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(c) Members of the Advisory Committee shall be compensated at a rate not exceeding $73 per day when actually engaged in the performance of their duties, together with their necessary travei expenses while going to and from meetings and when engaged on business at the call of the Secretary.

SEC. 11. (a) The Secretary may use, with their consent, the available services, equipment, personnel, and facilities of agencies and instrumentalities of the Federal Government, on a reimbursable basis when appropriate.

(b) In carrying out the functions vested in him by this Act, the Secretary, subject to the standards and procedures of section 505 of the Classification Act of 1949, as amended, is authorized to place not to exceed two positions in grades 16, 17, or 18 of the general schedule established by such Act. Such position shall be in addition to the number of positions authorized to be placed in such grades by such section 505.

Sec. 12. If a provision of this Act or the application of such provision to any person or circumstances shall be held invalid, the remainder of the Act and the application of such provision to persons or circumstances other than those to which it is held invalid shall not be affected thereby,

SEC. 13. This Act shall become effective upon the date of its enactment, except that the pilotage provisions of this Act shall not become effective until the first day the fourth month following the issuance of regulations pursuant hereto by the Secretary.

Senator Scott. I have a statement by the chairman, which I will read into the record at this time.

As the many mishaps to vessels on the Great Lakes and in the St. Lawrence Seaway in 1959 made clear, the need for a satisfactory system of pilotage for those waters is of high priority from a safety standpoint.

This committee tackled the problem back in May of 1958, but found that the bill then before us was not satisfactory either to our northern neighbor country or to the European maritime nations whose vessels comprise a large percentage of the traffic transiting the seaway.

The committee therefore deferred action, and requested the State Department to work with Canadian authorities to develop a bill that would be mutually acceptable. I know that the State people have done their best in this regard, and have been seconded ably by the Coast Guard and by Commerce and Maritime.

For today's hearing we have witnesses representing the various interests involved-Government, U.S. and foreign shipping and shippers, and the pilots themselves. I hope and believe that, with their help and guidance, we can come up with a final bill that will do justice to all concerned.

The first witness is Deputy Assistant Secretary of State for European Affairs, Mr. Ivan White.

Mr. Secretary, we are very glad to have you with us. I note that you have a statement. We would be very happy to have you read the statement or insert it in the record and proceed in your own way, quoting from the statement or not, as you prefer.

Proceed in any way you like.

STATEMENT OF IVAN B. WHITE, DEPUTY ASSISTANT SECRETARY

OF STATE FOR EUROPEAN AFFAIRS; ACCOMPANIED BY GEORGE HAERING, CONSULTANT, DEPARTMENT OF STATE

Mr. WHITE. Thank you.

I have with me Mr. George Haering, consultant in the State Department, who has been devoting full time to the preparation of this legislation and to discussions with the Canadian Government.

Senator Scott. We are glad to have you, too, Mr. Haering.

Mr. HAERING. Thank you, sir.

Mr. WHITE. I appreciate having this opportunity to appear here in support of S. 3019.

The principal purposes of this bill are to establish pilotage requirements for oceangoing vessels in their navigation of U.S. water of the Great Lakes and St. Lawrence River and to provide a basis for a regulated pilotage system to meet those requirements. Provision is made in the bill for the coordination of this system with a regulated pilotage system of Canada in the Great Lakes waters of that country. As defined in the bill the term “Great Lakes” means the Great Lakes, their connecting and tributary waters, the St. Lawrence River as far east as St. Regis, and adjacent port areas.

The foreign relation aspects of this bill are very important. Aside from any other considerations, the fact that United States-Canadian boundary waters are involved creates a practical necessity of having pilotage systems in the respective waters of the two countries which can be coordinated with each other. Moreover, previously proposed pilotage legislation has been the subject of protests from the Governments of Canada, Norway, Sweden, Denmark, West Germany, the Netherlands, Ireland, Italy and the United Kingdom.

Consequently, and in line with the indicated desire of this committee, and in view of the amendment to H.R. 57 proposed by the House Committee on Merchant Marine and Fisheries, the Department entered into a joint effort with the Coast Guard and the Department of Commerce to develop a draft bill that would take into consideration the various factors which have a bearing on the pilotage of oceangoing vessels in the Great Lakes.

The Bureau of the Budget has contributed effective assistance and advice in the development of the bill and contacts outside the Governmont having practical experience in pilotage and shipping matters have furnished exceedingly helpful information. Testimony presented at past congressional committee hearings on previously proposed legislation has likewise been most useful.

In the course of the development of the bill, constructive discussions took place between United States and Canadian officials. These discussions resulted in general agreement on desirable legislation as well as on other requirements for coordination between the two countries to provide for compatible systems of Great Lakes pilotage. The results of these discussions are indicated in an exchange of aide memoire and supplementary letters, copies of which are being made available for the information of the committee.

S. 3019 is the outcome of these interdepartmental activities as well as the discussions with Canadian officials, in the course of both of which Admiral Richmond made important contributions. My statement will deal chiefly with the general background of the bill and features of the bill that have a bearing upon foreign relations.

The bill takes into consideration the testimony of a majority of the witnesses at House committee hearings last year that provisions should be made for a regulated system of pilotage. Most of these witnesses favored the establishment of a joint United States-Canadian commission for this purpose. However, differing ideas were expressed as to the functions and powers of such a commission.

A study which preceded the development of S. 3019 likewise indicated that regulation by some authority is a necessary concomitant of compulsory pilotage in order to assure the availability of an adequately organized group of experienced pilots who will render required services in an efficient manner at rates and terms which will be fair and equitable for all concerned. The experience of States on the seacoast over a period of many decades has demonstrated the need for such regulation, not only in the interest of efficiency and economy, but of marine safety as well.

In case of the Great Lakes, the necessity for regulation is further emphasized by the need for coordination between the United States and Canada in pilotage matters. Canada has a system of pilotage which is regulated by the Department of Transport of the Canadian Government, and a regulated system of pilotage for U.S. waters will evidently be required to provide an effective basis for coordination which will provide for equitable participation by United States and Canadian pilots in the pilotage of ocean vessels navigating the lakes, as well as for compatibility in regulations and operational matters on both sides of the boundary.

In the development of the provisions of the bill with regard to the regulation of pilotage, we have had the benefit of expert information furnished by Capt. Hilton Lowe, president of the American Pilots Association. As a result of the material obtained from this and other sources, including our Canadian friends, provision has been made in S. 3019 for a regulated system which incorporates essential elements of some State pilotage systems, with such adaptations as are required to meet conditions on the Great Lakes and coordination with the regulated system of Canada. Among these adaptations is the designation of the Secretary of Commerce as the regulatory authority instead of a commission as proposed by witnesses at earlier congressional committee hearings. In this regard, a study indicated that regulation by a joint United States-Canada commission would apparently necessitate a considerable revision of existing jurisdictional arrangements as well as other adjustments in this country and possibly in Canada. In addition, a treaty or other form of intergovernmental agreement would have to be negotiated for the establishment of such a commission.

Moreover, problems would have to be solved in regard to powers, procedures, and mechanisms whereby the commission would reach decisions and deal with other matters which might involve differing conditions or problems in the two countries.

Under these circumstances, a lengthy period of research, discussion, and negotiation would in all likelihood be necessary as a preliminary to reaching an agreement that would provide for an effective joint commission. Taking all these factors into consideration, coordination with Canada through separate but compatible regulations in each country was found to offer a more effective basis for a workable solution of regulatory problems within the foreseeable future.

With respect to the regulation of pilotage in the U.S. waters of the Great Lakes by a U.S. commission, the conclusion was reached that the establishment of an independent agency of this kind would not be in accord with Federal administrative and organizational policies, and would prove to be operationally more cumbersome than regulation within the Department of Commerce which is already charged

with responsibilities in regard to the economic aspects of shipping. Furthermore, the Secretary of Commerce is also charged with the direction and supervision of the wholly Government-owned Saint Lawrence Seaway Development Corporation.

In order to minimize adjustments and conflicts in departmental jurisdiction, the regulatory authority of the Secretary of Commerce does not extend to the issuance, revocation, or suspension of navigation or pilot licenses issued by the Coast Guard. Jurisdiction in regard to such licenses remains with the Coast Guard.

The Secretary of Commerce is authorized by S. 3019 to register holders of appropriate master's licenses issued by the Coast Guard for pilotage on the Great Lakes, on terms and conditions established by his regulations. Canada has indicated that it would be prepared to register Canadian pilots on a similar basis, and to allow U.S. registered pilots to serve in Canadian waters on vessels to which the bill is applicable, if Canadian registered pilots are similarly allowed to serve on such ships in U.S. waters. The bill provides for such reciprocity and, for the purpose of providing for the equitable participation of United States and Canadian registered pilots, the Secretary of Commerce is authorized to arrange with the appropriate agency of Canada, the Department of Transport, for the number of pilots who shall be registered in each country:

À basic pattern similar to that of State pilotage systems and to elements of the Canadian pilotage system has been followed in provisions of the bill for the creation of a pool or pools by a voluntary association or associations of U.S. registered pilots to provide the arrangements and facilities necessary for the efficient despatching of vessels and the rendering of pilotage services required by the bill. The Secretary of Commerce is empowered to authorize the formation of such pools, to make regulations for their operation, and to conduct inspections. He may require the pooling to be coordinated on a reciprocal basis with similar arrangements in Canada.

The Secretary of Commerce is authorized and directed to establish, by regulations, fair and equitable rates, charges, and any other conditions or terms for services performed by registered pilots to meet the provisions of the bill, giving due consideration to the public interest and the reasonable cost and expense of faclities and arrangements required for the efficient performance of those services. The Secretary is authorized to arrange with the Canadian agency for the establishment of joint or identical rates, charges, and any other conditions for registered pilots' services in the waters of the Great Lakes.

Any written arrangements between the Secretary of Commerce and the Canadian agency under the provisions of the bill would be subject to the concurrence of the Secretary of State.

The bill provides that the President shall designate the U.S. waters of the Great Lakes in which registered vessels of the United States and those foreign vessels designated by him shall be required to have in their service a registered pilot to direct the navigation of the vessel, subject to the customary authority of the master. The purpose of this provision is to require oceangoing vessels of all nationalities to have in their service a pilot having adequate knowledge and experience of navigational difficulties in the waters so designated.

These will be the waters more commonly referred to as "restricted waters."

Senator Scott. Mr. Secretary, would you permit an interruption there?

Mr. WHITE. Yes, sir.

Senator Scott. The phrase “is to require oceangoing vessels of all nationalities to have in their service a pilot," and so forth-does that mean that they are required to employ such a pilot as a part of their organization or that they retain a pilot as needed from the pilot pool!

Mr. WHITE. The latter, sir. When the vessel reaches the point of restricted waters, then a registered pilot would be required to be on board.

Senator Scott. The wording of the bill makes that clear?
Mr. WHITE. Yes; I believe so.
Senator SCOTT. Thank you, sir.

Mr. WHITE. The term "registered vessel of the United States" applies to American vessels engaged in foreign trade, as distinguished from vessels proceeding under "enrollment” when engaged in domestic trade between U.S. ports. Enrollment is also permitted under existing law for U.S. vessels engaged in foreign trade between United States and Canadian ports on the Great Lakes and St. Lawrence River. With some exceptions, enrolled vessels navigating U.S. waters of the Great Lakes and St. Lawrence River must have a complement of officers holding Coast Guard pilot licenses for those waters.

The term "those foreign vessels designated by him," as used in secttion 3 of the bill, is intended to mean, in general, all foreign ships operating in ocean routes. If the wording of the bill had been specifically limited to such ships, additions to or exceptions needed to deal with special cases that may have to be considered in the light of actual operations would not be possible without amending legislation. The provisions of the bill will not be applicable to Canadian "lakers" and "canalers” operating within the confines of the Great Lawes and St. Lawrence River so long as reciprocity is extended to enrolled U.S. vessels as is indicated by another provision of the bill.

The bill provides that the designation of foreign vessels and restricted waters shall be made with due regard to the public interest, the effective utilization of navigable waters, marine safety, and the foreign relations of the United States.

In U.S. waters of the Great Lakes not designated by the President—that is, so-called open waters of the lakes—vessels to which the bill is applicable will be required to carry a United States or Canadian registered pilot unless there is in the service of the vessel an officer who is qualified for the navigation of those waters and licensed by the Coast Guard or certificated by the appropriate agency of Canada; namely, the Department of Transport. It has been indicated in the aides memoire exchanged between the two Governments that the Canadian Government is prepared to recommend to Parliament the enactment of such legislation as may be considered necessary to provide for the certification of officers of the regular complement of oceangoing vessels who hold an appropriate master's license, who have had actual experience in the navigation of the open waters of the lakes through which these vessels will proceed, and who have a knowledge of the practice of following separate upbound and down

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