FISHING VESSEL SEIZURE PROBLEM IN ECUADOR

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP08C01297R000700080016-2
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 5
• Document Creation Date: December 27, 2016
• Document Release Date: September 26, 2012
• Sequence Number: 16
• Publication Date: August 27, 1952
• Content Type: MEMO

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pouch d '6 3 .;3 TATTimiguak.
PRIORITY (Security Classification)
FROM
TO
REF :
20
For Dept.
Use Only
FOREIGN SERVICE DESPATCH
Anenbassy, Qpittoo
en A D. 77.
CIA-RDPO8C01297R000700080016-2
HI,114:13ktit.
611.226/8-2752
THE DEPARTMENT OF STATE, WASHINGTON.
ACTION
REC D
SEP 1
DEPT.
I REP ARA OLI L UNA
F OTHER
0 Cam IN
DESP. NO.
i?7 1952
lei DATE
, SUBJECT:
Fishing Vessel Seizure Problem in Ecuador
25X10
Supplementing the Embasgrygs despatches no, 132 of August 229 19529 no 137 on
August 259 19529 and. 141 of August 279 19529 respectively, the following report
completes an investigation of the background and current status of the above subject@
At the outset it should be stated that the observations ani suggestions set
forth below are necessarily subject to the policies of the new Ecuadoran Administration
which takes office on September 1 1952. Bowevers it is not believed that the
situation will be ameliorated merely by a change in administrations since it appears
that the forces behind current Ecuadoran policy, both in respect of territorial watem
and in respect of fisheriess will be as influential in these matters after September 1
as at present? Mat follows, therefore9 presumes that the new Government win coat-mut
of the same mind that there will be no spontaneous demarche by President Darrel/
cabineto
kilfttreati Between Extra tex' toad Fisher Aa ectsims
Prior to the ,promulgation of Decree 0160 of January 299 19529 in effect prohibit
foreign flag fishing vessels from entering, for any purpose, a twelve-mile-swide zone
of waters along the Ecuadoran continental coasts, the American tuna fishing industry
was nots, from a practical atandpoint9 affected by Ecuadorgs extraterritorial claims
This was due to the fact that fishing permits were purchased for the primary purpose
of taking bait which, for the most part9 is found within three marine miles of the
coast* These permits also covered tuna fishing operations in Ecuadoran waters, with
the practical result that whether Ecuador claimed fisheries control over three miles
or twelve miles made little material difference to the industry? With the entry into
force of Decree 0160 ha/levers the current fisheries problem earns into beings
traducing questions of International laws namely, the legitimate extent of
ries controls the proper location of baselines9 and the scope of the cone
innooeut passageov So long as the said prohibition obtains, it will be difficult
to deal with the fisheries problem independently of the extraterritorial 'claims issue?
Hag/ever, that is not to say that the two are necessarily inseparable? For while
both Ecuadorg a position regarding fisheries jurisdiction and its current attitude
toward foreign fishing operations in coastal waters spring from the same nationalistic
motivess the latter has been in part inspired by private considerations not anti
aligned with Ecuadorg a beat interests, If in some satisfactory manner the preexisting
fishing privileges can be restored to American fishermen, the extent of Ecuador')
FETaylerirdir
REPORTER
INFORMATION COPY
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From_ ?___An211/11424?1-1.ito0
Auguet 27L ? 1952
CONFIDENTIAL
(Classification)
Encl. No
Desp. No
From
extraterritorial claims would again be immaterial fromaneoperational(standpaiate
[
It is not believed that this is impossible of accomplishment()
Even though the local seizure question may ultimately be answered without
reference to the extraterritorial claims per sea the Department will wish to bear
in mind the American fishing indastryts natural concern over the precedential value
of such claims to other ntate s far off whose coasts the industry pursues large
scale tuna fishing operations, as contradistinguished from baiting in inshore eaters*
1 ?
Terri rleel
The subjects subjects of territorial waters and fisheries jurisdiction have provided the
Ecuadoran Government with important instrumento of national policya The identification
of considerable reaches of water along the continental coast and around the Galapagos
Islands as the exclusive property of Ecuador has great emotional appeal to the
literate element, and the central authorities are keenly aware of that facto lhen
one considers the responsiveness of innate pride and patriotism to territorial
aggrandisemeat? it is not difficult to understand Why the extraterritorial claims of
Ecuador have become an object of popular interest and support* Extensive and
sympathetic press coverage of national action in this fields including incidents
growing out of enforcement, have mule a major contribution in that direction* The
subject has become sensitive, politically? and under these circumstances probably
no public official would risk levelling criticize of Ecuadoros stand in the matter
even if he felt it extremes
In following the post4forl4 War II trend toward the unilateral extension of
special and general jurisdicti over coastal waters, Ecuador considers that she was
merely getting in step eith a number of other states in the Latin American area,
Although taking comfort in numbers Ecuador undoubtedly was motivated by
ns
consideratio of the national weliare? viewing the natural resources of the coastal
waters and continektal shelf as sources of raw material for potential Ecuadoran
-industry whish would in turn benefit the national moonemys It is-believed that
this highly commendable desire to creat new industry played a prominent part in the
series of events leading to Decree 0160 of January 290 1952e
De ree 0160e
This decree, which together with the fisheries law of February 220 1931? is -
the basis of recent seizures of American vessels, is believed attributable to four
factors t (1) The activities of one Maury Rarkin, an Amerie-an citizen, Who centrals
the embryonic Ecuadoran tuna fishing busines a (2) an FAO miesion to Ecuador in,
1951a (3) the inability to appreciate fully the extremely unfavorable competitive
positi Ecuad ran canned tuna would occupy vis-a-ftrie the American market,
considering the United $tates tariff, and Japanese, Peruvian, and. American
productions and (4) a at tending f the factors which affect the amount of
revenue Ecuador derives from American flaking operations in its =terse
Mre Rankin,s connection with DeOres 01600 as related in the Embasayps despateh
no 141 of August 27, 1952, is believed to to substantially c ate It appears
that he derives virtually all of his influence in the tter from the Nant
fishermen and municipal authorities, haring alienated himself frac mane" high
CONETIMITIAL
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eage -
esp. No.144P ? 00DENTIOLe_____ End. No
From Ameebassee Qdite (Classification)
' Amgust 270 1952
"
Desp. No
From
government officials s including ontecloee friends President Plaza and Minister
of Economy Jaliln by demanding and argumentative tacticso It is said that he who
controls the Manta fishermen controls Ecuadoran fisheries policy andVre Rankin
presently controls the Manta fishermens However& the reported fe31 of this man
into disfavor among central authorities is expected to obtain after the new
a istration takes ever since his nodus operandi is well known in governmental
circles and he is becoming unpopular with the local population in Manta& who can
no longer obtain all the fish they want to eat as the fishermen sell it all to
Rankilee This offers hope of attenuating his indirect influence on Ecuadoran
fisheries policy e For example & it is believed that the Ecuadoran Goverment can be
induced to participate Ii the work of the Inter-American Tropical Tuna Commission
and thereby bring to light the facts regarding tuna populations along Ecuadorgs
coasts In this Nay the validity of the contention that Decree 0160 is necessary to
preserve the resource can be either proved or disproved ecientificallen without in
the meantime disturbing the Manta tuna fishing induetrys
Reportedly-0 a recommendation along the lines of Decree 0160 also came from an
FAO mission to Ecuador An mid-1951s This missions said ie have included Sr,
Osorio TAFAL0 a Spanish national& and a Chilean named Gonsaleen recommended that
Ecuador cease being only a supplier of raw fish to foreign markets and abolish t
issuance of pendia by radio in order tcc control illegal fishing's Farthean it was
suggested that foreign fishing in national eaters be discontinued altogether
Un4oulatedly0 these 'suggestions were received with interest since Ecuador covets a
canned tuna export induatry0 failing yet to appreciate fully the economic factors
surrounding the canned tuna supply and market situation in the world todaye
Ecuador is ewers of Japans dominant position as the chief foreign sap her of
both canned and raw tuna to the United States markete But there does not semn to be
a full realiention that the Japanese& by an abundance of skilled and cheap labors
and 'technical knew-hews can outstrip all foreign competition for that limited market*
Here again Ecuador appears to'be drawing enoouragement from Peres flourishing canned
bonito industry& not rstanding that ouch canned benito0 a tuna-like fish is not
competing direotZy with Japangs fancy albacore tuna canned in oile Apparently
INEKCA is aware of these fact ors,and is content to confiae its export operations to
the shinment of dutenfree tuna in the round for canning in the United Statese
Although Ecuador will probably continue to aspire to a cannel tuna export industrys
the check against any disastrous attempt to establish one will be provided by the
emmileareposs of informed fish producers to invest in each an enterprise?
'EarSy in 1951 Ecuador increased the cost of permits to fish in its waters trma
$7050 per tea to $1240 per 0 ostensibly for the purpoom of increasing revenue?
However0 despite a substantial inorease in the sine of the American tunaboat fleet&
the amount of revenue received by Ecuador from this, source declinede The cause of
this has not been readily understood by local authoritiese 'here has been an
attempt to Ogress upon Ecuadoran officials in concern the relationship of that.
decline
decline to the twat market situatioe in 1951e namely the cutting of production costs
mherever possible by American fishenmen in order to meet foreign competitions It
has also been suggested that the present location of tuna fishing grounds off
Northern Peru would make baiting privileges in Ecuadoran waters a conveniences and
therefore a potential coerce of greatly increased revenue to Ecuadorn
ONFIDtTIAL
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Pak,. 4 of
,Desp. No /44 COMIENTIAL
eree_emembassye-Quateg (Classification)
August 27? 1952
End. No
Desp. No
Departemt may be aware of the fact that under Ecuadoran law the comma
of the seizing ?ousel receives 30% of any fine imposed upon the fishing vessel
seized? This =mato to incentive payo However s this aspect of the problem relates
to enforcement rather than to the basic fisheries policy?
attp_tiatiplApa_roaches to the Problem
It is not suggested that the following list is complete? Other alternatives
may suggest themselves as the Department studies the report of this investigatione
Furthers the order in which these items are mentioned has no special significance?
lo Ad. iclatisa_t in the International Court of J stice The question of the
right of foreign flag vessels to innocent passage through Ecuadorgs territorial
waters might be referred to the ICJ for determination e The legal breadth of those
waters need not be in iesues but rather the question of rights within themothatever
their legitimate extent, It is believed, however? that one should bear in mind the
real possitdlity that the Court might not confineriits decision to the question of
innocent passage alone? but might very well pass jusigment on the validity of Emeadorts
territorial watero claim? In this latter connection? the present composition of t
MT and the Imam phtlegophy of some of its members would seem to make a decisi
favorable te the United States highly unlikely?
Although the decision in the Sun Pacific case has not been rendered there are
reports that a finding of guilt and the assessment of a fine approximating $1.10000
is certain, The Sun Pacifie case may have all the requisites of a test case
regarding innocent paosageo Representatives of the owner of this vessel are
proceeding on the theory that it does and that it will be so employed?
2a Intereeneriran, trt4Tuna Commiesiono This Commissions as a medium for
bringing Ecuador and tno United States together in cooperative tuna research-5 should
not be aaerlookede Ecuador is actively interested in memberskipo Apart from
providing a scierreifie means for detennining the true state of the tuna resource is
Ecuador s continental coastal waterss which goes to the heart of Decree 0160? this
Commisgion would serve as an excellent agency for improving the relationship between-
the two countries in the field of fisheries?
30 Guaranteen of non-FisilkL=;laccent Passage? Consistently with the ,
continued existence of the prohibition against foreign fishing in the continental:
territorial waters? consideration might be given to the development ofstatue...13y
satiefactory guarantees of nonefiehing by American tunaboats 'ohne passing through
each waterss to avoid aelnurese It is understood that at one time a form of
guarantee agaihet illegal fishing in Ecuadoran waters was successfully enpleyed by
the American tuna fleet? It seems that upon returning to how port in,Califoraia?
each turgaboat reported to the American Tunaboat Association the name of 'beak vessel
it had seen fishing in Ecuadoran waters ? This was in turn reported to the Ecuadoran
consul at San Diego rho checked the names with the list of permitteego With
everybody reporting on everybody else this is said to have worked very wale That-
is not to suggest that the same plan would be workable where there is an outright
prohibitions as in the present eagle) Of courses aier guarantees that might be
developed in the preecot cage would have to emanate from. the the industry and not the
United
ted States CrOVCr: 7Y":, , since the latter would tetherelse be compromising i
i
I CON VIDERPIA,L
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raie ,
Desp. No 144 Lilanzointat End. No
From AmeMbassys_Quito (Classification) Desp. No.
Aagnst 27s 1952 From
{position on Ecuadorgs extraterritorial claims as stated in its note of protest
thereof
A2 Permits "ts.S.M.911-DEWAILE0
The American tuna industrygs current difficulty off Ecuador is twofold
(1) The denial of innocent passages and (2) the denial of fishing privileges ? If
as it is understood in regard to the latters the fleet is primarily interested in
baiting privileges, the practicability of bait permits only might be explored with
the industryo Tuna bait is founds for the most parts within three miles of the
coasts thus eliminating any extraterritorial factor? As reported in the Embassy's
despatch No 141 of Augtint 27s 19520 Senator Jorge PEREZ Serrano inquired into this
possibility* If this approach is practicable and agreeable to the industrys it is
believed that Senator Perez mould be milling to advocate it providing he is fortified
with information demonstrating its profitability to Ecuador?
19 Amen e_____of,ilikex_Liels_kalLtgit of nz_i loce_ts.lozeim
DAL-41?gi
The Department may to consider lending some kind of informals direct
encouragement to Senator Perez who has already made a MOWS in this direction (see
Embassy despatch no 141 of August 270 1952)0 Senator Perez acted on his gen
initiative and because of his personal conviction that no valid distinction can, be
dfamn between, merchant vessels and fishing vessels for innocent passage porposeso
For the Ambassador 8
e A,
Economic Attac
Ak
Copies tog
10 Ammongens Guayaquilv
20 Ecuador Desks Department of Staten
50 Amembassys Lima,
CCNBIDESTIAL
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