[Congressional Record Volume 147, Number 54 (Thursday, April 26, 2001)]
[Extensions of Remarks]
[Page E651]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


            REAUTHORIZATION OF THE MARITIME SECURITY PROGRAM

                                 ______
                                 

                           HON. DUNCAN HUNTER

                             of california

                    in the house of representatives

                        Thursday, April 26, 2001

  Mr. HUNTER. Mr. Speaker, as Chairman of the Merchant Marine Panel of 
the House Armed Services Committee, I rise today to address a matter 
under the jurisdiction of my panel which is of the utmost importance to 
the national security and the maritime capability of the United States, 
namely the need to reauthorize the Maritime Security Program (MSP).
  The MSP program was established by the Maritime Security Act of 1996. 
The program was designed to maintain the continued presence of an 
active, privately-owned, U.S.-flag and U.S.-crewed merchant shipping 
fleet that would provide sustained sealift capability in time of war or 
national emergency. That Act phased out the operating differential 
subsidy program, provided reduced payments to vessel operators who 
agreed to make vessels and associated intermodal assets available to 
Department of Defense (DOD) upon request, and authorized $100 million 
annually for MSP program funding. Without the MSP program, U.S.-flag 
vessel owners would have been forced to shift their operations to 
foreign flags with foreign crews in order to remain internationally 
competitive. This would have been detrimental to our national security 
interests.
  The MSP has proved very successful. Today, 47 U.S.-flagged commercial 
vessels, crewed by U.S. citizens, participate in the MSP program. These 
vessels are engaged in the foreign commerce of the U.S. and are 
enrolled in DOD's Emergency Preparedness Program to ensure that such 
vessels and associated worldwide intermodal transportation and 
management assets are incorporated into DOD sealift plans and programs, 
and are immediately available to meet military sealift requirements. 
Without the MSP the cost to DOD would be substantial--approximately 
$800 million annually would be required by DOD to provide similar 
sealift and related system capacity on its own for the rapid and 
sustained deployment of military vehicles, ammunition and other 
equipment and material.
  Authorization for the MSP is for a ten-year period up through 
September 2005. To ensure the continued operation and viability of a 
maritime security fleet of privately-owned, militarily-useful U.S.-flag 
vessel operators, Congress needs to move forward with the 
reauthorization of the MSP. This would provide the industry with the 
timely assurance they need that the MSP program will continue beyond 
the year 2005.
  Additionally, I am concerned over rumors that U.S. citizenship 
requirements for this program could be modified. I strongly believe 
that reauthorization of the MSP program must ensure that current United 
States citizenship requirements continue to apply for operators of 
U.S.-flagged, U.S. crewed commercial vessels. The MSP program now 
requires that priority be given to MSP vessel operators that are owned 
and controlled by United States citizens (such operators are commonly 
known as ``Section 2 citizens'' under section 2 of the 1916 Shipping 
Act). Such U.S.-ownership and U.S.-control requirements are critical to 
the continued viability of the MSP program and must be preserved.
  I look forward to working with my colleagues on this vital effort to 
enhance the national security of the United States while ensuring that 
critically important U.S.-ownership standards are maintained.

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