[Congressional Record Volume 141, Number 105 (Monday, June 26, 1995)]
[Senate]
[Page S9104]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




   INCREASING PARTICIPATION OF UNITED STATES-FLAG VESSELS IN UNITED 
                           STATES-JAPAN TRADE

 Mr. COHEN. Mr. President, during the ongoing debate about 
autos and autoparts, much has been said about how our domestic 
companies have been denied a chance to compete in Japan on the basis of 
quality and price. I rise today to describe to my colleagues a similar 
problem faced by United States companies seeking to enter the trade 
carrying automobiles between Japan and the United States under the 
United States flag.
  At present, only three United States-flag vessels operate in the 
United States-Japan trade. I understand the Department of Defense and 
our trade negotiators are aware of proposals to increase United States-
flag participation in this trade, including a significant one to 
construct a fleet of 10 refrigerated car carriers to carry vehicles 
from Japan to the United States and produce and other refrigerated 
products, as well as automobiles, to Japan at commercially competitive 
rates.
  I am particularly interested in this type of proposal because it 
would lead to the construction of new ships in U.S. shipyards. As my 
colleagues no doubt appreciate, we must do something to help our 
shipyards supplement their military work with commercial orders. The 
president of the American Shipbuilding Association, for example, 
recently pointed out in a letter to Members of Congress that 
``[c]onstruction of military sealift ships is critical to the Nation's 
defense, to sustaining the Navy's shipbuilding base, and to our 
industry's efforts to supplement declining orders with commercial 
work.'' By encouraging the entry of new U.S.-built vessels equipped 
with national defense features in this trade, Congress and the 
administration can help preserve rapidly dwindling seafaring manpower 
and skills, save or create a significant number of jobs in the 
shipbuilding and supplier industrial base, and assist U.S. shipyards in 
reentering the commercial shipbuilding market.
  At my request, the Department of Defense recently completed a study 
of the costs and benefits of an active Ready Reserve Force Program 
employing privately owned commercial ships equipped with national 
defense features as an alternative to the currently inactive Ready 
Reserve Force fleet. The report demonstrates that an active Ready 
Reserve Force Program, comprised of newly U.S.-built commercial vehicle 
carriers equipped with national defense features, would have important 
benefits and would be substantially more cost effective than acquiring 
and converting existing foreign-built ships. The report noted, however, 
that securing entry into the commercial market will be a critical 
element for the success of the program.
  In my view, entry of these vessels into the United States-Japan trade 
would enhance our national security. Equipped with national defense 
features, such as hoistable strengthened decks, these vessels would be 
well adapted for carrying both heavy equipment and ammunition. 
Moreover, a fleet of this size in normal commercial operation in the 
United States-Japan auto trade would ensure vessels would be available 
for loading at designated ports of embarkation within the time demands 
for the Ready Reserve Force contemplated in an emergency.
  I therefore urge the Department of Defense and our trade negotiators 
in ongoing discussions and negotiations to emphasize to the Government 
of Japan the importance of augmenting American participation in this 
trade as a means of advancing the mutual defense and security interests 
of our two nations.

                          ____________________