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[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. Res. 95 Introduced in Senate (IS)]

103d CONGRESS
  1st Session
S. RES. 95

                  To reaffirm cargo preference policy.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             April 19, 1993

 Mr. Inouye submitted the following resolution; which was referred to 
         the Committee on Commerce, Science, and Transportation

_______________________________________________________________________

                               RESOLUTION

 
                  To reaffirm cargo preference policy.

Whereas the maritime policy of the United States expressly provides that the 
        United States have a Merchant Marine sufficient to carry a substantial 
        portion of the international waterborne commerce of the United States;
Whereas the maritime policy of the United States expressly provides that the 
        United States have a Merchant Marine sufficient to serve as a fourth arm 
        of defense in time of war and national emergency;
Whereas the Federal Government has expressly recognized the vital role of the 
        United States Merchant Marine during Operations Desert Shield and Desert 
        Storm;
Whereas cargo reservation programs of Federal agencies are intended to support 
        the privately owned and operated United States-flag Merchant Marine by 
        requiring a certain percentage of Government-impelled cargo to be 
        carried on United States-flag vessels;
Whereas when Congress enacted these reservation laws it contemplated that the 
        Federal agencies would incur higher program costs to use the required 
        United States-flag vessels;
Whereas Federal laws require that all United States military cargo (the Act of 
        1904), all cargo purchased with all loan funds and guarantees from the 
        Eximbank (Public Resolution 17), 75 percent of concessionary 
        agricultural cargo and at least 50 percent of all other international 
        ocean borne cargo generated directly or indirectly by the Federal 
        Government be carried on United States-flag vessels (Public Law 99-198 
        and Public Law 83-664);
Whereas cargo reservation programs are very important for United States ship 
        owners who require compensation for maintaining a United States-flag 
        fleet;
Whereas the United States-flag vessels which carry reserved cargo provide 
        quality jobs for American seafarers;
Whereas, according to the latest statistics from the Maritime Administration, in 
        1990, cargo reservation programs generated $2,400,000,000 in revenue to 
        the United States fleet and accounted for one-third of all revenue from 
        United States-flag foreign trade cargo;
Whereas the Maritime Administration has indicated that the total volume of 
        cargoes moving under the programs subject to cargo reservation is 
        declining and will continue to do so;
Whereas, in 1970, Congress found that the degree of agency compliance with the 
        requirements of the cargo reservation laws was chaotic, uneven, and 
        varied from agency to agency;
Whereas, to ensure maximum compliance by all agencies, Congress in 1970 enacted 
        Public Law 91-469, which centralized monitoring and compliance authority 
        for all cargo reservation programs in the Maritime Administration;
Whereas, notwithstanding Public Law 83-664, and the purpose and policy of the 
        cargo reservation programs, agency compliance continues to be uneven;
Whereas the Maritime Administrator cited his agency's limited enforcement powers 
        over government agencies which do not comply with Public Law 83-664 and 
        other cargo reservation laws; and
Whereas the Maritime Administrator recommended that Congress grant the Maritime 
        Administration the authority to settle any cargo reservation disputes 
        that may arise between a ship operator and a Federal agency: Now, 
        therefore, be it
    Resolved, That it is the sense of the Senate that all Federal 
agencies administer their programs to ensure they are in maximum 
compliance with the intent and purpose of all cargo reservation laws 
and regulations of the Maritime Administration; and that the Maritime 
Administration closely and strictly monitor cargoes subject to 
reservation laws.

                                 <all>
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