[Federal Register Volume 62, Number 223 (Wednesday, November 19, 1997)]
[Rules and Regulations]
[Pages 61648-61649]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-30277]
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FEDERAL MARITIME COMMISSION
46 CFR Part 586
[Docket No. 96-20]
Port Restrictions and Requirements in the United States/Japan
Trade
AGENCY: Federal Maritime Commission.
ACTION: Final rule; suspension of effectiveness.
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SUMMARY: The Federal Maritime Commission is suspending the
effectiveness of its final rule assessing fees on liner vessels
operated by Japanese carriers, in light of agreements reached between
the United States Government and the Government of Japan, and among
affected commercial parties and the Government of Japan, addressing
restrictive and unfavorable conditions affecting U.S. shipping in
Japanese ports.
DATES: Effective November 13, 1997, 46 CFR 586.2 as published at 62 FR
9696, March 4, 1997, and amended at 62 FR 18532, April 16, 1997, is
suspended.
ADDRESSES: Filings and requests for publicly available information
should be addressed to: Joseph C. Polking, Secretary, Federal Maritime
Commission, 800 North Capitol Street, N.W., Washington, D.C. 20573,
(202) 523-5725.
FOR FURTHER INFORMATION CONTACT:
Thomas Panebianco, General Counsel, Federal Maritime Commission, 800
North Capitol Street, N.W., Washington, D.C. 20573, (202) 523-5740.
SUPPLEMENTARY INFORMATION: On February 26, 1997 (62 FR 9696, March 4,
1997), the Commission issued a final rule pursuant to section 19(1)(b)
of the Merchant Marine Act, 1920, 46 U.S.C. app. 876(1)(b), to assess
per-voyage fees on Japanese liner carriers, in response to unfavorable
conditions facing U.S. shipping in Japanese ports. On April 13, 1997
(62 FR 18533, April 16, 1997), the Commission postponed the effective
date of the final rule (originally set for April 14, 1997) until
September 4, 1997, to allow the Government of Japan and affected
parties further opportunity to craft appropriate plans for addressing
the unfavorable conditions identified in the final rule. On September
4, 1997, the Commission, having been presented
[[Page 61649]]
with no evidence of meaningful reforms to Japanese port conditions,
took no action to prevent the rule from becoming effective.
Over the last several months, and particularly in recent weeks,
U.S. and Japanese Government negotiators have worked assiduously to
craft agreements and reform plans to remedy the unfavorable conditions
that prompted the Commission's final rule. On October 27, 1997, it came
to the Commission's attention that these negotiators had come to terms
on certain documents which, upon ratification, would constitute a
comprehensive agreement to reform Japanese port practices. Based on
this positive development, the Commission entered into a consent order
with the Japanese shipping lines, accepting a compromise payment of
$1.5 million in full satisfaction of the $4 million owed (and overdue)
for the month of September, and agreed to take no further action in
this matter while the ratification of the agreements were pending.
On November 10, 1997, Chairman Creel received a letter from Under
Secretary of State for Economic, Business, and Agricultural Affairs
Stuart E. Eizenstat and Acting Maritime Administrator John Graykowski,
conveying final signed copies of correspondence between Secretary of
State Madeleine K. Albright and Ambassador Kunihiko Saito reflecting
the arrangements reached by the U.S. and Japan delegations during the
talks. Mr. Eizenstat and Mr. Graykowski stated that ``this package
represents a reasonable basis to recommend that the Commission
compromise all the remaining assessments under Docket No. 96-20 for
October and November and suspend further assessments and the
requirement for Japanese carriers to report further vessel calls.''
Attached to Ambassador Saito's letter were copies of two agreements
among the Government of Japan and commercial interests regarding the
system of prior consultation.
The Commission is persuaded that the arrangements reflected in
these documents represent a significant step in the process of
remedying unfavorable Japanese port conditions. While the Commission's
ultimate concern is the improvement of actual shoreside practices and
policies, in this case--where the issues are complex and the affected
interests are several--the crafting and achievement of consensus on
workable reform plans is a vital and commendable part of the process.
The agreed-upon plans address in substance all of the unfavorable
conditions identified in the Commission's final rule, covering both the
issues of licensing of port transportation business operations and the
system of prior consultation. With regard to the latter, relevant
parties have agreed on reform of the existing system and the creation
of an alternative process of prior consultations. We expect that these
changes, when fully implemented, will remedy those unfavorable
conditions identified in the final rule.
Accordingly, the Commission is now suspending the effectiveness of
the final rule. This action has the effect of ceasing both the
assessment of fees on Japanese carriers and the requirement that they
report vessel calls.
The Commission expects that it will collect information
periodically in the normal course to remain apprised of changes in port
conditions resulting from implementation of the Agreements. However, we
would note that the arrangements reached by U.S. and Japanese
negotiators include provisions for consultation. It is our hope that,
should any disputes or problems arise in the implementation of these
agreements, they can appropriately be addressed through diplomatic and
consultative mechanisms. To encourage such a process, if a complaint
relating to matters contained in this docket is lodged with the
Commission at any time by interested persons, the Commission
immediately will notify the Secretary of State of such complaint, and
will request the Secretary of State to seek resolution of the
outstanding matters through diplomatic channels. At the same time,
however, the Commission retains its authority to take further action,
should it become necessary to do so.
Therefore, it is ordered, That 46 CFR 586.2 as published March 4,
1997 (62 FR 9696), and amended by the Commission April 16, 1997 (62 FR
18532) is hereby suspended.
By the Commission.
Joseph C. Polking,
Secretary.
[FR Doc. 97-30277 Filed 11-18-97; 8:45 am]
BILLING CODE 6730-01-M
