[Federal Register Volume 63, Number 199 (Thursday, October 15, 1998)]
[Notices]
[Pages 55423-55424]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-27731]


-----------------------------------------------------------------------

DEPARTMENT OF TRANSPORTATION

Maritime Administration
[Docket MSP-009/Docket S-948]


Chrysler Corporation; Notice Application for Approvals of 
Restructured Beneficial Ownership of Vessels Operating Under 
Construction-Differential Subsidy, Operating-Differential Subsidy, and 
the Maritime Security Program, as a Result of the Business Combination 
Between Chrysler Corporation and Daimler-Benz, A.G.

    Chrysler Corporation (Chrysler), by letter dated September 29, 
1998, applied to the Maritime Administration (MARAD) for all approval, 
findings, and determinations necessary in order to restructure its 
beneficial ownership rights, as owner-trustor, in certain vessels as a 
result of its business combination with Daimler-Benz, A.G. (Daimler-
Benz). After the business combination, Chrysler will become 
DaimlerChrysler, A.G. (DaimlerChrysler), a foreign corporation. 
Chrysler Financial Corporation (CFC) and Chrysler Capital Corporation 
(CCC), both wholly-owned subsidiaries of Chrysler, are the beneficial 
owners of the following six vessels, each of which is documented in the 
name of a banking institution owner trustee:
    1. SEA-LAND FREEDOM-Marshall Islands Flag registry;
    2. SEA-LAND EXPRESS-U.S.-flag registry;
    3. SEA-LAND PACIFIC-U.S.-flag registry, built with Construction-
Differential Subsidy (CDS);
    4. SEA-LAND ENTERPRISE-U.S.-flag registry, built with CDS
    5. SEA-LAND ENDURANCE-U.S.-flag registry, enrolled in the Maritime 
Security Program (MSP); and
    6. TYSON LYKES-U.S.-flag registry, operates under Operating-
Differential Subsidy (ODS) until December 31, 1998, thereafter under 
the MSP program.
    Subsequent to the business combination, CFC and CCC will be merged 
into Chrysler Financial Company, L.L.C. (Chrysler Financial), a wholly 
owned indirect subsidiary of DaimlerChrysler. Chrysler Financial will 
therefore will be a foreign owner participant in the above referenced 
vessels.
    The approval, findings and determinations requested include those 
that may be deemed necessary under statute, regulation, or contract in 
order:
    1. For Chrysler to amend its trust agreement covering the SEA-LAND 
EXPRESS to qualify Chrysler Financial as the new Owner Participant 
under

[[Page 55424]]

Section 1136 of the Coast Guard Authorization Act of 1996;
    2. For Chrysler to amend its trust agreement covering the SEA-LAND 
ENDURANCE to qualify Chrysler Financial as the new Owner Participant 
under Section 1136 of the Coast Guard Authorization Act of 1996 for the 
MSP program;
    3. For Chrysler to amend its trust agreements covering the SEA-LAND 
PACIFIC and SEA-LAND ENTERPRISE to qualify Chrysler Financial as the 
new Owner Participant under Section 1113 of the Coast Guard 
Authorization Act of 1996 for CDS; and
    4. For Chrysler to amend its trust agreement covering the TYSON 
LYKES to qualify Chrysler Financial as the new Owner Participant under 
Section 1136 of the Coast Guard Authorization Act of 1996, for the 
remainder of the ODS period and anticipating the vessel's entry into 
the MSP program upon expiration of the ODS contract in December 1998.
    Chrysler has stated that they intend to leave the owner trusts in 
place but merely amend the trust agreements with certain limitations 
whereby the U.S. citizen owner trustee is given absolute and complete 
discretion in connection with matters involving the ownership and 
operation of the vessels that may adversely affect the interests of the 
United States.
    This notice, which is published as a matter of discretion, invites 
comments on maritime issues that may be raised by Chrysler's proposal 
relating to the transfer of beneficial ownership of the referenced 
vessels under ODS, CDS, and MSP contracts. This application may be 
inspected in the Office of the Secretary, Maritime Administration. Any 
person, firm, or corporation having any interest in such request and 
desiring to submit comments concerning the application must file 
written comments in triplicate with the Secretary , Maritime 
Administration, Room 7210, Nassif Building, 400 Seventh Street, S.W., 
Washington, D.C. 20590. Comments must be received no later than 5:00 
p.m. on October 20, 1998. The Maritime Subsidy Board/Maritime 
Administrator may consider any comments submitted and take such action 
with respect thereto as may be deemed appropriate.

    Dated: October 9, 1998.

    By Order of the Maritime Administrator.
Michael J. McMorrow,
Assistant Secretary, Maritime Administration.
[FR Doc. 98-27731 Filed 10-14-98; 8:45 am]
BILLING CODE 4910-81-P