other products of the sea which are now being harvested by Alaska fishermen, and (2) to create new industries and new jobs in Alaska by encouraging the Koreans to invest in new business ventures in our State.

I wish to emphasize that the Koreans are not part of any international fisheries agreement concerning the high seas, and they can fish as they please beyond the 12-mile limit, without regard to the adverse affect this might have on our resources. The Samyang Group had firm intentions of coming into our waters this year to fish for salmon and king crab, and the fishing fleets have been in the process of outfitting for this enterprise. The entry of a new international competitor in our fisheries would have created serious problems for our fishermen and possibly additional serious international incidents for our nation. Hopefully, this danger has been averted. An accord has emerged as evidenced by the attached copy of my letter to Chairman Choung. I hope you will read it in full, for this matter is of vital importance to our fishing industry.

As you will note, the Chairman has agreed not to fish in Alaskan waters for salmon, king crab, halibut, shrimp and scallops (which are now being newly harvested by Alaska fishermen), but instead to purchase these seafood products from Alask fishermen at prevailing market prices. This is a major victory. In addition, Chairman Choung evidenced an interest in building a fish protein concentrate plant in Alaska, and to use Alaska bottom fishermen to supply the fish resources. The Koreans also showed interest in a number of other possible new businesses in Alaska, utilizing Alaskan labor and Korean financing. The prospects are bright indeed, and I urge that we render every possible assistance to this international friend.

I hope to visit with you in Juneau about the middle of February.
Cordially always,

HOWARD W. POLLOCK,
The Congressman for Alaska.

3. LETTER FROM CONGRESSMAN HOWARD W. POLLOCK TO SENATOR ERNEST GRUENING, CHAIRMAN, SENATE GOVERNMENT OPERATIONS SUBCOMMITTEE ON FOREIGN AID EXPENDITURES

CONGRESS OF THE UNITED STATES,

HOUSE OF REPRESENTATIVES, Washington, D.C., February 22, 1968.

Hon. ERNEST GRUENING,

Chairman, Senate Government Operations, Subcommittee on Foreign Aid Expenditures, Washington, D.C,

MY DEAR MR. CHAIRMAN: In reference to the hearings held by your Subcommittee on February 21, 1968, there is apparently some misunderstanding concerning the intentions of the Republic of Korea in the North Pacific fisheries. I had the opportunity last month to discuss these intentions with Chairman K. S. Choung, of the Samyang Fisheries Co. Ltd. of Korea. As you know, this company did engage in fishing operations off the coast of Alaska last year. Before my discussions with Chairman Choung, he had conferred in Alaska with Governor Hickel and others. These discussions were an attempt to find avenues of cooperation between Korean and Alaskan interests, and most important for Alaska, provided the opportunity for State officials and myself to emphasize the necessity of complete protection for Alaska's fisheries.

I wish to take this opportunity to inform your Subcommittee about these discussions and my subsequent meetings with leaders of the Alaska fishing industry. Alaska has long suffered from foreign encroachment on its fisheries. The persistent offenders have been the Russians and Japanese. Diplomacy has succeeded only partially in limiting North Pacific fishing by these two nations. Now, however, Alaska is faced by a new fishing nation, the Republic of Korea, desirous of entering the Alaska fisheries and not limited in its ability to do so by any international agreement. The Koreans had definite intentions of fishing this year off the coast of Alaska in competition with Alaska fishermen. Governor Hickel and I felt that this must be stopped. As the Governor stated in his telegram to you, it was our opinion that a negative or defensive approach would surely fail. It was also our opinion that reasonable negotiations could open the Korean market to Alaskan products and bring Korean investment into Alaska.

The details of my discussions with the Koreans are contained in letters to Chairman Choung and members of the Alaska State Legislature, copies of which are attached.

90-639 0-68 -2

Substantial concessions were made by the Koreans on the matter of fishing off Alaska. As you can see from the letters, they agreed to refrain from any competi tion with Alaskan fishermen and, indeed, agreed to purchase fish and products from Alaskans at market prices. In return, they wished to be allowed the right to fish for bottom fish which are not utilized by Alaskans. For this operation, they wished a rest, recreation and refueling port in Alaska. It should be noted that this would be for bottom fish operations only and that none of their catch would be processed in Alaska. Thus competition with Alaskans would have been eliminated. The Governor and I felt the agreement was a good one and could even lead to Korean investment in areas other than fisheries to the benefit of all.

The above information was released to the news media and immediately caused great controversy, some of which resulted from misinformation. Earlier this week, I had the opportunity to visit Kodiak and discuss the matter with a large number of Alaskan fishermen. I believe that much of the misunderstanding has now been cleared away.

Only one point in the proposed agreement remains in controversy as far as the people of Kodiak are concerned-the question of port privileges for the Korean fleet. For the Koreans, this point is extremely important. I made clear to the fishermen in Kodiak that without this concession, I feared the Koreans would return to their original plans for more intensive fishing. I added that in view of the present state of international law, I did not see how they could be stopped. Since their fishing industry is largely financed by European funds, cutting off American aid to their fleets could do little good.

It was the unanimous opinion of those at the meeting in Kodiak that port privileges should not be granted. The fishermen took the position that this is worth the risk of expanded Korean fishing. It was felt that such privileges would be a precedent that could be used by Japanese and Russian fishermen.

In view of this position, I consider it my duty as the Representative for Alaska to inform the Koreans that port privileges must be eliminated from the proposal. I hope that this will not disturb the remainder of the tentative agreement which in my opinion can be extremely beneficial to Alaska and the Republic of Korea, as well.

Mr. Chairman, I request that this letter and its attachments be made a part of the record of the hearing of February 21, 1968.

Cordially,

HOWARD W. POLLOCK,
The Congressman for Alaska.

4. LETTER FROM SENATOR ERNEST GRUENING TO CONGRESSMAN HOWARD W.

Hon. HOWARD W. POLLOCK,
U.S. House of Representatives,
Washington, D.C.

POLLOCK

FEBRUARY 27, 1968.

DEAR CONGRESSMAN POLLOCK: Thank you for your letter of February 22, 1968, summarizing your discussions with Mr. K. S. Choung of the Samyang Fisheries Co. Ltd. relating to the plans of that company for fishing in North Pacific waters and for establishing a base of operations for their fishing fleet in Alaska. I am pleased to see that you have reconsidered your position on this matter and now agree with me that it would not be in the interests of the Alasks fishing industry to invite the South Koreans to establish a base for fishing operations in Alaska in competition with the fishing industry of our own State.

As you requested, I will be happy to include you letter and attached correspondence in the record of hearings held by the Subcommittee on Foreign Aid Expenditures on February 21, 1968.

With best wishes, I am,

Cordially yours,

ERNEST GRUENING,

U.S. Senator.

Senator GRUENING. Now, we have present, fortunately, Mr. Donald McKernan, Special Assistant for Fisheries and Wildlife of the Department of State.

Mr. McKernan, we are very happy to have you here. We know that you are experienced and extremely knowledgeable in the field of

fisheries and we welcome your testimony. Will you proceed as you see fit?

STATEMENT OF DONALD L. McKERNAN, SPECIAL ASSISTANT FOR FISHERIES AND WILDLIFE, DEPARTMENT OF STATE

Mr. McKERNAN. Thank you, Mr. Chairman.

With your permission, I will read the relatively short statement I have.

Mr. Chairman and members of the subcommittee, my name is Donald L. McKernan and I am Special Assistant for Fisheries and Wildlife to the Secretary of State. I am grateful for the opportunity to appear before your subcommittee today to review some of the potential problems arising out of the interest of fishermen of the Republic of Korea in the fisheries of the North Pacific Ocean, and to discuss the action taken by the Department of State to deal with these matters.

M'KERNAN CLAIMS U.S. STRESSES MARINE CONSERVATION AND FOREIGN NATIONS' RIGHTS IN EXPANSION PROGRAMS

The Republic of Korea, a natural fishing nation, has over the past decade or so been engaged in substantial efforts to increase the contribution of its fishing industry to the national economy. In this program of expansion, it has naturally begun to look to areas farther afield for the operations of its growing fishing fleet. The United States has, in general, encouraged and assisted Korean efforts to increase the harvest of food from the oceans, which is in accord with our own policy. At the same time, the United States has on occasion pointed out that programs of expansion of the fisheries must be undertaken with full regard for the conservation of living marine resources and for the rights and interests of other nations in the fisheries.

It was only natural that the Republic of Korea should have turned its attention to the North Pacific Ocean as an area for further development of its fisheries. As early as November 1964 reports came to our attention of growing interest in the development of a Korean fishery for salmon in these northeastern waters. Since that time we, in the Department of State, have on numerous occasions brought to the attention of the Korean Government, at various levels, the special circumstances of certain important fisheries of the North Pacific, in particular those for salmon and halibut. The fisheries for both these species in the northeastern Pacific are conducted under arrangements made by international treaties.

The fisheries for salmon and halibut are governed by the International Convention for the High Seas Fisheries of the North Pacific Ocean, the parties to which are Canada, Japan, and the United States. Basic to this treaty is the concept of abstention under which nations which have not historically participated in the fishery should abstain from doing so as long as those countries which have developed the fishery continue to carry out measures for conservation and full utilization of the available resources. Under the treaty Japan abstained from fishing salmon east of 175 degrees west longitude and from fishing halibut in the northeastern Pacific Ocean. Canada abstained from fishing salmon in the eastern Bering Sea.

UN CONVENTION CONVEYS TO U.S. EXCLUSIVE RIGHTS TO KING CRAB ON ITS CONTINENTAL SHELF

In our discussions with representatives of the Republic of Korea, we have emphasized the special facilities for the fisheries of salmon and halibut and have pointed out that the entry of Korean fishermen into these sensitive fisheries could have serious complications in view of the convictions of the interested U.S. public that we have a special interest in these stocks of fish. The fishery for king crab is, of course, another sensitive area but we consider that the U.N. convention on the Continental Shelf conveys to us exclusive rights to jurisdiction and control over king crab found on the U.S. Continental Shelf, since we believe the king crab qualifies as a resource of the shelf under the definitions of the convention.

KOREAN SALMON SAMPLING OPERATIONS STARTED IN

NORTHEASTERN PACIFIC IN 1966

As I mentioned, the first reports of Korean interest in the salmon fishery came to us in November 1964, and there have been further indications since that time. In the summer of 1966, a Korean fishery training or research vessel came to the northeastern Pacific and, among other things, undertook some sampling operations for salmon. In the same year, 9 or 10 Korean vessels fished for salmon and other species off Hokkaido, the northernmost island of Japan. The accompanying publicity at about this time, regarding possible Korean salmon fishing, impelled the International North Pacific Fisheries Commission, established under the tripartite treaty, to call the attention of the contracting governments to the problems for the Commission's program which would be raised by the entry of a fourth party into the salmon fishery in the northeastern Pacific.

Announcement of the Commission's action in this respect was apparently misunderstood in the Republic of Korea and the ensuing publicity prompted the United States to invite General Oh, who was then Director of the Korean Office of Fisheries, to visit the United States for discussions on fishery subjects of mutual interest. General Oh accepted this invitation and his visit occurred early in 1967. We felt that the discussions at that time were mutually profitable. We assured the Republic of Korea's officials of our continuing positive interest in the development of Korean fisheries in ways which would take into account the existing conservation arrangements and which would not lead to severe clashes of interest.

U.S. SALMON AND TROUT SURVEY TEAM SENT TO KOREA IN 1967

Among the possibilities for further development of Korean fisheries which were discussed was a project on Cheju Island for the processing of tuna and mackerel, further expansion of Korean tuna fisheries in the South Pacific and elsewhere, development of indigenous salmon and trout fisheries in Korea and development of a Korean oyster industry.

In following up on these discussions, the United States sent a salmon and trout survey team to Korea. The team's report was generally optimistic about the development of local projects involving

local stocks of these species. An oyster team from the United States also went to Korea primarily to advise on sanitation aspects and to further the possibility of a certification agreement such as we have with Japan.

KOREA SENDS UNSUCCESSFUL BOTTOM FISHING FLEET TO NORTH PACIFIC IN 1967

In the late summer of 1967, a small fleet consisting of eight 99-ton I trawlers and one thousand-ton carrier vessel proceeded to the North Pacific to carry out trawling for bottom fish. This fleet encountered very bad weather off the Aleutians and in one storm lost two of the trawlers and their crews, consisting of about 29 men. While the remaining vessels attempted to operate along the Aleutians and in other areas off Alaska, the venture was not a success primarily because the vessels were not suitable for trawling operations in the area at that time of year.

SALMON, HALIBUT, KING CRAB FISHERIES "SENSITIVE" STATE
DEPARTMENT CLAIMS IN RECENT DISCUSSIONS

The latest development in this matter was the visit last month of a Korean group representing private business interests to this country to discuss the possibility of private Korean-financed or jointlyfinanced ventures in several fields, including fisheries. The group discussed these matters with various persons in the States of Alaska and Washington and in Washington, D.C. During their discussions at the Department of State it was again emphasized that the salmon, halibut, king crab and other fisheries were very sensitive matters to the interested U.S. public and that attempts by the Korean company to enter these fisheries would very likely bring serious difficulties. On the other hand, there was nothing in U.S. law to prevent their engaging in a joint venture with American business interests so long as the operations complied with pertinent law and regulations.

We understand that the Korean Government has in effect a system of licensing in which the applicant is requested to specify the areas, the types of fishing, and the species which will be involved. The Republic of Korea, to our knowledge, has issued no licenses for salmon, halibut, or king crab fishing in the northeastern Pacific and we have no evidence that it plans to do so in the near future. We believe that officials of the Republic of Korea have a good understanding of the U.S. position on these matters. On the other hand, the United States has not made any objection to trawling for bottomfish by Korean vessels and fishermen, inasmuch as such fisheries are already being conducted by both Japan and the Soviet Union in the area. As part of our cooperative discussions, however, we have pointed out the problems that uncontrolled trawling might bring, particularly with respect to the destruction of American king crab or halibut fishing gear by trawlers and with respect to the possible damage of halibut resources from indiscriminate trawling. In this connection, we have offered advice on how to minimize these problems.

Mr. Chairman, I will be very happy to answer any questions you may have.