1251 
In earlier testimony before the Subcommittee on Oceanography in August of 
1965, I made reference to the role of the Federal Government in establishing 
policy and fostering the acquistion of scientific competence in ocean science. At 
that time I said, “Now, to gain this scientific competence is not something that 
industry or the academic community can achieve for itself. The job is too big 
for private investment or endowment. More significantly, it is too closely linked 
to the formation of public policy to be entrusted to private direction. In brief, the 
problems faced by the ocean sciences are outside the ability or sphere of any 
private group. It is traditionally and most appropriately a major effort which 
requires action and coordination on the Federal level”. Later in answer to a ques- 
tion from Mr. Reinecke, I continued, “In my prepared statement I have tried to 
draw a clear distinction between the science and the technology. The technology 
is the applier of science. i feel that the private sector of our economy is amply 
motivated to exploit the ocean, to apply the science, to develop the technology, 
and that the natural forces at work in the economy are quite satisfactory and will 
provide impetus where impetus is needed.” 
I feel every bit as strongly committed to that position today as I did then and 
continue to see the role of the Federal Government as one of creating the cli- 
mate for private investment in the exploitative phase of oceanic resource develop- 
ment. Hence I do become concerned when in H.R. 13247, page 6, lines 16 and 17, 
J find the words “development, construction, testing and operation of vehicles 
and associated equipment”. To a zealous and energetic administrator in the pro- 
posed NOAA this is an open invitation to use Federal funds to accomplish tasks 
which are, in my view, best done within the private sector. These are not climate 
creating actions in a positive sense. In fact a contrary view can be defended, for 
if the Federal Government wiil undertake such research and development tasks 
with public money why then should the private sector make an investment? I 
have no objections to the Agency’s exploration of the marine environment but 
it seems to me that the latitude granted in the entirety of paragraph (7) on 
page 6 goes too far. 
Also on page 6 under paragraph (6) I am concerned that the latitude granted 
here might encourage an administrator to evaluate marine resources for the pur- 
poses of establishing minimum acceptable prices on bidding. The question is one 
of precision in the conduct of the surveys. If NOAA gets into the business of 
evaluating marine resources it is in effect second guessing a well established 
system which relies on the proven forces in the market place. The competitive 
system of bidding presently used relies on the judgment of one bidder versus an- 
other as to the worth and risk associated with a particular resource deposit and of 
it’s potential value to the company after the costs of extraction have been absorbed. 
For a Federal Agency to tinker in this part of the resource acquisition cycle, 
where economic value is so very speculative, would be dangerous. 
We have a recent incident of this in the rejection by the Department of the In- 
terior of bids on certain offshore sulphur leases. All bids were rejected because 
the Department did not feel that the highest price offered was adequate. The 
bidders know best the cost of developing the resource deposit and I can see no 
justification, given free and open bidding, for an administrator in the Department 
of Interior to reject the high bid as being inadequate. If this situation is left 
alone or further encouraged under the provision of HR 13247, I suggest that the 
next step is for the Federal Government to go into the exploitive phase of 
resource development in the absence of what an administrator considers an ade- 
quate bid from the private sector. The tired logic of the Federal Government 
having to do something that the private sector refuses to do will be advanced and 
another step may be taken in the expansion of Federal activities into fields well 
handled by the private sector in the past. 
In both paragraphs (6) and (7) I would much prefer words to the effect that 
the administrator take such action as may be necessary to encourage the private 
sector to accomplish the tasks. 
Asa citizen vitally concerned with the future of the United States vis-a-vis the 
world ocean and the seemingly endless ways in which it effects our economy, 
security and general well-being I want to acknowledge with sincere appreciation 
the leadership you have given the cause of establishing a National Ocean Pro- 
gram. I want to assure you as well of my continued support and the promise 
that I will do everything possible through personal and business associations 
to broaden and intensify the base of national support for HR 13247 and other 
legislation which will implement the Stratton Commission Report. 
Cordially yours, 
J. H. CLorwortHy, President. 
