COilFO began fishing operations in 1939 and, in 19i42 started 

 a trawling company for hake. Now that fishery enterprises are well 

 established in Chile, CORFO is gradually withdrawing. The Corporation 

 was reported to be selling all enterprises with the exception of the 

 operation in San Antonio where work will be devoted primarily to ex- 

 ploratory trawling for hake in areas not now fished. 



Decree No. 208 of July 21, 1953, grants special privileges 

 to the fishing industry, some of which are as follows: 



1. Small boat owners, who operate their own boats, are 

 exempt from certain taxes for a period of 10 years from date of 

 publication of the law. 



2. For this same period, fishing and fish-processing 

 industries (a) are exempt from certain excess-profits taxes and exempt 

 or subject to reduced rates on several other taxes, (b) have free use 

 of foreign exchange (but if they use this privilege they are not 

 entitled to official exchange on importation of machineiy, boats, or 

 fishing gear), and (c) are subject to minimum charges for port costs, 

 their boats, use of radio -telephone equipment, and pilotage fees. 



3. The fishing industry and other industries which use at 

 least 80 percent raw materials coming from the sea are exempt from ad 

 valorem import duties, custom and consular fees on boats, engines, 

 fishing gear, refrigeration equipment, packing eqxiipment, containers, 

 etc. 



U. The State Bank, for a period of 5 years from publication, 

 may grant credits up to 20 million pesos to registered fishermen who 

 have been fishing more than 1 year. 



5. Authority is given the President to expropriate lands 

 adjacent to the sea for construction of low-cost housing for fishermen 

 and for fishery schools. (In Valparaiso, the Government has recently 

 completed a fishery center for small-boat owners which includes some 

 20 individual locker rooms for the fishermen for storage of fishing 

 gear and equipment; toilets and baths; a general -assembly room; and 

 offices for the directors and the local fishery inspector. It is planned 

 to extend this to include storage and marketing facilities for the 

 fishermen.) 



In addition to this special legislation on fishery enter- 

 prises, the Chilean Government has legislation designed to induce 

 foreign capital to invest in Chile. This legislation grants exemption 

 from certain import fees, provides means for withdrawing profits and 

 capital investment from the country, and provides various other con- 

 cessions for foreign investments. 



The government allows special low rates for the shipment within 

 the country by rail of low-priced fishery products. Shrimp are not 

 included in this category. 



3^ 



