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EXHIBIT 2
LETTER TO SENATOR ERNEST GRUENING FROM THE HONORABLE DEAN Rrer,

SECRETARY OF STATE

DEPARTMENT OF STATE,

Washington, February 8, 1967.
Hon. ERNEST GRUENING,
U.S. Senate.

DEAR Senator GRUENING: The Secretary has asked me to reply to your lete South of January 27, 1967, expressing concern about the expansion of the Koreans into a for deep sea fishing in North Pacific waters. In your letter you commented that ou assistance program to Korea in the field of fisheries may be at cross purposes with the efforts of the International North Pacific Fisheries Commission, of which the United States is a member, to discourage this expansion.

Since the Department first became aware of the possibility of the Republic LIEL of Korea entering the North Pacific salmon and halibut fisheries, we have been very active in pointing out to the Korean authorities the severe difficulties tha: would arise from such action on their part. In connection with that problem, the Department invited the Chief of Fisheries of the Republic of Korea, General Oh Jung-Keun, to come to the United States for consultations with officials of Spor the Department of State, Interior, and AID. These consultations, which have just been completed, have been very productive in reaching a better mutual understanding on the whole range of questions involved in the expansion of Korean fisheries and our own interests in the North Pacific area. I believe that we have been successful in focusing the attention of the Koreans on areas of expansion that will minimize the possibility that they will run into conflict with the member countries of the North Pacific Fisheries Commission and the interests of our ori industry, particularly in North Pacific salmon and halibut fisheries.

In its efforts to develop its fisheries industry, the Republic of Korea has been able to secure capital in Europe and Japan. We have every reason to believe that it will continue to be able to find such assistance for this industry, which it expects to contribute substantially to the nation's economic development, else where than the United States. The Korean fishing industry, therefore, will expand with or without out help. We believe that we will have greater influence on the direction of Korean fishing policy by assisting it than by withdrawing and leaving assistance to other nations (whose influence might lead the Koreans in other directions than we would wish).

AID assistance activities are fully coordinated with overall U.S. fisheries policy both in Washington and in the field. In fact, the technical assistance advisors, to whom you refer, were fully briefed by the Bureau of Commercial Fisheries before leaving for Korea. They have pointed out that the salmon and halibut stocks of the North Pacific are already fully exploited, and they have emphasized tuns fishing as a more profitable alternative. For example, we are now helping the Korean Office of Fisheries to develop a possible joint venture with an American company in tuna and mackerel fishing. In this way, AID, while supporting Korea's economic development, supports U.S. fisheries policy at the same time.

Finally we believe that the Republic of Korea has a definite role to play in helping to foster the U.S. national policy of encouraging the use of the sea to increase the supply of food in the world. Our consultations with General Oh have demonstrated that the Koreans are anxious to cooperate with us in this endeavor toronel At the same time, they understand our special problems as regards certain species in the North Pacific. If I can be of further assistance, please do not hesitate to let me know. Sincerely yours,

(Signed) Douglas MacArthur

DOUGLAS MACARTHUR
Assistant Secretary for Congressional Relations.

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ALASKAN FISHING INDUSTRY SERIOUSLY THREATENED

Senator GRUENING. The reports I have received indicate that the Department of State has not been successful in discouraging the IN South Koreans from salmon and other fishing in North Pacific waters iets and that they now have extensive plans for expanded fishing for salmon

and king crab. These plans include the use of Alaskan port facilities by South Korean vessels and the construction of facilities in Alaska

by or for the South Koreans to process their fish catch, and that the si fue. Alaska fishing industry is likely to be seriously and adversely affected ar by these plans.

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Now, I have a telegram from the Governor-Governor Hickelin response to mine, asking for our views. He wires as follows:

Strong possibility of Korea fishing high-seas for our salmon, halibut and king s based crab represents gráve threat to these resources and to North Pacific Fisheries

Treaty with Japan and Canada. Consequently, in the interest of safeguarding I be, these resources and preserving this vital treaty, State of Alaska not unwilling to

accept Korean plan for shore operation in Alaska for other species including die bottom fish. However, have told Koreans we want Alaskan labor used to maximum betes and urge joint venture with American concern in form of Alaska corporation.

We would resist to utmost any fishing concession for Korea or anyone else bit des inside twelve mile fishery zone. We are convinced entirely negative or defensive

approach with Korea would result eventually in destructive high-seas fishing This by Korea for salmon, et cetera. Have reason to believe our present approach will

lead to commitment by Korean Government that it will not license any Korean operation for such high-seas fishing. Don McKernan at State Department and Clint Atkinson at U.S. Embassy Tokyo believed to share this conviction. We are in close touch with. The situation is this: Koreans while in Alaska gave us their proposal. We wrote them counter proposal designed to prevent high-seas fishing for salmon, halibut and king crab. Ŝtill awaiting their reply. Likely representative of Samyang, the Korean Fishing company, will return to Alaska shortly. Regards.

WALTER J. HICKEL, Governor.

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KODIAK FISHERMEN'S ASSOCIATION "VIGOROUSLY PROTEST

I also have a telegram from Oscar Dyson, United Fisheries Marketing Association:

May it be read into the record that the United Fisherman's Marketing Association of Kodiak which represents the majority of the North Pacific Fishing Fleet vigorously protest the assistance of aid in the past or in the future to South

Korea or any foreign fishing countries which are in competition with our own fishing industry that we are unalterably opposed to any governmental authority in the United States permitting the establishment for any consideration of any facilities whatsoever for the fishing fleet of foreign nations operating off the coast of the United States.

I now direct that a four-part series of letters, three from Congressman Pollock, and an answer to him from me, be included at this point in the printed record of this hearing. The three from CongressDan Pollock are: (1) to the Honorable K. S. Choung, Chairman of thu Samyang Group, (2) to the members of the Alaska State Legislaturi, and (3) to me.

(The above-mentioned correspondence follows:)

EXHIBIT 3

FOUR-PART SERIES OF LETTERS CONCERNING PISHING IN THE NORTHEASTERN

PACIFIC

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I. LETTER FROM CONGRESSMAN HOWARD W. POLLOCK TO THE Hon. K. S. Choune, czapka CHAIRMAN OF THE SAMYANG GROUP

Aperit CONGRESS OF THE UNITED STATES,

HOUSE OF REPRESENTATIVES, la bebe

Washington, D.C., January 30, 1968. Hon. K. S. CHOUNG,

i bor Chairman of the Samyang Group, Wonchang Building, Seoul, Korea.

MY DEAR CHAIRMAN CHOUNG: This will acknowledge with deep appreciation fro your participation in our extensive discussions concerning fishing by your Korean vessels of Samyang Fisheries Company, Ltd. in the North Pacific Ocean in the waters of the Gulf of Alaska and the Bering Sea, and your desire to establish new industries in Alaska which will be mutually beneficial to the Republic of Kores per fer and to Alaska.

Hlav I particularly appreciated your willingness to have us frankly and honestly discuss all aspects of this sensitive problem and the grave concern of the Alaska fishermen that their livelihood would be seriously impaired if your fleets should attempt to take salmon, king crabs, halibut or shrimp from Alaskan waters.

The Republic of Korea and the United States of America have been the best of friends and allies for many years, and I know that you are desirous that none

1. Give of your fishing ventures in the North Pacific will cause a breach of that friendship it for or any international incidents which would be unfriendly or displeasing to Alaska or to the United States as a whole. How you proceed with your fishing ventures in the international waters of the high seas adjacent to Alaska will determine whether you are a welcome friend to Alaska and to the Alaska fishermen, or whether you will instead be an unfriendly and unwelcome foreign intruder, unfairly depleting our Alaska fisheries resources. I am therefore deeply pleased that our discussions have resulted in a greater mutual understanding, and I have your assurance that you and the Korean fishermen will do nothing to hurt the edbi Alaska fishermen in the pursuit of their livelihood.

I am keenly aware of the great personal and financial losses you sustained in the 1966-67 fishing venture on the North Pacific waters near the tip of the Aelutian fore Island chain of Alaska, and of the plans you had this year to return a Korean fishing fleet to Alaska waters to fish for salmon and king crabs.

We recognize that the Republic of Korea is not a signatory nation to any of the ketare international agreements concerning fishing in the North Pacific, and realize that , in Korea does have freedom of the high seas outside of the territorial waters of the United States to fish as she chooses, regardless of the consequences.

As you know, commercial fishing is the most important industry of Alaska, and our fishermen are very sensitive about any intrusion upon their salmon, king crab

, halibut, shrimp or even the newly developed scallop fisheries. It was for this reason I urged you not to send your own Korean fishing vessels into the North Pacific Ocean in or near Alaskan waters to fish for these salmon, king crab, halibut

, shrimp or scallops, but instead to purchase these fish products from the Alaska fishermen at prevailing prices so as not to disturb the market. It is obvious to me that you could make a bigger profit sooner if you were to proceed with your original plans. I fully understand the financial and political implications of this proposal

, for I know you have many Korean fishermen and that maximum profit is very neces: sary to the success of your business ventures. I am not unmindful of the fact that your commitments to me are subject to the approval of your corporate board of directors, and your government. Yet I am confident that they will be persuaded by the wisdom of your decision.

Nevertheless, I believe we both concur that it would be far more profitable in the long run if we could maintain our close friendship and establish mutually profitable business ventures, not only in fishing, but also in other areas as well While you might not profit as much immediately, I believe many years of cordial business relations working with us instead of against us will ultimately be the most fruitful and profitable for your company, your country and Alaska. As you realize, there are numerous other possibilities for profit by Samyang and other Korean companies.

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I find we have a great mutual interest in developing the bottom fishery, both for your food in Korea and for the manufacture of fish protein concentrate or FPČ. As I discussed with you, several of our federal laws would prohibit your Korean fishermen or Korean vessels from landing fish in Alaska or anywhere else

in the United States. Thus, the bottom fish you will need for the FPC plant you TO THE Zx i contemplate for location in Alaska would have to be caught by Alaska fishermen

on American built fishing vessels; whereas the bottom fish you utilize for the

FPC plant you contemplate for location in Korea could certainly be caught by TNITED NA Korean fishermen on Korean or other foreign vessels. REPELIT On behalf of Governor Walter J. Hickel and the citizens of Alaska, and in my D.C., own behalf, I want to express deepest appreciation for your agreement to:

1. Not fish for salmon, king crab, halibut, shrimp and scallops in Alaskan waters or waters under the control of the United States (the 9-mile contiguous zone) or in adjacent waters containing these fish products of Alaska.

2. Purchase the salmon, king crab, halibut, shrimp and scallops which you desire from the Alaska fishermen at prevailing market prices.

3. Keep all of your bottom fishing vessels out of the area where Alaska fishermen have king crab pots

or other fishing gear in the water. 4. Build a FPC plant in Seward, Homer or other Alaska community if the to the flere proper finances can be arranged.

5. Have the 200 ton, 300 ton, or larger commercial fishing vessels built in the United States if the proper financial arrangements can be made.

6. Encourage your government and other fishing companies of Korea to honor our agreement and understandings and abide by them.

In consideration of these concessions and agreements on your part to assist rather than harm our Alaska fishermen, we will:

1. Give you every possible assistance to establish a rest, recreation and refueling port for Samyang at the City of Seward as you desire.

2. Provide, in accordance with your request, whatever assistance I am able i or dates to help you acquire grants, or loans from the Agency for International Developith four ment (AID), loans from the World Bank, grants or loans from whatever other

public or private financial institutions from which money might be available, in he bal order to bring our mutual objectives into business reality. I feel confident that logo Governor Hickel and his State administration will also lend every possible assist

ance to you, for his primary objectives are (a) to protect the Alaska fishermen, derind and (b) to create new Alaska industry.

3. Assist you in the establishment of other businesses or industries in Alaska in which you may be interested, and in which we believe there exists a good potential for establishing a profitable venture either with your own financing or in a

joint venture with American firms in Alaska. We would require that Alaska labor s up be utilized in the Alaska plants, with a combined Korean/Alaskan management

structure comparable to the arrangement at the Alaska Lumber and Pulp Com pany, Inc. at Sitka, Alaska, which is a Japanese-owned and financed business.

4. Attempt to initiate business interviews for you with key officials of several of the large American companies interested in joint venture agreements.

5. Give you assurances that your ocean-going transports will be allowed to Stand enter the port of Seward and other appropriate ports for the purpose of loading

the salmon, king crab, halibut, shrimp, scallops and any other fish purchased 1* from our Alaskan fishermen at prevailing prices.

6. As we discussed in some detail, there are many other joint venture possibilities in Alaska in which Samyang or other Korean firms might be interested,

(a) the export of timber (our federal regulations require some primary cutting or processing to be done on the logs in Alaska instead of shipping round logs when the timber is cut from public lands);

(b) establishment of a plywood manufacturing plant in Seward or elsewhere suitable;

(c) an iron smelter in the deep sea port of Seward for the manufacture of pelletized iron upgraded from the low-grade iron ore deposits on the Alaska Peninsula, utilizing coal from Palmer or Healy (which can be moved by the Alaska Railroad to Seward), or from Cordova (by barge), and utilizing gas from the western part of the Kenai Peninsula. At the port of Seward these ships could load the upgraded iron pellets for movement directly to Korea;

(d) another type smelter or ore reduction plant there at the deep sea port of Seward for processing gold, silver, antimony and platinum, with rock wood insulation being produced as a by-product of the extraction process;

(e) a liguified gas plant for shipment of this product in special refrigerated ships to Korea, such as is now being shipped to Japan.

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extensive discussions with Chairman K. S. Choung of Samyang Fisheries Co. Ltd. At that t1

U.S. As I informed you, there are plans in process at the present time for construction of a marine ways to handle ship repair in Seward, 1,000 ton capacity. Although car produc the ways are primarily intended for the vessels of the burgeoning oil industry lead to é fleet, I understand the facilities could be utilized for your fishing vessels that mata to in required major repairs.

Your interest in Seward and Homer leads me to also suggest that there are two small seafood processing plants at Homer that might be available for purchase de limit. or a joint venture expansion and operation, or a long-term seafood products at The marketing agreement. Either of these plants appear to have an excellent potential us fear to for the future.

Mr. Chairman, I am very much aware that Samyang Fisheries Company, Ltd. ritor in suffered a loss of approximately $1,500,000 in the first unfortunate fishing venture in Alaskan waters in 1966, and then suffered the great misfortune in 1967 of a danger h another loss of approximately $2,500,000, which included the tragic loss of many met my lives when two of your fishing vessels were sunk and lost. My deepest sympaths ea is of goes to you for the great personal loss of your son, Young Zune Choung, who was president of the company, and I know that this loss cannot be measured in terms of money. I further understand that part of your loss in 1967 included seriested by very substantial sum paid as compensation to the families of the many fishermen . Alask who drowned.

2 tipa, CI Of course, in addition to the loss of approximately $4,000,000 in 1966 and 1967, I understand that present expenditures of some $2,000,000 have been invested in fitting out your present salmon and king crab fishing fleet with nets

, gear, supplies, etc. for the 1968 fishing season, none of which can be used for the bottom fishing to which you will now confine your fishing operations in Alaska waters.

I mention this loss of about $6,000,000 Samyang has suffered to commend you on the courageous and far-sighted course you are taking, as outlined in this letter above, and I wish you every success in gaining approval for the AID grants and loans or the World Bank loans your company seeks. As indicated above, we will do whatever we can to help.

Recognizing that you must now very substantially change your plans which LETTER have been in preparation for fishing salmon and king crab this year, and realizing GOTEXIA that your fleet would probably be scheduled for departure from Korea in April FOREIGN if the loans and grants contemplated in your revised plans do not materialize

, I can fully understand your urgent need to achieve some concrete results by the end of February, which is only a month away, or at least by then to have firm assurance that the funds will be made available to you. Accordingly, I admonish you to submit the appropriate applications for AID or World Bank or other loans or grants immediately.

In closing, I wish to express my sincere appreciation for your understanding of our serious fishing problems, and am deeply thankful for your desire to establish a closer working relationship between the Republic of Korea and our developing State of Alaska. There is tremendous opportunity in Alaska which we can share in peace and harmony for many years to come. Cordially, and with respect,

HOWARD W. POLLOCK,

The Congressman for Alaska. 2. LETTER FROM CONGRESSMAN HOWARD W. POLLOCK TO MEMBERS OF THE

ALASKA SENATE AND HOUSE
CONGRESS OF THE UNITED STATES,

HOUSE OF REPRESENTATIVES,

Washington, D.C., February 3, 1968.
Honorable MEMBERS OF THE ALASKA SENATE AND HOUSE,
The Alaska State Legislature,
Pouch V, State Capitol,
Juneau, Alaska.

MY DEAR FRIENDS AND COLLEAGUES: I have just concluded several days of and the Samyang Group of corporations, Seoul, Korea, concerning fishing by Korean vessels in the North Pacific Ocean in the waters of the Gulf of Alaska and the Bering Sea, and the possibility of development of new industries in Alaska which would benefit both the State of Alaska and the Republic of Korea.

My primary concern in these negotiations has been twofold: (1) to divert the Korean fishing fleets from fishing for salmon, king crabs, halibut, shrimp and

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