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New Zealand to Discuss Challenge in San Diego

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Times Staff Writer

New Zealand’s Michael Fay, not about to take “no” for an answer, is scheduled to meet with America’s Cup interests in San Diego today to pursue his rejected challenge for next year.

Doug Alford, vice commodore of the San Diego Yacht Club, confirmed that he and Sail America syndicate attorney Mark Smith will meet with Fay this afternoon. SDYC commodore Fred Frye is on vacation.

Earlier, Fay, citing strict compliance with the Deed of Gift, which governs Cup competition, had challenged the club to defend the Cup in June 1988 and had declared he would compete with a boat measuring 90 feet at the waterline, the maximum allowed by the deed, rather than a customary 12-meter design.

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Alan Bond of Australia and Peter de Savary of Great Britain subsequently issued similar challenges. Fay said he is not allied with the other challenges.

The SDYC’s Defense Committee issued a memorandum last Saturday that it would not entertain any challenges for 1988.

“We really didn’t think that the memorandum was an answer to the issues that had been raised by the New Zealand challenge,” Fay said. “We want to discuss these issues with them . . . the issues relating to the deed and the rights and obligations of the defender and the challenger.

“And I’m sure the Royal Perth Yacht Club and Alan Bond will also want to clarify the issues.”

In considering the New Zealand challenge, the SDYC had sought the legal advice of Harman Hawkins, a lawyer from New York who is a top executive with the United States Yacht Racing Union. Hawkins was quoted in the New York Times last weekend as saying that New Zealand’s challenge seemed to be in order, according to the deed, but that precedent, such as staging defenses at least three years apart, also had to be considered.

Fay said Hawkins “seemed to be telling the San Diego Yacht Club one thing, and they’re doing another.”

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Hawkins, reached at his home late Tuesday, refused to comment further and would not confirm or deny the New York Times report.

Fay indicated he would not insist on a two-boat competition, a premise the club and Sail America object to strongly.

“We wouldn’t be looking at a lock-out,” Fay said. “I think we could sit down and work out a basis of an elimination series.”

But Fay also indicated he intended to pursue all recourses until his challenge is accepted. In fact, he suggested that it is not necessary for the defender to accept or reject a challenge, because once a challenge is submitted, a defense is obligatory.

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