South Pacific regional : fisheries treaty program

Government (USG) and certain South Pacific Island States and a related agreement between A.I.D. and the South Pacific Forum Fisheries Agency (FFA). The Treaty, which still needs to be ratified before becoming effective, aims at ending years of dispute over tuna fishing by U.S. boats in the Exclusive Economic Zones (EEZ"s) of the Island countries. Under the program, A.I.D. will make five annual cash transfers of $10 million each to the FFA. The Treaty requires such payments, along with payments by the U.S. tuna industry, prior to the granting of licences to U.S. boats to fish in EEZ waters. FFA will place these payments into an Economic Development Fund which will be divided annually as follows: (1) $1 million for fishery and other development projects and (2) $9 million for cash distribution to FFA members participating in the Treaty for use in non-military, development activities. The economic impacts of the cash payments are expected to vary widely among participating countries. For example, Papua New Guinea, although a major fishery country, also possesses other resources and revenues; thus, impact per person will be relatively light. In contrast, Tuvalu, a moderate fishery country, could receive about half the amount of its annual budget under a high estimate of its share in the cash distribution. Tuvalu may put these monies in a trust fund for future use rather than try to find good current uses, something which may improve its highly dependent economic status. Potential participating countries include six countries not included in A.I.D."s South Pacific Region (Australia, Micronesia, Marshall Islands, Nauru, New Zealand, and Palau), one (Fiji) to which bilateral assistance has been suspended, and nine others (Niue Island, Papua New Guinea, Solomon Islands. Cook Islands, Kiribati, Tonga, Tuvalu, Vanautu, and Western Samoa). It is not clear how Australia and New Zealand will participate, but New Zealand may use some cash receipts for Tokelau, three atolls north of Samoa.