The same office also has undertaken a study of the interrelationships of Continental Shelf Resources and regional economic development. Increased Emphasis In view of the many benefits and the threats associated with the Coastal Zone, the Marine Sciences Council again selected the Coastal Zone area for priority attention during FY 1969. While this multi-agency effort will build on the initiative of FY 1968 described above, the geographical range of activities will be broadened beyond consideration of the Chesapeake Bay. During the past year, the Council established an inter-agency Committee on the Multiple Uses of the Coastal Zone to consider this category of issues for the Council. In addition to a continuation and strengthening of the individual agency programs, increased emphasis will be given to the following endeavors: 1. An improved study and planning capability for dealing with problems of the Coastal Zone on a multi-disciplinary, multi-agency basis will be developed within the Committee. Information and plans will be exchanged on: -environmental data needed for policy decisions concerning the Coastal Zone; establishment of ecological baselines along the coasts; -requirements for monitoring Coastal Zone phenomena; Data available from State activities will be used. 2. A long-term multi-agency plan of research on the Chesapeake Bay will be formulated, continuing and broadening the FY 1968 initiative. A comprehensive research facilities plan will be developed concurrently with the design of the Corps of Engineers hydraulic model. 3. The need will be examined for programs in partnership with the States to deal with problems along coastal reaches on the Continental Shelf and the Great Lakes. A pilot program of study of the research needs related to the Great Lakes will be undertaken by the Council in collaboration with the Great Lakes Basin Commission, bordering States, and other inter-governmental authorities considering all uses of the Lakes. 4. Needs for a national estuarine study will be examined to assess the inagnitude of estuarine use problems and remedies. Federal-State Cooperation We have noted the uniqueness of marine science affairs of the Coastal Zone-resulting from intense, varied human uses super-imposed on an intricate, delicate ecology, and involving an array of governmental entities to manage the Zone. This severe administrative fragmentation, as well as the confrontation between different interests, suggests the need for unifying concepts by which we can deal with these problems. To isolate local problems and help remedy them, heavy emphasis is anticipated on Federal-State collaboration. Two considerations may serve as guidelines to future collaboration. The first is that problems vary from one locality to another and involve such finely detailed relationships that some governmental authority lower than Federal must be involved. The second is that mechanisms must be sought to facilitate transfer of study and research to action-both to reduce delay and insure authenticity of interpretation of studies. Much can be accomplished in promoting optimal use of the Coastal Zone by increased emphasis on existing capabilities and on the use of existing authorities. In some cases, however, new authorities may be needed to attain the needed emphasis on the Coastal Zone. For example, the River Basin Commissions 1 will, as part of comprehensive basin planning, consider steps needed in the estuarine Coastal Zone. However, additional administrative actions or a Commission similar in make-up to the River Basin Commissions may be needed to carry out such measures along the coast between estuaries, and extending out to include related activities on the Continental Shelf. In order to maximize the benefits from the Coastal Zone, additional actions need to be examined with the two-fold purpose of developing: -increased public awareness of the nature and importance of the Coastal Zone; and -an integrated program of science, technology, and public administration to develop more profound understanding of the coastal regions, to sharpen our awareness of biological interdependence, and to plan and implement measures and mechanisms for carrying out a policy which will open new opportunities on the one hand, and preserve that which is best in the environment on the other. It is now also apparent that while the Federal involvement in the uses of the Coastal Zone has been growing, an institutional framework for management of specific segments of the Coastal Zone as regional entities may be needed if we are to realize the maximum social benefits from this vital natural resource. 1 Established by Water Resources Planning Act, PL 89-80. "I hold to be fundamental that . . . our citizens shall be safe in freely travers- Chapter VI FACILITATING TRANSPORT AND TRADE ABOUT 90 percent of United States foreign trade of $56 billion per year moves by water. Although commercial air transportation between continents has become significant since World War II, it still represents less than 10 percent of total cargo traffic and its cost (per ton mile) is 40 times that of ocean shipping.1 The future of the United States in international trade depends on many factors and on their interactions, some subject to influence by Federal policy and program decisions. As the nations of the world become industrialized, the near-monopoly of the United States in the world market for many manufactured products is disappearing. At the same time, the world market for both goods and services will expand as increasing industrial production creates new mass purchasing power. The net consequence for this Nation could be growing opportunities in foreign trade if American enterprise identifies and capitalizes on comparative advantages. Some predictions of the total foreign trade picture are optimistic, reflecting the possibility of a doubling of trade every 20 years. Assuming that The cost per ton-mile of comparable cargo (i.e., general cargo in break bulk shipping) is 18-19¢ for air transport and about 1/2¢ for sea transport. 'U.S. Department of Commerce, Maritime Administration projections, based on the assumption that foreign trade bears a fixed percentage relationship to the Gross National Product show about 1200 million long tons in the year 2000 as against about 300 in 1963. the trend continues, and that the share of water carriers in U.S. trade continues, the absolute volume of cargo tonnage arriving and departing from United States ports could increase several-fold during the balance of the century. 3 Such future potential must be considered however, in the light of three present realities: U.S. foreign trade is increasing; the ratio of exports to imports has recently decreased; and the portion of our foreign trade carried by United States flag vessels is decreasing rapidly." 4 How fast this increase in trade will occur and how much of it will travel in United States vessels, will depend considerably upon the policy of the Federal Government with respect to ocean transportation. Such policies will certainly recognize that foreign trade has an important impact on the national economy and that the cost of shipping is a significant factor in market competition. Transportation of foreign trade cargoes by U.S. flag carriers contributes to establishing and maintaining a more substantial "maritime presence." This latter consideration is intangible and difficult to evaluate. Moreover, the national defense role of our ports and our merchant marine is significant and undergoes continuing critical review in relation to changing strategic concepts. New concepts and configurations, with particular reference to performance characteristics of rapid loading and discharge and vessel speed underway, have military reserve utility added to their worth for commercial service. On economic grounds, international trade is increasingly competitive. Both suppliers (shippers) and markets (consignees) are ever more alert to opportunities for cost-savings, time-savings, and service advantages which may yield indirect savings or product preference. Marine science and technology can and should help in realizing all of these opportunities, particularly in achieving greater flexibility and adaptability in the transport system as a whole and ultimately in enhancing the competitive position of the United States in world trade. Trends toward specialized ocean transportation services are based on economies which depend heavily on technological innovation. Understanding the system and orienting marine science activities toward system improvements will become increasingly important. 3 Total water-borne U.S. foreign cargo trade almost trebled between 1950 and 1966; Source: Statistical Abstract of the United States. 'Ratio of exports to imports (in tonnage terms) decreased from 1.55 to 1.42 between 1950 and 1966; Source, ibid. The percentage of total U.S. water-born foreign cargo trade carried by U.S. flag vessels decreased from 39.3 to 7.3 percent between 1950 and 1966; Source: ibid. The Ocean Transportation System To determine where research and development may have greatest payoff, it is helpful to consider United States foreign trade cargo movement as a system of components including physical facilities, manpower, energy, institutional arrangements and policy. The complete transport system includes five links, of which the three middle ones make up the ocean transport system: -U.S. land carriers-and domestic water carriers-serving U.S. ports; -U.S. ports with their cargo-handling equipment, storage facilities, piers, and channels; -the ocean carriers, U.S. and foreign flag, is scheduled "liner" services and in specialized and "tramp" services; -the foreign ports; connecting transportation networks abroad. The characteristics of the components making up the ocean transportation system are substantially influenced by a number of supporting activities, including: -shipbuilding; -weather and mapping services; -navigational aids and nautical charting; -channel dredging; -search and rescue; -foreign freight forwarding; -flow and control of cargo containers. The ocean transportation system, as it serves U.S. foreign trade, is affected by a number of institutional controls or other influences, including notably: -Federal Maritime Commission regulations; -labor agreements and practices; -customs regulations and operations; -rate tariffs and rules of conferences (carrier associations); -rules of the road and other navigational controls; -other safety-at-sea provisions; -pollution abatement regulations; The ocean transport system, its technical components, and their operation and control are linked and influenced by a framework of such Federal actions as: -subsidies to support construction in U.S. shipyards of vessels for operation under U.S. flag on essential foreign trade routes, intended to make the capital cost of vessels to the U.S. operators roughly equal to those of foreign flag carriers building abroad; -subsidies to U.S. flag carriers contracting to operate on specified foreign trade routes, intended to equalize certain major operating |