CONTRIBUTION FOR PAPER ON SOVIET FISHERIES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP86T00608R000600060034-4
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 11
• Document Creation Date: December 19, 2016
• Document Release Date: May 24, 2005
• Sequence Number: 34
• Publication Date: May 7, 1975
• Content Type: MF

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 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
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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)
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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.
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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.
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? 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.
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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 $
Fishcri.es Aid
3.3.5.0
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.
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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
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Analysis of Docent 11cL?:i.viti.es
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.
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