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Statement of-Continued

Singman, Julian H., Washington Counsel, Masters, Mates & Pilots Interna-


Spector, Eugene, research director, National Maritime Union of America .

Smith, Thomas J., president, Farrell Lines, Ltd

Tuttle, Allan A., counsel, American Maritime Association

Walsh, Ed, president, Waterman Steamship Corp

Walsh, Richard F., Director for Transportation Economic Analysis, Office

of the Secretary, Department of Transportation

Wood, Rear Adm. R. H., Maritime Policy Adviser to the Secretary of


Woolsey, R. James, Under Secretary of the Navy

Additional material supplied-

Barker, James R:

Question of Mr. Murphy and answer

Brennan, Robert J.:

Questions of Mr. Murphy and answers

Finnerty, Peter:

Proposed amendment to H.R. 2462

Share by flag—1978; and vessels ....

U.S.A.-west coast to and from Europe

Hood, Edwin M.:

Capital improvements in U.S. private shipyards

Employment trends—U.S. shipbuilding base

Five-year merchant shipbuilding prospects identified

Merchant-type vessels delivered by U.S. private shipyards

Members of shipbuilders Council of America

Questions of Committee and answers

Recommendations of Commercial Shipbuilding Committee, Shipbuild-

ers Council of America, pertaining to National Maritime policy

Technology Improvements

U.S. shipbuilding industrial base

Luciano, Peter:

Lobbying by tax exempt organizations...

Locks and dam No. 26 projects

Rough Sailing-Shipbuilding Countries Act To Aid the Industry in Its

Time of Trouble

Studies of Transportation Institute

Transportation Institute report year ended June 30, 1977

Maritime Administration:

Carriage of preference cargoes (liner)

Grain preference trades

Questions of Mr. McCloskey and answers

Questions of Mr. Murphy and answers

Ships receiving ODS ..

Ships with operating subsidy not built with construction subsidy

May, Albert E.: Questions of Mr. Murphy and answers

MEBA: Ships in our American-flag fleet.....

Mollard, Charles:

Questions of Mr. Murphy and answers

Navy Department:

Foreign-flag ships services

Navy construction in private yards

Need of shipyards for national security

Necessary working shipyards.......

Questions of Mr. Murphy and answers

Scott, Allen C.: Supplemental information

Spector, Eugene P.:

NMU joint Employment Committee, statements of assets and


NMU Joint employment report-December 31, 1976..

NMU pension and welfare plan, welfare plan report for the year ended

December 31, 1977.

Statement of changes in net assets available for plan benefits for the

year ended December 31, 1976..

Smith, Thomas J.: Questions of Mr. Murphy and answers



Statement of-Continued

Story, Eugene D.: Analysis of U.S.-flag versus foreign-flag bulk shipping


Transportation Department: Questions of Mr. Murphy and answers

Communications received-

Benkert, W. M.: Letter of April 4, 1979, to Hon. Paul N. McCloskey, Jr......

Blackwell, Robert J.: Letter of April 3, 1979, to Hon. Paul N. McCloskey, Jr

Clayton, W. Graham, Jr.: Letter of April 3, 1979, to Hon. Paul N. McClos-

key, Jr., with four attachments

Hood, Edwin M.:

Letter of January 20, 1976 to Hon. Paul N. McCloskey, Jr,

Letter of April 2, 1979, to Hon. John M. Murphy

Leggett, Robert L.:

Letter of April 30, 1979, to Hon. John M. Murphy.

Luciano, Peter J.:

Letter of April 3, 1979, to Hon. John M. Murphy

Letter of April 4, 1979, to Congressman Paul N. McCloskey, Jr., with


Maskin, Alfred:

Letter of March 30, 1979, to Hon. Paul N. McCloskey, Jr.

Letter of June 13, 1979, to Hon. Gene Snyder with answer to questions

and attachments

McCloskey, Paul. N., Jr.:

Letter of April 3, 1979, to James T. McIntyre, Jr

Nemirow, Samuel B.:

Letter of June 21, 1979, to Hon. David F. Emery

Letter of July 2, 1979, to Hon. Paul S. Trible, Jr

Perry, William J.:

Letter of January 26, 1979, to Elmer B. Staats.

Scott, Capt. Allen Č.:

Letter of April 17, 1979, to Hon. M. Gene Snyder

Simpkins, Talmage E., and Earl W. Clark: Letter of April 2, 1979, to

Congressman Paul N. McCloskey, Jr

Spector, Eugene P.:

Letter of April 4, 1979, to Hon. M. Gene Snyder ......

Story, Eugene D.:

Letter of March 19, 1979, to Ernest Corrado





Washington, D.C. The subcommittee met, pursuant to notice, at 10:08 a.m., in room 1334, Longworth House Office Building, Hon. John M. Murphy, chairman, presiding.

Present: Representatives Murphy, Mikulski, Donnelly, McCloskey, Snyder, and Evans.

Štaff present: Carl L. Perian, chief of staff; Ernest J. Corrado, chief counsel; Larry O'Brien, deputy chief counsel; Len Sutter, counsel; Jack E. Sands, chief minority counsel; Ronald K. Losch, minority counsel; and Elizabeth Coker, subcommittee clerk.

The CHAIRMAN. The subcommittee will come to order.

This morning the Subcommittee on Merchant Marine commences hearings on MarAd oversight and the fiscal year 1980 authorization to authorize appropriations for certain maritime programs for the coming fiscal year.

We begin work on this important legislation at a critical time for America's maritime interests. President Carter stated the issue well in his state of the Union message on January 25, 1979, when he observed that changes in our national maritime policy are overdue, and emphasized, and I quote: we must improve the ability of our merchant marine to win a fair share of our cargo

Improvement of our merchant marine is the principal concern of this subcommittee, and the full committee as well, and I welcome the opportunity to focus on that objective in these proceedings.

As a casual reading of the daily press makes all too obvious, these are perilous times. Instability in the Middle East, outright war in Southeast Asia, renewed debate on the limitation of strategic weaponry, diminishing supplies of fuel, and other precious resources, and the place and role of Third World nations in Latin America and Africa raise profound questions. In some cases, these events cast lengthening shadows, touching

, the international economic order and influencing our decisionmaking.

At the heart of these issues lies the central question of the American mission and role after the tumultuous events of the past decade and recent months. Are we, as some suggest, waning as an international power?

I think not: Not, that is, if we maintain our economic vitality, a vitality dependent upon our lifelines of international commerce,




and determined by our capacity to do what must be done. In that respect, it is clear that we must retain and enhance our ability to transit international waters as worldwide traders in first-rate vessels in a competitive posture.

During the last 2 years as the chairman of this committee, I have often stated my goals for the American merchant marine. I can restate them today in one sentence: To see America once again ascend to uncontested maritime preeminence in the world, ready and able to lead the way. To that end, I pledge the best efforts of this committee.

[The bill and departmental report follow:]

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