LETTERS

...The author replies: Dr...

...Maritime Administration for participation in and in accordance with the provisions of the said Act, in order to consider, and hopefully to award, contracts for the construction ofthe ships...

...Beyond that, Hammer’s argument obscures the larger issue: that the two Maritime outlays will cost the government at least $100 million...

...Every independent source I spoke to assured me that, in tandem, the two subsidies would save the company money over 20 years, probably a great deal of money...

...shipyards...

...Hammer missed the point...

...but as I pointed out in the article, the only significant beneficiaries of the subsidies are the Soviet Union and Occidental Petroleum...

...Finally, Hammer’s invocation of “national security” as a reason for the subsidies is a bit much, since his company’s trade with the USSR is likely to undermine a vital US industry...

...We have in hand proposals from certain Japanese shipyards to construct the ships at about one-half the cost proposed by U.S...

...Thus the fundamental issue is one of whether or not the security interests of the United States require vessels to be built in the U.S...

...Nevertheless, in accordance with the U.S...

...Hammer is chairman and chief executive officer of Occidental Petroleum Corporation...

...That kind of expenditure gives taxpayers the right to expect a reasonable return on their investment...

...maritime unions...

...On the contrary, that such government handouts to corporations are sanctioned-and commonplace-is precisely what bothered me into writing the piece...

...Hammer’s claim that the subsidies have no financial benefit to Occidental is arguable...

...Nowhere in the article do I charge or even imply that Occidental’s campaign for the Maritime subsidies is illegal...

...Letters I am writing to protest the article by Mr...

...to U.S...

...If, on the other hand, construction can be o b t a i n e d from Japanese shipyards, or others outside the United States, at considerable savings to Occidental, then obligations to Occidental stockholders would require us to pursue the most economic course...

...The price that U.S...

...and operated by the U.S...

...Gilroy to attack Occidental for taking part in programs established under U.S...

...shipyards charge and the cost of operating a vessel under the U.S...

...shipyards...

...This is an issue which the Congress properly should determine and certainly they should consider all aspects in designing legislation...

...It seems patently unfair and unjustified for Mr...

...law which will have no financial benefit to Occidental but will only equalize Occidental’s costs with those which would result by use of foreign shipping...

...It is they who will be subsidized in order to make them competitive with the rest of the world...

...I trust you will publish my reply in your forthcoming issue with equal prominence to the erroneous and misleading article by Mr...

...Maritime Act of 1970, Occidental applied to the U.S...

...flag make it absolutely clear that there will be no ships built in the United States for foreign trade unless the Maritime Administration pays the subsidies the law allows...

...It should go without saying that, all economic matters being equal, Occidental Petroleum would prefer to obtain construction of the ships in the United States...

...I consider this to be a very biased and slanted article filled with inaccuracies...

...ARMAND HAMMER Los Angeles, California Dr...

...It is true that Occidental Petroleum Corporation requires ships to perform a trade agreement between it and the Soviet U n i o n . C o n s e q u e n t l y , O c c i d e n t a l requested bid proposals for the construction of the required ships from shipyards in both the United States and Japan, and we have received proposals from each of them...

...These proposals vary greatly...