[Congressional Record Volume 143, Number 100 (Tuesday, July 15, 1997)]
[Senate]
[Page S7485]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




     DEPARTMENT OF DEFENSE APPROPRIATION BILL FOR FISCAL YEAR 1998

  Mr. McCAIN. Mr. President, during the debate on S. 1005, the defense 
appropriations bill this morning, I expressed several concerns about 
section 8097 of that bill. While I appreciate Senator Inouye amending 
section 8097 to prohibit the use of Federal funds for the construction 
of the new cruise ships that would result from this pilot project. I 
still have serious concerns about the provision that would grant a 25-
year monopoly in the Hawaii cruise ship market for the only cruise ship 
operator in Hawaii.
  This legislative restriction on commerce is unprecedented and must 
not be granted. The existing U.S.-flag cruise ship operator in Hawaii 
is already protected from foreign competition by U.S. coastwise trade 
laws. That company has operated without statutory protection from 
domestic competition for more than a decade. There is no compelling 
reason to provide such protection now. I'm sure that many businesses 
would like to reduce their cost of capital to replace their 
infrastructure by convincing their lenders that their company is 
protected from any competition in its market. However, the Congress has 
not provided such protection in the past and we should not do so now.
  I would also note that the provision provides a special waiver to the 
coastwise trade laws, which is somewhat extraordinary and should be 
examined for its fairness and appropriateness. While I am not a member 
of the Appropriations Committee I intend to vigorously pursue the 
modification of section 8097 to eliminate this egregious provision 
during the conference on S. 1005.

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