Milford chronicle., 1960-08-26

IF GENERAL WAR COMES

IeW years ago General NaLnan r.. VIII
ing, Chairman of the Joint Chiefs of Staff,
said: IF the catastrophe of general war
should be forced upon us -. the merchant
marine, after the initial period of devastat-
ing nuclear exchange, would play most vital
role. Indeed, it might be one of the sources
of strength of the Free World which would
pluck victory from chaos"
That indicates the Importance of the mer-
chant marine to this cOuntry's national de-
fense. And its Importance to the national
economy is equally great. We are the worlds
foremost trading nation, and it is ships that
carry all but small part of our imports and
exports.
The merchant marine on which we de-
pend falls into two categories. First, there
are u. S. flag ships which ply world trade
routes deemed essential by the government.
The cost of building vessels in the United
States and operating them with American
crews is far greater than in the other mari
time nations which compete with us for car
goes, largely due to American wage scales
and working standards. Consequently, it has
long been government policy to provide what
are known as differential subsidies. These
payments compensate, in part, for the lower
costs enjoyed by our merchant marines's S
foreign competitors. They do not guarantee
profit The shipping lines receiving the
subsidies operate under strict government
rules and regulations. They must hire Am
erican crews, buy American supplies, build
in American yards and so on.
The second category consists of tankers
and bulk carriers which are excluded from
the subsidy provisions of the Merchant Ma
rine Act of 1886. These are known as Flags
of Necessity vessels. They are registered
in Panama, Honduras and Liberia and carry
the flags of those countries. And the reason
for that registry is to make it possible for
them to survive economically in the compet-
itively stormy waters of international trade
Their owners simply cannot pay u S. costs
and meet the foreign competition.
A fully illustrated booklet put out by the
American Committee for Flags of Necessity
outlines the problem in detail First of all,
these are among the most modern merchant
ships in the world. Most of them are less
than 10 years old. Working and living condi-
tions are of the highest order-and far cry
indeed from the old era of iron and wooden
ships. Wages and working conditions are
based on the national standards of the sea-
mems home countries, and in the majority
of instances these standards are exceeded
aboard American-owned Flags of Necessity
vessels. 1t is significant that sailors of all
nations--Italian Norwegian, German, Dutch
and the rest eagerly seek berths aboard these
ships because of the outstanding working
conditions and excellent accommodations
which prevail. And the seamen, it is impor-
tant to note, enjoy the same status as any
other foreign employee of U. S. company
abroad These ships, significantly, also serve
as defense reserve fleet under effective
military control, which would be immediate
ly available to the military establishment in
time of war or military crisis.
American maritime unions have been
conducting campaign to extend their au-
thority to bring the foreign seamen under
their jurisdiction, and thus gain control of
jobs available on foreign flag ships-even
though many of them rarely or never touch
American ports
This controversy is being fought out in
the courts and before other agencies. 1t is
complicated matter, involving international
law. One big question is, as the Committee
puts it, "Do Americans unions have the right
to organize foreign workers of American
subsidiaries abroad in an effort to raise
wages to the American level? The Commit
tee adds, "Unless some limitations are placed
on these ambitions, the entire future of all
American foreign investments and subsidi-
ary operations overseas is destined to be
swept into a dark and forgotten corner of
international competition"