[Congressional Record Volume 142, Number 49 (Wednesday, April 17, 1996)]
[Extensions of Remarks]
[Pages E557-E558]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




   AMERICA'S CABOTAGE LAWS ARE VITAL TO THE SUCCESS OF OUR U.S. FLEET

                                 ______


                     HON. RANDY ``DUKE'' CUNNINGHAM

                             of california

                    in the house of representatives

                       Wednesday, April 17, 1996

  Mr. CUNNINGHAM. Mr. Speaker, earlier this week, all 14 members of the 
National Security Committee's Special Oversight Panel on the Merchant 
Marine circulated a ``Dear Colleague'' letter expressing our strongest 
support for America's cabotage laws, including the Jones Act, and our 
continuing opposition to changes in these laws. Effective at the 
beginning of this Congress, the National Security Committee became the 
committee of primary jurisdiction over cabotage matters such as the 
Jones Act. In addition, a majority of the members of the Coast Guard 
and Maritime Transportation Subcommittee also signed the ``Dear 
Colleague.''
  In the letter, we noted the national security, economic, 
environmental and safety benefits of the cabotage laws. I have a 
particular interest in the national security importance of the U.S. 
fleet. Recently, 61 retired Navy admirals, including five former Chiefs 
of Naval Operations, penned an open letter to Congress calling the 
commercial maritime infrastructure of the United States--the domestic 
vessel operators, shipyards, seafarers and others operating under the 
cabotage laws--the true source of our maritime power. This is an 
extraordinary endorsement from the people who know best.
  This ``Dear Colleague'' sends an unmistakable message to those who 
have spent the last year attempting to tear down the Jones Act and 
allow foreign ships into our domestic commerce. The Merchant Marine 
Panel's commitment to America's cabotage laws is unanimous. Although 
those 14 members--Democrats and Republicans, liberals and 
conservatives--disagree on many issues, there is an absolute agreements 
on the importance of cabotage. We will continue to oppose any changes 
to these important laws.
  A copy of the ``Dear Colleague'' letter is attached. Signers of the 
letter include Representative Herb Bateman, chairman of the Merchant 
Marine Panel; Representative Gene Taylor, ranking member of the panel; 
Representative Duncan Hunter, chairman of the Subcommittee on Military 
Readiness; Representative Ron Dellums, ranking member of the full 
National Security Committee; Representative Bob Clement, ranking member 
of the Coast Guard Subcommittee; Representative Randy ``Duke'' 
Cunningham; Representative William J. Jefferson; Representative Curt 
Weldon; Representative Jim Longley; Representative Bob Borski; 
Representative Joe Scarborough; Representative Neil Abercrombie; 
Representative Tillie K. Fowler; Representative Jim Saxton; 
Representative Patrick Kennedy; Representative Owen Pickett; 
Representative Don Young; Representative Jane Harman; and 
Representative Susan Molinari.

           Cabotage Laws Provide Important National Benefits

       Dear Colleague: Congress has always supported the principle 
     that vessels used to transport cargo and passengers between 
     U.S. ports should be built in the United States, crewed by 
     American citizens, and owned by American companies. The body 
     of law affirming this principle is known as ``cabotage'' and 
     is sometimes generically referred to as the Jones Act. (Other 
     countries throughout the world, including major 
     industrialized nations and key U.S. trading partners, have 
     similar cabotage laws.) These laws provide critical national 
     security, environmental, safety and economic benefits and 
     deserve our support.
       The national security benefit of the domestic fleet is 
     substantial. In times of international crisis, the U.S. 
     domestic fleet keeps goods flowing reliably and securely 
     between U.S. ports, supporting military action overseas. In 
     times of peace the cabotage laws help assure a vibrant, 
     competitive marine infrastructure so critical to our nation's 
     security. A recent letter to Congress from 61 retired Navy 
     admirals, including five former Chiefs of Naval Operations, 
     stressed the importance of the domestic fleet:
       American maritime power is the sum of our national maritime 
     infrastructure . . . Carrier battle groups and modern 
     containerships are at the forefront, militarily and 
     economically. However, it is the shipyards and their skilled 
     artisans, the pool of experienced and trained seafarers, 
     marine suppliers large and small, vessel insurers and 
     financiers, and the federal, state and private maritime 
     training establishments that constitute the true source of 
     our total power.
       Of particular significance, the U.S. fleet provides vessels 
     and crews to meet U.S. security needs without requiring the 
     Defense Department--and hence the taxpayer--to bear the 
     substantial costs of building, manning, and maintaining a 
     government fleet and logistics capacity already provided by 
     the private sector.
       Repeal of the cabotage laws would result in a takeover of 
     our domestic waterborne transportation system by foreign 
     companies. Those foreign companies could enjoy a significant 
     competitive advantage by: 1) operating subsidized vessels 
     (U.S. domestic fleet vessels are not subsidized); and 2) 
     operating exempt from the American tax system, labor laws, 
     safety statutes, environmental requirements and a host of 
     other laws. Our maritime industry--as well as railroads, 
     truckers, and others engaged in the competitive American 
     transportation business--should not be asked to compete 
     here under a system that institutionalizes a capital and 
     operating cost advantage to foreign operators. The 
     American government must not discriminate against American 
     business in this fashion.
       The cabotage laws promote the highest standards of marine 
     safety and environmental protection in U.S. ports and 
     waterways. These laws ensure that vessels moving between U.S. 
     ports comply with the full range of applicable environmental 
     and safety laws, all of which are among the world's highest. 
     The U.S. Coast Guard's ongoing ``Port State Control'' 
     initiative, which aims to crack down on substandard foreign-
     flag vessels calling at U.S. ports, underscores the important 
     contribution made by the cabotage laws in preserving the 
     health of our resources-rich waters and coastlines.
       Finally, because of our cabotage laws, the economic benefit 
     of the U.S. domestic fleet is substantial. Our fleet pumps 
     some $15 billion into the nation's economy annually, 
     including $4 billion in direct wages to the 124,000 American 
     workers employed in the operation, construction, and repair 
     of Jones Act vessels. Jones Act wages alone generate $1.4 
     billion in Federal and state tax revenues. Because the 
     domestic fleet receives no operating or construction 
     subsidies from the U.S. government, these benefits accrue to 
     the nation at no expense to the federal government or to the 
     U.S. taxpayer.

[[Page E558]]

       American cabotage laws greatly benefit the U.S. national 
     security, economy, and natural environment and deserve our 
     committed and continuing support.

                          ____________________