Page 20: of Maritime Reporter Magazine (February 15, 1973)

Edwin M. Hood Urges

Greater Coordination

Of Shipping Policies

Speaking at a luncheon of The

Propeller Club of San Francisco recently, Edwin M. Hood, presi- dent, Shipbuilders Council of

America, called for greater high- level coordination in the implemen- tation of policies affecting U.S. shipping capabilities to generate maximum impact in the national interest.

He asserted that actions of Fed- eral agencies in recent years have tended to treat problem areas "in almost complete isolation" of one another: "... there is not now, and has never been, any high-level coordi- nation to ensure that an expan- sion of trade will equate to an ex- pansion of shipbuilding. There is not now, and never has been, a pro- gram correlation between these two elements with specific mile- stones to 'be reached in an orderly fashion. Except for the National

Maritime Council, established fol- lowing enactment of the 1970 Act . . . there has never been, to my knowledge, an intensive, broadly structured campaign to encourage the movement of an expanding proportionate share of U.S. cargoes in American-flag ships."

Citing national goals of Japan to assure that "the Japanese-flag mer- chant marine should carry 60 per- cent of all Japanese exports and 70 percent of all Japanese imports by 1975," Mr. Hood noted that "the volume of U.S. export and import cargoes carried toy U.S.-flag ship- ping has steadily declined and, over the past several years, has hovered near 6 percent. Obviously," he said, "we are a long way from emulat- ing the Japanese in their 'national interest' approach."

UT JACKSON & ROPE CORPORATION

Subsidiary of ASPRO, Inc.

Ninth and Oley Streets, Reading, Pa. 19604

Phone 215/376-6761 SALES/SERVICE CENTERS: READING • CHICAGO • NEW ORLEANS • LOS ANGELES

Edwin M. Hood

The spokesman for the private shipbuilding industry further sug- gested that "changing times de- mand that shipping and shipbuild- ing capaibilities need to be justified in the broad spectrum of the na- tional interest and not as a frag- ment of national defense require- ments. "The 'national interest' equation in which shipbuilding is a factor," he observed, "has these inseparable constituent elements: trade and commerce, sealift capacity, acces- sibility and availability of sea lanes, marketing competence, and ship- building capabilities. Each factor is a function of the other; the parts are not independent variables. The sum of the parts equates to a posi- tive contribution to the balance of international payments. The extent to which sovereign jurisdiction or control over any one of these ele- ments is diminished affects the whole of the equation and equates to a negative drain on the balance of payments."

Santa Fe Receives

Letter Of Intent

For $2.3-Million Rig

E.L. Shannon Jr., president of

Santa Fe International Corp.,

Orange, Calif., has announced that his company has received a letter of intent from Arabian American

Oil Co. for a new $2.3-million drill- ing rig to operate in Saudi Arabia under a long-term contract.

Mr. Shannon said the rig is scheduled to begin drilling August 1. It will be similar to the rig which

Santa Fe is currently assembling in Houston, Texas, for shipment to

Saudi Arabia under a previously announced contract.

With the arrival of these two units in 1973, Santa Fe will have eight rigs in Saudi Arabia, includ- ing three new rigs which arrived from the United States in 1972 and three used rigs shipped in from other Middle East countries. The initial contract term for each rig will be a minimum of two years,

Mr. Shannon said. big. long, strong

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