protection, under certain conditions, for vessels other than tuna vessels (for example, shrimp vessels) which operate in the 200-mile fisheries zone of other nations.

Since the inception of the cooperative insurance program in 1969, the program has met with considerable enthusiasm and interest by the U.S. commercial fishing industry. By 1972, guaranteed agreements numbered 213 under the cooperative program, of which 103 were for tuna vessels and 110 for shrimp vessels.

For the period from July 1, 1976, to July 1, 1977, there were 166 vessels participating under the program, of which 157 were tuna vessels and 9 were shrimp vessels. As of this date, 119 vessels are participating under the program, 116 of which are tuna vessels and 3 of which are shrimp vessels.

Since the inception of the program there have been 119 seizures eligible for compensation under the program. Equador was responsible for 88 of those seizures, Peru for 30, and Panama for 1. Claims resulting from these seizures have amounted to over $3 million. Fees collected have totaled over $1.5 million, and there is a present balance in the account of approximately $1.1 million. Since 1975, there had been no seizures, until April of this year when Costa Rica seized two United States vessels and Mexico seized two U.S. vessels.

SUMMARY OF THE BILL

The bill extends the voluntary insurance program established by section 7 of the Fishermen's Protective Act for an additional 3 years, until October 1, 1981.

ESTIMATED COSTS

The Committee estimates that, if this bill were enacted into law, it would involve no significant additional cost to the federal government. The cost estimate letter of the Congressional Budget Office follows:

CONGRESSIONAL BUDGET OFFICE,

U.S. CONGRESS, Washington, D.C., May 8, 1978.

Hon. HOWARD W. CANNON,

Chairman, Committee on Commerce, Science, and Transportation, U.S. Senate, Washington, D.C.

DEAR MR. CHAIRMAN: Pursuant to Section 403 of the Congressional Budget Act of 1974, the Congressional Budget Office has reviewed H.R. 10878, a bill to extend until October 1, 1981, the voluntary insurance program provided by section 7 of the Fishermen's Protective Act of 1967, as ordered reported by the Senate Committee on Commerce, Science, and Transportation. May 9, 1978.

Based on this review, it appears that no significant cost to the government would be incurred as a result of enactment of this bill. Sincerely,

ROBERT A. LEVINE,
Deputy Director.

S.R. 816

REGULATORY IMPACT STATEMENT

In compliance with paragraph 5 of rule XXIX of the Standing Rules of the Senate, the Committee estimates the regulatory impact of H.R. 10878 as follows:

1. The bill extends the voluntary insurance program established by section 7 of the Fishermen's Protective Act. Affected persons are those distant water United States fishermen who wish to enter into such an insurance agreement.

2. Section 7 insurance agreements provide contracting fishermen with economic security in the event of a seizure of their vessel by a foreign country on the basis of rights or claims in the territorial or high seas which are not recognized by the United States.

3. The Committee estimates that this bill will have no significant impact on the personal privacy of the persons affected.

4. The Committee estimates that this bill will not produce any significant amount of additional paperwork.

COMMITTEE ACTION

H.R. 10878, as originally referred to the Committee, included amendments to sections 8 and 10 of the Fishermen's Protective Act, in addition to the section 7 extension. Because the Committee has not had an adequate opportunity to examine these amendments, it has reported only the section 7 extension, however, the Committee is committed to consideration of the section 8 and 10 issues later during this session of Congress.

CHANGES IN EXISTING LAW MADE BY THE BILL AS REPORTED

In compliance with clause 3 of rule XIII of the Rules of the House of Representatives, changes in existing law made by the bill, as reported, are shown as follows (existing law proposed to be omitted is enclosed in black brackets, new material is printed in italic, existing law in which no change is proposed is shown in roman):

SECTION 7(e) OF THE FISHERMEN'S PROTECTIVE ACT OF 1967,
AS AMENDED

(22 U.S.C. 1977 (e))

(e) The provisions of this section shall be effective until [October 1, 19781 October 1, 1981.

S.R. 816

MAY 12 (legislative day, APRIL 24), 1978.-Ordered to be printed Filed under authority of the order of the Senate of MAY 11, (legislative day, APRIL 24), 1978

Mr. CANNON, from the Committee on Commerce, Science, and
Transportation, submitted the following

REPORT

[To accompany H.R. 11465]

The Committee on Commerce, Science, and Transportation, to which was referred the bill (H.R. 11465) to authorize appropriations for the U.S. Coast Guard for fiscal year 1979, and for other purposes, having considered the same, reports favorably thereon with amendment (s) and recommends that the bill as amended do pass.

PURPOSE OF THE LEGISLATION

H.R. 11465 authorizes appropriations in the amount of $1,397,743,000 for fiscal year 1979 for the operation and maintenance of the Coast Guard; for acquisition, construction and improvement of vessels, aircraft and facilities; for the alteration, or removal of obstructive bridges; and for research, development, testing and evaluation. It provides authorization for military personnel ceilings and necessary average student training loads. It also authorizes appropriations in the amount of $10 million for each of the fiscal years 1979 and 1980 for the State boating safety program. In addition, it includes authority for the Coast Guard to enter into a long-term lease in excess of 1 fiscal year in order to acquire a new site on the Quillayute Indian Reservation in the State of Washington, for the relocation of the Quillayute River Coast Guard Station.

BACKGROUND

The Coast Guard operates as a part of the Department of Transportation, with primary responsibility for, or assisting in the enforcing of, all applicable Federal laws on and under the high seas and

waters subject to the jurisdiction of the United States, the promotion of safety of life and property in those areas, the maintenance of aids to maritime navigation, icebreaking, and engaging in oceanographic research.

Within the boundaries of its assigned duties, the Coast Guard has been charged in various statutes with specific responsibilities relating to the enforcement of the 200-mile exclusive fishery zone, the monitoring of foreign fishing fleet activities, the maintenance of necessary equipment designed to rescue persons and save property placed in jeopardy in martime regions and otherwise where its forces are reasonably available, the maintenance of manned and unmanned aids to navigation along the coast and inland waterways, the review and approval of construction and alternation plans of commercial vessels, the establishment and oversight of standards for recreational boats, the conduct of Polar and domestic icebreaking and oceanographic research, and the exercise of various marine environmental protection duties designed to minimize and abate pollution threats to the marine environment. The Coast Guard has also been charged with the safety of our ports and waterways through the operation of vessel traffic services and port safety controls while also regulating foreign and domestic vessels carrying oil or hazardous polluting substances. Finally, the U.S. Coast Guard, pursuant to title 14, United States Code, is an armed force, maintaining a readiness to operate as a service in the Navy, upon declaration of war or when the President otherwise directs. In addition, individual units operate with the Navy in time of national emergency.

To perform these varied and vital functions, the Presidential budget envisions an end-of-year strength for fiscal year 1979 of approximately 44,800 active duty officer, enlisted, and civilian personnel. The Coast Guard maintains and operates various types of vessels, various aircraft, and shore facilities necessary to carry out assigned missions effectively. While the facility level varies from time to time, the Coast Guard, at the end of fiscal year 1978, will have approximately 250 vessels, not including small boats, and 170 aircraft.

COMMITTEE ACTION

COAST GUARD AUTHORIZATION

The Committee on Commerce, Science, and Transportation, in performing its annual review of the Coast Guard budget, has run into the same type of problem that has repeatedly faced it in each of the last several years. As has been stated before, the committee continues to be gravely concerned over the Coast Guard's capability to perform the duties with which it has been charged by the Congress. Hearings held during the course of the last year, particularly in the areas of marine safety and marine environmental protection, have consistently confirmed the fact that the complement of Coast Guard personnel is stretched beyond reasonable limits in attempting to execute the Coast Guard missions. These inadequacies were again revealed at the committee's authorization hearings, held on April 12, 1978. The committee once again repeats that it is absolutely mandatory that the Coast Guard be provided with the necessary equipment and

personnel to carry out its many and varied missions and responsibilities. In a labor intensive service, only adequate personnel strength can insure the proper execution of assigned duties. In previous years, this committee has given voice to this same concern. Unfortunately, for any number of reasons, it has been unsuccessful in persuading the Office of Management and Budget and a sufficient number of the Members of Congress to provide the wherewithal which this committee finds completely justified to improve the situation, and which it is convinced is in the national interest.

We recognize, as do other Members, the serious conditions which face the Federal Government, and we are willing to join others in keeping Federal expenditures within the bounds necessary to avoid adding new inflationary pressures to the economy. At the same time, we cannot expect the Coast Guard to properly execute its missions involving the general safety of maritime operations, the saving of life, the reduction of marine casualties, and the general protection of the marine environment unless we are willing to provide an adequate number of personnel and the replacement of outmoded, often obsolete equipment with which we too often force the Coast Guard to operate. It was with a feeling of deep disappointment that the committee, in reviewing the Presidential budget, discovered that the President was actually recommending a reduction in Coast Guard personnel strength in both the military and civilian sectors. From the facts that the committee was able to elicit, it appears that this reduction was dictated without consideration of needs but purely on the basis of saving the money necessary to pay such personnel. Such an approach is, for the committee, completely unacceptable. In its action on the Presidential budget proposal, therefore, it was of primary importance to restore that proposed reduction, consisting of 278 military and 66 civilian personnel. In addition to that recommended restoration, the committee considered the needs for improving Coast Guard performance in its programs of search and rescue, marine safety, marine environmental protection, and law enforcement. In so doing, the committee reached the conclusion that, not only should the proposed reduction be rejected but also that personnel should be added to the areas referred to above.

In addition to increasing the authorization for funds necessary to add personnel, the bill continues the authorization of the mediumendurance cutter replacement program initiated for fiscal year 1977 and continued in fiscal year 1978 by authorizing the procurement of three cutters in fiscal year 1979. With the recent additional responsibility for enforcement of the extended fishing limits established under the Fisheries Conservation Management Act of 1976, the Coast Guard has attempted to meet its needs by reactivating vessels built during World War II. The attempt has been less than successful. For instance, the USCG Cutter Unimac, scheduled for reactivation and deployment last fall, is still not operating, and the Coast Guard estimate that it will be available in June 1978 arouses some skepticism. To attempt to perform its missions with this type of cutter requires increasing expenditures of personel, time, and efforts not only to begin the operation but also to maintain them in an adequate operating condition. The authorization also continues replacement programs for search and