2d Session For sale by the Superintendent of Documents, U.S. Government Printing Office LETTERS OF TRANSMITTAL To the Members of the Joint Economic Committee: AUGUST 3, 1966. Transmitted herewith, for your consideration and use and for the use of other Members of Congress and other interested parties, is a report entitled, "Discriminatory Ocean Freight Rates and the Balance of Payments" by the Subcommittee on Federal Procurement and Regulation. Sincerely, WRIGHT PATMAN, Chairman, Joint Economic Committee. AUGUST 1, 1966. Hon. WRIGHT PATMAN, Chairman, Joint Economic Committee, DEAR MR. CHAIRMAN: Transmitted herewith is a report of the Subcommittee on Federal Procurement and Regulation of the Joint Economic Committee. The report is an outgrowth of the hearings held in April, May, and June of 1965 and in May of 1966, and is based on the testimony of Government officials and experts, steamship operators, labor union officials, and other interested parties. It reviews briefly the previous findings and recommendations of the subcommittee, examines the progress that has been made, and sets forth recommendations for the further improvements that are needed. It should be noted that the subcommittee concentrated on assuring vigorous continuation of the Maritime Commission regulatory efforts to eliminate discriminatory ocean freight rates; on emphasizing the need for revising the Defense Department's procurement of orean shipping to reflect a greater reliance on competitive bidding; and on stimulating the development by the Commerce Department of statistical analyses of the effects of discriminatory ocean freight rates on U.S. exports and the balance of payments. The ensuing report examines these developments in some detail and calls for continued efforts along these channels. It also calls for the development of a subsidy program that would separate operating subsidies from construction subsidies and extend coverage to some of the U.S.-flag operators that are now excluded from the benefits of the subsidy program. PAUL H. DOUGLAS, Chairman, Subcommittee on Federal Procurement and Regulation. III |