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DANIEL K. INOUYE; BRIBERY - LEGISLATIVE BRANCH APL filed two and one-half years ago for authority to. provide the service proposing to use container ships that would stop in Hawaii en route to the Far East.. APL said Hawaii business would benefit by having another major alternative to mnc which is by far the dominant carrier in the trade. ApL said it had no intention of starting a price war but would depend on "superior service" to win and keep customers. At March, l988, hearings in San Francisco, APL's application was protested not only by MNc, but SEA-LAND SERVICE the major competitor to mnc in the mainland-Hawaii market. The protester's main argument is that because APL receives Federal subsidies to allow it to compete effectively in this international business, APL would have an unfair advantage. That argument holds they said, even though APL would forfeit portions of subsidies related to the mainland-Hawaii leg of its voyages. An MNc advertisement in the October, l989, issue of the Hawaiian Investor stated that "No one goes to Hawaii as often as MNc does, three times a week. From more Pacific coast ports to more Hawaiian ports than anyone else. MAtson serves Hawaii with more ships, more containers, and more capacity than anyone in the business." On October 13, l989, a confidential source who has furnished reliable information in the past, advised that Senator Hawaii, and was overheard stating "apL will come in over my dead body",' referring to APL's attempt to compete with MNc. On September 18, 1989, Assistant United States Attorney (AUSA) , District of Hawaii, was advised of the. b6 bribery allegations as detailed above. AusA advised that b7C he would prosecute MNc officials and Senator InouyE if the allegations could be substantiated beyond a reasonable doubt. *E