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With the establishment of overlapping fishery zones on 

 Georges Bank, the two countries entered into the 1977 Recip- 

 rocal Fisheries Agreement which set forth the following regime 

 in the boundary region: 



1. Vessels of both Parties would fish subject 

 to flag state regulation. 



2. As between the Parties, enforcement would 

 be conducted by the flag state. 



3. Neither Party would authorize fishing by 

 vessels of third parties in the boundary 

 region. 



4. Either Party could enforce against third 

 parties in the boundary region. 



Since 1977, there has been no agreement in force relating 

 to the boundary region although there continues to be a 

 "gentlemen's agreement" on these three points. Conducting 

 ourselves in this manner has allowed us to avoid actions which 

 would be regarded by the other side as having a juridical 

 content which could not be recognized. However, at the same 

 time, it has meant that both countries have allowed their 

 fishermen to fish in the boundary region without regard to the 

 fishery activities of the other country on the same stocks in 

 the same area. The fact that we are dealing with the claimed 

 rights of both countries makes the matter very difficult and 

 potentially explosive. The agreements defuse this difficult 



