Whenever I'm faced with this situation, I give an indication of direction change by spinning my steering wheel 180 degrees away from the oncoming boat, then immediately back to where it started, this doesnt change the direction of my boat, but gives a visual "nod" if you will to the oncoming boat that I'm heading in another direction. Most of the time the other boater will react by changing course in the opposite direction. If this doesnt work I'll change direction, even if I have the right of way.
You can hang on the rules all you want, but your assuming that the other guy knows what he's doing. The final rule is to take any measure possible to avoid a collision, or you could wind up dead right.
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