Page 28: of Maritime Reporter Magazine (August 2002)

U.S. Report 100 percent to working with the Navy, our U.S. shipbuilding and repair yards, labor, our U.S. commercial vessel oper- ators, and Congress to develop a unified long-term strategy to maintain our ship- yard capacity.

We must address the issues of ship- yard productivity, modern shipyard infrastructure, R&D investment, man- ning and training sufficient skilled workers. To the extent that we expect to be concerned with building for export, we may need to address issues related to international business practices involv- ing subsidies.

On the commercial side, MarAd will work to identify and assist our U.S. shipyards in opportunities in our domes- tic trade. Everyone agrees that our ship- yards need to identify vessel designs that they can build in series in sufficient numbers to reach adequate economies of scale. The Kvaerner Philadelphia Ship- yard may be headed in that direction with its container vessel design. 1 believe this can be done with other ves- sel designs and I am up for the chal-

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Cook: I have one more question.

There has been a great deal of concern expressed about port security focusing on non-citizen owned foreign flag ves- sels and their cargoes entering our ports.

However, I have not read anything con- cerning the monitoring of movements of

U.S.-flag vessels entering or already in our U.S. ports that might be chartered to non-citizens. I see that the House

Armed Services Committee report accompanying the FY 2003 MarAd authorization urges MarAd to review its post 1992 policy of "blanket" approval of "time charters and other forms of temporary use agreements" to non-citi- zens and requests a report back to the

Committee by November 1. Would you comment?

Schubert: Yes. We believe that these charters to non-citizens present a potentially serious problem. MarAd has had the problem under study for some- time. The House Committee report request comes, as it were, mid-stream in

MarAd's work on the problem. The world is a different place today from what it was in 1992. A time charterer determines what cargoes will be loaded and discharged, and directs the vessel's schedule and its ports of call. We are concerned. And, we will wish to have the benefit of the Maritime community's thinking on the problem. We will be publishing a notice in the Federal Regis- ter inviting public comment through written submissions.

About the Author

H. Clayton Cook, Jr., B.S. Princeton

University, LLB The University of

Virginia. Mr. Cook served as Gener- al Counsel of the U. S. Maritime

Administration from 1970 to 1973, where he was responsible for the implementation of the Merchant

Marine Act of 1970, and the drafting of the Federal Ship Financing Act of 1972. Upon completing his govern- ment service, Mr. Cook joined Cad- walader, Wickersham & Taft as the partner responsible for the develop- ment of that firm's Washington Mar- itime practice. Mr. Cook continues his law practice today as Counsel to

Bastianelli, Brown & Kelley, Char- tered, in that firm's Washington, D.C. offices. He is also a partner in Man- agement & Transportation Associ- ates, Inc., a management consulting firm based in Essex, Conn. Mr.

Cook's email address is Plim- [email protected].

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