reduced by some 20 percent since 1989, both by sale 

 to buyers in overseas markets as well as by 

 scrapping. 



The target is for a further reduction in the size of 

 the fleet and sales of Faroese vessels have continued 

 well into 1993. Four Faroese trawlers, for example, 

 were sold at auction in South Africa after 

 accumulating debts while attempting to fish off 

 Namibia. On March 1, 1993, the Sudurhavid, 

 Midhavid, Ferina Suna and Ferina Star were sold at 

 auction to South Africa's Irvin & Johnson, a firm 

 identified only as Oceanos, and a firm identified as 

 Namibian Sea Fisheries.'* Seventeen Faorese fishing 

 vessels were auctioned off in June 1993, as banks 

 sought to recover their investments. Another 30 to 

 40 vessels are now available for sale. The auction 

 attracted buyers from as far away as New Zealand. 

 Prices for some of these vessels were 40 to 50 

 percent below normal prices." 



The Faroese Government provides subsidies to 

 fishermen willing to scrap their vessels. No 

 information is available on the amount of these 

 subsidies.'" 



5. Shipyards 



United States.'^ The U.S. -Faroe agreement expired 

 on July 1, 1991. Most negotiations are bilateral and 

 include an exchange of species desired by Faroese 

 fishermen (cod, whiting, haddock, and shrimp) for 

 species desired by other fishermen (mostly blue 

 whiting, herring, and sand eel).'' In recent years, the 

 Faroese, (with the assistance of Denmark), have 

 reached new agreements with Russia, Latvia, 

 Lithuania, and Estonia. The new agreements 

 provides a 1993 quota for blue whiting as follows: 

 Russia (140,000 tons), Latvia (12,000 tons), 

 Lithuania ( 10,000 tons), and Estonia (6,000 tons). In 

 exchange, the Faroese received quotas for other 

 species including cod, capelin, herring, sprats, 

 Atlantic salmon,'* and shrimp." 



Ten years after most nations extended their EEZs 

 to 200-miles, the Faroese fisheries were still highly 

 dependent upon distant-waters for almost half their 

 catch. The 1992 Faroese fisheries catch included 

 72,000 tons caught in "middle" waters and 51,000 

 tons in "distant" waters (table 6). In exchange for 

 1993 quotas of 222,281 tons of fish in waters of 

 other countries, the Faroese gave quotas of 272,160 

 tons to other nation's to fish in their waters (table 7). 

 Foreign-flag vessels harvested 160,000 tons in 

 Faroese waters in 1992.'* 



The Faroese have 2 large shipyards and several 

 smaller shipyards which undertake both repairs and 

 the construction of new vessels. Vessels up to about 

 2,000 tons deadweight can be built in the Faroe 

 Islands. The Skala Shipyard built the Heygadrangur 

 as a blue whiting processor. The ship was built in 

 1988 as part of the program to develop offshore 

 resources; the original owner was unable to pay for 

 the ship and, as a result, it was eventually sold at a 

 bargain price to a buyer in Orkney, Scotland." 



6. International Agreements 



The Faroese have been fishing in international 

 waters for over a century. During the last 100 years, 

 the Faroese fisheries became dependent on distant 

 fishing grounds for well over half their total fisheries 

 catch. In the 1970's, increasing numbers of countries 

 extended their EEZ to 200-miles. The Faroe Islands 

 established a 200-mile EEZ on January 1, 1977. 

 They quickly initiated negotiations to maintain access 

 to their former fishing grounds with the EC,'^ 

 Iceland," Norway, the USSR, Canada, and even the 



The continued reliance on distant-waters has 

 contributed to the gradual decline in the Faroese 

 catch. This has been especially true for Atlantic cod. 

 Landings of this prized fish have declined from 

 Canada across the North Atlantic to Great Britain 

 with disastrous consequences for Faroese and local 

 fishermen alike. This biological phenomenon has led 

 to some bankruptcies and forced the sale of some 

 fishing vessels." Biological disruptions in distant 

 fishing grounds, overfishing in local waters, and 

 highly subsidized fishing fleets have impacted the 

 Faroese and made it difficult to predict accurately the 

 future of this important fishery. 



The Faroe Islands did not join the European 

 Community with Denmark when the Danes joined the 

 EC in 1973. An autonomous trade agreement with 

 the EC was reached in 1974. This agreement was 

 replaced by a bilateral trade agreement in 1992, 

 which permits most Faroese products to enter the EC 

 free of duties. The Faroese parliament has recently 

 decided to remain outside the EC; it is thought that 

 the advantages of full membership would be 

 outweighed by its disadvantages."" 



184 



