The Maritime Administration (MARAD) has approved an application under section 9 of the Shipping Act, 1916, as amended. They include:

• Eastern Overseas, Inc. of Palm Coast Florida, has received approval to sell and transfer to British Islands, registry and flag the tanker OVERSEAS BOSTON, Official No 630050. The purchaser is Maritime Delivery, Inc., will have the ship scrapped in China.

On March 19, 2004, the Maritime Administrator (Administrator) took the following actions with regard to (1) the notification filed by First American Bulk Carrier Corporation (FABC) of the proposed acquisition of 100 percent of FABC's stock by M-Ships, Inc, (M-Ships), a wholly owned subsidiary of M-Holdings Ships, Inc. (M-Holdings); and (2) acquisition of the CHESAPEAKE BAY and DELAWARE BAY by Farrell Lines Incorporated (Farrell), subject to the condition that all final documentation shall be satisfactory to the Maritime Administration (MARAD) in form and substance:

A. Noted that: (1) FABC operates the CHESAPEAKE BAY and DELAWARE BAY under the Maritime Security Program (MSP); (2) M-Ships, a newly formed corporation, proposes to acquire the

stock of FABC in a cash transaction and be merged into FABC, with FABC being the surviving company; (3) M-Ships is owned by M-Holdings, also a newly formed corporation; (4) following the acquisition and merger, FABC would be owned by M-Holdings, but there would not be any change in FABC as a corporate entity.

B. Found, relying on the veracity of the representations contained in the relevant Affidavits of Citizenship, and supporting documents, that M-Ships and M-Holdings are United States citizens within the meaning of section 2 of the Shipping Act, 1916, as amended (1916 Act), and that following the acquisition, FABC will be a citizen of the United States within the meaning of section 905(c) of the Merchant Marine Act, 1936, as amended.

C. Noted that the CHESAPEAKE BAY and DELAWARE BAY will be acquired by a trust with Wilmington Trust Company (Wilmington), a U.S. citizen within the meaning of section 2 of the 1916 Act, as owner trustee and Farrell as beneficial owner. The existing bareboat charter between Fleet Capital Corporation and FABC would be transferred to Wilmington, and amended and restated. FABC, following the merger, would continue to operate the vessels and time charter them to Farrell.

D. Found, pursuant to the provisions of section 1136(c) of the Coast Guard Authorization Act of 1996, that the CHESAPEAKE BAY and DELAWARE BAY will be deemed to be owned and operated by citizens of the United States for purposes of participation in the MSP.

E. Confirmed that, following the acquisition, FABC remains eligible to receive payments under MSP Operating Agreements Nos. MA/MSP-16 and 17, provided that FABC shall not merge or consolidate with, or sell its capital stock to, any other individual or entity, or sell, lease, transfer, or otherwise dispose of all or substantially all, of its assets to any person or entity without the prior written approval of MARAD.