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B-95832 1 (1979-06-11)

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OLLIER GENERAL OF THXV UNITC12 STATES jO 4
   WAUI NOTON, OC, lUV4I

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The lionorcble jlovard U, C
Chairman, Comnittee on Co
   Science tnd Transpmortat
Unitod Statcs Senate


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Dea& Mrs Chaivllni

     Mr. John .Iardy of youtr comnttae'n statf requested our
assistance in drafting lainquage to amend section 901(b) of.
the Herch&nt Ittr.no Act of J936, June 21, 1936, o 050,
49 Stat. 2015, as amended, 46 U.SCs. 1241(b)(1) and (2).
Te purpose of these amenmeita is to address the problems
dlscusSd in our report CEP.-70-116, June o, 1970, Cargo
Prefurence tor Governmont-Vininced Ocean Shipmtints Could
fe' Improvod.4'1
yj67Var report highlightn di'saqreemontn between'% the Mari-
time Administrotion (I4arAd) and other 4opartmonts aid agon-
ales as to thntappliaability of -the Car..o.Preferonce Act
of 1954, section 901(b)(1) of the 1936   J t, as atended,46
U.S.C. 1241(b)(QI.)j and recommends to Congreso that

          aectioin 901(b) of the MWichanit Marine
          Act of 1936 should be clarifieO concern-
          ing thetypos of prmzramsto be covered
          under cargo preference legtisltion and
          the oi teait of MarAd's authority to daeter-
          mine the applicability of cargo prefer-
          ence logimlation to spoci i programs.

     The exact naturta of the clartficaltI-ons were coniildored
matters within the prpvince of congressional deoision mak-
ing, but we offered or assistance in drafting any deired
legislation.  In this context, Mr. Hardy requested that we
draft languago coverinj the aroeav of disacjreamont mentioned
in the report.


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     specifically, the npplicabilty of section 901(b) wa
in dispute as to Department of Defense coproduction and
offnet militarynuales agreements, various Fisderal grantis,
Eximbank'a insurance and medium term loan g9arantees,
Department of State/AID oah grants, and Depa-tment of


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