clause, and also that the CLC Clause is amended to delete the overlapping part with the P&I War Risks Clause and refer it direct.

Attached please find both new Clauses and keep them together with "Rules and List of Correspondents 2003".