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Document Creation Date: 
December 19, 2016
Document Release Date: 
May 24, 2005
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Publication Date: 
May 7, 1975
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25X1 Approved For Release 2005/06/09 :CIA-RDP86T00608R000600060034 4 FORM NO. RL'I'AC t AUG 54 101 WHICH Distribution: (S-08533) Orig & 1 - Addressee 1 - D/OER, DD/OER, SA/ER 1 - St/P/C Lk' - CRS 1 - D/D 2 - D /TA 25X1 OER/D/TA (7 May 75 ) CiJoE/s- In 05533-7 ~, -"i- ?~.~^."" ~n^'t!^.!^lr.~~:r+^.~-.+nix-..~;n+,'~T~:'ie+`:.?..-.,....~.^rr"!4'R".p'?""' "'"".r _ 25X1 25X6 25X1 25X1 Approved For Release 2005/06/09 : CIA-RDP86T00 MEMORANDUM FOR: i08R000Q06$& AtLachcd is D/TA'S contribution for the paper. 7?'a 7.nS information .,) .e - fisheries and maritime aid to less developed counLrics. If you have any further questions ? 'ease contact F-1 I Acting Chief Trade and Aid Branch Office of Economic Research Ma 7, .97 5 (DATE) 25X1 Approved For Release 2005/06/09 CIA-RDP86T00608R000600060034-4 Approved For Release 2001{116/99,,:-c . -RDP86T00608R000600060034-4 _C S um c-lr and I3ac1 ;{round Since 1960, the US511 has concluded fisheries assistance agreements with 27 less developed countries (L'I)Cs) and pledged approximately $115 million to support LDC fishing development programs. (Table 1) Most of these funds have been channeled to African and Middle Eastern states. In recent years, Soviet aid has emphasized technical and research support rather than equipment and construction of onshore facilities that was ti hallmark in the 1960s. Moscow also seeks client states adjacent to major or potentially major fishing grounds. Currently, Moscow also seeks to establish joint companies that will provide a modicum of security for continued Soviet exploitation of marine resources throughout the world regardless of future decisions that may emery.,-- from Law of the Sea deliberations. Soviet fishing aid is complimented by maritime assistance including the supply of merchant vessels, harbor and ship- building equipment. About $71 million/ of such aid has been given to 13 nations. Maritime assistance usually evolves an ad hoc response to conditions in the LDC which enhance Moscow's trading capabilities with that country. 1. Does not include salvage operations conducted by Soviet naval vessels in Bangladesh and Egypt. SECRET ....u.r*r..neut7M.:r.-^.r-rv,,N-,'?.^ri'.l~Y?s! ~,7,iS'r,',4'.`. r'^.....-r.+,rr,r_?-..r;,,.,,.; Approved For Release 2005/06/09 : CIA-RDP86T00608R000600060034-4 Approved For Release 2005/06/09(1 0 F ~, I ~' Recent- Drvc:1.oJ21L1cntd; Aid Since 1973, Moscow has addled two new clients, Argentina and Portugal, as fisheries ass:i.stancc recipients. Pledges of funds will be finalized after agreement is reached on equipment and projects respectively. A major portion of the assistance, however, certainly will be for technical services and training. USSR also actively followed through on prior agreements including assignment of approximately 1000 fisheries personnel in LDCs. Among the most notable developments is the proposal made to Indonesia in December 1974' to reestablish the fisheries aid program abandoned in 1965. Accordingly, Moscow has offered not only trawlers, crews, and training but also help in developing port facilities. Moscow is stressing the establishment of jointly owned fishing companies and has approached at least 14 LDCs regarding such ventures. (Table 2) The general characteristics of the three companies currently in operation are as follows: ? The vessels used are of Soviet origin and are leased to the firm or purchased by the LDC. ? Proceeds of the operation are used first to cover vessel expences and net profits a ?e then divided equally by the two parties. S.7 '~w.rrt. 7 17 Approved For Release 2005/06/09 : CIA-RDP86T00608R000600060034-4 ?,?t :3_tr::.` .1 s5-~t. ? uh . axlw"IA G2iit? ' .A 'yaY::r,,,rs Calf pproved For Release 2005/06/09 : CIA-RDP86T00608R000600060034-4 ? Vessels used are jointly manned and, are also used for training and research purposes. ? A portion of the catch is delivered to the LDC for local distribution and the remainder is frozen and shipped to other markets. Data so far, indicate that leasing and depreciation charges are inordinately high, so as to limit profitability. iEC1"'1 Approved For Release 2005/06/09 : CIA-RDP86T00608R000600060034-4 Approved For Release 2005/00/Q5'; l -R DP86T00608R000600060034-4 Table I. Estimated Soviet Aid Extensions for Fisheries and Development in Less Developed Countries January 2,956 - June 1.975 N.A. 17.0 1.8 46.4 12.3 Algeria Equatorial Guinea Gambia Ghana Guinea Kenya Mauritania Mauritius Morocco Senegal Sierre Leone Somalia Sudan Tanzania Tunisia Egypt Iran Iraq Syria Yemen (Aden) Yemen (Sana) Maritime Mill.i.oll US $ Aid 4.5 N.A. N.A. 11.2 6.3 N.A. N.A. 5.0 N.A., 6.7 N.A. 9.8 2.0 0.9 0.6 7.0 6.3 11.0 N.A. 5.6 7.8 South and East Asia 12.1 Bangladesh 8.0 India 2.2 Indonesia 0.3 Pakistan 1.6 Sri Lanka N.A.- Latin America 18.8 Argentina Chile* Peru Greece Portugal * Programs have been discontinued. ,-?? Ma r-itime Aid 71.2 9.2 N.A. N.A. 36.1 16.6 1.5 1.5 N.A. N.A. 7.7 7.7 N.A. F "~ ~.. .r7'---.-?.~P ..: C:3.U7-t ,..,. .'^'~a f.~.-rr .::rr~-~"' ?~?~ _ _ _ ._.?....,..,:>1,: r Approved For Release 2005/06/09 CIA-RDP86T00608R000600060034-4: Approved For Release 2005/06/09 : CIA-RDP86T00608R000600060034-4 Soviet Joint Venture A2rccemcnts in F:i. ,h:i.nq with Tess T)cve7 ped, Coun Lr. ies Recipient Argentina Bangladesh Egypt Gambia Indonesia Iraq Liberia Mauritania Mauritius Morocco Peru Somalia Current Status letter of intention unchanged finder negotiation joint fishing venture underway in Central Atlantic under negotiation company formation approved in April offer pending under negotiation joint fishing venture in operation Sri #V.tWl.1 joint fishing venture in operation negotiations in limb 25X1 SECRET Approved For Release 2005/06/09 CIA-RDP86T00608R000600060034=4 L.~..u".lrlN' Approved For Release 2005/06/09 : CIA-RDP86T00608R000600060034-4 Analysis of Docent 11cL? Moscow's inLcre rL- in reaching joint venture arrangements with LDCs reflects the uncertainties of pending decisions on a global Law of the Seas and the subsequent need for a buffer position. Moscow, in concert with the world's other major fishing nations continues to push for inclusion of an optimum utilization clause?/ in any decision to expand territorial. fishing jurisdiction to- 200 miles. LDCs with embryonic fishing capabilities are disadvantaged by such a provision. They would have to rely on foreign fleets operating their coastal water possibly through licensing arrangements, royalty payments or joint ventures -- the latter being the most secure and profitable from the Soviet point of view. Moscow's use of technical services centers on some technical basic economic considerations. For example,/aid is less costly than the provision of equipment or onshore facilities. Moreover, it offers Moscow increased fishing information and a better financial return. Because the planned expansion of Moscow's own fishing fleet is facing a shortfall, technical; assistance to LDCs in lieu of equipment transfers also places no additional strain on the USSR's resource base. The major fisheries centers have moved gradually southward in recent years with important implications for fisheries aid and Soviet fishing in general. Moscow has 2. Achieving maximum sustainable yield over time, consistent with certain environmental and economic factors. SECR -i ?...n. ~..r.s...Ty..~ i r. ~+r. ....t+r-n^rYt. r!"w^!"T~t"... 7-7 t+'e..-~ m'T~.4r.~xs^:s.+nt^"~r.,