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THE 20TH (EI1TURV is nimosi OVER. DUE VOU STILL IISIRG BERRIRGS FROM THE 19TH? We don't think you should change to another shaft bearing just because it's new. We think you should change because it's better. Over ten years of trials have proven Thordon better than conventional materials — so much better that you can't afford to overlook it on your next refit. Better than rubber, because Thordon has its own built-in-lubricants — it runs quietly at low speeds and can even run dry for short periods without damage. Better than phenolic, because "thordon is abrasion-resistant and doesn't need kid-glove handling during installation or operation. It literally absorbs pounding and keeps on running. Smoothly. Better than wood in every way. And Thordon raw stock is available for machining to size in over 50 countries around the world. Get all the facts on Thordon before you make any decision on shaft bearing refits. Not because it's the most modern bearing material available. But because it's the best. TTmrrJrjri IT UI0RK5 HARD. VOU REST ERSV. WRITE FOR COMPLETE PERFORMANCE DETAILS TO: THOMSON GORDON LIMITED 3225 Mainway. Burlington Ontario. Canada L7M 1A6 Telephone (416) 335-1440 Telex Number 061-8705 Circle 260 on Reader Service Card ON THE COVER Todd San Pedro Launches Frigate-Davis PAGE 11 Guest Editorial— 'Build & Charter' by William Haggett PAGE 6 Latest Changes In Navy Shipbuilding Program PAGE 12 U.S. Navy Construction PAGE 20 New Navy Budget PAGE 22 Navy Contracts PAGES 19, 31-2 Valve Equipment Guide PAGE 37 AWO Industry Reports PAGE 48 House Closes Jones Act Loophole On January 29,1986, the House of Representatives approved the Sen- ate-passed version of H.R. 2466, miscellaneous maritime amend- ments. This legislation contains an important provision that closed a loophole in the Jones Act which cur- rently could permit foreign-flag tug- boats to provide ship assist service to foreign-flag vessels in U.S. ports. The AWO vigorously supports this provision. The Senate passed its version of the bill prior to the Christmas recess. General Ship Awarded $8-Million Navy Contract For Repairs To Frigate General Ship Corporation of Bos- ton has been awarded an $8-million U.S. Navy contract for moderniza- tion and repairs to the guided-mis- sile frigate USS Mclnerney. Work is scheduled to begin in May this year and be completed in nine months, extending the yard's work load into 1987. MARITIME REPORTER and Engineering News Editorial and Executive Offices 118 East 25th Street, New York, NY 10010 (212) 477-6700 • ITT Telex: 424768 MARINTI Publishers: Editorial Director: Editor: Senior Editor: Associate Editor: Editorial Coordinator: International Editor: Advertising Sales Director: Regional Sales Managers: Production Manager: Circulation Manager: JOHN E. O'MALLEY CHARLES P. O'MALLEY CHARLES P. O'MALLEY ROBERT WARE THOMAS H. PHILLIPS JOHN SNYDER LILIAN IRVINE ROBIN F. BURNETT, MRINA, MNI, London, England JOHN C. O'MALLEY LISA WILLIAMS SHARI L. LINKER MARGE SULLIVAN M. SOTTILE Advertising Circulation and Sales Offices 118 East 25th Street, New York, NY 10010 Telephone (212) 477-6700 REPRESENTATIVES Holland MR. TONY KENTER Kenter 8. Co. P.O. Box 130, 7470 AC Goor, Holland Telephone: 05470-5005 Telex: 72028 Italy MR. VITTORIO F. NEGRONE Ediconsult Internazionale Piazza Fontane Marose, 3-16123 Genova, Italy Telephone: (010) 543.659-268.334-268.513 Telex: 211197 EDINT I Scandinavia MR. STEPHAN R. G. ORN AB Stephan R. G. Orn Box 184, S-271 00 Ystad, Sweden Telephone 0411-184 00 Telex: 33335 Orn S West Germany MR. WOLF O. STORCK Schiffahrtswerbung Karl-Otto Storck Stahlwiete 7, 2000 Hamburg 50, Federal Republic of Germany Telephone 040/850 0071 United MR. MICHAEL J. DAMSELL Kingdom Euromedia, Ltd. P.O. Box 122, Haywards Heath West Sussex RH16 1YF, England Telephone: 0444-416845 Korea MR. CHRIS MAENG IPR Int'l PR, INC. Yongsan P.O. Box 100 Seoul, Korea Telephone: 273-7765 Telex: MOCNDM K23231 Japan MR. TOSHIO EGUSA Publinetwork, Inc. Room No. 206 Pegasus Mansion 21-7, Hakusan, Bunkyo-ku, Tokyo 112 Japan Telephone: 03 (812) 2406 Telex: 02722469 EVERAD J MARITIME REPORTER AND ENGINEERING NEWS ISSN-0025-3448 No. 4 Volume 48 118 EAST 25th STREET NEW YORK, N.Y. 10010 (212) 477-6700 Telex: MARINTI 424768 ESTABLISHED 1939 ALL MATERIAL FOR EDITORIAL CONSIDERATION SHOULD BE ADDRESSED TO ROBERT WARE, EDITOR. Maritime Reporter/Engineering News is published monthly, except twice a month in January, by Maritime Activity Reports, Inc. Mailed at Second Class Postage Rates at Waterbury, CT 06701 and additional mailing offices. Postmaster send notification (Form 3579) regarding undeliverable magazines to Maritime Reporter/Engineering News, 118 East 25th Street, New York, NY 10010. Member VBPA Business Publications Audit of Circulation, Inc. 4 Maritime Reporter/Engineering News