The Propeller Club of the United States of America

Resolutions

RESOLUTIONS ADOPTED BY
THE 83rd ANNUAL CONVENTION OF THE
INTERNATIONAL PROPELLER CLUB OF THE UNITED STATES

PROPELLER CLUB RESOLUTION
ON MERCHANT MARINE POLICY

WHEREAS, it has been since 1936 “the policy of the United States
to foster the development and encourage the maintenance of a merchant
marine; and

WHEREAS, it has been the policy of the United States that this merchant
marine “is necessary for the national defense and development
of its foreign and domestic commerce;” and

WHEREAS, it has been the policy of the United States that this merchant
marine shall be “sufficient to carry its domestic water-borne
commerce and a substantial portion of the water-borne export and
import foreign commerce of the United States and to provide shipping
service essential for maintaining the flow of such domestic and
foreign water-borne commerce at all times;” and

WHEREAS, it has been the policy of the United States that this merchant
marine shall be “capable of serving as a naval and military
auxiliary in time of war or national emergency;” and

WHEREAS, it has been the policy of the United States that this merchant
marine shall be “owned and operated under the United States
flag by citizens of the United States insofar as may be practicable;”
and

WHEREAS, it has been the policy of the United States that this merchant
marine shall be “composed of the best-equipped, safest, and
most suitable types of vessels, constructed in the United States
and manned with a trained and efficient citizen personnel;”
and

WHEREAS, it has been the policy of the United States that this merchant
marine shall be “supplemented by efficient facilities for shipbuilding
and ship repair;”

THEREFORE, BE IT RESOLVED, that The International International Propeller Club of the United
States applauds the enactment of the Maritime Security Act of 1996
(Public Law 104-239) as a critical first step in the effort to narrow
the gulf between the aforesaid policies and the realization of the
objectives of those polices. The Propeller Club of the United States,
with full recognition of the fiscal difficulties and hard choices
confronting the Nation, on behalf of concerned citizens, asks Congress,
the administration and the maritime industry to continue to pursue
and support those policies and programs which enhance the competitiveness,
economic viability and military utility of the United States maritime
industry.

PREAMBLE

Purpose

The International Propeller Club of the United States is an International maritime organization,
the primary objective of which is to promote, further and support
all segments of the American Merchant Marine, and allied industries,
adequate to meet the requirements of national security and the economic
welfare of the United States. Its membership is drawn from all segments
of the maritime community.

Basic Policy

The Propeller Club supports the basic tenets of the Merchant Marine
Act of 1936, as amended, and related acts, as constituting a reliable
cornerstone for building a strong U.S. flag merchant fleet. It is
recognized, however, that these acts require vigorous enforcement
and review and amendment from time to time.

Economic Value

The U.S. flag Merchant Marine engaged in the domestic, Jones Act
trades (1) accounts for more that 125,000 shipboard and land based
jobs; (2) represents a $26 billion private sector investment in
more than 44,000 vessels; (3) contributes $15 billion a year to
the U.S. economy in the form of corporate taxes and wages; (4) maintains
the free flow of strategic materials; and (5) assures the nation
of dependable and low-cost transportation. furthermore, the U.S.
flag fleet in international commerce (6) establishes our commercial
presence on the high seas; and (7) improves our balance of payments.

Military Support

A strong Merchant Marine is a vital element of our military strength.
The availability of modern militarily useful commercial vessels
and trained officers and crew for support to the armed services
is essential to our national defense and security of our nation.
Further, the nation must maintain a shipbuilding and ship repair
industry with adequate capacity and capability to meet demands required
by the national defense.

Political Value

The maintenance of our worldwide trade channels with countries of
differing ideologies requires an exceptional U.S. maritime effort
to achieve and hold a position of leadership. The display of the
United States flag in the ports of the world gives evidence of our
firm determination to continue to do so.

Maritime Promotion

An active, vigorous and sustained educational and informational
program is the keystone to the promotion of the interests of the
American maritime community and to the furtherance of the goals
of The Propeller Club of the United States. Forceful leadership
and imaginative approaches are mandated by the challenges of our
times.

Transportation Infrastructure

The revitalization and development of the nation’s aging waterways
infrastructure, including the ports, inland and coastal waterways
of the United States, are essential in maintaining the Merchant
Marine’s vital contribution to the American economy and to the U.S.
Sealift mobilization capability.

Implementing Clause

The Propeller Club calls upon all government officials to devote
serious attention to the grave problems faced by the American Merchant
Marine and maritime industry in general. The membership of The Propeller
Club of the United States, after much consultation and internal
deliberation has reached a consensus on the key components of a
nationwide policy designed to preserve and expand all segments of
our Merchant Marine.

In implementation of the principles enunciated in this preamble,
the following specific resolutions are authorized and adopted.

I. A PROGRESSIVE NATIONAL MARITIME POLICY AND PROGRAM

The Propeller Club urges the executive branch of Government, the
Congress, all elements of maritime labor and management and the
public to cooperate in developing and executing a sound, progressive
national maritime policy which builds upon the maritime Security
Act of 1996, The Merchant Marine Act of 1936, as amended, the Jones
Act and other cabotage laws, and other statutes and programs and
which helps assure the development and maintenance of an economically
sound and militarily useful United States flag shipping capability
on the high seas, Great Lakes, and our coastal and inland waterways.
It is imperative that the United States pursue the following maritime
objective:

1. Promote an effective program for all segments of the U.S. Merchant
Marine including (1) Container, break-bulk, and bulk service vessels
in our foreign trade, (2) towboat, tugs, barges and other vessels
in our inland and coastal trades, (3) carriers in Great Lakes and
St. Lawrence Seaway trade, (4) carriers in our offshore domestic
trade, (5) mobile offshore units and vessels of the ocean industries
engaged in offshore oil and mineral exploration and development,
(6) fishing vessels, and (7) Passenger Vessels.

2. Insure a consistent vessel replacement program geared to the
changing patterns of domestic and international trade and achieve
vessel operating cost competitiveness for all U.S. flag ships in
foreign commerce;

3. Sustain, for national economic and security purposes strong United
States shipbuilding and allied industries to meet a defined and
agreed need for a shipyard mobilization base. Revitalize the Title
XI mortgage guarantee program for the construction of vessels, including
passenger ships, in the United States; implement incentives for
the construction of militarily useful vessels in U.S. shipyards
and enact a competitive tax deferral, cost recovery and investment
program for American vessels;

4. Maintain U.S. cabotage for domestic waterborne commerce under
the Jones Act; and the Passenger Vessel Services Act;
5. Review and revise as necessary existing maritime laws and regulations
to keep current with the ever changing nature of the maritime industry
and enact and promulgate new laws and regulations which do not reduce
the competitiveness of the U.S. maritime industry and do not burden
it with unnecessary costs;

6. Encourage the use of commercial and/or governmental agreements
to promote cargo sharing in order to generate adequate cargo so
that “…a substantial portion of the waterborne export and
import commerce of the United States…”is carried as required
in Title I of the Merchant Marine Act of 1936, as amended and achieve
the improved federal compliance with U.S. flag preference requirements
for government-impelled cargoes;

7. Increase government use of privately owned and operated vessels
to satisfy federal transport requirements;

8. Promote the development of modern and efficient port and deep
water port facilities capable of handling vessels of all types and
develop our inland waterways to their full potential;

9. Maintain adequate support for the Federal and State maritime
academies;

10. Promote a strong and coordinated industry government program
of research and development, including improved and energy-efficient
propulsion equipment and safety systems for crew survival;

11. Continue, for national security purposes, existing United States
citizenship requirements for licensed and unlicensed crews aboard
United States flag vessels and develop and maintain a U.S. flag
fleet capable of meeting the national security needs of our country;
and

12. Establish in the National Security Council a Special Assistant
to the President for Maritime Affairs and such Directors as the
Assistant to the President for National Security Affairs shall designate.
The Special Assistant shall cooperate and consult with appropriate
offices in the Department of Defense, the Department of Transportation,
the Department of State, the Department of Agriculture, the Treasury
Department, and any other departments of the federal government
whose actions concern the United States merchant marine in order
to assure that the United States merchant marine is capable of meeting
the national security and national defense needs of the United States
in peacetime, during conditions of national emergency, or in the
event of other hostilities which involve the military forces of
the United States.

II. DETERRENCE OF AGGRESSION

Effective deterrence of aggression against the vital interests of
the nation requires that both an adequate inventory of sealift assets,
including United States flag vessels and United States citizen crews
and an adequate shipyard mobilization base be maintained. There
is, therefore, an innate linkage between maritime policy and the
national security which is at present largely unrecognized in the
formulation of maritime policy. The Propeller Club of the United
States calls upon the President of the United States to establish
and maintain as a part of the executive branch a function which
on a continuing basis: 1) assesses the adequacy and availability
of sealift assets and the shipyard mobilization base to meet national
requirements, and 2) develops programs which insure that these vital
assets are available.

III. SUPPORT FOR THE WORK OF THE MARITIME COMMITTEES OF THE CONGRESS

The House Armed Services Committee and the Transportation and Infrastructure
Committee of the House of Representative, the Senate Committee on
Commerce, Science and Transportation, and other appropriate committees
of the Congress focus on legislation important to the maritime requirements
of the United States. The Propeller Club of the United States appreciates
the efforts of these Committees and pledges its continued cooperation
to assist them in achieving the United States maritime industry
that is important to the economic and military security of our nation.

IV. MARITIME UNITY OF PURPOSE

In these complex times clear evidence of a united and cohesive purpose
among all segments of marine transportation is fundamental to the
well being of the nation and the industry. Essential to the achievement
of unity within the industry is the development of an aggressive,
comprehensive maritime policy by the Government that assures a continuing
national commitment to a permanent U.S. shipping capability.
The Propeller Club of the United States urges the maximum effort
in this direction by all concerned.

V. A BALANCED TRANSPORTATION PROGRAM

The Propeller Club of the United States supports the concept of
a comprehensive and unified national transportation program. The
role of U.S. domestic waterborne commerce is vital to the success
of the entire transportation infrastructure network in meeting the
needs of the shipping public. From the earliest days of our nation,
our waterways have made major contributions to our national development.

Government efforts to formulate a comprehensive national transportation
program must give the greatest possible emphasis to the important
role domestic water transportation an economical, safe and fuel-efficient
mode, plays in our nation’s economy.
The Propeller Club urges that a comprehensive, equitable transportation
program be promulgated at an early date by Government, with the
help of industry, and where necessary, through Congressional enactment
and that it be structured so that the inherent advantages of the
respective modes will be fully utilized.

VI. RESEARCH AND DEVELOPMENT

Recognizing the role of water carriers as the most efficient means
of moving cargoes with minimum consumption of energy, it is imperative
that emphasis be placed on research and development and the testing
and evaluation of proposals designed to meet our country’s expanding
and changing needs in foreign and domestic waterborne commerce.

The Propeller Club urges the acceleration and expansion of efforts
in this field with the Maritime Administration, the U.S. Coast Guard,
the U.S. Army Corps of Engineers, the Department of Energy, the
Maritime Transportation Research Board, the National Oceanic and
Atmospheric Administration, and the Department of the Navy, working
in cooperation with the maritime industry.

VII. MARINE RESOURCES

Our national welfare is related to utilization of ocean and domestic
marine resources. To achieve this major national goal, The Propeller
Club of the United States:

1. Supports the policies of the Marine Resources and Engineering
Development Act of 1966, as amended.

2. Urges members to support national and international programs
to encourage and expedite exploration, developments, and utilization
of the resources of the seas on and under the ocean floor.

VIII. SHIPBUILDING AND SHIP REPAIR

The Propeller Club of the United States firmly believes that efficient,
productive and profitable facilities for shipbuilding and ship repair
are necessary for the economic and military security of the United
States.

The Propeller Club actively supports legislation and administrative
action which will lead to a revitalization of shipbuilding and ship
repair in the United States.

Unless positive action is taken to strengthen shipbuilding and repair
in the United States, we will experience a continued loss of a highly
skilled work force and dilution of entry level vocational trade
programs which have a proven history of positively impacting regional
employment and individual worth.

The Propeller Club of the United States urges a renewed and expanded
use of Title XI to achieve the original objectives intended by Congress,
namely to assist operators to obtain the financing necessary for
the construction and reconstruction of vessels in the United States.
We also urge that consideration be given to how other nations assist
their operators in obtaining competitive ship financing.
The need for comprehensive maritime reform legislation is urgent
and should include these proposals as part of an overall maritime
policy.

IX. DEVELOPMENT OF PORT FACILITIES

The Propeller Club of the United States urges that port facilities
be constructed and maintained to enhance export opportunity and
reduce the cost of imports by allowing the economies of scale offered
by modern, large vessels where appropriate. It has long been recognized
that ports are the gateways of commerce and that it is in the interest
of the people of the United States that the avenue of commerce remain
open if the U.S. is to remain globally competitive. Public port
agencies have been created to plan, develop, finance, maintain and
operate facilities of commerce in the United States. It is imperative
that public port agencies have the means to accomplish their purpose
including the ability to borrow money and enter into necessary contractual
arrangements.

Some state and local governments have stated a need to divest public
port agencies of funds necessary for the development and operation
of port projects in order to meet their own budgets. Such action
not only deprives public port agencies of the ability to meet the
nation’s needs for international shipping, but may also be of questionable
constitutionality and may call into question the viability of bond
covenants and other contractual obligations entered into for financing
capital development projects.

The Propeller Club of the United States finds that such actions
impair the ability of ports to provide facilities essential to domestic
and foreign waterborne commerce. The Propeller Club urges that state
and local governments refrain from any action that will deprive
port agencies of their ability to finance the development of public
ports.

X. IMPROVED BALANCE OF PAYMENTS AND THE U.S. ECONOMY THROUGH
U.S. FLAG SHIPPING

In recognition of U.S. flag shipping’s favorable impact on the United
States balance of international payments, and on the U.S. economy
and in view of the increasing concern over the U.S. trade deficit,
The Propeller Club of the United States urges maximum use of U.S.
flag vessels by exporters and importers and endorses the work of
other maritime organizations in the private sector and the Maritime
Administration’s efforts dedicated to this objective.

INLAND WATERWAYS INFRASTRUCTURE

The Propeller Club recognizes that the U.S. inland waterways system
is a national treasure that plays a critical role in the safe and
efficient movement of U.S. domestic commerce and supports U.S. export
competitiveness. While the inland waterways system offers enormous
untapped potential to relieve congestion on America’s roads and
rails, the locks and dams that comprise the inland waterways infrastructure
are in urgent need of modernization and maintenance. The Propeller
Club urges the federal government to authorize, fund, and expeditiously
carry out the needed modernization of the inland waterways infrastructure,
including the critical replacement of aging, undersized locks on
the Upper Mississippi/Illinois River system.

XI. CARGO TO STRENGTHEN THE AMERICAN MERCHANT MARINE

To assure adequate cargo availability to U.S. flag vessels, The
Propeller Club of the United States:

1. Urges U.S. Government authorities to increase their efforts to
assure that U.S. flag ships obtain equal access to and a fair share
of all ocean cargoes in U.S. commerce through vigorous enforcement
of existing laws and through negotiation of international agreements.

2. Endorses the objectives of achieving increased U.S. flag carriage
of cargoes where U.S. flag participation is now minimal, such as
in the carriage of liquid and dry bulk cargoes.

3. Supports the longstanding national policy of requiring that a
fair share of Government impelled cargo move on U.S. flag vessels
at fair and reasonable rates in order to strengthen the U.S. flag
merchant marine and protect and enhance the economic and military
security of our nation.

XII. GOVERNMENT COMPETITION WITH THE MARITIME INDUSTRY

A strong private shipyard industry and privately owned and operated
merchant fleet under United States flag serves the peacetime commerce
of the United States and is ready to meet military shipping needs
in times of emergency. The development and maintenance of a strong
private merchant fleet should not be impeded by government competition.

Accordingly, The Propeller Club of the United States:

1. Urges further reliance on an expanded and strengthened private
merchant marine to meet defense shipping needs.

2. Opposes undue reliance by the U.S. Navy on government-owned naval
shipyards for the major part of its repair and alteration work and
urges increasing reliance on privately owned shipyards.

3. Opposes government preemption of any phase of private merchant
shipping or elimination of private competition.

4. Urges U.S. Navy and other federal maritime operating agencies
to use private tug and other private support services when such
services are available.

5. Opposes the practice of the U.S. government to contract with
and to utilize foreign shipyards for maintenance and repair work
on Naval vessels and other U.S. Government owned vessels.

XIII. MARITIME TRAINING AND LICENSING

The Propeller Club of the United States supports:

1. The federal and state maritime academies and their programs as
a means of both meeting current manpower requirements of domestic
and international trade, and providing personnel, essential to our
national defense capabilities.

2. The United States Coast Guard, together with management and labor,
in their continuing efforts to improve the competency of vessel
personnel.

3. The provision by the Congress of adequate funding for first class
modern training ships and necessary student support.

4. The continuation by interested government and private agencies
of the special schools for training in firefighting and damage control.

5. The concept of training programs in schools initiated and maintained
by maritime management and labor, including the provision of government
surplus equipment for training at such schools, and acknowledges
the contributions made by these institutions in providing qualified
and dedicated personnel.

6. The United States Coast Guard to re-examine the recently revised
(2005) licensing requirements for Harbor Pilots. The new regulations
essentially require every towing vessel twenty-six feet and longer
to be operated by a Master of Towing Vessels. Previously, harbor
boats could be operated by an OUTV or a Master 100/200 ton, and
an individual could obtain a license in approximately 360 days.
Under new regulations, the minimum training period will be approximately
1560 12-hour days. The net results of the changes are a significant
increase in the amount of service time required to operate a harbor
towboat and a shortage of qualified personnel for the harbor towing
industry.

XIV. STANDARDS OF SAFETY

The Propeller Club of the United States supports existing high standards
of safety and urges the federal government to continue its efforts
to obtain international agreements and commitments whereby all vessels
will meet such safety standards.

The Propeller Club, at the same time, supports a program of continuing
review of government regulations which may be found to be excessive
to need.

The Propeller Club supports, and encourages governmental support
for, voluntary initiatives to enhance marine safety and environmental
protection.

XV. MARITIME ACADEMIES

WHEREAS, there is a continuing need for educated merchant mariners
to crew American flag vessels; and

WHEREAS, proposals have been made to end Federal funding of the
Kings Point Merchant Marine Academy and other similar institutions
of higher learning; and

WHEREAS, such proposals will exacerbate the already deteriorating
condition of the American flag fleet by hindering the development
of skilled deck and engine room personnel; and

WHEREAS, maintenance of a well-educated and skilled workforce of
American Merchant Mariners will insure the efficiency and safety
of American flag merchant vessels; and
WHEREAS, competition between U.S. flag and foreign flag shipping
operators includes the ability of such companies to provide shippers
with efficient and safe transportation services; and

WHEREAS, projection of U.S. military force overseas increasingly
relies upon the availability of sealift for the deployment of Continental
U.S. based hardware for its strike efficiency; and

WHEREAS, for both commercial and military purposes the availability
of well trained U.S. merchant mariners bears directly on the quality
and efficiency of the service needed,

NOW THEREFORE, BE IT RESOLVED that The Propeller Club of the United
States of America go on record as opposing all efforts to rescind,
reduce or replace existing Federal and State funding related in
any way to the training of merchant mariners at institutions of
higher learning in the United States, and,

BE IT FURTHER RESOLVED that The Propeller Club of the United States
of America encourages U.S. flag vessel operators, U.S. Maritime
Labor interests, U.S. Port Industry, and the U.S. Shipbuilding industry,
to work together cooperatively in the interest of protecting Federal
and State funding of programs designed to educate U.S. Merchant
Mariners in the skills of their various vocations.

XVI. SAFE OPERATION OF PLEASURE BOATS IN WATERWAYS USED BY COMMERCIAL
TRAFFIC

The number of motorboats and other pleasure craft operated on navigable
waters of the United States also used by commercial vessels has
greatly increased in recent years and causes a clear potential for
collisions and loss of life.

The Propeller Club of the United States recognizes the need for
increased cooperation and understanding between the operators of
both classes of vessels to avoid collisions and other maritime casualties.
Courses in boating safety and publicity in newspapers and other
media help to inform pleasure boat operators in proper and safe
navigation practices and other uses of the waterways.

The Propeller Club subscribes to the policy principles of the
Federal Boat Safety Act of 1971 (46 U.S.C. 1451-1489) and endorses
the efforts of the Coast Guard, the Coast Guard Auxiliary, the United
States Power Squadron and other groups who are giving courses in
safe navigation and working toward safer operation of pleasure craft.
The Propeller Club calls upon the Coast Guard and the Coast Guard
Auxiliary to create awareness of these programs and to include in
their education and enforcement programs emphasis on the hazards
to life and property caused by recreational crafts rafted out in
navigable channels. These programs need to make clear that recreational
vessels should be moored and underway out of the proximity of large
commercial vessels navigating in the confined channels. The Propeller
Club supports the continuing efforts of the operators of commercial
craft in our coastal waters and on the inland waterways to encourage
the dissemination of information concerning the safe operation of
commercial and pleasure craft in those waters which they use jointly.

XVII. DOMESTIC COMMERCE

The Propeller Club of the United States affirms the continuation
of historical legislative policy whereby our domestic commerce is
reserved for vessels built in the United States, documented under
the laws of the United States and owned and crewed by citizens of
the United States. The Propeller Club opposes the granting of waivers
or exceptions by legislation, treaties or executive agreements to
foreign built or registered vessels which would weaken the purposes
of Section 27 of the Merchant Marine Act of 1920, as amended (Jones
Act), and other cabotage laws.

The Propeller Club urges great vigilance in order to ensure that
changes to the vessel documentation laws meant to facilitate lease
financing of Jones Act vessels are not used to allow foreign flagged
vessel operators to own and operate vessels in the U.S. coastwise
trade, in contravention of longstanding cabotage principles.

XVIII. THE PANAMA CANAL

The Propeller Club of the United States recognizes that the Panama
Canal is an essential strategic and economic waterway, vital to
the United States and to world commerce. The implementation of the
Canal treaty provisions should continue to assure stable and reasonable
toll rates and the uninterrupted and efficient maintenance, improvement
and operation of the waterway. This essential stability should not
be lost. The ability to protect both the lands and waters necessary
to the operation of the Canal should be maintained.
The Propeller Club of the United States therefore urges that the
United States and other user nations follow a firm policy of assuring
the continued operation, the availability at fair rates to world
commerce, and the security of the Panama Canal.

The Propeller Club of the United States endorses the concept of
providing alternate and supplementary water routes when necessary
or desirable to serve growing trade needs.

XIX. PROTECTION FOR UNITED STATES FISHING INTERESTS

The Propeller Club of the United States calls for continued action
by the Federal Government (1) to protect our fishing interests and
rights within our 200 mile exclusive economic zone and throughout
the world and (2) to avoid harassment of our fishing fleet and fishermen
abroad.

XX. NATIONAL DREDGING POLICY

WHEREAS, the public ports of the United States serve a vital role
in local, state, national and international maritime commerce, economic
development, fisheries, navigation, and recreation; and

WHEREAS, the development and maintenance of an efficient deep draft
navigation system is in the national interest; and

WHEREAS, the development of efficient, modern port facilities in
the United States is greatly needed at the present time to maintain
national security, enhance competitive capabilities for the import
and export of commodities, and improve the capability of ports to
transport energy supplies, agricultural products and other materials
critical to the commerce and economic health of our nation; and

WHEREAS, many ports have experienced greatly increased costs, extensive
delays, and de facto prohibitions in their efforts to dredge harbors
and navigation channels; and

WHEREAS, as a result of these increased costs, delays and limitations
on dredging activities, the ability of port authorities to maximize
use of existing harbor facilities and develop new harbor facilities
necessary for efficient national intermodal freight transport is
seriously compromised; and WHEREAS, port authorities are public
agencies responding to the needs of their communities with no control
over the adjacent or upstream sources of pollution; and

WHEREAS, ports do not have the option of relocation or alternative
siting enjoyed by other industries dues to the ports’ need for access
to navigable water and the substantial investments in landside infrastructure;

NOW, therefore be it resolved, that The Propeller Club of the United
States urges the adoption by the Federal government of a national
dredging policy consistent with the national dredging policy proposal
of the American Association of Port Authorities called “Open
Channels to Trade” which calls for greater coordination among
all Federal agencies to facilitate dredging our nation’s harbors
in a timely and cost effective manner consistent with environmental
regulations; and be it

FURTHER RESOLVED, that existing statutes and regulations should
be amended to provide for the consistent management and disposal
of dredged material and to establish a federal program to facilitate
and expedite the construction and availability of adequate dredged
material disposal areas, particularly for contaminated sediments
that are unsuitable for placement in open waters.

XXI. U.S. ARMY CORPS OF ENGINEERS

The Propeller Club of the United States, in consideration of the
long and outstanding performance of the U.S. Army Corps of Engineers,
would oppose any transfer of the civil works functions of the Corps
to any other department or agency within the executive branch of
the government.

The Propeller Club urges adequate funding for the Corps of Engineers’
civil works program to ensure a safe, modern, well-maintained port
and inland/coastal waterways infrastructure.

XXII. COMPETITIVE PRACTICES IN WATER TRANSPORTATION

The Propeller Club of the United States believes that the full benefits
of water transportation in domestic and foreign trades can only
be achieved when destructive rate practices are controlled. Therefore:

1. The Propeller Club opposes practices which have the effect of
undermining, preventing, or destroying water borne transportation.

2. In the foreign commerce of the United States, The Propeller Club
believes that destructive rate-cutting practices of state-owned
merchant marine fleets in order to dominate free-world trade routes,
must be curbed, and we support the provisions and objectives of
the Ocean Shipping Act of 1978 (46 USC 801, 817) and the Shipping
Act of 1984.

XXIII. USER TAXES

The public policy debate on user taxes continues, if anything more
intensified, as the federal government seeks to impose new and increased
charges across a wide spectrum of the U.S. economy. User fees have
already been legislated to pay for deep-draft harbor dredging, custom
service, and inland waterway project construction. The Port Use
Tax that funds deep-draft O&M dredging has generated a surplus
of more than $1.2 billion. The Inland Waterways Trust Fund has a
surplus of more than $400 million. A recent study by the Government
Accounting Officer determined that 11 Federal agencies levy 124
taxes on waterborne commerce and these assessments annually generate
more than $21 billion for the Federal treasury.

The Propeller Club of the United States recognizes that it is the
current policy of the United States to recover certain costs for
government-provided services. However, we are concerned that so-called
user fees are being extended beyond their initial cost recovery
purpose.

Rather than imposing fees which are designed to recover specific
and identifiable governmental costs, the user fee approach is being
expanded and is evolving into a hidden tax for the purpose of reducing
the federal budget deficit.

Fees, including Coast Guard fees and Harbor Service User Fees, are
now being considered which bear no relationship whatsoever to the
cost of services provided or to the benefits received by those upon
whom the fees are imposed.

The Propeller Club opposes the use of so-called user fees, imposed
only on one segment of the economy or upon one industry, for the
purposes of general revenue enhancement.

XXIV. ILLICIT TRAFFIC IN NARCOTIC DRUGS

The Propeller Club of the United States supports all efforts of
federal, state and local law-enforcement agencies to stop illicit
traffic in narcotic drugs in waterborne commerce and all efforts
to interdict such illegal traffic and urges the maritime industry
to fully cooperate with the authorities in their efforts.

XXV. CARGO PILFERAGE

The Propeller Club of the United States urges federal, state and
municipal governments and maritime management and labor organizations
to continue to assume a significant share of responsibility for
the curtailment of theft, pilferage, and hijacking in the transportation
of goods.

XXVI. POLLUTION CONTROL

The Propeller Club of the United States endorses national policies
to reduce air and water pollution and preserve the environment.
To this end, the Propeller Club urges increased usage of waterborne
commerce as vessels burn less fuel per ton of cargo carried and
therefore produce fewer emissions that trains or trucks. In those
instances where the environmental impact of commercial navigation
must be mitigated (such as ballast water transport of non-indigenous
species), such policies, and any legislation implementing that policy,
should be reasonable, non-discriminatory, and economically justifiable,
with federal regulations preempting state regulation where domestic
or foreign commerce is involved.

If the need for regulation of vessel emissions is appropriately
documented, we urge the Government to cooperate in the development
of international standards, with the authority to implement those
standards reserved to the federal government.
We further urge the Congress and the U.S. Environmental Protection
Agency to fully fund and perform the site surveys and evaluations
of underwater waste dump sites currently required by Federal Law.

XXVII. MARITIME PUBLIC RELATIONS

The Propeller Club of the Untied States calls upon all organizations
interested in the United States Merchant Marine to raise funds to
support the education of the public on the nature, and importance
of the United States Merchant Marine.

The Propeller Club supports the efforts of the United States Tall
Ship Foundation to build, in the United States, American tall ships
to be utilized around the world and in this country to promote U.S.
commerce and trade and to demonstrate the pride and appreciation
America has for her merchant fleet and seamen. We urge all members
and ports to support those efforts.

XXVIII. ENDORSEMENT OF UNITED SEAMEN’S SERVICE

The Propeller Club of the United States endorses the highly valuable
extension of home-community services to U.S. seamen overseas, through
the program and facilities of the United Seamen’s Services (USS).
The USS provides health, welfare and recreation centers in overseas
ports, with 24 hour emergency telephone service.
The Propeller Club supports continued inclusion of USS in both the
overseas and the domestic Combined Federal Campaign Funds.

XXIX. PROPELLER CLUB RESOLUTION ON THE AMERICAN MERCHANT MARINER
MEMORIALS

During the Revolutionary War, 11,000 American seamen captured on
board our privateer vessels died and were buried in covered mud
flats. No national marker dignified their burial site.
During World War II, nearly 6,000 American seamen were lost at sea.
The civilian merchant marine suffered a casualty rate second only
to the United States Marine Corps. No national marker dignified
their burial site.

In addition, thousands of American seamen have been lost at sea
during peace time, in storms and accidents, while serving the commerce
of their country and their countrymen.

The Propeller Club of the United States strongly endorses national
and local efforts to establish proper memorials to our merchant
seamen. We urge all members and ports to give their full support
to these projects.

XXX. SHIP LIBRARIES

Propeller Club Ports and members are urged to support the excellent
work of the American Merchant Marine Library Association (AMMLA),
which is affiliated with the United Seamen’s Service. A special
AMMLA service is the ships literary club which provides participating
vessels with first class, current best sellers purchased by the
Betty Land Memorial Fund.

XXXI. VETERANS’ STATUS

The Propeller Club of the United States has for many years supported
granting veterans’ status and appropriate benefits related thereto
by the Department of Defense Civilian/Military Service Review Board
to all American Merchant Marine personnel who rendered service to
the U.S. Armed Forces while in oceangoing service during World War
II (including those who were imprisoned as a result of those operations)
and American Merchant Marine personnel who participated in World
War II military invasions.

This support has been in recognition of the vital participation
of merchant mariners who engaged in dangerous missions together
with other citizen groups to which such status has already been
granted and to honor a service in which the casualty rate was 2.8%,
second only to the United States Marine Corps during that War.
This resolution is consistent with the dedication of The Propeller
Club of the United States to the support of the American Merchant
Marine and its efforts to sustain adequate sufficiently trained
personnel for future combined operations with the Armed Forces of
the United States.

XXXII. CRUISE SHIP GAMBLING

WHEREAS, the U.S. based cruise ship industry is one of the fastest
growing segments of the maritime industry; and

WHEREAS, the continued and expanded operation of cruise ships offers
significant economic and employment benefits for the maritime industry
and for United States ports; and

WHEREAS, Congress in 1992 ended the discrimination under United
States law which prohibited gaming aboard U.S. flag cruise ships
operating beyond the territorial waters of State; and

WHEREAS, Congress clearly intended that state regulation should
only apply when a vessel is in state waters and Federal law should
pre-empt state law in all other circumstances in order to promote
the development of this profitable and growing vacation and transportation
industry; and

WHEREAS, state prohibition against the operation of shipboard gaming
by vessels on the high seas operating between ports within that
state as part of an interstate or foreign cruise voyage only serves
to deny a state the economic advantages resulting from cruise operations;

THEREFORE, be it resolved that The Propeller Club of the United
States urges the repeal of state statutory restrictions against
shipboard gaming aboard vessels on the high seas and supports the
requisite Federal action necessary to affirm the preemption of Federal
law in this area.

XXXIII. SEPTEMBER 11, 2001 RESPONSE

The International Propeller Club of the United States on behalf
of all its members, its 53 ports in the U.S. and 11 ports in other
countries, assembled at its 75th Annual Convention on October 5,
2001, in Tacoma, Washington, offers our sincere and deep condolences
to the friends and families of all those impacted by the horrible
events of September 11th.

Today, we first offer our prayers for those innocents who have perished
as a result of actions of unimaginable evil. For those who they
left behind, you will be in our thoughts and prayers today and always.
The Propeller Club was founded and held its first convention in
the City of New York. Our National Headquarters is in the Nation’s
Capital. To the members of these clubs and their families, who may
have been effected more directly, especially those who are part
of the Port of New York and New Jersey and Pentagon families, we
offer our friendship, our sympathy, and our promise to do whatever
we can to aid and assist as you move forward.

As an organization which owes its very existence to world trade,
commerce and internationally comity, we denounce and reject the
actions perpetuated by those, who for whatever perverse and misguided
reasons, believe that their senseless acts of savagery, wrought
upon citizens of over 80 countries, will in any way deter us from
engaging in the activities they seek to prevent.

Cargoes will continue to be bought and sold, financed, documented,
sorted, loaded into containers and delivered to and taken from our
ports. Oil, grain, ore, containers and cargoes of all descriptions
will be loaded onto and discharged from our ships, and delivered
to destinations around the country and the globe.

Passengers will travel throughout the United States and the world,
going about their daily business of facilitating commerce, trade
and global relations. U.S. Flag cruise ships, river boats and other
passenger vessels will offer millions of customers the unique pleasure
of vacations and leisure activities on our oceans, lakes and rivers.

And, while engaging in their normal daily activities, the men and
women of the United States Flag merchant marine stand ready to assist
in whatever action our government takes in response to terrorism,
wherever and whenever.

In the days and weeks to come, the horrible scenes from the New
York, Virginia and Pennsylvania, and the pictures of the police,
fire and other rescue personnel, will disappear from our TV screens
and the pages of our magazines and newspapers. They will be replaced
in our hearts and minds by the faces of the men and women of our
armed forces as they respond to our Nation’s call. And no less so,
they will be replaced in Propeller Club members’ hearts and minds
by the civilian mariners, the officers and crews of our maritime
unions, our longshoremen and others in the maritime community who
are now playing, and will continue to play, a vital role in support
of our nation’s military efforts.

U.S. Flag vessels, manned by American crews, have never failed to
go in harm’s way when asked to do so by our country. They will not
fail now, as we, as a nation and world united, seek justice for
these reprehensible beings who have caused so much pain for so many
of us and our friends

May God, by whatever name he is called, protect and comfort those
who now, and as we move forward, are in such need of divine benevolence.

XXXIV. ANWR DEVELOPMENT

Urging the United States Congress to pass legislation to open the
coastal plain of the Arctic National Wildlife Refuge (ANWR) to responsible
exploration, development, and production of its oil and gas resources.

BE IT RESOLVED BY THE PROPELLER CLUB OF THE UNITED STATES,

WHEREAS, in 1973, during the Arab oil embargo, the United States
was 36 percent dependent on foreign supplies, while today the United
States relies on imports to supply over 55 percent of its energy
consumption; and

WHEREAS, in the last eight years, the nation’s demand for petroleum
products has grown by 14 percent while domestic production has declined
by 17 percent; and

WHEREAS, by 2010, the United States expects to be 64 percent dependent
on other countries to fuel its industry, transportation, and homes;
and

WHEREAS, the United States is currently receiving 44 percent of
its imported oil from OPEC countries, including 1,400,000 barrels
a day from Saudi Arabia and 820,000 barrels a day from Iraq; and
WHEREAS, if the United States is going to reduce its dependence
on foreign oil, it must look toward domestic sources, including
Alaska’s Arctic; and

WHEREAS, the coastal plain is America’s best possibility for the
discovery of another giant, Prudhoe Bay-sized oil and gas discovery
in North America; and

WHEREAS, in 1998, a three-year study by the United States Geological
Survey estimated the recoverable oil potential of the coastal plain
to be as high as 16,000,000,000 barrels of oil, which could replace
Saudi oil imports to the United ?States for 30 years; and

WHEREAS, if domestic production does not increase we will remain
vulnerable to our dependence on foreign oil - particularly oil from
the Middle East - which remains in jeopardy and subject to manipulation
by terrorists who pose the gravest threat to Western democratic
principles through ruthless and indiscriminate terrorism and its
concomitant economic dislocation; and

WHEREAS, the responsible development of ANWR will help sustain our
U.S. Flag Merchant Marine, enhancing the number of tankers in the
Valdez oil trade that are nearly all built, crewed and owned by
Americans and providing more opportunities for commercial Jones
Act cargo vessels in the coastwise trade to Alaska; and
WHEREAS, these vessels help sustain a critically import pool of
active, U.S. citizen-seafarers available to crew commercial vessels
as well as those in the Ready Reserve Force (RRF) and the government’s
sealift fleet in emergencies; and

WHEREAS, the state will ensure the continued health and productivity
of the Porcupine Caribou herd and the protection of land, water,
and wildlife resources during the exploration and development of
the coastal plain of the Arctic National Wildlife Refuge; and

WHEREAS, coastal plain development could provide hundreds of thousands
of jobs and billions of dollars in government revenue, and could
contribute billions of dollars to the nation’s economy;

BE IT RESOLVED that the Propeller Club of the United States supports
Alaska’s role in providing this nation with a major portion of its
domestic oil and encourages the United States Congress to pass a
bill opening the coastal plain of the Arctic National Wildlife Refuge
to responsible exploration, development, and production of its oil
and gas resources.

XXXV. TRANSPORTATION WORKERS IDENTITY CARDS

The Propeller Club of the United States fully supports the efforts
of the Congress and The Administration to enhance security at our
nation’s airports, marine terminals and related cargo facilities.
However, we are concerned that the regulations and procedures currently
proposed in connection with the issuance of Transportation Worker
Identity Cards (TWIC) will have the unintended consequence of severely
diminishing the work force needed to allow those of us in the maritime
industry to function efficiently. In particular, we need assurance
that qualified individuals can receive the necessary documentation
in a timely manner, that those areas of the workplace where access
is restricted to those with a TWIC be more clearly defined, and
that the implementation of the program balance the legitimate needs
of commerce with the important objectives of national security planning.

XXXVI. COMMENDATION

The Propeller Club of the United States and the participants in
the American Merchant Marine and Maritime Industry Conference have
had a most pleasant and instructive visit to Seattle, Washington on
the occasion of the Club’s 83rd Annual Convention. The Propeller
Club expresses its thanks to all those whose efforts contributed
to the success of the convention, including the officers, committee,
staff, sponsors and members of the National organization, International
Propeller Club members, the several speakers, chairmen, and moderators.
Thanks also go to the leaders and members of the International Propeller Club
of the United States, Port of Seattlle, Washington.