II

103D CONGRESS

1ST SESSION S. 1027

To amend certain cargo preference laws.

IN THE SENATE OF THE UNITED STATES

MAY 26 (legislative day, APRIL 19), 1993

Mr. BROWN (for himself, Mr. KOHL, Mr. CRAIG, Mr. GRASSLEY, Mrs. KASSEBAUM, Mr. DANFORTH, Mr. LUGAR, Mr. FAIRCLOTH, Mr. PRESSLER, Mr.

NICKLES, and Mr. DURENBERGER) introduced the following bill; which

was read twice and referred to the Committee on Commerce, Science, and

Transportation

A BILL

To amend certain cargo preference laws.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. TRANSPORTATION IN AMERICAN VESSELS OF

4 CERTAIN CARGOES.

5 Section 901(b)(1) of the Merchant Marine Act, 1936

6 (46 U.S.C. 1241(b)(1)) is amended by striking ‘‘at fair

7 and reasonable rates for United States-flag commercial

8 vessels, in such manner as will insure a fair and reason9 able participation of United States-flag commercial vessels

10 in such cargoes by geographic areas’’ immediately before
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•S 1027 IS

1 the colon and inserting in lieu thereof the following: ‘‘at

2 rates which are competitive with the rates charged by com3 mercial vessels which are not United States-flag vessels,

4 except that if the President determines that, for reasons

5 of national security, it is necessary to use United States6 flag vessels, and notifies the Congress to that effect, the

7 President may require the use of United States-flag ves8 sels, even if the rates charged by the United States-flag

9 vessels are not competitive with the rates charged by

10 vessels which are not United States-flag vessels’’.

11 SEC. 2. SHIPMENT OF EXPORTS FINANCED BY GOVERN12 MENT IN UNITED STATES VESSELS.

13 The Joint Resolution entitled ‘‘Joint Resolution re14 quiring agricultural or other products to be shipped in ves15 sels of the United States where the Reconstruction Fi16 nance Corporation or any other instrumentality of the

17 Government finances the exporting of such products’’, ap18 proved March 26, 1934 (46 U.S.C. 1241–1), is amended

19 by striking ‘‘or at reasonable rates’’ immediately before

20 the period at the end and inserting in lieu thereof the fol21 lowing: ‘‘or at rates determined by the Secretary of Trans22 portation to be competitive with the rates charged by

23 vessels other than United States vessels’’.
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1 SEC. 3. SHIPMENT REQUIREMENTS FOR CERTAIN EXPORTS

2 SPONSORED BY THE DEPARTMENT OF AGRI3 CULTURE.

4 (a) IN GENERAL.—Section 2631 of title 10, United

5 States Code, is amended by striking ‘‘is excessive or other6 wise unreasonable’’ in the second sentence and inserting

7 in lieu thereof the following: ‘‘is not competitive with

8 the freight charged by vessels other than United States

9 vessels’’.

10 (b) NATIONAL SECURITY EXCEPTION; CONGRES11 SIONAL NOTIFICATION REQUIRED.—Section 2631 of title

12 10, United States Code, is amended by inserting at the

13 end: ‘‘Nothing in this section shall be construed to prohibit

14 the President from requiring the use of United States ves15 sels for the transportation by sea of supplies bought for

16 the Army, Navy, Air Force, or Marine Corps, if the Presi17 dent determines that, for reasons of national security,

18 such use is necessary and notifies the Congress to that

19 effect, even if the rates charged by the United States ves20 sels are not competitive with the rates charged by vessels

21 other than United States vessels.’’.

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