Page 5: of Maritime Reporter Magazine (January 1988)

deep trouble—merchant marine, shipping operators, shipbuildings and equipment manufacturers.

Should an island nation commit re- sources to arrest and reverse this trend and assure an adequate, even minimal base? You get very mixed answers to this question in Wash- ington, D.C. He related specifics and conclusions of the Commission on Merchant Marine and Defense of which he was a member.

The three main findings are: (1) A clear and growing danger to our national security from the deterio- rated condition of the U.S. marine industry. (2) Solid evidence that the industry will be essential compo- nents of national defense for the foreseeable future. (3) The marine industry decline is symptomatic of heavy industry decline.

Colleen Preston, Counsel for the House Armed Services Commit- tee, closed the morning session by describing what is going on in the "buy American" legislation. Con- gress is trying to balance protecting the U.S. industrial base while com- plying with the general agreement on tariffs and trade and our cooper- ative memorandum of understand- ing with foreign allies. Even though there is a strong indication that equal treatment is not a "two-way street," Congress still looks at the total DoD trade balance (2.8 to 1 in our favor) and not at the disastrous situation in shipbuilding by itself.

After lunch, Adm. W. D. Smith,

USN, Director of Navy Program- ming Plans, talked of the Navy's programs, budgets, and five-year defense plan. He said that military personnel salaries and benefits would not be cut, therefore cuts would come elsewhere in the budget crunch. Maintenance and repair dollars would be in some jeopardy.

Bird-Johnson president and CEO

Charles Orem provided the forum with a status report on the U.S. marine industry industry subcon- tractor base. Included in this group- ing are all the equipment, compo- nent and system suppliers to ship- yards, repair facilities, ship opera- tors, and the Navy, the Coast Guard and the Maritime Administration.

Taken together, these subcontrac- tors constitute the full scope of sup- port for our maritime defense indus- trial mobilization base and comprise the complete infrastructure for the country's maritime industry. Clear- ly, the economic and physical health of these subcontractors is of critical importance to our country. Mr.

Orem went on to provide an over- view of a portion of this supplier community and focus attention, through illustrative examples, on some industry statistics and key critical factors directly related thereto.

The final speaker of the day,

Richard Donnelly, director of In- dustrial Resources in the Office of the Assistant Secretary of Defense for Acquisition and Logistics, de- scribed the DoD effort to analyze the status and requirements of the

U.S. industrial base. He stated that the defense mobilization base is in reality the industrial base and a healthy industrial base would yield a strong mobilization base. , 1988 Circle 330 on Reader Service Card

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