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SYDNEY, Aug 27 (Reuters) A Sydney court awarded a former sailor more than A$1.2 million (US$991,700) in damages today for anxiety suffered in Australia's worst peacetime naval accident, which happened 43 years ago.

Geoffrey Singline worked as an aircraft handler on the Australian navy aircraft carrier HMAS Melbourne when it collided with destroyer HMAS Voyager off the east coast of Australia in 1964, killing 82 sailors.

Singline left the navy four years after the accident, suffering severe anxiety and battling a smoking and drinking problem.

The New South Wales state Supreme Court ruled today that Singline would have remained in the navy for at least 20 years had the accident not occurred.

Judge Stephen Rothman ordered the Australian government to pay Singline A1.2 million dollars compensation for the anxiety disorder, said a court official.

The Australian government agreed to compensate the Voyager's survivors in 1995, but it did not extend the same offer to the crew of the Melbourne.

REUTERS RN RK131