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* An earlier form of this article was written during the spring semester, 1958, for the course in International and Maritime Law at the School of Law, University of California, Berkeley. The opinions expressed herein are solely those of the writer. B.A. 1952, State University of Iowa; LL.B. I958, University of California, Berkeley. Member of the California bar; Assistant Counsel, California Farm Bureau Federation. 1 House Comm. on Merchant Marine and Fisheries, Administration of Cargo Preference Act, H.R. REP. No. 80, 84th Cong., ist Sess. 3 (1955) [hereinafter cited as H.R. REP. No. 80]. 2 Hearings on S. 2584 Before the Subconmittee on Merchant Marine and Fisheries of the Senate Committee on Interstate and Foreign Commerce, 84th Cong., 2d Sess. 59 (1956) [hereinafter cited as s956 Senate Hearings]. Three other congressional committee hearings are repeatedly referred to in this article and will be cited as indicated: (a) Hearings on S. 3233 Before the Subcommittee on Water Transportation of the Senate Committee on Interstate and Foreign Commerce, 83d Cong., 2d Sess. (I954) [hereinafter cited as 1954 Senate Hearings]; (b) Hearings on S. 3233 Before the House Committee on Merchant Marine and Fisheries, 83d Cong., 2d Sess. (I954) [hereinafter cited as I954 House Hearings]; (c) Hearings on Administration of Cargo Preference Act (50-50 Law) Before the House Committee on Merchant Marine and Fisheries, 84th Cong., Ist Sess. (I955) [hereinafter cited as 1955 Admin. Hearings]. For a general discussion of United States foreign aid and development programs, see Morray, Aid Without Tears: Opportunism in Foreign Development Policy, 46 CALIF. L. REV. 665 (1958). 8 1956 Senate Hearings 131. 'The bulk of American-flag vessels is over ten years old. "Only about i6 per cent of our dry cargo fleet, which numbers 722 ships of 7.3 million deadweight tons, was built after the war." Shipping Outlook, March 1958, p. 4. ' Only 12% of vessels equipped for refrigeration fly the American flag. FMB & MARITIME ADMINISTRATION ANN. REP. 60 (1957). 6 In I957, total monthly vessel operating expenses of American-flag ships (not including depreciation) was estimated at $39,758, while Liberian-flag vessels had costs of about $I9,325. Hearings on Study of Vessel Transfer, Trade-in, and Reserve Fleet Policies Before the House Committee on

Cargo Preference and the American Merchant Marine