at-sea effort involves both U.S. and foreign fishers. 
Foreign fishing within the U.S. fishery conserva- 
tion zone is monitored for compliance with quota 
restrictions. Compliance is said to be good. It should 
be noted that although foreigners fish only on surplus 
stocks that are abundant, they can affect depleted 
stocks through incidental_catches of diminished 
species. Regulations are designed to the extent pos- 
sible to minimize incidental catches and to protect 
depleted stocks. 
U.S. fishing in_the fishery conservation zone is 
less eimeaitied than foreign fishing and may affect 
depleted stocks. Noncompliance can have a gréat 
effect, because a number of stocks are already in 
marginal condition. Compliance problems are com- 
pounded, because programs involving U.S. fishing 
operators require a high degree of support from the 
industry to succeed—support that is hard to obtain 
when quotas sharply curb allowable fishing. 
Economic Development 
Economic development considerations involve 
fisheries, particularly commercial fisheries, at a va- 
riety of levels. 
A number of specific forms of Federal assistance 
have been attempted. As with many attempts 
by the government to provide useful assistance, 
some efforts have been on target and others wide of 
the mark. 
In another type of program to promote fisheries, 
efforts at comprehensive, intergovernmental pro- 
grams inti involved with private interests have 
been attempted. One such effort in Gloucester, Mass., 
isanexample. “~~ 
And at a third level, fisheries as components of 
urban waterfronts can be key components in bring- 
ing outmoded, but colorful waterfront districts back 
into widespread use. 
Affecting all efforts to assist the fishing industry, 
and thereby improving the U.S. catch and consump- 
tion of fish, is the nature of the industry. The indus- 
try is really not a unified entity; it is divided into 
many parts, dependent on geography, the type of fis. geography, the type of fish 
caught, and the age of the e ment. There are, 
nonetheless, some generalizations that can be made 
about the U.S. commercial fishing “industry.” 
As an occupation, it is divided into many small 
parts scattered around the country. Almost all in the 
industry_are_small_busines e, alfhough some 
large corporations have moved into the field, particu- 
larly in packing. Most U.S. vessels are small and old; 
the capital required to build modern, long-distance 
vessels is hard to come by, as are the crews needed 
for the extended trips to sea required to make large, 
modern vessels economic. 
Packing and processing is also generally a small 
business, with most units employing fewer than 20 
employees.** Large firms, however, often own the 
plants. 
Many components of the fishing community have 
traditionalism and independence. This leads to re- 
sistance to change, unwillin s to attempt to catch 
and market new species, and distrust of governmental 
% Speech, Joseph W. Slavin, Assistant Director for Fisheries 
Development, NMFS, to National Marine Fisheries Advisory 
Committee, October 5, 1977. 
efforts to be of assistance, no matter how well mean- 
ing. At the same time, private capital has been 
difficult to raise, because of the high-risk nature 
of the fishing business. There are indications, how- 
ever, that certainties provided by adoption of the 
US. 200-mile fishing limit may enecuraze,IGrenses 
investment in U.S. boats and processing plants 
One major inhibiting factor is that American 
consumption of fish, while growing in recent years, 
is restricted to several traditional species and groups. 
About 70 percent of the total consumption is ground- 
fish, shrimp, and tuna.*’ 
There are a variety of direct Federal aids such as 
loans and to the fishing industry, designed to 
enable it to modernize and better keep up with for- 
eign competition and thereby supply a larger supply 
of the domestic consumption. These types of loan 
and grant programs have, beyond the immediate 
aims of assisting U.S. fisheries, the goal of contribut- 
ing to_a reduction in the U.S, balance of payments 
due_to_ fish_imports_and_thereby contributing to a 
trengthened_dollar_in_international markets. 
NMFS has three authorized programs of direct 
assistance to the industry: direct loans (currently not 
operating), guaranteed loans, and tax deferrals. The 
direct loan program was suspended in 1973, because 
of an alleged poor repayment record; Congress may 
reactivate this type of aid. The purpose was to pro- 
vide loans when regular commercial channels were 
not available, reflecting past reluctance of commer- 
cial lending sources to support many segments of the 
commercial fishing industry. 
The guaranteed loan program functions with 75 
percent of commercial loans for work on_ vessels 
backed _by NMES (fora fee). As of August 1976, 
such loans totaled $12 million, with $6 million more 
approved and applications for an additional $19 mil- 
lion pending, indicating its utility to the industry. At 
the same time, many operators are unable to provide 
the required down payment of 25 percent. 
The tax deferral program permits income taxes to 
be set aside on that portion of~income—which—an 
operator _agrees to_place with NMFS » and eventually 
nn RS 
* Ibid. 
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