B-135555, JUNE 19, 1958, 37 COMP. GEN. 836

AFTER A STUDY INDICATED A SUBSTANTIAL INCREASE IN THE PASSENGER TRAFFIC ON THE ROUTES SERVICED BY THE VESSELS AND THAT THE RECONSTRUCTION WAS NECESSARY TO MEET FOREIGN COMPETITION. IS IN COMPLIANCE WITH SECTION 501 (C) OF THE MERCHANT MARINE ACT. 1958: REFERENCE IS MADE TO YOUR LETTERS OF MARCH 18 AND MAY 1. REQUESTING ADVICE AS TO WHETHER WE CONCUR IN THE VIEW OF THE FEDERAL MARITIME BOARD THAT IT IS PROPER FOR THE BOARD TO GRANT CONSTRUCTION DIFFERENTIAL SUBSIDY AID UNDER SECTION 501 (C) OF THE MERCHANT MARINE ACT. SHALL DETERMINE THAT THE GRANTING OF FINANCIAL AID IN RECONSTRUCTING OR RECONDITIONING ANY VESSEL THAT IS TO BE USED IN THE FOREIGN COMMERCE OF THE UNITED STATES IS REASONABLY CALCULATED TO CARRY OUT EFFECTIVELY THE PURPOSES AND POLICY OF THE ACT.