Japan families in U.S. compensation talks

TOKYO, Japan (Reuters) -- Compensation talks will open on Wednesday between the U.S. government and families of some Japanese who died when a U.S. submarine sunk a Japanese training trawler off the Hawaiian coast, a U.S. Navy official said.

The disaster, which left nine dead, including four high school students, strained U.S.-Japan ties already frayed by a series of alleged crimes by American military personnel in Japan.

The lawyers for the families will also represent the government of Ehime Prefecture, home to the fisheries high school whose students were on board the vessel, to discuss compensation for loss of the boat, Kyodo news agency said. Vice Governor Nobuyoshi Yano will also attend, it added.

U.S. Navy Cmdr Scott Waddle, captain of the USS Greeneville nuclear submarine when it surfaced suddenly and collided with the Ehime Maru trawler last February 9, was reprimanded last month and allowed to resign from the Navy effective October 1 after a senior officer held the submarine "solely" at fault.

Relatives of eight of the Japanese aboard the Ehime Maru training trawler -- two dead and six survivors -- have engaged another group of lawyers to conduct negotiations on their behalf and are considering filing a lawsuit against the United States seeking compensation, Kyodo added.

In an administrative hearing at Pearl Harbor known as an "Admiral's Mast," the commander of the U.S. Pacific Fleet, Admiral Thomas Fargo, found Waddle guilty of dereliction of duty and of operating the Greeneville unsafely.

Some of the victims' relatives voiced outrage at the Navy's decision not to court martial Waddle, which would carry a far harsher punishment if he were found guilty.

Waddle himself, however, said under the rules of evidence, he would likely have been acquitted had the matter gone to a court martial.

He has also said he wants to come to Japan to apologise again to family members whom he has not yet met.

U.S. officials from President George W. Bush on down offered several apologies to Japan and the families over the disaster.

The Greeneville was carrying 16 civilian VIPs when it conducted an emergency surfacing manoeuvre for their benefit and slammed into and sank the Japanese vessel.

A court of inquiry found that the surfacing procedure was rushed, that the sub was not properly staffed and its crew were possibly distracted by the presence of the civilians.

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