administrative and economic support, trade, cultural 

 ties, military protection and diplomatic 

 representation. The current Home Rule system was 

 introduced under Danish Act No. 577 of November 

 29, 1978, and gave Greenland the status of a distinct 

 community within the Kingdom of Denmark. The 

 island has a total mass of 2.2 million square 

 kilometers (km^), which includes 1.8 million km^ of 

 polar ice nearly 3 km deep in some places. A lack of 

 arable land and Greenland's harsh Arctic climate 

 (where temperatures have been recorded as cold as 

 minus 70° C) make agriculture difficult, if not 

 impossible. The nation is sparsely populated, with 

 only 55,500 inhabitants living in 133 settlements. 

 Most of these settlements are located along the 

 southern and western coasts of Greenland. Few roads 

 connect these remote villages, which can be isolated 

 for months during winter. The largest town is the 

 capital, Nuuk/Godthaab, which has a population of 

 about 12,000. Maintenance of a social welfare 

 system similar to Denmark's has given the public 

 sector a dominant role in the economy and has 

 contributed to severe economic dislocation in recent 

 years. With limited resources (there is potential for 

 platinum and gold mining, but zinc and lead mines 

 have recently closed) there are not many alternatives 

 available to the Home Rule Government. Tourism, 

 however, is a resource that the Home Rule 

 Government hopes to expand in the future.' 

 Greenland is fortunate to have a 39, 100 km. coastline 

 and access to a continental shelf of nearly 500,000 

 km-. Fishing is Greenland's most important industry, 

 accounting for over 95 percent of export income and 

 about 25 percent of total income. The fishing 

 industry directly employs 3,000 people. Another 

 10,000 to 12,000 people -- one quarter of the 

 population - are partly dependent upon fishing for 

 their livelihood. 



Greenland was administratively controlled by 

 Denmark from 1774 to 1978, when Home Rule was 

 introduced. Fishing is regulated by the Home Rule 

 Executive {Landsstyre). Greenlandic officials set the 

 Total Allowable Catch (TAG) according to 

 recommendations of the North Atlantic Fisheries 

 Organization (NAFO), the North Atlantic Salmon 

 Conservation Organization (NASCO), and the 

 International Council for the Exploration of the Seas 

 (ICES). Fishing quotas are allocated to fishermen 

 registered to fish in Greenland's waters. Vessels over 

 80-GRT need a license to fish in Greenland's 



Exclusive Economic Zone (EEZ). These vessels are 

 regulated by individual vessel quotas specifying which 

 species they are allowed to fish. Special rules apply 

 to shrimp and salmon fisheries. The Landsting 

 (Greenland Assembly) grants fishing licenses to 

 foreign vessels fishing certain species and quantities, 

 either in accordance with international agreements or 

 by special agreement with the Landsstyre. Normally, 

 10 percent of the catch must be landed in Greenlandic 

 ports for processing. The production of sea-cooked 

 shrimp for direct export, however, is permitted. 

 There is a tax on shrimp caught in Greenlandic 

 waters but not landed for processing. In 1987, the 

 shrimp tax raised about $10 million. Revenues were 

 expected to increase to about $12 million in 1988. 

 Starting as a unit tax per kilogram, the shrimp tax in 

 1991 was changed xo an ad valorem tax of 11- 

 percent. Effective July 1, 1992, the shrimp tax was 

 reduced to one-percent. Trawlers producing sea- 

 cooked shrimp for export require a license and export 

 permit from Home Rule authorities. In 1990, the 

 Landsting adopted a Fisheries Act permitting trade of 

 shrimp fishing quotas. The Act was designed to 

 increase flexibility in the industry and reduce catch 

 capacity. 



Fishermen in Greenland landed slightly less than 

 101,200 tons of all species during 1992 compared 

 with 113,600 tons in 1991. Northern deepwater 

 shrimp (Pandalus borealis) and Atlantic cod (Gadus 

 morhua) were important species in 1992, accounting 

 for 71,300 tons and 10,400 tons respectively. 

 Shrimp is a high-value product that has grown in both 

 quantity and value since 1980, when only 36,000 tons 

 were landed. Greenland's cod population, however, 

 is weak and catches are expected to decline in the 

 next few years. Fishermen also harvested Greenland 

 halibut (14,000 tons), and Greenland cod (1,700 

 tons). Harvests of redfish, salmon, wolffish, 

 grenadier, capelin and other species were under 500 

 tons during 1992. Greenland's cod stocks have 

 fluctuated dramatically during the past 60 years. 

 Thanks to generally warm oceanic conditions, the 

 stock of cod off the coast was abundant, yielding 

 catches exceeding 300,000 tons aimually. Catches of 

 Atlantic cod in Greenland peaked at nearly 450,000 

 tons in 1964. Over-fishing, changes in sea 

 temperatures, and poor recruitment have since led to 

 significant decreases in the size of the Greenland cod 

 population and resulted in lower landings. The total 

 Atlantic cod catch was 89,900 tons in 1990, of which 



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