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metals alloyed with gold, items with less than 10 karats of gold will perform better than 10 karat alloys, particularly in the area of corrosion resistance. This it is unclear whether the mere absence or presence of 10 karats of gold will by || itself determine the presence or absence of these valuable properties. The tcertain scientific bases for the so-called 10 karat standard, then, boldly under scores the constitutional danger of an advertising ban based vaguely upon the "inherently misleading" character of accurate gold content disclosures below 10 karats.

In conclusion, S. 2782 is precisely the kind of blanket suppression of adver tising that the Federal courts have consistently disallowed on First Amendment grounds since the landmark decision in the Virginia Pharmacy Board case. We respectfully urge the Committee to reject the unconstitutionally paternal ap proach to advertising regulation which S. 2782 represents, and thereby to stimu late a more thorough evaluation of the need for regulation of advertising abuses in the jewelry industry based upon the free flow of accurate information, rather than upon public ignorance.

[Whereupon, at 11:05 a.m., the hearing was adjourned.] О

GRANTS FOR DOMESTIC OFFSHORE COMMUNITIES SEAPORT DEVELOPMENT ACT OF 1977

HEARING

BEFORE THE

SUBCOMMITTEE ON

MERCHANT MARINE AND TOURISM

OF THE

COMMITTEE ON COMMERCE,
SCIENCE, AND TRANSPORTATION
UNITED STATES SENATE

NINETY-FIFTH CONGRESS

SECOND SESSION

ON

S. 2348

TO AMEND THE MERCHANT MARINE ACT, 1920, BY ESTABLISHING A PROGRAM OF DEVELOPMENT GRANTS FOR THOSE SEAPORTS LOCATED IN THE DOMESTIC OFFSHORE STATES, TERRITORIES, AND POSSESSIONS OF THE UNITED STATES

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COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

HOWARD W. CANNON, Nevada, Chairman

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CONTENTS

Opening statement by Senator Inouye_.

Text of S. 2348_.

Agency comments, Federal Maritime Commission---

LIST OF WITNESSES

FEBRUARY 24, 1978

Armstrong, Armour S., Director, Office of Port and Intermodal Develop ment, Maritime Administration, Department of Commerce; accompanied by Daryl M. Bladen, Deputy Director, Office of Public Works, Economic Development Administration__.

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Questions of the subcommittee and answers thereto___
Finnerty, Peter J., vice president, public affairs, on behalf of Sea-Land
Service, Inc____.

Questions of the subcommittee and answers thereto..
Kono, Hideto, director, department of planning and economic development,
Hawaii

Questions of the subcommittee and answers thereto--Kuyendall, John R., vice president, Matson Navigation__ Questions of the subcommittee and answers thereto..

Schultz, Richard L., executive vice president, American Association of
Port Authorities___

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Shefler, Stephen A., Deputy Assistant Secretary for Policy and International Affairs, Department of Transportation; accompanied by C. Peter Schumaier

Prepared statement__

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ADDITIONAL ARTICLES, LETTERS, AND STATEMENTS

Alaska Federal-State Land Use Planning Commission, study-
Ariyoshi, Hon. George R., Governor of Hawaii, letter of February 9, 1978__ 45
Blas, Frank F., chairman, Committee on Commerce, Tourism and Trans-
portation, Territory of Guam, letter of February 27, 1978____
Bordallo, Richardo, Office of the Governor, Territory of Guam, letter of
April 12, 1978__

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Coleman, Hon. Peter Tali, Governor, American Samoa, letter of April 19, 1978

52

Corrada, Hon. Baltasar, U.S. Resident Commissioner from Puerto Rico, statement

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46

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de Lugo, Hon. Ron, U.S. Delegate from the Virgin Islands, statement..
Gravel, Hon. Mike, U.S. Senator from Alaska, statement---
Hammond, Hon. Jay S., Governor of Alaska, letter of March 10, 1978_.
Stevens, Hon. Ted, U.S. Senator from Alaska, statement_
Virgin Islands, Department of Commerce, statement---

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