H.R. 4350 is designed to provide additional reimbursement to fishermen for the losses resulting from the seizures or detentions. The Secretary of the Treasury is authorized to pay such sums as the Secretary of the Interior determines to be equitable. These sums may include not only the fine but also damages for the destruction of the vessel, losses from damage to fishing gear or other equipment, the value of seized fish and also compensation to the owners of the vessel and the crew for the fish that were not caught as a result of such seizure and detention. Further awards are authorized to the heirs of any seaman whose death resulted directly from the seizure and detention or to the seaman himself for personal injuries resulting directly from the seizure. The Secretary's determinations shall be final and the United States is to be subrogated to any rights that persons receiving awards may have under any policy of insurance or any other provision of law. Whether this legislation should be enacted involves policy considerations as to which the Department of Justice defers to the Departments of State and Interior. However, it should be noted that the enactment of a bill such as this could serve as an undesirable precedent for the United States to reimburse American investors in foreign countries for economic losses resulting from foreign government actions thought to be contrary to international law. The Bureau of the Budget has advised that there is no objection to the submisson of this report from the standpoint of the Administration's program. Sincerely, RAMSEY CLARK, OFFICE OF THE ATTORNEY GENERAL, Hon. EDWARD A. GAEMATZ, Chairman, Merchant Marine and Fisheries Committee, House of Representatives, Washington, D.C. DEAR MR. CHAIRMAN: This is in response to your request for the views of this Department on H.R. 4451, a bill "To reimburse owners of vessels of the United States for losses and costs incurred incident to the seizure of such vessels by foreign countries, and for other purposes." Under present law when an American-Flag vessel is seized by a foreign country on the basis of rights or claims in territorial waters or on high seas which are not recognized by the United States, and a fine must be paid to secure the release of the vessel, the Secretary of the Treasury must reimburse the owner of the vessel for the amount of the fine (68 Stat. 883, 22 U.S.C. 1971 et seq.). H.R. 4451 is designed to provide additional reimbursement to owners of such vessels for the losses resulting from the seizures or detentions. Section 1 of the bill declares the owner of such vessel to be entitled to reimbursement for costs paid or losses suffered by him incident to such seizure. Such costs or losses may include, but are not limited to, the fine imposed to secure the release; any fees or charges for fishing permits or licenses paid to secure the release of the vessel; loss of the vessel, its equipment, and catch; loss of income, including crew shares, resulting from the idleness of the vessel after seizure and before release; any compensation paid by the owner for death or injury to seamen incident to the seizure; and any other reasonable expenditures incurred in connection with the seizure. Section 2 of the bill provides that the Secretary of State shall take such action as he deems necessary to collect from the foreign country which seized the vessel the amounts expended by the United States under the provisions of this Act. In any case in which a foreign country fails or refuses to make payment after demand by the Secretary, the Secretary shall notify the President of such refusal to pay and the President shall immediately suspend all assistance to such country under the Foreign Assistance Act of 1961 until the Secretary of State certifies to the President that such claim has been paid. Whether this legislation should be enacted involves policy considerations as to which the Department of Justice defers to the Departments of State and Interior. However, it should be noted that the enactment of a bill such as this could serve as an undesirable precedent for the United States to reimburse American investors in foreign countries for economic losses resulting from foreign government actions thought to be contrary to international law. The Bureau of the Budget has advised that there is no objection to the submission of this report from the standpoint of the Administration's program. Sincerely, RAMSEY CLARK, Attorney General. Hon. EDWARD A. GARMATZ, U.S. DEPARTMENT OF LABOR, Chairman, Committee on Merchant Marine and Fisheries. House of Representatives, Washington, D.C. DEAR MR. CHAIRMAN: I refer to your letter requesting a report on two bills: H.R. 4350, "To amend the Act of August 27, 1954, relative to the unlawful seizure of fishing vessels of the United States by foreign countries" and H.R. 4451, “To reimburse owners of vessels of the United States for losses and costs incurred incident to the seizure of such vessels by foreign countries, and for other purposes." A number of similar or related bills are pending before Congress. These and pending bills would expand the financial assistance available under the Fishermen's Protective Act, now limited to reimbursement for fines, to cover other items paid or losses suffered by vessel owners and crews because of the unlawful seizure and detention by a foreign country of fishing vessels of the United States and their crews. The items would include cost of fees; loss, damage, or destruction of vessel, gear, other equipment, catch; loss of income of owners and crews; and compensation for death and injury. I understand that the Department of the Interior has presented to your Committee a draft bill which it recommends in lieu of the pending bills. The draft bill would authorize a less extensive, four-year, program of guarantees to the vessel owners and their crews. By agreement, the Secretary of the Interior would guarantee vessel owners reimbursement for any costs incurred as a direct result of the illegal seizure or detention for loss, damage, or destruction to vessel, gear, or other equipment; for dockage fees, utilities, and the market value of any fish seized. In addition, the draft bill would provide for payment to vessel owners and their crews of up to fifty percent of any income lost as a direct result of such seizure or detention, as determined by the Secretary in accordance with standards. Fees would be charged vessel owners to cover administration costs of the program and a reasonable portion of the payments made thereunder. The Department of Labor concurs in the proposal made by the Department of the Interior and calls attention again to its provisions relating to income maintenance for the fishermen involved in the seizure and detention. The economic hardship visited upon the fishermen can be severe. The proposal for a system of insurance to cover half the income that was lost appears fitting pending a diplomatic solution to the problem, as envisaged by the limited duration of the program. The Bureau of the Budget advises that there is no objection from the standpoint of the Administration's program to the presentation of this report and that if the Committee determines that enactment of the Interior draft bill is necessary, the Bureau of the Budget strongly believes that the program should be a temporary one as proposed in that bill, pending continuing diplomatic efforts to achieve a lasting solution to the problem. Sincerely, W. WILLARD WIRTZ. DEPARTMENT OF STATE, Hon. EDWARD A. GARMATZ, Washington, D.C., June 22, 1967. Chairman, Committee on Merchant Marine and Fisheries, DEAR MR. CHAIRMAN: I refer to your letter of February 6 requesting a report on H.R. 4153, a bill "To amend the Act of August 27, 1954, relating to the seizure of vessels of the United States by foreign countries" and similar bills (H.R. 4346, H.R. 4350. H.R. 4451, H.R. 4452. H.R. 5148, and H.R. 6785). If enacted, H.R. 4153 would amend the Act of August 27, 1954 (68 Stat. 883) to include reimbursement, out of public funds, "for any loss and costs, including but not limited to, the loss of fishing gear, vessel, equipment, catch, and the loss of income resulting from the forced idleness of such vessel after such detention and before release. Such reimbursement costs shall include, but not be limited to, any reasonable expenses in connection with such seizures, any fees, or other charges arising out of such seizure, and any fees or charges for fishery permit fees or license or other similar fee and related costs that are paid to the foreign country in order to secure the prompt release of the seized vessel and its crew." The Act of August 27, 1954 provides for reimbursement of fines paid to foreign governments to obtain the prompt release of vessels seized in international waters. The Department is sympathetic to the aims of H.R. 4153 and recommends enactment of certain amendments to the Act of August 27, 1954 as indicated in the bill submitted by the Department of the Interior. One of the bills under consideration by this Committee, H.R. 4451, would-in addition to providing such reimbursements as mentioned above-direct the Secretary of State to take such action as he deems necessary to make and collect claims against a foreign country based on expenditures under the proposed bill and to inform the President of the failure of any country to make payment within 120 days after demand for payment is made. Upon such notification, the President is directed to suspend all assistance to the delinquent country under the Foreign Assistance Act of 1961 until the claim is paid. The Department of State is strongly opposed to the provision of H.R. 4451 which would make the suspension of assistance under the Foreign Assistance Act a mandatory sanction against a country failing to pay claims by the United States for amounts expended under the provisions of the Fishermen's Protective Act. Under this measure, all foreign policy interests with respect to assistance for any country, including those pertaining to our national security, would be subordinated by statute to a single foreign policy interest, that of resisting attempts to extend jurisdiction over what we consider to be international waters. Such a measure would be an unnecessary and potentially harmful restriction on the flexibility required by the President in the exercise of his foreign policy responsibilities. It is the position of this Government to support the free operations of our fishing vessels outside national fisheries jurisdiction extending to a distance of not more than twelve miles from the coast of all countries, subject only to international law and agreements. It is also the policy of this Government to support the development of the American fishing industry. Nevertheless, unless effective protection is afforded to American fishing vessels operating in zones of the high seas regarded by foreign governments as within their national jurisdiction on the basis of claims we consider to be without foundation in international law, both the legal rights espoused by this Government and the continued development of the American fishing industry will suffer. The Department of State is seeking a positive solution for the vexing problem of seizures of United States fishing vessels on the high seas by certain countries. We hope that negotiations for this purpose will take place during the present year, and that they will result in a termination of the practice of seizures. Pending the completion of these negotiations, there is always the risk of further seizures, and further unfair and illegal impositions on our fishermen. As a matter of principle, the items for which these bills would provide compensation out of public funds are in reality claims against foreign governments. They are but one type of a countless variety of claims by United States citizens against foreign governments throughout the world. All such claims are based on conduct of the foreign government claimed by the Government of the United States to have been improper or illegal under international law. It may be pointed out that cases here involving fishing vessels are no different, for example, than claims arising out of the taking of property and other international claims. Such claims have not been paid out of public funds. The introduced legislation, if enacted, could be urged as a precedent for satisfying all unpaid claims of United States nationals against foreign governments. This is a matter of great concern since such claims now exceed one billion dollars. Therefore, it is our view that such claims should not be paid out of public funds. But in this particular case that of fishing vessels wrongfully seized on the high seas-Congress has passed the Act of August 27, 1954, for the purpose of assisting the owners of seized vessels to obtain the prompt release of their vessels and crews. Its goal is to give our fishing fleet some protection in addition to that provided by diplomacy. The Act of August 27, 1954 has been of some assistance to the American fishing industry in maintaining and exercising its rights under international law, despite the harassment of seizures the United States considers illegal. However, the Act is not fully effective in its purpose of obtaining the prompt release of 82-015-67- -3 vessels and crews. In order to permit prompt release, vessels are often required not only to pay a fine, but to purchase a fishing license, and sometimes to pay other fees. In addition, the Department believes that under the circumstances, it would be appropriate to establish a temporary program whereby United States fishermen who are willing to share in the costs can be provided some additional assistance while negotiation efforts continue and that such an approach will not undermine the principle against public compensation for private claims against foreign governments. Accordingly, the Department recommends amendment of the Act of August 27, 1954 as suggested in the draft bill submitted by the Department of the Interior. The Department believes that these amendments would provide a substantial measure of relief to the American fishing industry without incentive for abuse and serve to support the positions of this Government both in developing its fishing industry and in maintaining its position under international law. The Bureau of the Budget advises that there is no objection from the standpoint of the Administration's program to the submission of this report and that if the Committee determines that enactment of the Interior draft bill is necessary, the Bureau strongly believes that the program should be a temporary one, as proposed in that bill, pending continued diplomatic efforts to achieve a lasting solution to the problem. Sincerely yours, WILLIAM B. MACOMBER, Jr., Assistant Secretary for Congressional Relations. OFFICE OF THE SECRETARY OF TRANSPORTATION, Hon. EDWARD A. GARMATZ, DEAR MR. CHAIRMAN: You have requested the views of the Department of Transportation on H.R. 4153, H.R. 4350, H.R. 4451, and H.R. 5148, bills relating to the prevention and compensation of U.S. fishing vessels seized on the high seas by foreign countries. These bills all provide for reimbursing the owners of U.S. fishing vessels for all losses resulting from seizures by a foreign country on the basis of rights or claims in territorial waters or the high seas which are not recognized by the United States. At present, Section 3 of the Act of August 27, 1954, Chapter 1018 (22 U.S.C. 1973), merely provides for reimbursement for fines actually paid to the foreign government. The most significant addition would be reimbursement for "loss of income resulting from enforced idleness of the vessel" (H.R. 5148, H.R. 4153, H.R. 4451). H.R. 4350 would achieve essentially the same result by providing compensation "for the fish that were not caught as a direct result of such seizure and detention." This Department defers to the views of the Departments of State and Interior since they are primarily responsible for the development of policy in these areas. We have been advised by the Bureau of the Budget that there would be no objection to the submission of this report from the standpoint of the Administration's program. Sincerely yours, JOHN L. SWEENEY, Assistant Secretary for Public Affairs. THE GENERAL COUNSEL OF THE TREASURY, Hon. EDWARD A. GARMATZ, Chairman, Committee on Merchant Marine and Fisheries, House of Representatives, Washington, D.C. DEAR MR. CHAIRMAN: Reference is made to your requests for the views of this Department on H.R. 4153, H.R. 4350, H.R. 4451, and H.R. 5148, bills amending the Act of August 27, 1954, relating to the seizure of vessels of the United States by foreign countries. The proposed legislation would provide for the reimbursement of owners of United States vessels seized by a foreign country under certain conditions for certain losses and costs. The question of whether owners of vessels seized by foreign countries should be reimbursed for losses and costs is not a matter which relates to the responsibilities of this Department. Accordingly, the Department defers to the interested. agencies with regard to the general merits of the legislation and, of course, would wish not to be included in a policy making position in any legislation which might be enacted. The Department has been advised by the Bureau of the Budget that there is: no objection from the standpoint of the Administration's program to the submission of this report to your Committee. Sincerely yours, ROY T. ENGLERT, Acting General Counsel. Mr. DINGELL. I would like to announce at this time that the interested Government departments have requested that their witnesses be allowed to testify in closed session; therefore, when their testimony is received this afternoon, the hearings will be closed to the public. The Chair notes that in the room are several of the coauthors of the legislation. The Chair would be happy to afford the Members of Congress present who have coauthored this legislation the privilege of sitting with the committee. The Chair notes the presence of Mr. Van Deerlin and Mr. Wilson. Gentlemen, the Chair would be honored to have you both sit up here on the rostrum during the hearings. It is entirely up to you, gentlemen. You are welcome to join us if you choose. Mr. WILSON. Thank you. I would like to testify on the bill if I have the opportunity. Mr. DINGELL. We will afford you that opportunity. The witness list indicates that the first witness is Thomas M. Pelly, author of H.R. 4451, and a member of this committee. Mr. Pelly. STATEMENT OF HON. THOMAS M. PELLY. A REPRESENTATIVE IN CONGRESS FROM THE STATE OF WASHINGTON Mr. PELLY. Thank you. Mr. Chairman and members of the committee, I appreciate the subcommittee chairman scheduling these hearings on my bill, H.R. 4451, and other similar bills. Being a member of the subcommittee I feel a special responsibility to afford protection to our American fishermen. The Constitution of the United States guarantees our American fishermen protection on the high seas and to our shame these fishermen have not had such protection. H.R. 4451 would provide for full reimbursement to owners of U.S. vessels seized by a foreign country. Under the provisions of H.R. 4451, vessel owners would be entitled to payment for losses suffered incident to seizures, including fines imposed by a foreign country, fees or charges for fishing permits, and licenses to effect release; likewise for reimbursement for losses of fishing gear or catch and loss of income including crew shares resulting from forced idleness on a vessel after seizure. Additional compensation would be paid as a result of death or injury of a crewmember and other reasonable expenses incurred as a result of seizure. |