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The U.S. factory fleet was nov processing surimi and coming 

 into a boom period. 



By 1980 the Crab and Shrimp Fleets v/ere overcapitalized. 

 Because foreign JV partners could send over additional raotherships 

 the growing JY Fleet didn't knov/ that it v;as overcapitalized until 

 the JV's ended in 1990. The ensuing boom in the Factory Fleet led 

 to it being overcapitalised in the early 1990' s. 



Today you can go to any fishing port ( Nev^port is a good ex- 

 ample) and see nev;er and more powerful boats each year. Local 

 fishermen see the innovations and v/ant the same for themselves. 

 Overcapitalization is in every port and every fleet. 



In 1939 and 1990 the nex'/est factory trawlers were coming out 

 with price tags of 50 million dollars or more. Those of us fish- 

 ing v/ondered hov; an3/body could make them pay. But at the same time, 

 the Japanese were beginning construction of shore plants v/ith 

 price tags in the hundred of millions of dollars. ':ie couldn't 

 understand hov; they could make it, especially since they v;ere lim- 

 ited to the range vihich shore based boats could deliver fish 

 fresh enough to process. 



The answer v:as shore- preference. The Japanese plants didn't 

 get into production until 1990 for a fev/, and 1991 for the rest, 

 but they asked that 35;'^ of the Pollock allocation be dedicated to 

 them, and 40^ and 45;'' for the next tv.'o years after v/hich they 

 would stay at 45f5» This \\rould be a drastic reduction to the U.S. 

 Factory Fleet. They had pioneered the groundfish industry and 

 historically caught 3C^ of the allocation. 



The governing councils and agencies recommended against the 

 plan, but in an 11th hour decision, the Dept. of Commerce ruled in 

 favor of the new shore plants. 



V/ith the Japanese plants guaranteed 35> of the allocation, 

 surimi prices fell. The shore-based jobs for Alaskan communities 

 turned out to be minimum v;age and were filled by green-card, non 

 U.S. citizens. Other problems arose with the need for fresh water 

 and the disposal of processing v;astes. 



A year following the split of the allocation, the U.S. Factory 

 Fleet v;as excluded for half the season from thousands of square 

 miles of historically productive fishing grounds in order to pro- 

 tect shore-based interests. The Gulf of Alaska is also closed 

 to factor^'' travelers. So for half of the year we are forced to stay 

 west of 16S degrees V/est longitude. 



In 19o9 several U.S. factory trav/lers fished for V/hiting on 

 the './est Coast. They tried fillets and headed and gutted product. 

 The poor luality of the VJhiting made these products hard to sell. 

 In 1990 other U.S. factory travelers made surimi from '.Thiting and 

 their success led to subsequent total involvement in V/hiting sur- 

 imi by the U.S. Factory Fleet. The importance of the V/hiting fish- 

 ery to this fleet and their historic involvement in it is no less 

 than it is to local shore plants. 



