In the field of autonomous surface vehicles (ASVs), devising decision-making and obstacle avoidance solutions that address maritime COLREGs (Collision Regulations), primarily defined for human operators, has long been a pressing challenge. Recent advancements in explainable Artificial Intelligence (AI) and machine learning have shown promise in enabling human-like decision-making. Notably, significant developments have occurred in the application of Large Language Models (LLMs) to the decision-making of complex systems, such as self-driving cars. The textual and somewhat ambiguous nature of COLREGs (from an algorithmic perspective), however, poses challenges that align well with the capabilities of LLMs, suggesting that LLMs may become increasingly suitable for this application soon. This paper presents and demonstrates the first application of LLM-based decision-making and control for ASVs. The proposed method establishes a high-level decision-maker that uses online collision risk indices and key measurements to make decisions for safe manoeuvres. A tailored design and runtime structure is developed to support training and real-time action generation on a realistic ASV model. Local planning and control algorithms are integrated to execute the commands for waypoint following and collision avoidance at a lower level. To the authors' knowledge, this study represents the first attempt to apply explainable AI to the dynamic control problem of maritime systems recognising the COLREGs rules, opening new avenues for research in this challenging area. Results obtained across multiple test scenarios demonstrate the system's ability to maintain online COLREGs compliance, accurate waypoint tracking, and feasible control, while providing human-interpretable reasoning for each decision.