that world-wide fish catches can be quadrupled,* 
and many feel there is a great potential in 
aquaculture for raising marine species of high 
economic value. Ocean mining activities could 
expand rapidly as technology for economic re- 
covery and processing develops, and an interesting, 
although still very ill-defined, potential exists for 
deriving new drugs from marine life. 
More immediate opportunities are present 
among the non-consumptive uses of the sea and 
coastal zone—in recreation, transportation, waste 
disposal, and scientific inquiry. The demand for 
the major aquatic activities of outdoor recreation 
in this country will have tripled by the year 
2000.5 The annual tonnage of international trade 
is expected to double in 20 years.°® 
Profit-motivated private enterprise traditionally 
has provided one of the most potent avenues for 
growth. Providing a political and economic climate 
that will allow U.S. ocean industry to meet these 
needs is a challenge to the Nation. 
Hl. NATIONAL INTEREST IN THE OCEAN 
Several reasons for Government encouragement 
of industrial activities in the ocean are listed 
below:” 
—Expanding population and a rising standard of 
living will consume natural resources at an acceler- 
ating rate. Government and industry must have 
comprehensive knowledge of both renewable and 
non-renewable resource inventories, both in the 
ocean and on land, to manage these resources 
effectively and help determine international trade 
policy. 
—Maintenance of reasonably stable prices and 
marketing arrangements requires an adequate level 
4+ Bullis, H.R., Jr. and Dr. J. R. Thompson, “‘Harvest- 
ing the Ocean in the Decade Ahead,” Ocean Industry, 
June 1968, p. 60. 
5 Bureau of Outdoor Recreation. 
National Council on Marine Resources and Engineer- 
ing Development, “‘Marine Science Affairs—A Year of 
Plans and Progress,” Government Printing Office, Wash- 
ington, D.C., February 1968, p. 73. 
7 Other factors justifying the National interest in the 
ocean are reviewed in some detail in two other reports: 
“Effective Use of the Sea,” report of the Panel on 
Oceanography, President’s Science Advisory Committee, 
June 1966, pp. 1-3; Report of the Commission on Marine 
Science, Engineering and Resources. 
of proven reserves to meet future needs and a 
diversity of sources to establish a potential for 
competition. 
—Due to the forecasted demand for natural re- 
sources, it is becoming increasingly important for 
industry to make the best possible projections and 
concomitant decisions concerning the most 
economical sources of supply. 
—Domestic production of minerals offshore yields 
some foreign exchange savings when contrasted to 
an import alternative. The resultant relatively 
modest saving at this point may be offset by 
repercussions in markets for U.S. exports, but 
until the Nation’s overall payments problem has 
eased, the balance-of-payments aspects cannot be 
ignored. 
—Encouragement of appropriate ocean industries 
by the Government will contribute to the Na- 
tional economy in the form of capital investment, 
increased employment, and productivity. 
—Many benefits accrue to National security from 
industrial competence in the oceans. These include 
industrial marine technology, equipment, man- 
power skilled in ocean operations, an ability to 
obtain critical natural resources needed during a 
prolonged National emergency, and the capability 
to build and maintain an adequate merchant fleet. 
IV. GOVERNMENT AND INDUSTRY ROLES 
The profit motive is and should continue to be 
a dominant factor guiding this Nation’s marine 
industries. With profit a primary objective, indus- 
try will have to develop the basic data, skills, and 
industrial organization necessary to utilize the sea. 
The purpose of the programs recommended by 
this panel is to advance the capabilities of private 
business to develop ocean resources to a degree 
allowing comparison with onshore techniques, 
products, and services. With this capability, more 
rational investment choices can be made between 
land and ocean resources. To that end government 
and industry must work closely together. 
A. Government Role 
The rate of marine industrial development will 
be the result of many factors that influence 
profitability: demand, availability of technology, 
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