APPENDIX III APPENDIX III 
of Alaska have also been badly depleted by Japanese and 
Soviet vessels. The same is true of the yellowfin sole and 
other flounders of the Bering Sea. 
The Soviet fishery off Washington and Oregon in 1966 for 
Pacific Ocean perch led to stock depletion on some grounds 
traditionally fished by U.S. trawlers. Since 1971, the 
Soviet catch of Pacific hake has been limited by agreement 
with the United States to 330.7 million pounds per year, the 
amount believed to be the MSY. Recent commencement of fishing 
for Pacific hake by other nations--particularly Poland, which 
reported its catch to be 125.7 million pounds in 1975--has 
resulted in the foreign harvest exceeding by a substantial 
amount what the hake resource is believed to be capable of 
sustaining. 
Harvesting capabilities 
Although many large and recently built vessels in the 
Alaska shellfish fleet are suitable for conversion to engage 
in trawling for groundfish, costs for trawling are higher than 
for crab fishing. Trawling for groundfish requires greater 
use of power, and hence more fuel, and causes greater stress 
on the vessel and equipment than fishing for crab. Vessel 
owners point out the need for approximately $100,000 addi- 
tional investment to convert vessels (or construct new ves- 
sels) equipped for trawling. This is likely to restrict in- 
terest in a seasonal fishery unless market prices paid for 
groundfish are adequate. 
Product development and processing 
The fragmented structure of the west coast and Alaska 
fishing industry into many small and highly competitive units 
has resulted in reduced profit margins and low capital re- 
serves for speculative ventures in developing new fisheries 
and fishery products. Commercial fishermen in many established 
fisheries are now receiving inadequate returns on investment. 
However, they continue to fish these resources because fish- 
ing for underutilized or unutilized species, which would re- 
lieve pressure on established fisheries, is too risky due to 
inadequate knowledge concerning abundance, location of the 
resources, harvesting methods, and markets for their catch. 
In addition, the cost for constructing and operating new fa- 
cilities for processing groundfish species is uncertain. 
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