South Pacific Fisheries Treaty Program
Program, follow-on to 8790011, to fulfill U.S. commitments under the South Pacific Regional Fisheries Treaty, signed between the United States and certain Pacific Island countries in 1987 to resolve disputes over U.S. tuna fishing in the exclusive economic zones of the island countries. The treaty provides for a licensing system for the U.S. boats based on their paying fees, the tuna industry providing TA, and the U.S. Government making a cash payment. Under 8790011, the United States fulfilled its obligations for the first 5 years of the Treaty (1988-1992) with a $50 million cash transfer to the South Pacific Forum Fisheries Agency (FFA), the administrator of the interests of the Pacific Island countries under the Treaty. Under the present program, the United States will fulfill its obligations for the next 10 years of the Treaty (1993-2002) by making annual cash transfers of $14 million to the FFA for distribution through an Economic Development Fund to the 16 Pacific Island signatories of the treaty: Australia, Cook Islands, Federated States of Micronesia, Fiji, Kiribati, Marshall Islands, Nauru, New Zealand, Niue, Palau, Papua New Guinea, Solomon Islands, Tonga, Tuvalu, Vanuatu, and Western Samoa. Economic impacts of the cash payments will vary widely among participating countries. For example, Papua New Guinea, although a major fishery country, also has other resources and revenues; impact per person in this country will be relatively light. By contrast, Tuvalu, a moderate fishery country, could receive about half of its annual budget under a high estimate of its share of cash distribution, as it did under the 1991 cash transfer. Kiribati also received more than half its estimated budget under the program in 1991. Kiribati and Tuvalu may put some cash payments in trust funds for future use rather than try to find good current uses; this may lessen their economic dependence on donors. The program will provide many island countries with an opportunity to enter or expand fishery activities such as canning or processing tuna, servicing boats, and tuna fishing; and, for some countries, will improve the business and investment climate. Under 8790011, $1 million of each annual cash transfer was used by an indigenous PVO for small development projects. Cash transfers made under this program will not be used for such purposes.