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American Waterborne Commerce Coalition

Agriculture Transportation Coalition American Association of Port Authorities American Great Lakes Ports American Iron and Steel Institute American Iron Ore Association American Maritime Congress American Pilots' Association American Steamship Company American Waterways Operators Arch Coal Sales International Bay Shipbuilding Company Bethlehem Steel Company Canal Barge Company Caterpillar Inc. Cement Transit Company Central Gulf Lines, Inc. Chamber of Shipping of America Cleveland-Cliffs Inc. Cleveland Tankers Ship Management Inc. Coal Exporters Association of the United States Coastwise Trading Company Council of European and Japanese National Shipowners' Association (CENSA) Cravat Coal Co. Dredging Contractors of America Energy Trading Corporation Erie Sand Steamship Co. EVTAC Mining Farmland Industries, Inc. Florida Barge Lines Corporation Fraser Shipyards, Inc. Great Lakes District Council, International Longshoremen's Association Hannah Marine Corporation ILA Lake Erie Coal & Ore Dock Inland Lakes Management, Inc. Inland Steel Company Inland Steel Mining Company Interlakes Pilots Local #1921 International Chamber of Shipping (ICS) International Organization of Masters, Mates & Pilots International Ship Masters' Association International Shipholding Corporation Jim Walter Resources, Inc.

Lake Carriers' Association
Lake Michigan Contractors, Inc.
Lakes Shipping Company, Inc.
Louis Dreyfus Corporation
Luedtke Engineering Company
Maersk Inc.
Maple Creek Mining, Inc.
Marinette Marine Corporation
Maritime Exchange for the Delaware River and Bay
Maritime Institute for Research and Industrial Development
Maritime Trades Department, AFL-CIO
Matson Navigation Company
Metro Machine of Pennsylvania
Midwest Energy Resources Company
National Association of Maritime Organizations
National Grain & Feed Association
National Mining Association
National Waterways Conference, Inc.
Nicholson Terminal & Dock Co.
North American Export Grain Association
NPR, Inc./Navieras
Oglebay Norton Company
Passenger Vessel Association
Pea Ridge Iron Ore Company
Rouge Steel Company
Ruhrkohle Trading Corporation
Sea-Land Services, Inc.
Seafarers International Union of North America
SSM Coal North America, Inc.
St. Lawrence Seaway Pilots' Association
Summers Fuel Inc.
The American Coal Sales Company
The Interlake Steamship Company
The Ohio Valley Coal Company
The Ohio Valley Transloading Company
The Port Authority of New York & New Jersey
Toledo Shiprepair Company
Totem Resources Corporation
Transportation Institute
U.S. Steel Group, A Unit of USX Corporation
United Steelworkers of America - District 1, AFL-CIO-CLC
United Steelworkers of America - Local 5000
USS Great Lakes Fleet, Inc.
Western Great Lakes Pilots Association
Waterman Steamship Corporation

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Good moming, Mr. Chairman. It is a pleasure to appear before this distinguished Committee today to discuss the Coast Guard's fiscal year 1999 budget request and its impact on the current and future state of the Service. Before I begin, I would like to thank you for your strong bipartisan support of H.R. 2204, the Coast Guard Authorization Act for Fiscal Years 1998 and

1999. This proposal will improve our financial and personnel management, enhance maritime

safety and environmental protection, and improve navigation safety, while ensuring the Coast Guard remains at the forefront of public service.

During the past four years, the dedicated men and women of the Coast Guard have fulfilled our role as the world's premier maritime service. They have:

Saved more than 19,500 lives and nearly $9.3 billion in property.
Prevented more than 370,000 pounds of cocaine, marijuana and other illegal drugs
from reaching America's streets and school yards.
Responded to more than 64,000 reports of water pollution or hazardous material
Boarded more than 59,000 fishing vessels to check for compliance with safety and
preservation laws.

The Coast Guard has also accepted the challenge to operate and manage more effectively; to engage in smart business practices; and to employ the tenets of quality centered management, the National Performance Review and the Government Performance and Results Act to achieve the

greatest possible savings and efficiencies. The result is a lean Coast Guard, staffed at a most efficient organization“ level, which stands proudly as a model of better government at less cost.

Operating the Coast Guard To provide services to the public, in fiscal year 1999 the Coast Guard requests $2,772 million in Operating Expenses (OE) and $67 million in Reserve Training Funds. Included in this request are the necessary funds to restore the Coast Guard workforce, currently under strength largely due to a very strong economy; and funds to provide adequate quality of life for Coast Guard personnel. To continue delivering current services at the requested level, I have identified nearly $58 million in additional internal efficiencies. The Reserve Training Request funds a Selected Reserve strength of 7,600 personnel that are part of Team Coast Guard and are integral to service delivery. I request your full support for both the Operating Expenses and Reserve Training requests as any reductions will impact the Coast Guard's ability to provide the services to the public. Our fiscal year 1999 OE request reflects the Coast Guard's priorities across five strategic goals - safety, protection of natural resources, mobility, maritime security, and national defense.

Safety The Coast Guard's goal is to reduce deaths, injuries, and property damage associated with maritime transportation, fishing, and recreational boating. Each year, we respond to more than 50,000 search and rescue calls for assistance alone - from recreational boaters in distress to freighters sinking in gale-force winds. Each year, the Coast Guard saves approximately $2.5 billion dollars in property and 5,000 lives during search and rescue missions. Our marine safety program promotes safety through both our regulatory and inspection roles.

Protection of Natural Resources We strive to eliminate environmental damage and natural resource degradation on the high seas, within the 200-mile Exclusive Economic Zone, and in our territorial seas, ports and waterways. We protect the nation's valuable natural marine resources from the dangers of overfishing and foreign poaching. Every day, the Coast Guard patrols the closed fishing grounds off New

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