February 22, 1983
The President today announced that he is directing the Department of Agriculture to require that
50 percent of the wheat flour sold to Egypt under an agreement concluded last month be carried
on U.S.-flag vessels. This action reflects the administration's continued commitment to the
maintenance of a strong U.S. merchant fleet. Approximately 500,000 tons of additional cargo that
would otherwise have gone to foreign-flag ships will be transported on ships manned by U.S.
crews as a result of the President's directive.
The administration has undertaken a series of initiatives over the past year to strengthen the U.S.
merchant fleet. The Department of Transportation and other agencies have cooperated on efforts
to reduce the regulatory burden on U.S. shipbuilders and ship operators. The administration has
also supported the maritime industry's efforts to streamline the liner conference structure.
The U.S. maritime industry has been particularly hard-hit by the recession from which our
economy is now emerging. The unique circumstances surrounding our competitive sale to Egypt
of wheat flour provided an opportunity to ensure that the U.S. merchant fleet will remain a vital
force in shipping the products that U.S. farmers grow for the world market.