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094439 1 (1971-03-09)

handle is hein.gao/gaobadxkw0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTINGOFFICE WASHINGTON, D.C. 20548 FOR RELEASE ON DELIVERY Expected at a.m. EST March 9, 1971 STATEMENT OF ROBERT F. KELLER, ASSISTANT COMPTROLLER GENERAL OF THE UNITED STATES BEFORE THE COMMITTEE ON MERCHANT MARINE AND FISHERIES UNITED STATES HOUSE OF REPRESENTATIVES Mr. Chairman and Members of the Committee: At your request) e appear before you today to present the information that the General Accounting Office has developed concerning the use- of vessels under time charters for the ocean movement of military cargo by the Department of Defense. Our work was directed primarily to determining whether the Military Sealift Command was complying with the provisions of the Wilson-Weeks Agreement in its decisions to charter ships. We also inquired into the impact the Command's chartering practices had on the U.S. Merchant Marine. Our findings were reported 'Ni to this Committee letter d January 22, 1971. v THE WILSON-WEEKS AGREEMENT The Wilson-Weeks Agreement of 1954 is an agreement between the Department of Commerce and the Department of Defense (DOD) to provide for the permanent or temporary transfer, allocation, and utilization of merchant-type ships by DOD. The agreement, which remains in effect, sets forth (1) the size and composition of the nucleus fleet, that is, the ships owned and operated by Military Sealift Command, (2) the procedures for augmenting the nucleus fleet under conditions of full mobilization, and (3) a priority formula for the acquisition of merchant shipping capability required by DOD. The priority formula provides that, con- sistent with military requirements and prudent management, DOD requirements will be met by the use of the (1) nucleus fleet, (2) U.S. flag berth space, (3) time and voyage charters of privately owned U.S. flag merchant ships, (4)

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