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tons for which a waiver is requested. Continental has informed the Maritime Administration it will continue its own efforts to obtain U.S.-flag ships through the period of processing the waiver application and until the final decision on this application is made by the Maritime Administration.

The data supplied by Continental has been found by the Maritime Administration to be sufficient to warrant acceptance of the application for processing, and the Maritime Administration has, therefore, set in motion its procedures for determining whether the waiver should be granted. These procedures are described in Maritime's "Notice to Exporters and American Shipowners on Shipment of Wheat and Wheat Flour to Soviet Bloc Countries," issued on January 7, 1964.

As a first step in its procedure, the Maritime Administration is immediately notifying American shipping interests of the filing of the waiver application, through wide distribution of a notice to that effect. At the same time, the Maritime Administration is making available the specific terms and conditions of charter and urging all interested shipowners of U.S.-flag vessels which are available under those specific terms and conditions to offer their vessels to Continental Grain Co.

The responses of the shipowners are to be filed concurrently with the Continental Grain Co. and with the Office of Ship Operations, Maritime Administration. Vessels which are offered but which do not meet the terms and conditions of the tender cannot be considered by the Maritime Administration to be "available" for purposes of passing on the waiver application. No waiver will be granted for any portion of the tonnage requested to the extent U.S.-flag tonnage is offered in accordance with the terms and conditions of the tender.

All offers from shipowners are to be filed within 5 days from the date of this notice and not later than 5 p.m., Wednesday, February 5, 1964.

As of January 30, the Maritime Administration had been advised that the following U.S.-flag ships had been chartered by Continental Grain for the carriage of wheat to Russia for a total of 213,000 long tons: Niagara, 16,000 tons; American Export Lines (3 parcels) 15,000; Chilore, 22,000 tons; Columbia, 21,000 tons; Ocean Ulla, 30,000 tons; Sister Katingo, 30,00 tons; Spitfire, 23,000 tons; Venore, 22,000 tons; Washington Trader, 15,500 tons; York, 18,000 tons.

In notifying the U.S. shipping industry of the waiver request and the conditions of tenders, the Maritime Administration is attempting to reach every segment of the industry. It has notified the major American shipping associations, including the American Maritime Association, American Merchant Marine Institute, Pacific American Steamship Association, and Committee of American Steamship Lines. It has notified individually every bulk cargo owner in the grain trade or the ship managing agents and operators. In addition, the information has been posted in the New York Maritime Exchange, 80 Broad Street, New York City.

(NOTE. The Continental sale was for 1 million metric tons, which is equivalent to 988,000 long tons. The long ton is the standard wheat unit for the U.S. shipping industry.)

U.S. DEPARTMENT OF COMMERCE, MARITIME ADMINISTRATION

CONTINENTAL GRAIN CO. REQUEST FOR PARTIAL WAIVER OF THE U.S.-FLAG SHIPPING REQUIREMENT ON WHEAT SHIPMENTS TO THE U.S.S.R.

Continental Grain Co., New York, N. Y., the licensee of export licenses issued by the Office of Export Control, Department of Commerce, for a total of 36,745,408 bushels of wheat (984,252 long tons) for exportation to the U.S.S.R. has made application to the Maritime Administration for authorization to ship less than 50 percent on U.S.-flag carriers, as required in Current Export Bulletin 883, dated November 13, 1963, claiming that such carriers are not available to wholly meet that requirement. Said application is made pursuant to "Notice to exporters and American shipowners on shipment of wheat and wheat flour to Soviet bloc countries," issued by the Maritime Administration on January 7, 1964.

The applicant for this waiver, as of the date of this notice, has made shipping arrangements on U.S.-flag vessels for 213,000 long tons of wheat and requests a waiver on the balance amounting to 281,000 long tons but will continue to negotiate with U.S. shipowners until a waiver, if any, is granted.

The Maritime Administration requests that shipowners of U.S.-flag vessels which are available under the specific terms and conditions of the attached tender and which are interested in offering their vessels under such tender to so notify the Office of Ship Operations, Maritime Administration, and concurrently notify Continental Grain Co., New York, N.Y., within 5 days from the date of this notice but not later than 5 p.m., February 5, 1964.

No waiver will be granted for any portion of the tonnage requested to the extent U.S.-flag tonnage is offered in accordance with the terms and conditions of the tender.

In the absence of offers meeting terms and conditions of the tender to cover all or part of the balance of the 281,000 long tons, the waiver requested by Continental Grain Co. will be granted for such portion of the 281,000 long tons not covered by U.S.-flag shipping.

Dated: January 31, 1964.

M. I. GOODMAN, Chief, Office of Ship Operations.

TERMS AND CONDITIONS OF TENDER FOR THE SOLICITATION OF U.S.-FLAG VESSELS FOR THE SHIPMENT OF WHEAT IN BULK TO SOVIET BLOC NATIONS

This tender is for the offering of U.S.-flag vessels at rates not in excess of those published by the Maritime Administration for vessels in the 15,600 to 30,000 total deadweight tons class. Geared dry cargo vessels, geared bulk carriers and bulk carriers and tankers equipped with self-discharging equipment cannot exceed 32 feet draft on arrival; appropriate consideration will be given to vessels not exceeding 33 feet draft on arrival provided the buyer/receiver approves of the additional cargo. Vessels of less than 15,500 total deadweight tons will be considered eligible provided the rates are not in excess of these referred to above.

NAKHODKA

Quantities.-21,000 tons of 2,240 pounds February 5 to 20, 1964; 37,000 tons of 2,240 pounds March 5 to 20, 1964. Commodity.-Wheat in bulk.

Loading port.-One or two safe berths in Puget Sound or at charterers' option; one to two safe berths Columbia River including Portland Oreg.

Rate of loading.-Six weather working days of 24 consecutive hours, Sundays and holidays excepted unless used, and if used, only actual time used to count. Rate of discharge.-Receivers to discharge cargo at the average rate of 1,500 metric tons per weather working day of 24 consecutive hours, with Sundays, official and local holidays and Saturday afternoons (unless Saturday already a holiday in which case entire day not to count) excepted, whether used or not, but actual time used to count, provided vessel can deliver at such rate.

U.S.S.R. BLACK SEA

Quantities.-53,000 tons of 2,240 pounds February 1 to 15, 1964; 93,000 tons of 2,240 pounds February 14 to 29, 1964; 77,000 tons of 2,240 pounds March 1 to 15, 1964.

Commodity.-Wheat in bulk.

Loading port(s).—One to two safe berths, one safe port U.S. gulf; charterer's option one to two safe berths, one safe port United States north of Hatteras, excluding Albany.

Rate of loading.-Five weather working days of 24 consecutive hours, Sundays and holidays excepted unless used, and if used, only actual time to count.

Rate of discharge.-Receivers to discharge cargo at the average rate of 2,000 metric tons per weather working day of 24 consecutive hours, with Sundays, official and local holidays and Saturday afternoons (unless Saturday already a holiday in which case entire day not to count) excepted, whether used or not, but actual time used to count, provided vessel can deliver at such rate.

OTHER CONDITIONS

Demurrage/despatch.-$1,500 to $750 at loading port(s); $2,500 to $1,250 at discharge port(s). Charterers to pay demurrage and collect despatch at loading port(s); receivers to pay demurrage and collect despatch at discharge port (s).

Freight payment.-Freight fully prepaid and payable in New York with 7 days after release of original onboard bills of lading to charterers in New York. Shifting time between berths at loading port counting as laytime but all expenses to be for owners' account.

Tendering: Regular Baltimore form C tender clause.

Agents: Owners to appoint and pay agents at loading port; receivers' agents to be employed at discharging port(s).

Stevedores: Owners to employ charterers' stevedores at loading port at not exceeding current rate. Receivers' stevedores to be employed at discharging port(s).

Cargo to be discharged free of expense to the vessel.

If two discharging ports used, charterers to pay not exceeding 50 cents per ton of 2,240 pounds, extra on entire cargo and second discharge port option one or two safe berths, also required.

Loading range declarable by charterers on passing Malta westbound for any vessels coming from the Mediterranean. Otherwise loading range declarable

48 hours after passing Lands' End.

Loading port declarable 5 days prior to vessel's expected readiness at loading port.

If two discharging ports used, vessel to be left in seaworthy trim to master's satisfaction to safely shift between discharging ports.

At discharge port time counting from 1 p.m. if notice of readiness to discharge is given before noon and at 8 a.m. next working day if notice given during office hours after noon, whether in berth or not.

In discharge, days before Sundays and holidays to count as three-quarters of a day. Also on Mondays and days after holidays time not to count until 8 a.m. unless used, but if used actual time used to count as laytime.

If, owing to congestion, no berth is available at time of vessel's arrival at or off the port of destination, whether in free pratique or not, time to commence to count from 1300 hours if notice of arrival is given at or before noon of the same day and from 8 a.m. of the following day if notice given after noon, but Sundays, official and local holidays and Saturday afternoons, and time until 8 a.m. on Mondays and days following a holiday, not to count unless vessel is on demurrage and time from declaration by receivers that the berth is available until vessel's arrival in the berth not to count.

If two discharge ports are used, time at second port of discharge to commence next working period after arrival, whether in berth or not.

At each port of discharge, vessel to proceed at her own expense and at her time to one or two berths at receivers' option, time used in shifting to count as laytime.

Lighterage and/or lightening, if any at port or ports of discharge, to be for receivers' risk and expense and time used to count as laytime.

Fitting, loading, and trimming for account of the vessel. Any bags and/or bagging required for safe stowage is for account of the vessel. Time used in bagging not to count as laytime. Opening of bags at port of discharge shall be for account of the vessel and time used not to count as laytime.

Deeptanks: Wheat may only be loaded in deeptanks provided same clean and passed and freely accessible for grab discharge.

Vessel to furnish free of risk and expense to the receivers, winches, gins, falls and slings at all hatches, as on board, and power at any times when required. Vessel is to supply sufficient lights for nightwork on deck and in the holds if required. Any time lost through breakdown of winches not to count as laytime. Initial opening and final closing of hatches at loading and discharging port is for account of the vessel.

Overtime is for account of party ordering same. If ordered by port authorities or elevator at discharging port(s), same to be for account of the receiver. Officers' and crew overtime always for account of the vessel.

At discharging ports any assessments, including dues and taxes, against the cargo shall not be for account of the vessel.

The dismantling of grain fittings for the safe and proper discharge of the cargo to be for account of the vessel, also reerection of the fittings if required by vessel, to be for vessel's account.

Any tankers employed shall guarantee to be able to discharge at not less than 1,500 metric tons at Black Sea ports and not less than 1,000 metric tons at Nakhodka with own equipment. Vessel to be responsible for the maintainence and operation of vacuvators and/or self-discharging equipment and to pay the

39-375-64- -B

cost of all onboard labor, including men in tanks and men required for placing vacuvators and pipes in position. All shore labor to be for receiver's account. Receivers, however, shall not be required to accept delivery in excess of 2,000 metric tons per day without their consent.

All customary loading and discharging tanker terms are to be considered as contained herein, including contamination clauses if previous voyage oil. Documentation: Separate instructions to be issued by charterers regarding necessary manifests, bills of lading, etc. Necessary wireless clauses to be separately advised owners of any vessels chartered.

The following protective clauses to apply: Gencon ice clause (port of discharge); amended "Centrocon" strike clause (at loading port); chamber of shipping war risk clauses Nos. 1 and 2; P. & I. bunker clause; New York Produce Exchange arbitration clause; U.S. clause paramount; general average settlement in New York and in accordance with York/Antwerp rules 1950.

Brokerage: 1 to 4 percent to exporter's broker, if used; 1 to 4 percent to owner's broker, if used.

Any conditions not specifically referred to herein are otherwise to be considered in accordance with the Baltimore form c charter party.

(Whereupon at 1:05 p.m., the committee adjourned to reconvene at 10 a.m., Wednesday, January 29, 1964.)

OCEAN TRANSPORTATION OF GRAIN TO RUSSIA

WEDNESDAY, JANUARY 29, 1964

HOUSE OF REPRESENTATIVES,

SUBCOMMITTEE ON MERCHANT MARINE OF THE
MERCHANT MARINE AND FISHERIES COMMITTEE,

Washington, D.C.

The subcommittee met at 10 a.m., pursuant to recess, in room 219, Cannon House Office Building, Hon. Herbert C. Bonner (chairman of the subcommittee) presiding.

The CHAIRMAN. The subcommittee will come to order.

Yesterday at the time of the recess Mr. Giles, the Acting Administrator of the Federal Maritime Administration, Department of Commerce, was the witness.

Mr. Giles, will you continue please?

There is one question, Mr. Giles. In your handling of this matter, is this a commercial transaction, or is it a Government transaction? STATEMENT OF HON. ROBERT E. GILES, ACTING ADMINISTRATOR, FEDERAL MARITIME ADMINISTRATION, DEPARTMENT OF COMMERCE; ACCOMPANIED BY CAPT. MARTIN I. GOODMAN, CHIEF, OFFICE OF SHIP OPERATIONS; AND ROBERT ABLES, GENERAL COUNSEL-Resumed

Mr. GILES. Mr. Chairman, I think this is very definitely a commercial transaction rather than a Government transaction, as these two terms are used. This is not a Government-aid shipment or sale of wheat. This is not a Public Law 480 or any transaction of that sort, and this is no different from the commercial sale of wheat, for example, to West Germany which grain exporters would handle in the usual commercial channels. The only thing that is different, you might say, about this transaction from your other commercial sales is the matter of the shipping requirement, and that was the policy adopted by the President last October when he announced the approval of the sale of a substantial quantity of wheat to the Soviet Union; and the fact that we have this policy of utilizing American ships to the extent of 50 percent, if they are available, does not in my opinion make this any less of a commercial shipment. It does not make it a of ship and selecting other type ships for the transaction.

The CHAIRMAN. The reason I asked was on account of the setting of rates by the Government and the Government's ruling out one type of ship and selecting other type ships for the transaction.

If it was strictly a commercial matter, then what interested me was just why the Department of Commerce, the Maritime Administration, went into all this area of selecting the types of carriers and establishing

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