1998 Year of the Ocean The Oceans and National Security 



LOGISTICS SUPPORT AND INFRASTRUCTURE 



Commercial Transport 



International and maritime trade have been growing at twice the rate of the world's 

 economy for some time. Large merchant vessels are the most flexible and cost-effective modes 

 of intercontinental and coastal transport. Increasingly, new markets and new resources are found 

 overseas. As the world evolves from a collection of disconnected national and regional 

 economies to one global inter-linked economy, freedom of commercial transit on the high seas 

 and through straits and other navigational choke points becomes ever more important. At the 

 same time, the ability of military forces to respond abroad in case of crisis requires the sealift and 

 logistic support that can only be provided by the U.S. merchant fleet. 



Military and commercial mobility on the high seas are linked. Commercial navigation 

 depends on naval forces to keep open the lines of communication. Naval forces depend on 

 commercial trade for logistics support. Commercial navigation requires security and freedom 

 from both state-sponsored interference and freelance piracy. It requires freedom from illegal 

 regulatory controls by foreign governments, as well as safe and efficient use and access to the 

 nation's ports and waterways. 



Sealift, Shipbuilding and Repair, and Maritime Employment 



The United States must assure a viable maritime industrial base to satisfy its commercial 

 and military requirements. Cabotage laws, which govern navigation and trading along the coast 

 and include such statutes as The Passenger Ship Act of 1 886'^ and The Merchant Marine Act of 

 1920 (Jones Act),'^ are common to over 45 countries. By imposing citizenship and construction 

 requirements for vessels to engage in domestic trade, these laws seek an adequate national fleet 

 in peacetime to sustain the nation in war. Opponents, however, argue that such laws restrict free 

 trade and increase costs. Government shipbuilding subsidies or loan guarantees, such as the 

 Maritime Loan Guarantee Program (Title XI), are a common means used by nations to support 

 their industrial base. Some argue that free trade, competition, and elimination of international 

 subsidies could allow the nation to meet its economic requirements. However, the President's 

 1 993 Plan for Competing in the International Market looks carefully at these competing 

 considerations and comes out in favor of a policy of limited government support in meeting the 

 nation's commercial and military sealift requirements. This is set forth in National Security 

 Directive 28: 



"The U.S. national sealift objective is to ensure that sufficient military and 

 civil maritime resources will be available to meet defense deployment and 

 essential economic requirements in support of our national security 

 strategy. The Department of Defense will determine the requirements for 



15 46 U.S. Code Appendix Section 289. 

 '6 46 U.S. Code Appendix Section 883. 



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