Statement of Administration Policy: H.R. 4175 - 1987 Maritime Administration and the Federal Maritime Commission Authorizations

(House)
(Biaggi (D) N.Y. and 16 others)

The Administration strongly opposes House passage of H.R. 4175, and, if the bill were presented to the President in its current form, the President's senior advisors would recommend that it be vetoed.

H.R. 4175 is highly objectionable because it would: (1) evade the basic purpose of Gramm-Rudman-Hollings by increasing the obligation ceiling for Title XI loan guarantees to $500 million for each of fiscal years 1986 and 1987; (2) allow new Title XI ship construction loan guarantee commitments after fiscal year 1986; and (3) continue, rather than phase out, Federal financial assistance for the State maritime schools program.

The Administration would support H.R. 4175 if it is amended to: (1) allow no new commitments under the Title XI loan guarantee program, after fiscal year 1986, and delete the obligation ceiling increase for 1986; (2) authorize appropriations for 1987 in amounts and for activities proposed in the President's Budget — $320 million for operating differential subsidies, $5.5 million for research and development activities, and $62,693 million for operations and training activities; and (3) delete section 7 which is unnecessary.