Sold – Kennedy’s Presidential Maneuvering to Maintain Vital Pacific Shipyards

The Marine Merchant Act of 1936 – considered the Magna Carta of the U.S.M.M.- recognized not only the need for direct subsidies to cover the cost differentials between American and foreign shipbuilders, but between East and West Coast shipbuilders as well. Pacific Coast shipbuilders whose bids were not more than 6 percent higher than those of Atlantic Coast shipbuilders could be granted contracts. The Act further stipulated that contracts were to be awarded equitably among all ports. This arrangement was threatened, however, when in 1962 the House of Representatives voted to eliminate the Pacific Coast shipbuilders 6 percent differential. An alarmed Governor Brown wired the President.

Here Kennedy tells Brown not to worry: if one part of the Act is repealed, he will just use another part of it to insure the viability of California’s shipyards. Typed Letter Signed as President, on green White House letterhead, Washington, April 16,1962. “I have your wire of April 10th expressing your concern over the possible repeal of the six percent differential for West Coast shipbuilders. As you know, on April 11,1962, the House of Representatives passed H.R. 1159 to repeal the differential after defeating by a vote of 147 to 83 an amendment that would reduce the differential to four percent…The bill however, has not yet been acted on by the Senate. I share your view of the importance of maintaining shipyards on all coasts of the United States. Accordingly, if the bill is enacted, you may be assured that serious consideration will be given to the needs of shipyards on all coasts in the award of contracts for ship construction under the Merchant Marine Act, 1936. I appreciate your concern and your efforts on behalf of the people of the State of California.”