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B-172601 1 (1972-04-11)

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      The General Accounting Office normally does not question
  matters involving strategic planning of the Department of
  Defense. We have discussed this matter, however, with Navy
  and Maritime Administration officials. They have described
  to us how commercial and defense interests are coordinated
  on merchant ship construction    programs.

       1. The Navy provides guidance on defense features to be
         built into U.S. merchant ships constructed under the
         Merchant Marine Act of 1936. The majority of U.S.
         merchant ships have been constructed under the pro-
         visions of this act. Navy officers, headed by a rear
         admiral, are assigned to the Maritime Administration
         to ensure a coordinated effort.      Guidance is fur-
         nished on basic construction standards, speed, shock
         resistance, power, propulsion systems, size, etc.
         The guidance further is detailed for different types
         of ships, such as cargo ships, container ships, and
         tankers. The Navy recognizes that merchant ships
         must be commercially competitive in peacetime but
         hopes to provide for speedy wartime conversion for
         sealift of Department of Defense     quipment and sup-
         plies.

       2. Plans exist for equipping merchant ships with de-
         fensive systems, and the Navy stockpiles certain
         equipment, such as defensive weapons, for this pur-
         pose. There is a formal program for the exchange of
         research and development information with industry,
         and in its planning the Navy attempts to ensure an
         adequate mobiliza ' 'qwbase of plant facilities and
         skilled per'sonnel for activation, conversion, repair,
         and construction in wartime for both Navy and mer-
         chant ships.

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