(See p. 1835) COMMITTEE OF AMERICAN STEAMSHIP LINES, Senator DENNIS CHAVEZ, Chairman, Department of Defense Subcommittee of the Senate Committee on Appropriations, U.S. Senate, Washington, D.C. DEAR SIR: Thank you for affording me an opportunity to appear before your subcommittee on May 26, 1960, and testify regarding the drastic reductions being made in the number of military personnel and their dependents moving on American-flag commercial passenger vessels. This situation warrants serious study and effective action by your subcommittee for it threatens the ability of a vital segment of our merchant marine to carry out its national obligations both in peacetime and during future emergencies. For a number of years the commercial steamship lines have participated in the carriage of military passengers and their dependents to and from areas in Europe and in the Pacific. While this participation has been nominal in relation to the overall numbers moving by the other modes of transportation available: namely, MSTS, MATS and commercial airlines, this traffic has been very important to the steamship carriers and has constituted a valuable support to the successful perpetuation and operation of passenger ships in peacetime, helping to assure a healthy, vigorous nucleus of going and operating commercial passenger ships which would be available for our country's needs in any emergency. Recent history is replete with examples of our dependence upon a virile, fully operational commercial sea lift. The success of our armies in Korea was made possible by the rapid movement in vast quantities of cargo and military personnel by American-flag merchant ships. In addition to transporting 85 percent of all personnel and cargo, merchant ships performed amazing feats of evacuation. One vessel alone evacuated 14,000 refugees from Hungnam on a single voyage. It has been estimated that since Hungnam was under Communist bombardment, 140 of these would have been lucky to have escaped alive by air. Even more recently, during the limited war between Israel and Egypt. an American Export Line ship, the SS Exochorda, arriving ahead even of naval vessels, evacuated approximately 300 Americans from Egypt. The sea was the only avenue of escape for these stranded Americans because commercial air flights were canceled and airports were under bombardment. During any major future emergency the only possible means of evacuating a large percentage of American civilians from areas of conflict may well be by commercial sealift. The Congress has repeatedly heard testimony detailing the development of the United States both in the military and economic sphere upon a strong merchant marine immediately available for services of supply and other essential auxiliary military activities. These constantly reiterated congressional policies are embodied in the Merchant Marine Act of 1936 and subsequent amendments. The Secretary of Defense in a letter to the chairman of the Senate Appropriations Committee on March 2, 1959, said: "Advances in technology have served to emphasize the need for more highspeed passenger ships adaptable to immediate employment as troop ships. This deduction is valid for concepts of both general war and limited peripheral war in which we can foresee the possible need to transport many troops that could not be airlifted." In spite of these firm convictions, the Department of Defense commenced on January 1, 1960, executing a plan to progressively reduce sealift so as to eventually virtually discontinue such movements. This matter has not been brought to the attention of the Congress earlier because of the very recent nature of the military's decision. U.S. commercial sea carryings of Department of Defense passengers have been extremely limited (2.5 percent) in the past, but ther have nonetheless provided essential peacetime support for our passenger ships and our standby military troop ships immediately available to the Government in case of emergencies. Fiscal 1959 is a representative year during which the total lift of military personnel and dependents overseas was approximately 1.4 million people. These were transported as follows: Although only a minuscule portion of the total movement, the 35,000 passengers moving by sea represented a significant portion of the total passenger traffic carried on American-flag vessels during 1959. For example, they constituted 11 percent of all passengers carried by United States Lines Co.; 11 percent of all passengers carried by American Export Lines; 18 percent of the total passengers carried by Matson Navigation Co., and 6 percent of the total passengers carried by American President Lines. The extent of the reduction planned by the Department of Defense can be illustrated by the case of United States Lines Co. which carried 10,171 military passengers and dependents in 1959. It is estimated that this will be reduced by over 30 percent during 1960 and by a total of 70 percent during 1961. The total volume of traffic involved in the overall transportation picture is insignificant but it may well mean the difference between a profit or loss of passenger operations by essential American-flag carriers. Such a development would make it progressively more difficult to replace expensive vessels and to maintain existing equipment in firstline condition. The steamship lines ask that your subcommittee take action to insure that their participation be restored to a level of no less than 35,000 passengers per year. We emphasize that while these numbers are a very small percentage of the total traffic involved, they will constitute a very valuable contribution to the continued successful operations of American passenger flag ships. This support is warranted by virtue of the important assignment which these vessels are expected to carry out in time of emergency. Thank you for permitting us to supplement our testimony by submitting this statement which we request be included in and made a part of the record in this proceeding. Very truly yours, TOM KILLEFER, Executive Director. MILITARY COMMISSARIES IN ALASKA Senator CHAVEZ. The Department of Defense has requested that a message received by the Department of the Army be included in the hearings. The message, which reads as follows, will be inserted at this point: Anchorage Chamber of Commerce has advised both Alaska Senators that Mr. Suddock does not represent either the chamber of commerce or the local distributors and the chamber of commerce does not agree with Suddock's proposals. Chamber of commerce went on record as opposing any congressional action that would result in any increase to the present shelf prices in military commissaries in Alaska. The foregoing was furnished this headquarters by chamber of commerce yesterday. * CONCLUSION OF HEARINGS Senator CHAVEZ. The hearings are now closed. (Whereupon, at 2:25 p.m., Thursday, May 26, 1960, the committee adjourned subject to the call of the Chair.) |