Page 32: of Maritime Reporter Magazine (December 1992)

Bush Signs Defense Bill,

Loses $7.5 Billion But

Gains Three Ships

The White House recently signed a $253.8-billion Defense Appropria- tions Bill that gives President Bush $7.5 billion less and three ships more than requested.

Shipbuilding and conversion is the only one of the Navy's four ac- counts that received an increase from

House appropriators and authoriz- ers, increasing from $5.3 billion to $6 billion. Congress also agreed to build a sixth LHD-1 amphibious assault ship, which would have added $900 million to the total ap- propriations figure, but a compro- mise was reached that delays pay- ing for three-fourths of the ship.

Along with the LHD-6, Congress decided to fund two other ships that the Pentagon did not ask for, $300 million each for an AOE-6 fast fleet support ship and an LSD-41 am- phibious assault ship.

In other shipbuilding, $3.25 bil- lion was appropriated for four DDG- 51 destroyers. The CVN-76 nuclear aircraft carrier got $832 million for fiscal year 1995 procurement, after

Senators agreed not to target the program for FY 1996.

Both authorizers and appropria- tors gave the Pentagon $613 million for strategic sealift, half of what it ; asked for. Along with $1.88 billion in previously appropriated but unspent money, the Pentagon was told to start the "National Defense

Sealift Fund." The revolving ac- count is to be used solely for ship- building and conversion and is out- • side the procurement budget.

Deactivating Nuclear Ships

Will Cost Billions

A report from the environmental protection group Greenpeace, en- titled "Naval Nuclear Propulsion

After the Cold War," states that bil- lions will be paid to deactivate the world's nuclear-powered combatants through the end of this century.

The paper estimates that the de- commissioning of 100 U.S. nuclear submarines from now until the year 2000 will require $2.7 billion. A recent General Accounting Office (GAO) report put the cost of decom- missioning each submarine at $40 million.

The Greenpeace report also states that 150 Russian nuclear subma- rines are due for disposal by the year 2000, which, when using the

GAO figure of $40 million per ves- sel, means that decommissioning all 250 U.S. and Russian submarines represents $10 billion in business.

Adding to the total decommission- ing cost will be the disposal of both navy's nuclear-powered surface ships.

The Greenpeace reports notes that half of the world's nuclear reac- tors are at sea, and the ships con- taining them have an average ser- vice life of 30 years.

Navy Christens Nuclear Sub

At Newport News Shipyard

The U.S. Navy's latest improved 688-class (1688) nuclear attack sub- marine, the U.S.S. Charlotte, was christened at Newport News Ship- building and Drydock Company,

Newport News, Va. She is the 55th of 62 planned 1688 type attack sub- marines.

Pentagon's Contractor

Recouptment Law Ended

The long-standing Pentagon re- quirement for defense contractors to pay back government research money when they sell a defense- derived product on the civilian mar- ket has been eliminated.

While President Bush declared earlier this year the end of "recoupment" for all new Pentagon contracts, Donald At wood, the

Deputy Defense Secretary, recently ended the recoupment provision on all existing contracts.

The government policy change is not retroactive, sales already con- summated will not be affected and rebates will not be allowed for previ- ous recoupment payments. (For additional U.S. Navy-re- lated news, please see page 60.)

Maritime Reporter/Engineering News

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