NRE ECUADORAN LAW GOVERNING FISHING IN ECUADORAN WATERS AND THE ESTABLISHMENT OF FISH PROCESSING PLANTS IN ECUADOR

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP08C01297R000700080021-6
• Release Decision: RIFPUB
• Original Classification: C
• Document Page Count: 9
• Document Creation Date: December 22, 2016
• Document Release Date: September 26, 2012
• Sequence Number: 21
• Publication Date: January 18, 1949
• Content Type: MEMO

Declassified and Approved For Release 2012/09/26: CIA-RDPO8001297R000700080021-6
THE FOREiaN IMO*
OF THE
UNITED ETAT= OF AMERICA
Security Cla ssification:
No. 11
Reference: -
Via: Air Mail
UNCLASSIFIED
Ameridan Embassy, Quito January 18 1949
Endlosures: 2
6
21/2
5
Sub hot:
Ne* Ecuadoran Law Governing FiShing in Ecuadoran
Waters and. the Establishment of Fish Processing
Plants in Ecuador*
Prepared bye
Reced
Jan. 25
Jo Wo Wilson
Third Secretary.of Embassy
*DISTRIBUTION
?
(Dept. use -:Crily)
ITP
FR
ARA
TRC
OLI
L ,
? COM MC
FISH & WILD LIFE
With its publications in Registro Oficial
No. 1019 dated January 4, 19499 the decree
passed by the 1948 session of the Ecuadoran
Congress concerning fishing in Ecuadoran terri-
torial and insular waters and the establish-
ment of fish processing plants in Ecuador be _A
come effective, Five copies of Registro
Oficial No. 101, containing the Spanish text /..1
? of the law, together with an English transla-
tion, are attached as enclosures to this reporto.__,P""
The new: debree . does not revoke the existing
TAR laws and regulations governing fishing in Ecua
MC MC?
doran waters,!/ but rather confirms certain tn
regulations about which there was considerable *-
discussion and adds to them basic regulations 0
to govern the signing of contraots with fishing fri
and fish processing enterprises. Before. the
draft of the present decree was presented to IA"'
Coness 144
1/ See Embassy despatch no. 4952, February 1,
- T947, "Codification of Ecuadoran-Tuna Fishing
Regulations"; Embassy report no. 48, May 29,
1947, "Executive Decree Authorizes Use of
Mother Ships in Fishing in Ecuadoran Waters";
-Embassy report no. 52, June 13, 1947, "Publi-
cation of Corrected Decree Concerning Mother
Ships Fishing in Ecuadoran Waters"; and Embassy
report no. 74 -July 30, 1948, "Ecuadoran Decree
Revokes Pro tion on Use of Nets in Tuna
Fishing and ries Fishing Permit Fees.1'
INFORMATION COPY
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UNCLASSIFIED
Report? No. 11, January 16, 1949 American Embassy, Quito
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Congress and during the time it las under discussion in that
body, Ecusdorfs policy with rega:d to fishing in its waters
was the subject of bitter contrusersy between two groups of
Ecuadoran private citizens and o4ficials who held opposite
viewpoints on the subject, of fisPinn with nets. The part
played in this controversy by Am(rican fishing interests
holding the same opposing views las fully reported by the
Embassy in numerous desnatenesn ,irgrams, and telegrams as
events occurred, and it is not nwithou;ht necessary to re-
view these developments. Suffice0' it to say that t!r'e text
of the decree, as passed by Conjss arid as finally approved
by the President of the Rephblic) is a compromise between
the positions of the opposing nrcaps, and represents, so the
Embassy is informed by sources close to the i'resdent, more
or less the text desired by the President. However, in
arriving at a compromise, the Conress freely amended the
originally proposed text, with tl'e) result that portions of
the completed law are garbled an inconsistent, if not
unintelligible. )
' 1
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Artiq,le 1 of the decree con.ftrms the policy of permit-
ting bothAisait and net fishing, s:.)ecifically mentioning
"purse seiners" and "mother ships" and provides that the
product of the fishing may be disposed of freely. However,
the first part of this article is modified by the second
paragraph of Article 3, to the effect that, after two years
trial, the Executive may prohibit partially, Jr completely
either system, if he finds it destructive of the national
fishing reserve, and the second part is subject to the re-
quirement set forth in Article 4 that the Executive is
oblleed to issue a regulation for the progressive establish-
____,
ment of a fish processing industry in the country, requiring,
at the end of four years, that all fish caught in Ecuadoran
waters be processed in Ecuador.
While Article 4 is quite clear as it stands, it is in
conflict with Article 7 of the decree, which seems to grant
to exclusively fishing enterprise,ls (as distinguished from
canning or processinc.7 enterprise0 a period of two years?
grace, counted from the initiation 'of their activities, be-
fore they have to submit to thn requirement that the product
of their fishing be processed in Ecuador, and furthermore
introduces the provision th31-, the Government shall determine
whether all or part of the fish caught must be processed in
Ecuador after consideration of the needs of the 'national
industry, It appears impossible to reconcile this last pro-
vision with Article 4, Lt is t1e opinion of a Quito attorney
who drew up the original draft of the projected decree that
the President will issue an implementing regulation to clarify
the law and will ?use the discretionary authority granted the
Government in Article 7 to modify the apparently rigid obli-
gation of Article 4.
Article 59
UNCLASSIFIED
? INFORMATION COPY
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UNCLASSIFIED
Report No. ll? January lb 1--S49? American ixnoassy-, uit( ?
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? Article 5, which ? grants. certain tax exemptions to new ?
processing industries,. is garbled at the end in such a way
as _to be unintelligible Trisgarble is thought to be the
-result of the -omission of lines of the or. ,nal draft
?vihich peVained to an exemption from income ? -tax on profits
invested in the expansion of the industry. Whether the
.,Exebutive:will choose to-_correCt this _7:,arble by. the issu-
,ance: of an emergency decree reMains to be seen.
Other sections ? of the decree establish anew validity
Period for fishing- licenses, charge the 'Ecuadoran consular.
authorities with the enforcement of tha. liCensini7 require-
.ments.'? lprovide for the distribution & the 'proceeds from
fishing taxes, grant the Executive authority .to Prohibit
factory ships, and make him responsible. for -.carrying out
a atrict watch over . the . c ountry ? s -waters to safeguard the
national- interest therein.
. ? . . .
? While this decree does .de,finitely eStablish- a. new
policy of_ the -Ecuadoran Government .with regard.- to.- fishing
in its ?. territorial and 'insular waters, - that of requiring
the 'proCessing in Ecuador Of fish caught- in. Ecuadoran 1J'aters
inconsistences. in the text of the decree make it im-
possible. at 'present to state clearly the . effect of the new
Policy on American fishing interests. Only interpretative
regulations or actual application of the decree will give the
answers to the questions arising, fr.) m the confused wording.
-
Approved by;
Franklin Conklin 3rd,
Commercial AttV'Che.
En-closures t
Translation gf-Regntro Oficial
No. lal?- Jan. 4, 194a.
2. Re .,..stre- ? Oficial No. 101.
Fiie;:, 522.8
Reporting Officer
A IT i et o Reporting Clerk
JvHogan. -Clerk
Original ParchMent to Department;
CopYto Consulate.General, Guayaqui
, ,
INFORMATIth 6013Y-
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, ?
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,? ?,? ? ,
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UNCLASSIFIED
Encl. Nos 1-5, Jar. 189 19499 American Embassy, uito
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TRANSLATION
The Congress of the Republic of Ecuador
Considering:
That it is in the interest of the country to establish
conditions on general bases which, while regulating fishing
in Ecuadoran territorial and Insular seas, will at the same
time assure stability and equality for fishing enterprises
and in this way attract a greater competition of the same,
to the ber\sefit of the National Treasury;
That the results of the experience with freedom of
fishing for the two universally used systems - bait and nets
(also cafled Parse Seiners)9 working alone and with mother
ships as permitted in the Regulation issaed by the Executive
ePower by Decree No. 1206-A of July 2, 1948 - denote a con-
1Vderable increase in fiscal receipts,
Decrees:
Art. 1--Freedom is granted to fish in Ecuadoran terri-
torial and insular waters by means of the two systems, called
"bait" and "net" (the latter alsq known by the name of Purse
Seiner) working alone and with mother ships in conformance
with the provisions of this 'Decree end the existing regulation
contained in Executive Decree No. 1206-A9 of July 29 1948, and
to dispose freely of the product of that fishing on which
taxes shall have been paid, without prejudice to the provisions
of Article 4 of this Decreeemith respect to the obligation of
processing the product of pie country.
Art. 2--Licenses shall be considered upon the prior
fulfillment of the formalities prescribed in the Regulation
issued with Decree No. 1206-A9 of July 2, 1948, and, shall
include the right, foe'the fishing vessels of the two systems,
to fish for a period of ninety days, and, for mother ships,
until they can fill the tonnage capacity of their respective
'holds once on each trip, which shall be rigorously controlled
and ver,*fied by the-Ecuadoran consular authorities and func-
tionaries who shall look after this matter without stint of
their time, these officials being answerable for a serious
fault in case of negligence.
- Art. 3-esShou1d the vessels be disabled for fishing,
through damage to the nets or other fishing gear or to the
vessels themselves, they shall only have right to the re- -
t newal or the license upon satisfactory proof of these
damages to the Ecuadoran authorities' and. functionaries.
The Executive
pRMATION COPY UNCLASSIFIED
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UNCLASSIFIED
-Encl. No. 19 'Tarn: 18, 1949?9 American Embassy, Quito,
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The Executive Power, after two years/ trial of the
st;TstemS to which Article 1 refers, is empowered, through the
Ministry of Economy and with a resolution of the National
Economic Council, to prohibit partially or completely, what-
ever system of fishing may be shown by technical evidence,
as being destructive of national fishing reserve.
Art. 4--The Executive Power shall incorporate in its
regulations, subject strictly to the ,:eneral provisions of
this Decree, dispositions to make possible the establishment
^
in a progressive manner of the operation of the fishing in-
duStry in the country, which shall culminate, in a maximum
period of four years, in the obligOion to process in the
national terfitory all the product t)f fishing done in Ecua-
doran territorial and insular water20?-
Art.,5--Authorization is granted to the Executive Power,
e in contracts of industrial protection which it grants to the
enterprises which may wish to establish factories, canning or
refrigerating plants, etc., for the processing of the fish,
to exonerate the said enterprises, up to a maximum period of
ten years, from the payment of national or municipal duties
on. the importation of machinery, raw materials, and other
articles destined for the establishment and operation of such
factories; from the payment of the tax on the capital employed
in the industry; from the payment of the nationel'andwamicipal
tax on the exportation of the product of such industry; as
well as to grant also, and within the period indicated, the
exemption of this last tax, which shall be effective once the
new investment is verified by the Ministry of Economy?
Art. 6--The Exeoutive, through the Ministries of Econ-
omy and National Defense, shall control these activities,
and, through the Ministry of the Treasury, the distribution
in favor of the Coastal Provinces and the Galapagos of the
proceeds from the taxes and port charges and other fees
which may be received through these activities. This dis-
tribution shall be made in the following menners
a) For the general funds of the State, 3,5009000
scures, which is the Quantity budgeted in Section No. 23
for this purpose for the fiscal year of 1049.
b) All above this amount shall be distributed in
equal percentages to the provinces which are listed below
and the Galapaqos'e,
Esmeraldaq.--For the Municipality of its Provincial
capital, whichka4 :tnvest it in the port works of the
said ciy,
Manabiz--T6 the Municipality of Manta for the-construc-
tion of dock a for the port.
GuayaSs--
,
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INFORMATION ?COPY
UNCLASSIFIED
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-2
U116LASSIFfED ?
Enci to ls Janury 10, 1919-. AorIocn C it
- -
Guayas; - -To the liuniciality of .Gaayas, invest
-
it .7-ro. port we.1..s.
Ore For te Municipal Council of Machala,
invest it in th repair ahd. th,a: Plierte
Bolivar or other port wor,
'Los Rios;--To the Provincial Council, which shall invost it
in road works of said provine.
Galabai;os;-- To the Ministrw of liSt DefonsohiCh. shall
invest it in s.torchous:rJs for food ard otiSr wor.s... of impor-
tancq for the of tho colonists, espeoiallyir quar-
ters.
.For t".ao-year 1950 and for five aabso.J.,nt
income from fishjal.: shell is diviqed in the fo. ner;
pere02.-rtfor the Treasury,
-
remaining 60 per';(,-.t shall distibutcid in
equal quotas emen.? the r see..tie.ss ted. in t:his
article, the delivery bein: made to the entities which. are
-.f.entioned
L C toxt o2 this I...)erae.
, Art. 7. --The enterprises 7;ihich may 'be exclusively eTh.
gased in fishing.aud not in processinj; and which4 in aceor
-
dance 'with this Laws must cOr,tribute to the procossin, in-
dustry within. ecuntr7 shall be ebli.atod Lo tarn over
?
totally'or partiall,. two yeara after tjae initiation of' their
activities in Ecuador: t"....e product of their .fisnin for
purposes of proeessinL, menionod, at the 1ec on the intor -
national market, The Government shEal fix tho parcentaes
in accordance with ,the nocessitI3s of the rational industry;,
If there S'.hall have beon an excess,fre disposition of the -
fish shall be 3.rantd.
?
'1
Art ? 6. - -Authority Is r.,:,ranted to the Executive Power to
probib.lt factor-,
1 in 11,cuadoran
territorial .and insular. waters.
?-
Art Of,
- Executve shall carry out a strict watch.
over the territorial and insular .-,iYators of the country in4::
oroor to safe:uard t"i-le national Interests.
Art. 10.--The -1)C-:700 in for-eo from the date of
ifs publication.in the Official 2.ez,istvy.
'
? ,
I ?
:
41.
1
INFORMATION COPY
liven in
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UNCLASSIFIED
Encl. :,No. 1. January :Le 1049, Ave.' an Embassy, to
4 4
? Given in quito? in the MeetinL Chamber of the
, National Congress, the. PAH of NoveTbr, 1948.
The President of. the ChaJ-;tr of i.The Sena
Sotomayor y Luna.
The President of the Chamber of Deputies,
Dr'.. Carlos Andrade 1,1arino
The Secretary of the Chamber of the Senate,
,Dr. Rafael Galarza Arizaga.
The Secretary of the Chamber of Deputies1,.
Ernesto Espinosa Velasco.
'Palace of Government', in uto, efle 16th of Decemberl94S0
ok: ?
INk:10E,MATION COPY
SICIED
The President of th., Republic
-
Gab o Plaza
The Minister of Economy .
Clemente Yerovi Indaburu
The Mini star of National Defens
Manuel Diaz Granados. ?
UNCTASSIFIED'
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Id/
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Galapagos Islands 90
(Archipielago de Colon)
190 Kilometers
s
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Declassified and Approved For Release 2012/09/26: CIA-RDPO8001297R000700080021-6
CONFIDENTIAL
BOUNDARY R RESENTATION is 76
NOT NECESS RILY AUTliORITATIVE
Cabo Mangler
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Galapagos Islands 90
(Archipielago de Colon)
190 Kilometers
s
Pacific
Ocean
'Colon
Oc00 3.0 .?
/ .. 7,soo, 000
Isla Pinta.
L:
Isla Marchena,-
Archipie16'6o de
N (Territorio
Isla San S
,.
Is a , ls
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a /sabefa Baqierizo
Isla Santa Maria
90
Iv-cior
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771sia
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cristob6?
Isla
Espanola
Declassified and Approved For Release 2012/09/26: CIA-RDPO8001297R000700080021-6
CONFIDENTIAL
BOUNDARY R RESENTATION is 76
NOT NECESS RILY AUTliORITATIVE
Cabo Mangler
Valde
La Tola
Esmeraldas
an
Lorenzo
orbon
Concepc16
Punta
Ga/era
Tablazo?
srneralda
Carchi
Muisne
?El Angel
Rosa Zarate Imbabura ?Ibarra
?Otavalo
n,t.?_a Cec:Ila. pi, 17:56._v,gritm_ ,
'IR.. Clambe ?
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Pichincha \ /----
A. / ---t-c / --
Palmar > Quito? /
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1 '---------N___: anto Donn
---? .--- ?Papallacta N a 0
Francisco
'Flav[o Alfaro 47:* --/-' ,,..,'
?Machachl --"boaeza de Orellana
Bahia de Caraquez
Isla La Platac
C one
.Caloeta
*.Rocafuerte
Portoviejo
?Santa Ana t
.11pijapa
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NuevoTe
Rocafuerte
Pu o Nap
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Zapotal
Rios'
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op Guaranda ?
, Cajabarnba. 0
\Boilvar RiobaRtha /
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Punta
Santa Elena, au