FOR IMMEDIATE RELEASE                                         CIV
THURSDAY, FEBRUARY 22, 1996                        (202) 616-2765
                                               TDD (202) 514-1888

                                 
 SHIPPER PAYS U.S. $600,000 TO SETTLE CARGO PREFERENCE VIOLATION


     WASHINGTON, D.C. -- American President Lines Ltd. will pay
the United States $600,000 to settle claims that it falsely
certified that agricultural goods delivered to developing
countries were carried solely aboard U.S. flag vessels when in
fact APL used foreign-flag ships for part of the journey, the
Department of Justice announced today.  
     Assistant Attorney General Frank W. Hunger of the Civil
Division and U.S. Attorney for San Francisco, Michael J.
Yamaguchi, said the agreement settles allegations that APL 
misrepresented its service for 86 shipments of agricultural
commodities that were shipped to developing countries pursuant to
a Department of Agriculture assistance program known as the "P.L.
480 program" from 1989 through 1991.  
     The Department challenged APL's claims that its service
qualified as "U.S.-flag," saying that APL used foreign-flag
vessels for portions of the transport routes.  By certifying that
it used U.S.-flag vessels, APL was eligible for special
consideration under cargo preference laws that favor U.S.
transport, a factor that helped APL win the shipping contracts.
     Under the P.L. 480 program, the Department of Agriculture's
Commodity Credit Corporation purchases surplus agricultural
commodities and arranges shipment to developing countries in need
of agricultural assistance.  The shipments are governed by laws
requiring that a certain portion of the commodities in any given
year be transported on ships registered in the United States. 
The Department alleged that APL "transshipped" the commodities on
foreign-flag vessels for portions of the routes.
     The case was conducted jointly by the Civil Division of the
Department of Justice and the U.S. Attorney's office in San
Francisco with the assistance of the Department of Agriculture's
Office of Inspector General and the Commodity Credit Corporation.
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96-060
In San Francisco, contact: Joanne Swanson 415 436-6855