WASHINGTON, D.C. -- United States Senator Daniel K. Inouye announced that the House-Senate Conference approved legislation to create a pilot project for technology transfer in cruise ship construction, to develop the U.S. flag ship cruise industry, and help reduce U.S. shipyard dependence on defense construction. This measure is included in the Fiscal Year 1998 Department of Defense (DoD) Appropriations Bill.

"This proposal would result in additional Hawaii-based cruise ship capacity, and generate an estimated 700 seafaring jobs within 18 months, gradually increasing to at least approximately 2000 jobs," stated Senator Inouye.

"Additionally, the operation of these cruise vessels will create thousands of jobs at Hawaiian ports, the marine passenger vessel supply industry, and other job-related activities required for cruise ship operations," continued Senator Inouye.

The Pilot Project will be supervised under the DoD MARITECH program which the Congress authorized in 1993 to facilitate advanced commercial shipbuilding in the U.S. yards and the transition from depending on military construction to the competitive commercial market. Under MARITECH's auspices two cruise ship design projects have been completed (led by Ingalls Shipyard and the NASSCO Shipyard). The Pilot Program is designed to facilitate actual construction, with private capital, of new ocean-going cruise ships.

"These cruise ships will be capable of being requisitioned by the DoD to help assist in U.S. military mobilizations, and the mariners employed on these vessels will help contribute to the base of mariners needed to fulfill our nation's defense objectives," stated Senator Inouye.

Upon final approval by the U.S. House of Representatives and the U.S. Senate, the Fiscal Year 1998 Defense Appropriations bill will be transmitted to the White House to await President Clinton's signature.