[Congressional Record Volume 143, Number 125 (Thursday, September 18, 1997)]
[Extensions of Remarks]
[Page E1803]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                        A NEW MARITIME STRATEGY

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                     HON. RANDY ``DUKE'' CUNNINGHAM

                             of california

                    in the house of representatives

                      Thursday, September 18, 1997

  Mr. CUNNINGHAM. Mr. Speaker, in my role as an administrative 
cochairman of the bipartisan national security caucus, I served as the 
cohost of a recent maritime policy briefing. The group my colleagues 
and I assembled discussed a wide range of critical issues which have a 
significant impact on our national security and the future of our 
maritime industry.
  This dinner briefing was an outstanding success because of the 
insights and observations we received from several of my fellow 
cochairmen in the national security caucus. The group included Chairman 
Floyd Spence of the National Security Committee, Ike Skelton, the 
ranking Democrat on the Military Procurement Subcommittee and Steny 
Hoyer, the chairman of the Democratic Steering Committee. We were also 
joined by Tillie Fowler, the vice chairman of the Coast Guard and 
Maritime Transportation Subcommittee.
  Our guests of honor were Secretary of the Navy John Dalton and Gen. 
Charles Krulak, the commander of the Marine Corps. We were also joined 
by several key executives form the maritime industry and senior 
officials of leading trade associations and maritime organizations.
  The topics we reviewed included the Maritime Security Program [MSP], 
the Jones Act, the charter and build program, cargo preference, and 
acquisition reform. All of our participants were in agreement that the 
disappearance of U.S. shipping companies would have a serious impact on 
America's national security.
  During Operation Desert Storm, American shipping companies 
transported 95 percent of the sustainment cargo. It is definitely not 
clear how the Defense Department would replace crucial sealift capacity 
if, suddenly, no American container ship companies were available. 
Certainly, the cost of replacing this commercial capacity with new 
government-owned sealift vessels would be astronomical.
  The number of private U.S. shipyards has dropped by more than 50 
percent over the past 15 years. The U.S.-flag fleet is very productive 
today, but unfortunately, its capability to compete on the 
international stage has declined. The American fleet of self-propelled 
vessels has decreased steadily in size since 1950 to a current low of 
approximately 300 vessels.
  The available work force has also declined significantly and the 
modernization of the U.S. seaports is well behind their foreign 
competitors. These factors are raising concerns among my colleagues in 
the national security caucus about handicaps on our Nation's economy 
and our capability to promote trade and our national security 
interests.
  The participants were in agreement that the U.S. policies and 
programs are in sharp contrast with those of many leading maritime 
nations. These other nations have acted to preserve a commercial 
presence in shipping. They offer supportive tax and financing packages. 
And they invest heavily in the modernization of their shipyards and 
seaports. All of these inequities discourage private investment in key 
components of U.S. maritime industries. I believe it is in the best 
interests of all Americans to harness the leadership of government with 
the strength of the marketplace to level the international playing 
field so that U.S. industries can compete globally.
  The challenges we face were eloquently stated last year during the 
MSP debate by chairman Herb Bateman of the Merchant Marine Panel when 
he said, ``We are beyond the point of talking about viability, 
resurgence of even revitalization. We are now talking about the very 
survival of the American maritime industry. As horrible and as 
catastrophic as it may sound, if we do not develop and adopt a new 
strategy, the U.S. fleet may not be in existence a year from now.''
  I am very pleased to report that the efforts to develop, adopt, and 
implement a comprehensive and bipartisan national maritime strategy is 
receiving critical leadership from the nonprofit National Security 
Caucus Foundation. I know all of the caucus cochairmen are very 
grateful for the tremendous yeoman labor of the NSCF maritime team. 
This group includes Adm. Thomas Moorer USN (Ret.), the former chairman 
of the Joint Chiefs of Staff, Rear Adm. Robert Spiro, the former Under 
Secretary of the Army, and Gregg Hilton, the NSCF's Executive Director.
  They have been working in cooperation with the Navy and the Maritime 
Administration on several strategy conferences, and they have assembled 
an impressive list of retired flag officers who are emphasizing the 
arguments I have outlined above. The NSC Foundation's effort to develop 
a new strategy is essential to our national security and I will be 
providing further information to my colleagues about this program in 
the weeks ahead.
  Finally, I want to express my appreciation to several individuals who 
had a key role in organizing last night's policy discussion. They also 
provided us excellent advice and a wide variety of background 
information. The group which is responsible for the success of last 
night's event includes Jim Henry, the president of the Transportation 
Institute, Jim Patti, the president of MIRAID, Gloria Tosi, the 
executive director of the American Maritime Congress and Gordon 
Spencer, the legislative director for the American Maritime Officers.

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