MARAD CALLS FOR ADDED PRIVATE ANTI-DRUG EFFORTS

As much as ocean carriers have pitched in to thwart the drug trade and other
illicit traffic, it's still not enough, the federal government said in a new
report.

Ocean carriers and shippers must help out more in providing adequate
security for maritime commerce, primarily by sharing information with
authorities, said the report released by the Maritime Administration.

This help would go so far as sharing heretofore private, competitive data,
such as the practices of the carriers' customers, the study suggested.The
study, called the "Maritime Security Report," was prepared by Marad's Office
of Ports and Domestic Shipping.

The report emerges at a time when carriers, weathering years of falling
freight rates, largely believe they have already done their part to prevent
ships from being used for drug trafficking and other forms of illegal trade.

Yet Congress and the Clinton administration are increasing pressure on
agencies like the U.S. Customs Service to stop the tide of narcotics, even
as trade volumes are soaring and Customs' resources are strained.

Noting that 45 percent of the Customs' Service's intelligence comes from
"external sources," the Marad report said that a key component is "the
private sector's role in supporting government's requirements for actionable
intelligence on cargo-crime activities."

While the report said exchanging information is "indispensable," carriers
said they are edgy about being perceived by their customers as agents of the
authorities.

Because security procedures can delay the speedy movement of cargo, the
shipping industry and government agencies are by nature at odds.

"The more we cooperate, the more we get drawn in, the slower things go,"
moaned a maritime executive with a security background.

Dennis P. Latina, director of business development for Delaware River
Stevedores Inc., said the only way carriers and others would want to share
information is if they managed the shipping package from the exporter to the
door of the importer.

"Only if it's absolutely seamless," said Mr. Latina, who operates terminals
in the ports of Wilmington, Del., and in Philadelphia. "Otherwise, nobody is
going to want to share information. This is a thing we keep to ourselves."

COOPERATIVE PARTNERSHIP

The report said, "A cooperative partnership between U.S. government agencies
and U.S. companies engaged in foreign trade is needed to deter and counter
the operations of trans-national, organized-crime groups targeting
commercial operations."

It said, "Modern international trade transactions are conducted in multiple
markets . . . The complex and urgent pace of these activities often
overwhelms local, state and federal enforcement capabilities." . . . A
government-only approach depends on regulatory and law-enforcement
capabilities . . . Law enforcement and judicial proceedings alone are not
adequate mechanisms for combating trans- national organized crime's
targeting of international commerce. Robust private support is also needed."

Some 90,000 ships flying the flags of 200 nations move about 95 percent of
global cargo, the Marad study said.In that mix, law- enforcement agencies
have tried in the past to encourage the private sector to be of assistance.

But seemingly avoidable snafus emerged, according to sources who asked not
to be identified. Examples, which were not in the Marad study, include
these:

* A vessel's owners tipped the Customs Service to a suspicious container.
Authorities seized the container and fined the carrier.

* A carrier made a number of calls to authorities about a suspicious
container, with no response. Later, authorities stormed onto the same ship
and drilled holes in containers, leaving the carrier to tell its customers
that its boxes had just been damaged and needed to be repaired -- at the
shippers' expense.

* Agents arrested Egyptian officers after sniffer dogs found mere hashish
traces in the officers' cabins following a trip from Egypt, where pot is
tolerated recreation.

The most lucrative cargo crimes, according to the Marad study, are: theft,
drug-smuggling, trafficking in illegal aliens, handling stolen autos,
contraband merchandise and shipments of illicit currency.

The Marad report applauded government's earlier attempts to partner with
carriers, governments and shippers on security issues.

CARRIERS ON BOARD

Carriers serving drug-heavy ports have joined the U.S. Super Carrier
Initiative Agreement, where the carrier takes extra steps against smuggled
drugs in exchange for lower fines.

A similar government-industry venture, the Sea Carrier Initiative, aims at
reducing drug-smuggling on all cargo ships.In a third program, the Americas
Counter-Smuggling Initiative, Customs enlists Latin-American governments to
keep drugs away from export cargo.

"If any of this is going to be of value, it is going to have to help the
carrier in maintaining efficiencies," said maritime lawyer John E. Nelson II
of Watson, Farley & Williams in New York.

NO INCENTIVE

Kevin W. Shields, president of US Africa Navigation Inc., in Edison, N.J.,
said, "There is not a heck of a lot of incentive for the carriers because
there isn't any money."

He says the private sector wants the government to lobby for the industry in
foreign capitals, to encourage trading-partner nations to upgrade their own
customs systems.

"There are guys in some ports who make their money in finding something
wrong, in finding "T's' not crossed, in finding 40 items in a box when the
paperwork says there are supposed to be 39. Then we are penalized," he said.

Reflecting the case made by the Marad report, Rex Sherman, security liaison
at the American Association of Port Authorities, said all levels of
enforcement come together at the port.

Mr. Sherman said, "Customs is there for the revenue of the government. The
Drug Enforcement Administration is there. Immigration and Naturalization is
there. For the stolen cars, you have the FBI to some extent, and then you
have state and local police, and the port police. It all bunches up in the
port. Security there has to be a joint effort."

A handful of ports around the country, including New York and Los Angeles,
have cargo crime task forces made up of many of those agencies.

Marad's report targeted eight broad goals: Move the first line of defense
beyond U.S. borders, attack smuggling and smuggling-related crimes, deny
safe haven to known criminals, combat money-laundering and strictly police
high-tech exports.

Also, monitor newly-hatched international crime rings, establish
international standards, enhance executive-branch policy to mobilize, and
incorporate the private sector into U.S. government efforts.

The report can be obtained by calling the Marad Office of Ports and Domestic
Shipping at (202) 366-4357.

COMBATING CRIME

The following agencies, programs and organizations can assist shippers and
carriers wishing to increase their cooperation with the government in
combating cargo theft and narcotics trafficking:

Transportation Department's Office of Intelligence and Security -- 202-366-
6525.

Office of Transportation Policy, Bureau of Economic and Business Affairs,
U.S. State Department -- 202-647-4045 or 202-647-3148.

The State Department's Bureau of International Narcotics and Law-
Enforcement Affairs -- 202-647-0453.

International Organizations and Agreements Division, Office of International
Affairs, U.S. Customs Service -- 202-927-1480.

Office of Port and Waterway Management -- 202-267-6164.Maritime Security
Council -- 713-465-7395.