370 
Minister that year, expressed the policy of the Soviet Union regarding 
trade and shipping. He observed that the limited trade then existing 
between the United States and the Soviet Union was being transported 
by ships of third countries and that this was not logical. He also 
stated that both the United States and the Soviet Union had suitable 
ships to carry the reciprocal trade and accordingly, the trade between 
the two countries should be transported by the ships of the trading 
partners. The tenor of Mr. Guzhenko’s remarks was that the Soviets 
favored free access to their ports if their vessels were accorded equal 
treatment by the reciprocating nation. 
At the International Labor Conference Plenary Maritime Session 
of the ILO, held in Geneva in October 1970, Vladimir Tikhonov, 
Vice Minister of Soviet Maritime Navigation, expressed the Soviet 
attitude with respect to his country’s trade with the United States 
in terms similar to Guzhenko’s. He conveyed to the American delega- 
tion, which was headed by the Assistant Secretary of Commerce for 
Maritime Affairs, the desire of his Government to establish un- 
restricted trading relations between the two nations for the mutual 
benefit of their respective merchant fleets. 
THE ISSUES 
In 1971 preparations began for the negotiation of an agreement 
on maritime matters. The most crucial issues to be negotiated with 
the Soviets were port access, cargo sharing, and freight rates. 
Before these issues are discussed in detail, however, attention must 
be given to the passage of the Merchant Marine Act of 1970. Hereto- 
fore the U.S.-flag bulk cargo fleet had been unable to compete effec- 
tively in the carriage of export and import dry and liquid bulk com- 
modities. The extension of maritime aids (in this case Operating Dif- 
ferential Subsidy) to such vessels under the provisions of the 1970 
Act permitted this segment of the American merchant fleet to meet 
foreign competition at reasonable world market charter rates. The 
Act was designed to promote a larger, newer, more competitive and 
efficient U.S. Merchant Marine and it was enacted quite apart from 
any considerations of maritime detente or cooperation with the Soviet 
Union, but it was essential that the U.S.-flag bulk cargo fleet be 
able to compete in the world market since the bulk trade is the 
predominant trade between the United States and the Soviet Union 
and the most profoundly affected by the U.S.-U.S.S.R. Maritime 
Agreement. 
PorRT ACCESS 
After the Soviets had made clear their desire to establish un- 
restricted trading relations, President Nixon, on August 20, 1971, 
decided that eligible Soviet shipping could be permitted to enter U:S. 
ports on the basis of 14 days’ advance notice provided the Soviets 
reciprocated by granting U.S.-flag vessels the same privilege. Then 
in April 1972, agreement was reached to permit entry of all vessels 
of the other into 40 ports in each country subject to 4 days’ advance 
notice of the planned entry, and in October the lists of specific ports 
to be open were agreed upon. 
