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82–360 PDF 2003

S. HRG. 106–1118

NOMINATION OF DELMOND WON TO BE A

FEDERAL MARITIME COMMISSIONER

HEARING

BEFORE THE

COMMITTEE ON COMMERCE, 

SCIENCE, AND TRANSPORTATION 

UNITED STATES SENATE

ONE HUNDRED SIXTH CONGRESS

SECOND SESSION

JUNE 15, 2000

Printed for the use of the Committee on Commerce, Science, and Transportation

(

(II)

SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

ONE HUNDRED SIXTH CONGRESS

SECOND SESSION

JOHN MCCAIN, Arizona, Chairman 

TED STEVENS, Alaska 

CONRAD BURNS, Montana 

SLADE GORTON, Washington 

TRENT LOTT, Mississippi 

KAY BAILEY HUTCHISON, Texas 

OLYMPIA J. SNOWE, Maine 

JOHN ASHCROFT, Missouri 

BILL FRIST, Tennessee 

SPENCER ABRAHAM, Michigan 

SAM BROWNBACK, Kansas 

ERNEST F. HOLLINGS, South Carolina 

DANIEL K. INOUYE, Hawaii 

JOHN D. ROCKEFELLER IV, West Virginia 

JOHN F. KERRY, Massachusetts 

JOHN B. BREAUX, Louisiana 

RICHARD H. BRYAN, Nevada 

BYRON L. DORGAN, North Dakota 

RON WYDEN, Oregon 

MAX CLELAND, Georgia 

MARK BUSE, Republican Staff Director 

MARTHA P. ALLBRIGHT, Republican General Counsel 

KEVIN D. KAYES, Democratic Staff Director 

MOSES BOYD, Democratic Chief Counsel 

(III)

C O N T E N T S 

Page 

Hearing held on June 15, 2000 ............................................................................... 1

Statement of Senator Burns ................................................................................... 9

Statement of Senator Breaux ................................................................................. 9

Statement of Senator Hollings ............................................................................... 9

Statement of Senator Hutchison ............................................................................ 9

Statement of Senator Inouye .................................................................................. 2

Prepared statement .......................................................................................... 2

Statement of Senator Gorton .................................................................................. 9

Statement of Senator McCain ................................................................................. 1

WITNESS

Won, Hon. Delmond J. H., Commissioner, Federal Maritime Commission ........ 2

Prepared Statement ......................................................................................... 3

Biographical Information ................................................................................. 4

(1)

NOMINATION OF DELMOND WON TO BE A 

FEDERAL MARITIME COMMISSIONER 

THURSDAY, JUNE 15, 2000

U.S. SENATE, 

COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION, 

Washington, DC. 

The Committee met, pursuant to notice, at 9:30 a.m. in room SR–

253, Russell Senate Office Building, Hon. John McCain, Chairman 

of the Committee, presiding. 

Staff members assigned to this hearing: Rob Freeman, Republican Professional Staff; Virginia Pounds, Republican Professional 

Staff; Carl Bentzel, Democratic Counsel; and Jonathan Oakman, 

Democratic Staff Assistant. 

OPENING STATEMENT OF HON. JOHN MCCAIN,

U.S. SENATOR FROM ARIZONA 

The CHAIRMAN. Good morning. The Commerce Committee meets 

today to examine the qualifications of Delmond Won, who has been 

nominated to serve a second term as a Commissioner of the Federal Maritime Commission (FMC). 

This Committee takes its advise and consent role seriously. I 

know Mr. Won has responded in detail to the Committee’s request 

for biographical and financial data. Mr. Delmond Jack P. Won of 

Hawaii has served as commissioner since being appointed to the 

FMC in 1994. 

Prior to his appointment, Mr. Won was self-employed as a private consultant. He has also served as a member of the Hawaii 

State Land Use Commission and as Vice President and Treasurer 

of Hawaii Pacific Industries, Incorporated. Mr. Won graduated 

from the University of Hawaii School of Engineering and the University of Hawaii Graduate School of Business. 

Mr. Won, I welcome you. I would like to take this opportunity to 

thank you for being here. I know your renomination is a great 

honor and that your family is very proud. If you would like to introduce your family, you may identify them here today. 

Mr. WON. My family was not able to be here, Mr. Chairman. 

The CHAIRMAN. Then I will not introduce them. 

[Laughter.] 

The CHAIRMAN. I know that a special friend of yours would like 

to say a few words. Senator Inouye.

2

STATEMENT OF HON. DANIEL K. INOUYE,

U.S. SENATOR FROM HAWAII 

Senator INOUYE. Thank you very much, Mr. Chairman. 

Mr. Chairman, I wholeheartedly support the nomination of Commissioner Won to a second term on the FMC. I am confident that 

Commissioner Won will continue to fulfill his duties with distinction and dedication. 

Mr. Chairman, I ask that the full statement of my statement in 

support be made a part of the record. 

[The prepared statement of Senator Inouye follows:]

PREPARED STATEMENT OF HON. DANIEL K. INOUYE, U.S. SENATOR FROM HAWAII

I am pleased and honored to introduce Federal Maritime Commissioner Delmond 

Won, the President’s nominee for a second term as a Federal Maritime Commissioner. He has served as a Commissioner since August 18, 1994 and was nominated 

for a second term in April of last year. Commissioner Won’s experience at the Federal Maritime Commission (FMC) and his private sector background make him wellsuited for this position. 

Commissioner Won’s extensive experience in financial and marketing analysis in 

evaluation of business opportunities and capital investment alternatives that have 

benefitted him in the fulfillment of his duties as Federal Maritime Commissioner. 

During his nearly six years on the FMC, Commissioner Won has worked diligently 

to ensure fair, equitable, and open seaborne trade between the U.S. and other nations. 

If given the privilege to continue to serve our nation as a member of the Federal 

Maritime Commission, I am confident Commissioner Won would continue to fulfill 

his duties with dedication and distinction. I wholeheartedly support the nomination 

of Commissioner Delmond Won to a second term on the FMC. I ask my colleagues 

for their favorable consideration of his appointment to the FMC.

The CHAIRMAN. Thank you very much. Mr. Won, please proceed. 

STATEMENT OF HON. DELMOND J. H. WON, COMMISSIONER, 

FEDERAL MARITIME COMMISSION 

Mr. WON. Thank you. Mr. Chairman, distinguished members of 

the Committee, I am honored to be here today to be considered for 

another term of service on the Federal Maritime Commission. At 

the time of my first appointment I felt that my background of having served both as part of a regulated company and as a State regulator would be beneficial in carrying out the duties of this position. 

After having served in my position for the past almost 6 years 

now, I have learned that I was only partially correct in my assumption. While my experiences in Hawaii were most helpful in understanding the process of regulation, what I was not prepared for was 

the much larger number of variables that need to be considered 

and the more global nature of the impact of some of our decisions. 

I suppose I should not have been surprised, because the global 

impact of some of our decisions only reflect the increase in 

globalization of not only the world’s economy but also of the world 

society. This growing interdependence of countries only increases 

the importance of the role of our maritime industry, as I believe 

that ocean transportation of goods is and will continue to be for the 

foreseeable future the most fundamental element of our transportation infrastructure serving our global economy.

3

Within the context of this economy, the Federal Maritime Commission’s role as defined and recently affirmed by Congress is: 

1) to establish a nondiscriminatory regulatory process for the 

common carriage of goods by water in the foreign commerce of the 

United States with a minimum of Government intervention and 

regulatory cost; 

2) to provide an efficient and economic transportation system in 

the ocean commerce of the United States that is insofar as possible 

in harmony with and responsive to international shipping policies; 

3) to encourage the development of an economically sound and efficient United States flag liner fleet capable of meeting national security needs; and 

4) to promote the growth and development of United States exports through competitive and efficient ocean transportation and by 

placing a greater reliance on the marketplace. 

In having had the opportunity to carry out these responsibilities 

since my first appointment in 1994, I can honestly say that my confidence in my abilities has grown as well as my deep appreciation 

for the difficulties that oftentimes arise in trying to strike a balance of fairness. 

I realize that regulations can and must change to keep up with 

the changing marketplace, but it is my belief that the ultimate purpose of regulation is to impart a sense of fairness to that marketplace. That was my conviction and commitment in 1994, and it remains unchanged to me as you consider me for confirmation. 

I would like to take this time also to thank those in the industry 

who have supported me in the years that I have served thus far, 

and also my colleagues, three of whom are here today, Commissioners Merck and Moran, and Chairman Creel. 

Thank you. 

[The prepared statement and biographical information of Mr. 

Won follow:]

PREPARED STATEMENT OF HON. DELMOND J. H. WON, COMMISSIONER,

FEDERAL MARITIME COMMISSION

Mr. Chairman and distinguished Members of the Committee, I am honored to be 

here today to be considered for another term of service on the Federal Maritime 

Commission. 

At the time of my first appointment, I felt that my background of having served 

both as part of a regulated company and as a state regulator, would be beneficial 

in carrying out the duties of this position. 

After having served in my position for the past almost six years now, I learned 

that I was only partially correct in my assumption. 

While my experiences in Hawaii were most helpful in understanding the process 

of regulation, what I was not prepared for was the much larger number of variables 

that need to be considered, and the more global nature of the impact of some of our 

decisions. 

I suppose that I should not have been surprised because the global impact of some 

of our decisions only reflect the increasing globalization of not only the world’s economy, but also of the world’s society. This growing interdependence of countries only 

increases the importance of the role of our maritime industry as I believe that ocean 

transportation of goods is and will continue to be for the foreseeable future, the 

most fundamental element of our transportation infrastructure serving our growing, 

global economy.

4

Within the context of the growing, global economy, the Federal Maritime Commission’s role as defined and recently reaffirmed by Congress is:

1) to establish a nondiscriminatory regulatory process for the common carriage 

of goods by water in the foreign commerce of the United States with a minimum of government intervention and regulatory costs;

2) to provide an efficient and economic transportation system in the ocean commerce of the United States that is, insofar as possible, in harmony with, and 

responsive to, international shipping practices;

3) to encourage the development of an economically sound and efficient United 

States-flag liner fleet capable of meeting national security needs; and

4) to promote the growth and development of United States exports through 

competitive and efficient ocean transportation and by playing a greater reliance on the marketplace.

In having had the opportunity to carry out these responsibilities since my first 

appointment in 1994, I can honestly say that my confidence in my abilities has 

grown, as well as my deep appreciation for the difficulties that oftentimes arise in 

trying to strike a balance of fairness. 

I realize that regulations can and must change to keep up with the changing marketplace, but it is my belief that the ultimate purpose of regulation is to impart a 

sense of fairness to the marketplace. 

That was my conviction and commitment in 1994, and it remains unchanged 

today as you consider me for confirmation. 

A. BIOGRAPHICAL INFORMATION

1. Name: Delmond J.H. Won. 

2. Position to which nominated: Commissioner. 

3. Date of nomination: April 12, 1999. 

4. Address: Home: 3 Oak Brook Court, Stafford, VA 22554. Office: Federal Maritime Commission, 800 North Capitol St., N.W., Washington, D.C. 20573. 

5. Date and place of birth: 11/18/53, Honolulu, Hawaii. 

6. Marital status: Married to the former Deanna N. Maruyama. 

7. Names and ages of children: Samantha G. L. Won, 10; Trevor W. K. Won, 6. 

8. Education: University of Hawaii Graduate School of Business, 1975–77, MBA; 

University of Hawaii School of Engineering, 1972–75, BS; Columbia University 

School of Applied Science, 1971–72; and Iolani School, 1965–71, High School Diploma (college preparatory). 

9. Employment record: 1994–present, Commissioner, Federal Maritime Commission; July 1990–1994, member, Hawaii State Land Use Commission; September 1, 

1993–1994, self-employed private consultant (consulting work clients include Young 

Brothers, Ltd., and Frederic R. Harris, Inc.); September 21, 1990–August 23, 1993, 

vice president and treasurer, Hawaii Pacific Industries, Inc.; February 1, 1987–September 15, 1990, Director, Planning and Regulatory Affairs, Hawaiian Tug and 

Barge Corp./Young Brothers, Ltd.; October 1, 1985–January 31, 1987, Manager, 

Government Affairs, Young Brothers, Ltd.; May 1, 1985–September 30, 1985, Regulatory Affairs Administrator, Hawaiian Electric Co.; April 1, 1984–April 30, 1985, 

Manager, Customer Service and Planning, Young Brothers, Ltd.; September 1, 

1979–March 31, 1984, Manager, Planning and Analysis, Young Brothers, Ltd.; and 

February 6, 1977–August 31, 1979, Marketing Assistant and Analyst, Dillingham 

Maritime, Pacific Division. 

10. Government experience: Member, Hawaii State Land Use Commission (July 

1, 1990–June 30, 1994). 

11. Business relationships: Presently a co-owner of residential property in Hawaii 

which is being rented. Also a part owner of Q Corp, an inactive corporation registered in Hawaii. 

12. Memberships: Am currently not a member of any professional, fraternal, 

scholarly, civic, business, charitable or any other organizations. 

13. Political affiliations and activities: (a) Have not held any office with a political 

party nor have I held any public office for which I had been a candidate. (b) I am 

currently a member of the Democratic Party, but have not held any office (c) $1,000 

contribution to the Democratic National Committee during 1996. $1,000 contribution to Gore 2000, Inc. 

14. Honors and awards: None. 

15. Published writings: None. 

5

* The information referred to has been retained in the Committee files. 

16. Speeches: See attached copies of all speeches given during first term.* 

17. Selection: (a) I believe that I have been selected for reappointment to the Federal Maritime Commission because I have demonstrated that I am capable of understanding the relevant issues as well as exercising sound judgment in deciding matters that come before the agency. (b) I believe that my experiences with both a regulated common carrier and with a regulatory agency while in Hawaii has given me 

a somewhat unique perspective of what regulation means to the public interest. 

While my understanding of regulation was developed while in Hawaii, my past four 

years with the Federal Maritime Commission have broadened my understanding to 

include the international aspects of the maritime industry. 

B. FUTURE EMPLOYMENT RELATIONSHIPS

1. Will you sever all connections with your present employers, business firms, 

business associations or business organizations if you are confirmed by the Senate? 

All such relationships were severed at the time of my initial appointment to the 

Federal Maritime Commission. 

2. Do you have any plans, commitments or agreements to pursue outside employment, with or without compensation, during your service with the government? If 

so, explain. I have no such plans, commitments or agreements. 

3. Do you have any plans, commitments or agreements after completing government service to resume employment, affiliation or practice with your previous employer, business firm, association or organization? I have no such plans, commitments or agreements. 

4. Has anybody made a commitment to employ your services in any capacity after 

you leave government service? No. 

5. If confirmed, do you expect to serve out your fill term or until the next Presidential election, whichever is applicable? Yes. 

C. POTENTIAL CONFLICTS OF INTEREST

1. Describe all financial arrangements, deferred compensation agreements, and 

other continuing dealings with business associates, clients or customers. None. 

2. Indicate any investments, obligations, liabilities, or other relationships which 

could involve potential conflicts of interest in the position to which you have been 

nominated. None. 

3. Describe any business relationship, dealing, or financial transaction which you 

have had during the last 10 years, whether for yourself, on behalf of a client, or 

acting as an agent, that could in any way constitute or result in a possible conflict 

of interest in the position to which you have been nominated. None. 

4. Describe any activity during the past 10 years in which you have engaged for 

the purpose of directly or indirectly influencing the passage, defeat or modification 

of any legislation or affecting the administration and execution of law or public policy. None. 

5. Explain how you will resolve any potential conflict of interest, including any 

that may be disclosed by your responses to the above items. (Please provide a copy 

of any trust or other agreements.) Should any potential conflict of interest present 

itself in any matter that comes before the Federal Maritime Commission, I would 

disclose the potential conflict and either recuse myself or let the parties to the proceeding decide whether or not recusal is necessary, whichever is appropriate. 

6. Do you agree to have written opinions provided to the Committee by the designated agency ethics officer of the agency to which you are nominated and by the 

Office of Government Ethics concerning potential conflicts of interest or any legal 

impediments to your serving in this position? Yes. 

D. LEGAL MATTERS

1. Have you ever been disciplined or cited for a breach of ethics for unprofessional 

conduct by, or been the subject of a compliant to any court, administrative agency, 

professional association, disciplinary committee, or other professional group? If so, 

provide details. No. 

2. Have you ever been investigated, arrested, charged or held by any Federal, 

State, or other law enforcement authority for violation of any Federal, State, county, 

or municipal law, regulation or ordinance, other than a minor traffic offense? If so, 

provide details. No. 

3. Have you or any business of which you are or were an officer ever been involved as a party in interest in an administrative agency proceeding or civil litigaVerDate Apr 24 2002 14:43 Jan 14, 2003 Jkt 082360 PO 00000 Frm 00009 Fmt 6633 Sfmt 6621 S:\WPSHR\GPO\DOCS\82360.TXT SCOM1 PsN: CAROLT
6

tion? If so, provide details. As an officer of Young Brothers, Limited during the period 1987 to 1990, I regularly represented the company during proceedings before 

the Hawaii Public Utilities Commission. The last major case I presented on behalf 

of the company before the Hawaii Public Utilities Commission dealt with the definitional and jurisdictional differences between interstate and intrastate commerce. I 

also represented the company in a proceeding of the U.S. Maritime Administration 

regarding the application of American President Lines to serve Hawaii. The scope 

of my testimony involved the company’s ability to transship the cargo of American 

President Lines to the various Hawaiian islands. Finally, while employed by Hawaii 

Pacific Industries, Inc. I was involved in an arbitration regarding the performance 

of the contractor relative to a construction contract. 

4. Have you ever been convicted (including pleas of guilty or nolo contendere) of 

any criminal violation other than a minor traffic offense? No. 

5. Please advise the Committee of any additional information, favorable or unfavorable, which you feel should be considered in connection with your nomination. 

None. 

E. RELATIONSHIP WITH COMMITTEE

1. Will you ensure that your department/agency complies with deadlines set by 

congressional committees for information? Yes, to the extent my position allows me 

to. 

2. Will you ensure that your department/agency does whatever it can to protect 

congressional witnesses and whistle blowers from reprisal for their testimony and 

disclosures? Yes, to the extent my position allows me to. 

3. Will you cooperate in providing the committee with requested witnesses, to include technical experts and career employees with firsthand knowledge of matters 

of interest to the committee? Yes, to the extent my position allows me to. 

4. Are you willing to appear and testify before any duly constituted committee of 

the Congress on such occasions as you may be reasonably requested to do so? Yes. 

F. GENERAL QUALIFICATIONS AND VIEWS

1. Please describe how your previous professional experience and education qualifies you for the position for which you have been nominated. Having worked for a 

company that was regulated by the Hawaii Public Utilities Commission allowed me 

to learn how a private enterprise is impacted by various regulations. Having served 

as a member of the Hawaii Land Use Commission allowed me to become much more 

sensitive to the public interest standard that we were charged with protecting. Between these two experiences, I believe that I have a unique background of understanding what it is to be both regulated and a regulator. Given this background, 

I feel that I am better suited than most to make balanced decisions not only on the 

merits of specific regulations, but also in the administration of the regulations that 

are in place. Additionally, my past four years on the Federal Maritime Commission 

has given me more understanding of how international issues and considerations fit 

into the regulatory scheme. 

2. What skills do you believe you may be lacking which may be necessary to successfully carry out this position? What steps can be taken to obtain those skills? 

Having held the position for the last four years, I feel that I am well equipped to 

continue carrying out the responsibilities of the agency. 

3. Why do you wish to serve in the position for which you have been nominated? 

I have for a long time, and continue to believe that public service is an honorable 

and rewarding thing to do. That belief, combined with my private sector experiences 

in the maritime industry, makes me feel like I have something meaningful to contribute to the position. 

4. What goals have you established for your first two years in this position, if confirmed? Since my situation is one of reappointment, I would aim to contribute as 

much as I can to resolving the major issues presently before us, such as the matter 

of discriminatory port practices in Japan, possible discriminatory business practices 

in China, possible unlawful practices by carriers in the Trans-Pacific trades, and implementation of the Ocean Shipping Reform Act. 

5. Please discuss your philosophical views on the role of government. Include a 

discussion of when you believe the government should involve itself in the private 

sector, when should society’s problems be left to the private sector, and what standards should be used to determine when a government program is no longer necessary. While this is an extremely complex question to deal with, I will state generally that government’s primary role is to insure equal opportunity to all of our 

country’s citizens to what society happens to define as basic, essential rights. Of 

course, the difficulty here is that our definition of basic, essential rights can and 

7

will differ with time. Fundamentally, Government should decide whether or not to 

get involved in a matter based on whether or not it perceives that any of these 

basic, essential rights are being unfairly denied to any particular individual or class 

of individuals. 

It would be extremely difficult for me to get more detailed than this because (I 

recognize that there will be many differences in opinion as to whether something 

would be defined as a right or a privilege. 

6. In your own words, please describe the agency’s current missions, major programs, and major operational objectives. In its simplest terms, the agency’s mission 

is to insure a level playing field for all participants in the U.S./international maritime industry. I believe that the major programs for the agency will be in the policing over discriminatory practices on the part of foreign governments and gaining a 

solid understanding of the foreign governments and gaining a solid understanding 

of the economic impacts of industry trends to prevent market power abuse. Our economic impacts of industry trends to prevent market power abuse. Our major operational objectives must be to review and revise our rules and regulations to capture 

the true intent of the recently passed Ocean Shipping Reform Act. 

7. In reference to question number six, what forces are likely to result in changes 

to the mission of this agency over the coming five years. As the economy becomes 

more and more global, and as countries become more and more interdependent, we 

as a country must attempt to come to some kind of agreement as to the kind of role 

we want ocean transportation to play. How important we view what I often refer 

to as the most fundamental element of transportation infrastructure for international trade, the maritime industry, will determine what kind of, if any regulatory 

scheme is needed. 

8. In further reference to question number six, what are the likely outside forces 

which may prevent the agency from accomplishing its mission? What do you believe 

to be the top three challenges facing the board/commission and why? I’m not certain 

that there would be any outside forces that could prevent the agency from accomplishing its mission unless one would consider the lack of sufficient funding an outside factor. My experiences in the private sector has taught me that if you want 

to be successful in the face of significant change as the agency is facing with the 

passage of the Ocean Shipping Reform Act, you have to focus internally to make 

sure your resources are properly allocated and that all your people fully understand 

what the agency’s new role is and what their individual roles are. I believe that 

these are the most important issues for our agency. 

9. In further reference to question number six, what factors in your opinion have 

kept the board/commission from achieving its missions over the past several years? 

While I feel that the agency has been fairly successful in the past several years, 

I do recognize that the staff and commissioners are in general, more influenced in 

their outlook on an issue by those parties which have the most resources. Depending 

on the available resources, agency personnel should be given more opportunity to 

get out and develop a more comprehensive understanding of the maritime industry. 

10. Who are the stakeholders in the work of this agency? The direct stakeholders 

are all parties regulated by the agency which includes carriers and ocean transportation intermediaries. Indirectly, all parties who are involved in the U.S. international shipping industry as well as all those who benefit from this trade are 

stakeholders. 

11. What is the proper relationship between your position, if confirmed, and the 

stakeholders identified in question number ten. I believe the proper relationship between my position and the agency’s stakeholders is one where the commissioner is 

willing to listen with open mind to the concerns of all. This is the only way that 

the agency will be able to learn about all sides of a particular issue and arrive at 

a fair and balanced decision. 

12. Please describe your philosophy of supervisor/employee relationships. Generally, what supervisory model do you follow? Have any employee complaints been 

brought against you? For the most part, I believe that supervisors should provide 

guidance to employees. Supervisors should help employees understand the broader 

objectives and explain how the individual employee’s work contributes to those 

goals. I’m not sure that I follow any particular supervisory model as much as I try 

to emulate those methods that I learned to admire through my own experiences. I 

have never had an employee complaint brought against me. 

13. Describe your working relationship, if any, with the Congress. Does your professional experience include working with committees of Congress? If yes, please describe. I have never had any working relationship with Congress. While in the past 

four years as an agency official I have been available to the Congress, I have only 

recently been asked to testify before a House Committee. 

8

14. Please explain how you will work with this Committee and other stakeholders 

to ensure that regulations issued by your board/commission comply with the spirit 

of the laws passed by Congress. I would continue to work to make sure that all affected parties have an opportunity to comment on issues of concern. Additionally, 

I would continue to encourage other agency personnel to obtain clarifications from 

this Committee on difficult issues. I believe that there should be and I would encourage the agency to maintain meaningful dialogue with the Committee on significant issues. 

15. In the areas under the board/commission jurisdiction, what legislative action(s) should Congress consider as priorities? Please state your personal views. Referring back to question seven, I believe that the Congress should try to determine 

the role that ocean shipping will play in this increasingly global economy. Given the 

growing interdependence of countries, should we leave transport of goods in the 

hands of the marketplace or should we establish a scheme wherein ocean transportation serves as a kind of ‘‘bus’’ system? Depending on that decision, should antitrust immunity remain or should we make clear that antitrust immunity is limited? 

Given my bias toward strategic planning, I think it essential that the Congress address these kinds of fundamental questions first. Once these questions are answered, the proper regulatory scheme is relatively easy to put in place. 

16. Please discuss your views on the appropriate relationship between a voting 

member of an independent board or commission and the wishes of a particular 

president. Given the responsibilities of a particular board or commission, a particular president should nominate an individual who is knowledgeable and objective. 

Once confirmed, the individual should consider any views of a president as he/she 

would the views of any other interested party. Any qualified person would assign 

the proper weight to presented views before making a decision.

The CHAIRMAN. Thank you. Welcome to the other Commissioners. Do you support and can you objectively and fairly implement the new Ocean Shipping Reform Act enacted by Congress less 

than 2 years ago? 

Mr. WON. Yes, I can. 

The CHAIRMAN. What about your statements in the summary of 

the report on fact-finding 23, questioning the adequacy and effectiveness of the new law to the press that the carrier antitrust immunity retained by Congress in 1998 should be significantly altered, and to a House/Senate conference committee that we should 

reconsider several amendments to OSHA rejected during the deliberations leading up to enactment of the new law, even though there 

is no basis upon which to determine whether the new law is inadequate? 

Mr. WON. Mr. Chairman, antitrust immunity I believe is one of 

those issues where reasonable men can disagree. I fully support the 

objective of antitrust immunity insofar as it relates to leveling the 

playing field of our U.S. flag fleet competing in the international 

arena. 

My concern with antitrust immunity is a rather narrow one, and 

it is more a philosophical type of concern about the potential of carriers with antitrust immunity to use that ability as leverage 

against the shipping public. 

Outside of that, I have absolutely no problems with the law as 

it is written. I believe, and I have stated in public on numerous occasions, that it will take, I believe, roughly a 3 to 5-year period for 

OSRA to clearly show its intended benefits, and I stick to those 

statements today. We are in the process of preparing an interim 

status report of OSRA as part of a 2-year study that has been announced by the commission in the not-too-distant past, and there 

are clearly signs that the changes in the industry as a result of 

9

OSRA are indications that the environment is moving toward a 

more market-based type of system. 

The CHAIRMAN. Senator Hollings. 

STATEMENT OF HON. ERNEST F. HOLLINGS,

U.S. SENATOR FROM SOUTH CAROLINA 

Senator HOLLINGS. Does Senator Inouye approve of your appointment? 

Mr. WON. I believe he does. 

Senator HOLLINGS. Thank you. That is the only question I have. 

[Laughter.] 

The CHAIRMAN. Senator Burns. 

STATEMENT OF HON. CONRAD BURNS,

U.S. SENATOR FROM MONTANA 

Senator BURNS. I have no questions. 

The CHAIRMAN. Senator Breaux. 

STATEMENT OF HON. JOHN B. BREAUX,

U.S. SENATOR FROM LOUISIANA 

Senator BREAUX. Did Senator Hollings approve your nomination? 

[Laughter.] 

Mr. WON. I would like to think so, Senator Breaux. 

The CHAIRMAN. Senator Hutchison. 

STATEMENT OF HON. KAY BAILEY HUTCHISON,

U.S. SENATOR FROM TEXAS 

Senator HUTCHISON. No questions, Mr. Chairman. 

The CHAIRMAN. Well, Mr. Won, we intend to move your nomination on this markup so that you can be reappointed. 

Senator Gorton has arrived. Do you have any questions for Mr. 

Won, who is nominee for reappointment to a second term at the 

Federal Maritime Commission? 

STATEMENT OF HON. SLADE GORTON,

U.S. SENATOR FROM WASHINGTON 

Senator GORTON. No, Mr. Chairman. 

The CHAIRMAN. Congratulations, Mr. Won. We will vote on your 

reappointment at this markup. Thank you for your willingness to 

serve, and the fine job you have done in the past. 

Mr. WON. Thank you. 

The CHAIRMAN. This hearing is adjourned. 

[Whereupon, at 9:40 a.m., the Committee adjourned.]

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