§ 78. Mr. Hector Hughesasked the Minister of Transport what study he has made of the United States of America's Federal Maritime Commission policy in relation to its effect on British shipping; and if he will make a statement as to its effect on British passenger services and British exports and imports.
§ Mr. MarplesThe effects of U.S. shipping policy on British interests are under constant study by my Department.
The rules the U.S. Federal Maritime Commission make under United States shipping acts cover virtually the whole field of the commercial management of shipping. The Commission claim the right to regulate in respect of shipping 61W to and from the United States transactions made in any part of the world by nationals of any country if, in their view these transactions are detrimental to U.S. commerce; their regulations are intended to apply not only to shipowners but to shippers doing business with them, who may, of course, be in this country. The Commission ask shipping conferences to disclose details of requests by shippers and correspondence about freight rates and other conditions of shipment even though the arrangements are made outside the United States; and have recently asked conferences to vary certain freight rates in the interests of the commerce of the U.S. or to submit evidence in justification of the existing rate differentials.
The Shipping Act and the Commission's regulations are complex and widely drawn, and difficulties of interpretation frequently arise that can only be resolved by the expensive process of litigation in the American Courts. In addition, complying with the Commission's regulations results in heavy administrative costs and delays. It is difficult to quantify the effects the detailed control of the Commission has on British interests, but they must be substantial.
In addition, the activities of the Federal Maritime Commission raise matters of jurisdiction which, while primarily the concern of governments, further add to the difficulties of trading with the U.S.
The activities of the Commission are under constant study by my department, and their potential impact is discussed with the Chamber of Shipping of the United Kingdom and other interested bodies. Her Majesty's Government, usually in concert with other governments, have made representations to the United States Authorities on a number of occasions.