(1) A ship which undergoes repairs, alterations,
modifications and outfitting related thereto shall continue to comply
with at least the requirements previously applicable to the ship.
An existing ship in such a case shall not, as a rule, comply to a
lesser extent with the requirements for a new ship than it did before.
(2) Repairs, alterations and modifications of
a major character and outfitting related thereto should meet the requirements
for a new ship in so far as the Administration deems reasonable and