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To authorize appropriations for the fiscal year 1980 for certain maritime programs

of the Department Commerce, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

FEBRUARY 27, 1979 Mr. MURPHY of New York (for himself, Mr. ASHLEY, Mr. DINGELL, Mr. JONES

of North Carolina, Mr. BIAGGI, Mr. ANDERSON of California, Mr. DE LA GARZA, Mr. BREAUX, Mr. STUDDS, Mr. BOWEN, Mr. HUBBARD, Mr. BONKER, Mr. D'AMOURS, Mr. OBERSTAR, Mr. HUGHES, Ms. MIKULSKI, Mr. AKAKA, Mr. MYERS of Pennsylvania, Mr. Wyatt, Mr. Lowry, Mr. HUTTO, Mr. DONNELLY, Mr. SNYDER, Mr. YOUNG of Alaska, Mr. BAUMAN, Mr. EMEBY, and Mr. TRIBLE) introduced the following bill; which was referred to the Committee on Merchant Marine and Fisheries

A BILL To authorize appropriations for the fiscal year 1980 for certain

maritime programs of the Department of Commerce, and for

other purposes.

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Be it enacted by the Senate and House of Representa

2 tives of the United States of America in Congress assembled, 3 That this Act may be cited as the "Maritime Appropriation

4 Authorization Act for Fiscal Year 1980".

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SEC. 2. Funds are authorized to be appropriated with

2 out fiscal year limitation as the appropriation Act may pro

3 vide for the use of the Department of Commerce, for the

fiscal year 1980, as follows:

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(1) For acquisition, construction, or reconstruction

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of vessels and construction differential subsidy and cost

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of national defense features incident to the construc

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tion, reconstruction, or reconditioning of ships, not to

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(2) For payment of obligations incurred for operating-diferential subsidy, not to exceed $256,208,000;

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not to exceed, $25,874,000, including not to exceed

$17,139,000 for maritime training at the Merchant Marine Academy at Kings Point, New

New York,

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$0.783,000 for financial assistance to State marine

schools and $1,957,000 for supplementary training

courses authorized under section 216(c) of the Mer

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(3) For operating expenses, not to exceed $33,398,000, including not to exceed $6,377,000 for Peserve fleet expenses, and $29,221,000 for other

operating expenses.

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SEC. 3. There are authorized to be appropriated for the

2 fiscal year 1980, in addition to the amounts authorized by

3 section 2 of this Act, such additional supplemental amounts

4 for the activities for which appropriations are authorized

5 under section 2 of this Act, as may be necessary for increases

6 in salary, pay, retirement, or other employee benefits author

7 ized by law, and for increased costs for public utilities, food

8 service, and other expenses of the Merchant Marine Academy

9 at Kings Point, New York.

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This is in response to your request for our comments on H.R. 2462, a bill

"To authorize appropriations for fiscal year 1980 for
certain maritime programs of the Department of Commerce
and for other purposes.'

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Th1s bill authorizes appropriations for the fiscal year 1980 for the purpose of supporting the subsidy, training, research, reserve fleet and other operating and administrative expenses of the Maritime Administration of the Department of Commerce.

The Department of Transportation defers to the views of the Department of Commerce and has no objection to the bill as proposed.

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Mr. CHAIRMAN. I am particularly pleased to note the appearance today of the Under Secretary of the Navy, R. James Woolsey. As many here know, the strategic role of the merchant marine is of vital importance to this committee and the Nation. Mr. Woolsey's presence today underscores that shared belief and reinforces Secretary of the Navy Claytor's recent testimony before the Armed Services Committee wherein he said:

maritime superiority is not a matter of naval strength alone. Much too often overlooked or neglected is the merchant marine's vital role in our national security. The U.S. merchant marine is, by any measure, stagnating, and the commercial shipbuilding outlook is highly pessimistic. This is not a satisfactory state of affairs. Not only are we losing the business competition, but the sealift capability essential to crisis action and mobilization is in serious and growing jeopardy. There is absolutely no doubt that continued erosion of our merchant fleet, and its supporting shipbuilding industry and labor force, is going to weaken our national defense. We must find the means to keep our maritime industry alive and well. The Navy will cooperate in every possible way with the Maritime Administration in this undertaking.

These are welcome words, suggesting that this committee enjoys a receptive audience beyond these halls.

The relationship between the Navy and the Maritime Administration is, of course, one of our paramount interests, one that is vital to our national defense. In that respect, I am equally pleased to note that Hon. Robert J. Blackwell, Assistant Secretary of Commerce for Maritime Affairs, will also appear before the subcommittee.

No one, to my knowledge, has served with greater distinction in such a trying, seemingly thankless post than Robert J. Blackwell, and we welcome him.

The bill pending before us requests appropriation authorization authority for 1980 totaling $435,040,000, subdivided as follows: $101,000,000 for ship construction; $256,208,000 for operating-differential subsidies; $16,360,000 for research and development activities; $25,874,000 for maritime education and training expenses, and $35,598,000 for maritime administration operating expenses.

We will inspect in great detail each of these items during subsequent sessions.

Mr. Woolsey, we are very happy to have you with us, but before we proceed I will yield to the distinguished gentleman from California, the ranking minority member, Mr. McCloskey.

Mr. McCLOSKEY. I will yield back at this time, Mr. Chairman. Thank you.

The CHAIRMAN. Our first witness today will be Hon. R. James Woolsey, Under Secretary of the Navy.

STATEMENT OF HON. R. JAMES WOOLSEY, UNDER SECRETARY

OF THE NAVY, DEPARTMENT OF THE NAVY, ACCOMPANIED
BY MR. WILLIAM W. KINKEAD, DIRECTOR, TRANSPORTATION,
OFFICE OF THE ASSISTANT SECRETARY OF THE NAVY (MAN-
POWER, RESERVE AFFAIRS, AND LOGISTICS)
Mr. WOOLSEY. Thank you, Mr. Chairman.

My name is James Woolsey, Under Secretary of the Navy. I am pleased to appear before this distinguished and dedicated committee to present the views of the Navy Department with respect to the U.S.-flag merchant marine. I am accompanied today by Wil

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