Statement by the President on the Improved Outlook for the Shipbuilding Industry.

DURING the past few days we have seen the beginnings of fruition of many months of hard work on plans for a new shipbuilding program in the United States. With the end of the recent war, our vital shipbuilding industry began to dwindle until it became threatened with practical extinction. This situation was a matter of grave concern, particularly to those in the Government and the maritime industry who are responsible for the development and maintenance of balanced American-flag shipping services adequate for our trade and national defense.

We now have promise that the shipbuilding industry will flourish again, and that the skills possessed by its trained personnel will not be lost to the industry. We have promise that the American Merchant Marine will be equipped with the number and types of vessels necessary for our international trade and our national security.

Last week the Maritime Commission awarded to the Bethlehem Steel Company a contract for the construction of two large passenger vessels for the Mediterranean service of American Export Lines. Today, the Commission awarded a contract to the New York Shipbuilding Corporation for the building of three combination passenger cargo vessels for the round-the-world service of American President Lines. Furthermore, a very encouraging move has been made toward the construction of a superliner for the North Atlantic service of United States Lines, in the invitation issued by the Maritime Commission for bids for the building of the largest passenger vessel ever projected for construction in an American shipyard.

This shipbuilding program, which will provide work for thousands in the shipyards and subcontracting plants throughout the country now, and in the Merchant Marine later, is developing as the result of cooperation in the Government and between the Government and industry.

The postwar needs of the American Merchant Marine have been my concern for some time. I have caused studies to be made of these needs, and have urged the closest cooperation between the Maritime Commission and the National Defense Establishment to insure that our merchant shipping and national defense programs shall be closely integrated. Supplementary to my Budget Message, I asked that the Congress appropriate sufficient funds to provide for the vessel requirements of the Merchant Marine. Congress approved $94,000,000 in contract authorization for the Maritime Commission for the fiscal year 1949, and in addition extended the authority to use $84,000,000 in unobligated contract authorization for the fiscal year 1948 until September 30, 1948, making a total of $178,000,000 currently available.

The willingness of private steamship companies to match their capital with these Federal funds for the building of ships, as indicated during the past few days, is most encouraging. I hope that additional contracts can be placed. A Maritime Commission, Military and industry Liaison Committee is now exploring the possibilities of extending the merchant ship construction program under the provisions of existing legislation which makes available to private companies construction-differential subsidies offsetting the higher costs of building ships in American yards as against building them in foreign yards. The efforts of this committee, and the continued cooperation of industry with the Government through the Maritime Commission, will assure us of an American Merchant Marine adequate for both trade and defense, as envisaged in the national maritime policy expressed in the Merchant Marine Act of 1936.