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been less than desirable due to a lack of expertise and emphasis and an absence of information from all parties concerned. It is my hope that this office will eliminate those voids.

Question. What is the unique expertise and historical mission of DOT which would make it the logical lead maritime agency?

Answer. As I indicated on page 3 of my prepared testimony: "Today the Department of Transportation finds itself in a rather unique position with respect to maritime policy for this nation. Our constituencies concerning marine transportation are the total national transportation system, the users of that system, and the general public."

By viewing maritime policy from the perspectives of these constitutencies, I hope we can work with other government agencies to develop workable maritime transportation programs that will help us meet the objective of an efficient, integrated total transportation system for our Nation. Further, the growing use of intermodal through services involving marine and the other modes of surface transportation requires increased coordination of transportation policy for each of these modes. Question. Were you quoted in Seatrade magazine as hoping that one result of the Interagency Maritime Task Force would be the designation of the Department of Transportation as the lead agency for maritime policy?

Answer. Attached, for your information, is a copy of the August 1978 issue of Seatrade, in which the author Colin Morrison interpreted my position in the following way:

"What he hopes will emerge from the Johnston Committee is similarly clear: the designation of the Transportation Department as the 'lead' agency for maritime policy

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The CHAIRMAN. I would like to yield to our colleague, Mr. Anderson from California.

Mr. ANDERSON. Thank you, Mr. Chairman.

Before I direct my comments or questions to the Secretary, I have been listening to your little complaint there about the 200 percent or factor of two appropriation subsidies for the transit of New York City, and I just wanted to know if you were not happy with that? We were trying to get some of that out in Los Angeles, and we were not quite successful.

Were you complaining about it or

The CHAIRMAN. What we did, we built the BART System out there for the Bay Area, and it has had a number of difficulties, but we sent all that Eastern money out to California again. If you need some more, we will be glad to help you.

Mr. SNYDER. I want to say that my heart grieves for both of you. Mr. ANDERSON. We were not able to get some of that money and, hopefully, I will get some of your help next time in getting the Secretary to get some of that mass transportation money out to Los Angeles.

The CHAIRMAN. You can bring Orphan Annie in there.

Mr. ANDERSON. Mr. Secretary, I am pleased to see you here this morning, and I am pleased to see that the Department of Transportation is still taking steps to help create a national transportation policy; that you are placing a new emphasis on the maritime sector which, in many areas, has been sorely neglected in the past.

As you know, I am a member of the National Transportation Policy Study Commission. We are trying to develop a framework for national transportation policy for the United States through the year 2000. As a member of that commission, I have been trying to insure the continued financial viability and status of the maritime industry in this whole picture. I think it was brought to my attention, the problem, because of the area that I represent. I do have the twin parts of Los Angeles and Long Beach, and they are

the largest, both import and export, of any port in the west coast, and one of the largest in the Nation, second or third, depending on how you count it, New York, New Orleans and so on.

In both of those ports we have a total maritime shipping business, the import and export, we have rails, we have trucking, freeways. But there has been very little coordination, and I have been watching the ports grow and with no rhyme or reason often as to when we do one thing portwise in relation to transportation, and so I got a few dollars here a couple sessions ago to direct the Army Corps of Engineers to do a study of the transportation needs in that port area. They are coming up with that report later this month. I have had a preview of some of the things that they are going to tell us, which many of us already recognize. They told us that we are going to have 300 percent growth over today's growth by the year 2000. Our transportation facilities are totally inadequate to handle that new traffic that we are going to have there, and that we are going to have to realign our rail, our highway routes and air traffic elsewhere, and we were able to add the Harbor Freeway to the Interstate. But that is the first time that we have been able to get to the Federal Interstate to connect with one of the biggest port areas in the country.

This 300 percent growth figure that they are using was even before the projected China trade. So we know we are going to have tremendous growth. We know we are going to have to tie in maritime shipping, rail shipping, truck shipping, people who are going to be working those areas. It is going to be a tremendous challenge, and I do want to congratulate you on what you are helping to do there in trying to bring these things together.

There are some concerns that I know many of us have on, is there going to be duplication between the Maritime Administration and this new Secretariat having functions. I know you touched on that a little bit, but I think this is one of the areas where there is some concern, is how can we do we know that you have to know what the maritime shipping business is to make these decisions, but how can we eliminate much of that duplication that people are afraid of?

Secretary ADAMS. I do not think there will be duplication and we certainly do not intend that there be any. I am hopeful that our relationship with other agencies will grow the same way that our relationship has with the Corps of Engineers. I met early on with the generals in charge, and we are now entering into a series of memoranda of understanding between the two agencies, particularly on the inland waterway system, for example, as to what kind of development we need. The Corps of Engineers is most interested in training engineers and maintaining a military capacity and building facilities.

As you know well, the Department of Transportation does not build facilities. We provide funding and we plan the tying together of facilities. We do not physically go out and construct them. We are most interested in bottlenecks on the river or bottlenecks in the rail traffic and so on, and we have dealt with them on a memorandum of understanding basis.

I do not anticipate our becoming at all involved with determining subsidies for ships or shipyards or anything like that. That is

STATEMENT OF HON. BROCK ADAMS, SECRETARY, DEPARTMENT OF TRANSPORTATION, ACCOMPANIED BY REAR ADM. R. H. WOOD, MARITIME POLICY ADVISER TO THE SECRETARY OF TRANSPORTATION; AND RICHARD F. WALSH, DIRECTOR FOR TRANSPORTATION ECONOMIC ANALYSIS, OFFICE OF THE SECRETARY, DEPARTMENT OF TRANSPORTATION

Secretary ADAMS. Thank you very much, Mr. Chairman. I am most pleased to come before the committee and testify about the new office of the Assistant Secretary for Marine Transportation, and our plans regarding the functions and responsibilities of this new office.

At the outset, I ought to indicate that the entire staff structure of the Department of Transportation-and by staff, I mean the staff that reports to the Secretary, as opposed to the line administration, such as the Federal Aviation Administration, the Federal Highway Administration, and so on-has been restructured because of changes that occurred in the law during the period of time just prior to my taking office as Secretary of Transportation.

For example, we revised the positions of all the Assistant Secretaries. We had to create an Assistant Secretary for Budget and Program Review, because the Budget Act had come into existence, and we were required also to establish a Program Review Unit. The Assistant Secretary for Administration, a position which is established by statute, was given new responsibilities and is gathering more responsibilities in a new audit area. We retained the policy and congressional liaison Assistant Secretaries while combining some previously separate functions under these offices. We streamlined the Office of the Secretary, placed in operational offices people that conduct operations, and reduced the total number of people reporting to the Secretary. Since the DOT Act authorizes the Department to have a total of five Assistant Secretaries, this restructuring left vacant one Assistant Secretary position.

Early on in my tenure as Secretary of Transportation, as I traveled, both locally and abroad, not on maritime matters, but on other matters which the Department of Transportation is involved in, such as aviation and highway systems, I found that we were constantly being asked about the Nation's maritime policy.

For example, at that time we were trying to develop an aviation policy group, which now we have done, consisting of State, Transportation, Justice, representatives of the CAB, and other interested agencies, to enable us to negotiate bilateral aviation treaties effectively. We had to do that, because when we first came in I was very concerned in that the organization of the American Government with respect to aviation negotiations was badly divided, and we were trying to move in a new direction. As I discussed this new initiative with ministers of foreign governments, they often inquired peripherally what we were doing in the maritime area, and I explained to them that the U.S. Government had a divided group of responsibilities in that field.

I am well aware of the fact that when DOT was established our basic mission, which we are still trying to accomplish, was to get a fast, safe, and efficient national transportation system, based on national policies and programs. This means trying to combine, not

by Government fiat but both by promotion and otherwise, the rail, highway, aviation, and marine modes. The marine modes have an enormous impact, particularly the inland waterways, on our national transportation system. The inland waterway is really the area in which we are most involved with the new office I have established.

Let me outline for you now how we have combined resources within our organization, to provide sort of a window to the world for the groups that want to talk to us about marine transportation problems. This particularly involves, as I say, the inland waterways, as you will see as I describe the sections of the new office. We do not propose to bring on any new people to staff this new office. We are using the existing positions.

This office does not change our relationship with the Coast Guard. But early on, as this committee knows, we had to create a position of Maritime Policy Adviser, responding directly to the Secretary, because we were involved all over the world in the IMCO negotiations, tanker safety, crew standards, all of the port operations that the Coast Guard is required to interface with, et cetera. And you will remember that the President sent a set of initiatives to the IMCO countries, which the Congress adopted. For the first time the whole world community moved a quantum step forward in the IMCO negotiations. Much of this progress was due to the people in the Coast Guard, and the other divisions that I will mention in a moment, that went throughout the world and convinced the world community that we had to deal with the oil pollution problem, and with tanker standards, and so on.

I want the committee to be very much aware that I, as a member of Congress, was here when the Department of Transportation was created, I am very well aware of the section 7(a) provisions of the DOT Act. But the interface between the marine, surface, and air modes has become increasingly apparent.

What we want to do is simply create, as a staff function to me, a focal point within the Department for maritime affairs so that I have people in one area, talking to one another, providing me with staff advice. Previously, they were scattered through four areas. This office will act as a catalyst, to provide for comprehensive analysis, and to provide a voice particularly for the domestic marine industries we try to work out what to do with the railroads and the highways, and particularly with the bulk shipments out of the middle part of the United States.

We basically represent consumers of transportation services, people who have to move large quantities of coal, grain, gravel, and other items. They make choices in the free market as to which mode they are going to use. The Department of Transportation wants to be sure that the systems are available, that shippers know what they are and which ones they can use. And to the greatest degree possible we want to be sure that the various modes interface effectively because we are trying to use the most efficient system in each case.

We are in a rather unique position in that our constituencies cover a whole gamut of different interests in the total transportation system, and we are interested in trying to work with the maritime area with a completely unbiased view. We have no posi

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