In 1974, NASA plans to launch the Geodetic Earth-Orbiting Satellite 

 (GEOS-C) , a geodetic spacecraft equipped with a radar altimeter designed 

 to measure ocean-surface slopes associated with open ocean tides, ocean cur- 

 rents, and gravitational anomalies. This GEOS-C mission will provide the 

 opportunity to conduct a feasibility experiment with the Apollo tracking 

 ship Vanguard for the establishment of a geodetic control marker on the 

 ocean floor with a horizontal accuracy of 10 meters relative to a geodetic 

 control marker on land. NOAA and the Department of Defense are co- 

 operating in this experiment. 



Transportation 



Maritime transportation of all types is essential to the national economy 

 and security. Although most of our foreign trade cargo moves by sea, vessels 

 of U.S. registry carry only about 5 percent by weight of the total. During the 

 past year, the maritime industry had more than its normal share of problems. 

 The American-flag merchant fleet continued to pass through a crucial transi- 

 tional period as the remainder of the World War II built fleet was rapidly 

 phased out. However, by the enactment of the Merchant Marine Act of 

 1970, the President and the Congress provided the tools for restoring the 

 United States as a first-class maritime power. The achievements to date, 

 under the President's new program, have been substantial. 



The shipyards are meeting the challenge laid down by the President, 

 making it possible to reduce the construction subsidy required to meet foreign 

 competition by more than 10 percent, and contracts have been let to further 

 the modernization of the American merchant fleet. 



In the last 12 months, the Maritime Administration assisted a number 

 of established shipping companies to modernize and convert their break- 

 bulk fleets for containerized service. American President Lines and American 

 Mail Line both signed contracts for fleet modernization to continue pro- 

 grams started in 1970. It may well be said that 1971 marked the beginning 

 of the end of the break-bulk era in the merchant marine and clearly signaled 

 a change to high-productivity ships. At the same time, 1971 saw a growing 

 concentration on bulk carriers by American ship operators. 



During the last fiscal year, a number of shipbuilding records were set. 

 Construction contracts were signed for $390 million, the largest amount of 

 commercial shipping in the Nation's history. This included $170 million in 

 subsidy payments, the largest single-year subsidy since the inception of the 

 program 35 years ago. The American shipbuilding industry ended the year 

 with 55 merchant ships, aggregating 2.4 million deadweight tons, under 

 construction or on order (the largest backlog of commercial tonnage in hand 

 at the start of any year since 1958) . El Paso Natural Gas announced its 

 intention to build six liquified natural gas (LNG) tankers (more than $400 

 million of new ship construction) in American shipyards. This will be the 

 largest single order ever placed in the United States for the building of 

 commercial vessels. 



This year orders continued for highly productive ships — for example, new 

 barge-carrying tonnage for Central Gulf, Delta Line, and the Waterman 

 Steamship Corp. which was added to the ranks of subsidized shipping firms. 



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