19. William B. Folsom, "Faroe Islands Fisheries Sector, 1989-90," International Fisheries Report (lFR-90/09), 

 National Marine Fisheries Service, NOAA, U.S. Department of Commerce, February 9, 1990. The situation in 

 the Faroe Islands continues to face serious problems. Erling Hulgaard, Danish Ministry of Fisheries, fax dated 

 August 6, 1993 and "Fasroemes banker ramt af pengemangel" and "Lavvande i landskassen, " Berlingske 

 Tidende, August 6, 1993. 



20. Tryggvi Johanse, Faroese Government Office, letter to Erling Hulgaard, dated June 3, 1993. This was in 

 response to a draft of the report sent to Mr. Hulgaard by the authors. 



21. Faroese Business Environment, 1990, The Faroese Govermnent, Copenhagen, 1990, p. 60. 



22. Faroese Business Environment, 1990, The Faroese Govenmient, Copenhagen, 1990, p. 60. 



23. The U.S. Embassy in Copenhagen reports that subsidies include operational support, guarantees, and 

 preferential loans. No monetary values are provided for these subsidies, but they are probably as large as 

 Government price and income supports which amounted to $84 million in 1989 and $38 million in 1992. Seren 

 Hansen, Senior Economic Specialist, U.S. Embassy, Copenhagen, Deimiark, fax dated August 10, 1993. 



24. Fishing News International, April 1993, p. 42. It was later reported that Canadian-origin vessels, back by 

 Faroese capital, and registered in Belize, the Dominican Republic, and St. Vincent, were fishing in the so-called 

 "Loophole" between the Norwegian FEZ and the Russian FEZ in the Barents Sea. "Norway acts on fishing in 

 Barents Sea "Loophole." U.S. Embassy, Oslo, August 18, 1993. The authors have no information linking the 

 meetings in early 1993 with the alleged involvement off Norway in mid- 1993. 



25. Ian Strutt, "Faroe starts major scrapping scheme," Fishing News International, June 1989, p. 58. Strutt 

 reported: "A political decision has been taken in the Faroe Islands to reduce the fleet by 30 percent." 



26. William B. Folsom, "Faroe Islands Fisheries Sector, 1989-90," International Fisheries Report (IFR-90/09), 

 National Marine Fisheries Service, NOAA, U.S. Department of Commerce, February 9, 1990. 



27. "Faroes Start Major Scrapping Scheme," Fishing News International, June 1989, p. 58. 



28. "Faroe Fleet Auctioned in Cape Town," Fishing News International, April 1993, p. 42. 



29. "Faroese clings on to newer ships - despite fleet auction," Fishing News International, July 1993, p. 42. 



30. Saren Hansen, Senior Economic Specialist, U.S. Embassy, Copenhagen, Denmark, fax dated August 10, 

 1993. 



31. "Big vessels sell-off gathers pace," Fishing News International, August 1990, p. 56. 



32. The Faroe-EC fisheries agreement was negotiated in 1974 and ran through 1991, when it was renegotiated. 

 Under the agreement the Faroes can export fishery products to Denmark duty free. Similar exports to the UK 

 and Ireland are permitted at a reduced quota. 



33. On April 17, 1991, the Governments of Iceland and the Faroe Islands agreed that the Faroese would end 

 their open sea salmon quota for 3 years, beginning in 1991. Iceland gave the Faroese an increased allocation of 

 halibut as part of their program to protect wild Atlantic salmon. U.S. Embassy, Copenhagen, April 25, 1991. 



34. Matteo Milazzo, "The Faroese Fishing Industry," International Fisheries Report (IFR-78/42), National 

 Marine Fisheries Service, NOAA, U.S. Department of Commerce, 1978 provides a comprehensive look at the 

 various international fishery agreements negotiated by the Faroe Islands in 1977-78. 



194 



