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believed that to do so would be in accord with an expressed desire of the Senate Committee on Interstate and Foreign Commerce and the spirit of the amendment to H.R. 57 proposed by the Committee on Merchant Marine and Fisheries. ACcordingly, the Department of State entered into collaboration with other interested departments and agencies of our Government in an effort to develop a draft proposal for a bill that would provide a basis for a system of Great Lakes pilotage which could be conducted in coordination with a Canadian system. Discussions were also held with representatives of the Canadian Government and have resulted in a meeting of minds on provisions for this purpose.

These interdepartmental activities have progressed to the point where it is expected that a draft of such a proposed bill can be made available shortly in the hope that it will contribute to a possible solution of basic problems that have arisen in regard to the Great Lakes pilotage situation. Sincerely yours,

WILLIAM B. MACOMBER, Jr.,

Assistant Secretary. AIDE MEMOIRE

WASHINGTON, D.C., September 11, 1959. In an aide memoire dated May 16, the Canadian Government set forth its view on proposals then before Congress in a bill entitled "H.R. 57," aimed at establishing a compulsory pilotage regime for the waters of the Great Lakes. Since that time, but without altering the open waters compulsory pilotage feature, amendments have been added to the bill designed to create a joint commission composed of Canadian and United States representatives and charged with studying and making recommendations to the Canadian and United States Governments on the problems arising from increased traffic on the Great Lakes. While not opposing the creation of an International Pilotage Commission or authority, the Canadian Government considers that the membership of any such body should be more broadly based than that envisaged in the recent amendment to H.R. 57 and that in any event, if created, it should be empowered to establish and operate or control the operations of a pilotage system for the Great Lakes and its interconnecting channels which would take into account matters affecting shipping on both sides of the border as well as those affecting the trained pilotage personnel in the two countries.

Although the exact status of the various amendments to H.R. 57 is not known to the Canadian Government, it appears that the most recent amendment would have the effect of predetermining a number of issues before any joint pilotage commission or authority can be established. The Canadian Government would be unable to participate in a commission required to carry out its duties under such circumstances and, therefore, as indicated in its earlier aide memoire of May 16, would welcome the opportunity to have further discussions on this matter with the appropriate U.S. authorities.

OFFICE OF THE SECRETARY OF THE TREASURY,

Washington, March 31, 1960. Hon. WARREN G. MAGNUSON, Chairman, Committee on Interstate and Foreign Commerce, U.8. Senate, Washington, D.C.

MY DEAR MR. CHAIRMAN : Reference is made to the request to your committee for the comments of this Department on S. 3019, to provide for certain pilotage requirements in the navigation of U.S. waters of the Great Lakes, and for other purposes.

The bill would provide that registered vessels of the United States and designated foreign vessels be navigated by registered pilots while in designated U.S. waters of the Great Lakes and have registered pilots or other qualified officers on board and available to direct their navigation at the discretion of the master while in other U.S. waters of the Great Lakes. Canadian registered pilots and other officers would be permitted to navigate vessels in U.S. waters so long as Canada reciprocates in regard to navigation of Canadian waters of the Great Lakes by U.S. registered pilots and other officers. The bill would also provide for regulation by the Secretary of Commerce of registered pilots, except with respect to their licenses as issued by the Coast Guard, and of rates, charges, and other conditions for pilotage services on the Great Lakes.

There is at present no statutory requirement for compulsory pilotage of registered vessels of the United States or foreign vessels navigating U.S. waters of the Great Lakes. The number of foreign vessels using these waters increases with each navigation season. A substantial increase or.curred following completion of the St. Lawrence Seaway. It is imperative in the interest of maritime safety that such vessels be required by law to have qualified navigating personnel while in these waters. S. 3019 would provide a solution to this problem.

However, it is recommended that subsections 7 (a) and (b) be revised in order to make it clear that the penalties therein set forth relate to specific prohibited acts or omissions by persons charged with certain responsibilities rather than, as presently provided in the subsections, to violations of the duties imposed on vessels pursuant to the general language contained in subsections 3 (a) and (b). There is attached a suggested revision that is designed to accomplish that purpose.

Subject to the consideration of the suggested revision, the Treasury Department favors enactment of S. 3019 insofar as it relates to functions to be performed by the Coast Guard.

The Department has been advised by the Bureau of the Budget that there is no objection to the submission of this report to your committee. Very truly yours,

A. GILMORE FLUES, Acting Secretary of the Treasury.

REVISED SUBSECTIONS 7(a) AND 7(b)

Sec. 7. (a) Any owner, master or person in charge of a vessel subject to this Act who permits the navigation of the vessel by a person not a registered pilot in the waters designated by the President pursuant to section 3(a) of this Act or who permits the navigation of the vessel without having on board a registered pilot or other officer in the waters described in section 3(b) of this Act shall be liable to the United States in a civil penalty not exceeding $500 for each violation, for which sum the vessel shall be liable and may be seized and proceeded against by way of libel in any district court of the United States having jurisdiction of the violation. Each day the vessel shall be so navigated shall constitute a separate violation. This subsection shall be enforced by the head of the Department in which the Cosat Guard is operating.

(b) Any person not a registered pilot who directs the navigation of a vessel subject to this Act in the waters designated by the President pursuant to section 3(a) of this Act shall be subject to a civil penalty in an amount not exceeding $500 for each violation. Each day such person so directs the navigation of the vessel shall constitute a separate violation. This subsection shall be enforced by the head of the Department in which the Coast Guard is operating.

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