
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: FRIDAY, March 11, 1994                   TAG: 9403110205
SECTION: NATIONAL/INT                    PAGE: A-4   EDITION: METRO 
SOURCE: 
DATELINE: WASHINGTON                                LENGTH: Short

MERCHANT FLEET SUBSIDIES PROPOSED

Transportation Secretary Federico Pena on Thursday proposed a 10-year plan to preserve a small U.S.-flag merchant ship fleet, with the $1 billion cost to be paid entirely through increased taxes on all ships entering U.S. ports.

The legislation Pena proposed effectively would allow the shrinking oceangoing U.S.-flag fleet, currently 140 ships, to dwindle to 52. In addition, 72 U.S. ships operate in U.S. coastal waters such as the Great Lakes and by law must be U.S.-flagged.

U.S. companies are among world shipping leaders, but most of their ships are registered under ``flags of convenience'' such as those of Liberia and Panama, allowing them to use cheaper foreign crews and escape some U.S. requirements.

by CNB