companies. Taiwan currently has private-level 

 agreements with tlie following countries: Palau, Papua 

 New Guinea, Fiji, Vanuatu, tlie Philippines, Indonesia, 

 India, Western Samoa, Pakistan, Sierra Leone, die 

 Falkland Islands, the Cook Islands, Micronesia, 

 Kiribati, Russia, Vietnam, and Brazil. The agreements 

 with Kiribati, Vietnam, and Brazil are new, while tlie 

 agreement with Micronesia is a renewal after the 

 previous agreement lapsed. Agreements with Oman 

 and Liberia were recently terminated because of poor 

 catches, and Australia terminated its agreement with 

 Taiwan because of depleted domestic fishery resources. 

 Detailed information is available on the following 

 countries: 



A. Former Soviet Union/Russian Federation 



The Overseas Fisheries Development Council 

 signed a memorandum of understanding with the 

 former Soviet Sovrybflot organization in August 1991 

 which allowed Taiwan vessels to fish in the waters off 

 Saklialin Island and the Kamchatka Peninsula. Tlie 

 catch in the former Soviet zone was not very 

 profitable, however, so the venture was not renewed 

 when it expired on November 15, 1992. Tliere are no 

 indications diat Taiwan will seek future access to the 

 Russian FEZ." 



B. East Asia 



China: China and Taiwan have established a squid 

 fishing and processing joint venture. The Dalian Jinbin 

 Company, Ltd., will be operated jointly by the Dalian 

 Ocean Fishing Company of China and an unidentified 

 Taiwan company. Total investment in the venture is 

 estimated at $7 million.'' 



C. South/Southeast Asia 



Indonesia: Taiwan trawlers fish in Indonesian 

 waters under a private fisheries agreement which 

 allows Taiwan vessels access^ under joint venture 

 operations or by leasing arrangements with Indonesian 

 companies. Few otlier details are available concerning 

 this agreement, but as many as to 50 pairs of Taiwan 

 trawlers are reportedly fishing in the Indonesian FEZ.'' 



Paltistan: Taiwan tuna vessels have engaged in an 

 extensive fishery in the Pakistani EEZ since 1991. A 

 total of 50 Taiwan vessels are reportedly fishing there. 

 Each vessel pays a fee of $18,518, to which is added 



3 percent of the Free on Board (FOB) value of fishery 

 products exported, or approximately $16,000 per 

 shipment. The target species are yellowfin tuna, 

 skipjack, billfish, and sharks; 98 percent of the catch 

 is exported to Japan. Catch statistics are not available, 

 but fishing has reportedly been quite good in this 

 ground. The Taiwan industry expects Pakistan to 

 request much higher access fees when negotiating the 

 renewal of the current contract which expired in 

 August 1993.*' 



Philippines: Taiwan was reportedly seeking to 

 establish a joint fishing venture based on a 

 memorandimi on fishery cooperation signed in 1991. 

 The Philippines suggested an arrangement whereby the 

 joint venture company would lease Taiwan vessels and 

 fish with them in the Philippine EEZ." 



Vietnam: Taiwan and Vietnam have established a 

 joint fisheries company called SHANGNAM. Tliis 

 company is one result of the Taiwan's official efforts 

 to encourage greater Taiwan private invesmient in 

 Vietnam and divert some Taiwan business from China. 

 Taiwan officials fear the Taiwan and Chinese 

 economies are becoming too interdependent, a 

 dangerous situation if Beijing were suddenly to shift its 

 economic policies. Taipei is also concerned tliat 

 economic interdependence may give Beijing increased 

 polidcal leverage. Taiwan private invesmient in 

 Vietnam up to now, however, has been constrained by 

 uncertainties about Vietnam's legal system and its high 

 operational costs compared to those found in China.'' 



D. Oceania 



Australia: An agreement with Australia provided 

 access to Australian waters for approximately 50 

 Taiwan pair-trawlers during the 1980s." This 

 agreement has reportedly been terminated. 



Fiji: Fiji licenses Taiwan longliners on an 

 individual basis, provided these vessels land their catch 

 in Fiji and sell it to a Fiji company. A total of 21 

 Taiwan longliners were leased to the Pacific Fishing 

 Company during 1990.'* 



Kiribati: Taiwan has an agreement with Kiribati 

 which pemiitted 20 Taiwan longliners access to Kiribati 

 waters for a fee of $250,000 in 1990.'' 



127 



