THE
64th Year No. 20
NOME, ALASKA, FRIDAY, FEBRUARY 15, 1963
Per Copy I5t
Japanese, Canadian, U.S. Fishermen to
Compete in Bering Sea Halibut Fishery
SEATTLE UP) — The Bering
Sea halibut conservation agree
ment worked out in Tokyo was
defended by American negotiators
today before a critical audience at
a congressional hearing.
Members of the American ne
gotiating team return from Tokyo
in time to appear at the hearing on
the halibut controversy.
“The regulations recommended
are not perfect,” Clarence Pautzke
told the group, “but we are con
vinced they meet the basic con
servation of the halibut stocks.”
Pautzke is chairman of the Unit
ed States section of the Interna
tional North Pacific Fisheries Com
mission.
Shouts of “big deal” were heard
as Pautzke and his associates out
lined the regulations.
The congressional committee,
headed by Sen. Warren Magnuson
has been hearing objections to the
Fisheries Commission recommenda
tion that the Eastern Bering Sea
be opened to Japanese fishermen
this year.
Under the regulations agreed
upon in Tokyo fishermen of Japan,
America and Canada would com
pete with equal gear and equal re
strictions in the prime fishing area
of the Eastern Bering Sea.
Pautzke said the 11-million
pound halibut quota in the prime
zone for all three nations, plus
other conservation measures, guar
antees “rather substantial protec
tion” for the halibut.
Rep. K. W. Stinson, (R-Wn.),
asked:
“What have American fishermen
gained from all this? Are we going
to get part of the Japanese fisher
ies?”
Donald McKernan, Director of
the Federal Bureau of Commercial
Fisheries, replied:
“The Japanese said the Bering
Sea is the high seas. At least we
think we can hold them to an ef
fective conservation program there
now.”
E. A. Rutherford of Seattle, a
Alaska Member of Fishery
Commission Says Japanese
Made Several Concessions
ANCHORAGE UP) — The Japa
nese “yielded a lot of ground,
went just as far as the Canadians
and Americans did” at the interim
International North Pacific Fish
eries Commission meeting just con
cluded in Tokyo, Dr. Fred McGin
nis said here today.
McGinnis, president of Alaska
Methodist University, is one of the
four U. S. Commissioners on the
* international fisheries body.
“We’re convinced the best in
terests of the United States and
Canada have been protected,” he
said.
McGinnis said the Japanese
were “intensely interested” in
coming up with a halibut fishing
agreement acceptable to all parties.
He said the Japanese made
what were considered three major
concessions: They consented to
adoption of an overall catch quota
for the area (11 million pounds
during the next year), they agreed
that fish under 26 inches in length
and five pounds in weight would
be returned wherever taken in the
eastern Bering, and they accepted
the principle of a closed season
there.
This was not easy for them to
do said McGinnis, the only Alas
kan member of the fisheries com
mission.
fish packing company official, said
his industry already is in trouble
because of “the flooding of Ameri
can markets with frozen Japanese
caught halibut.”
“Our market is demoralized,”
Rutherford said. “Unless something
is done quickly, we are going to
be in serious trouble in the coming
season.”
Milo Moore, former Washington
State Fisheries Director, was asked
by Magnuson for his recommenda
tions on improving the State De
partment’s position on fisheries.
“The best thing that could hap
pen,” said Moore, “would be to
just cancel the State Department’s
budget.”
At yesterday’s opening session
of the two-day Commerce Commit
tee hearing, Harold Crowther,
vice chairman of the Fisheries
Commission, defended its decision
to let the Japanese in.
Crowther said there is no evi
dence the halibut fishery is being
fully used, which is necessary un
der the United States-Canada-Ja
pan fishing treaty for an area to
remain exclusive.
Crowther said the annual halibut
catch has increased from 44 mil
lion pounds in 1931 to 72 million
pounds.
Clarence N o r d a h 1, secretary
treasurer of the Deep Sea Fisher
men’s Union of the Pacific, said
the increase was due to Canadian
and American conservation prac
tice.
“We have been putting halibut
in the bank,” said Nordahl, “and
have a preferred and special right
to draw out the interest.”
Magnuson said yesterday Japan
used diplomatic “blackmail” to
push into the eastern Bering Sea
halibut grounds.
The senator used that term in re
ferring to testimony that Japan
had threatened to wipe out the
North Pacific Treaty unless it won
access to the halibut.
John Wedin of Seattle, editor of
the Fishermen’s News, called for
an end to what he called America’s
defensive posture in fisheries ne
gotiations.
Wedin also contended that the
Bering Sea action may be an in
vitation for Russia to “join with
Japan at the feast table.”
Continued on Page Fivo
Rosellini Regards
Halibut Treaty ‘Tragic’
SEATTLE UP) — Gov. Rosellini
asked a joint congressional com
mittee Friday to take whatever
steps necessary to see that the pro
posed Japanese encroachment on
halibut in the eastern Bering Sea
does not come to pass.
Rosellini said for orderly man
agement of the North Pacific fish
eries, it was essential to retain a
treaty with Japan.
He added he regarded the open
ing of the eastern Bering Sea as
tragic.
Rosellini spoke at a hearing of
the Senate and House Merchant
Marine and Fisheries Committees.
WEATHER OUTLOOK
Cloudy with snow. NE winds
20-25 mph. Low tonight 10, high
tomorrow 21. In the last 24 hours:
High of 21, low of 10. Max. wind
23 mph from the north. Sunrise
at 7:59 a.m.. sunset at 4:34 p.m.
Temps, a year ago today: High of
25, low of 15. Extremes on this
date since 1907: High of 35 in 1941,
low of -37 in 1957.
Kennedy Makes
A New Plug for
His Tax Cut
WASHINGTON — President
Kennedy says U.S. economy “will
inevitably move into a downturn”
—perhaps this year—if Congress
doesn’t act promptly to cut taxes.
Kennedy told his news confer
ence yesterday the congressional
battle over tax legislation will be
“a hard fight.” But he was opti
mistic about getting an acceptable
bill by the end of the session.
“We are going to get a bill for
a tax reduction,” Kennedy fore
cast. “It won’t be perhaps the bill
we sent up, but I think it will
be a good bill.”
In a special message to Congress
Jan. 24, Kennedy proposed a combi
nation of rate cuts and tax revi
sions that would produce, over the
next three years, a net tax reduc
tion of $10 billion.
Besides renewing and strength
ening his plea for action on the
tax package, Kennedy made these
major points:
The United States is doing more
than the Europeans to defend Eu
rope and intends to maintain its
present combat strength there, i
He definitely plans no economic
or political reprisals against Presi
dent Charles De Gaulle of France
who shook the Western Alliance
by quashing British entry into the
European Common Market and by
spurning U.S. proposals for a multi
nation nuclear force in Europe.
In remarks directed both at his
Republican critics at home —
specifically Gov. Nelson Rocke
feller of New York — and friend
ly nations abroad, Kennedy said:
“It is a mistake always to assume
that the United States is wrong,
and that by being disagreeable to
the United States, it is always pos
sible to compel the United States
to succumb.”
In making his new plug for a
tax cut, Kennedy argued that in
action by Congress would mean
“restricted economic growth, high
er unemployment” and a bigger
than-forecast deficit, already esti
mated at $11.9 billion for the fis
cal year that begins July 1.
He described his tax package as
“our plan to prevent a recession
this year and the years to come.”
Hearings Scheduled On
19* Year-Olds to Purchase Liquor
JUNEAU (R) — Chairman Wm.
Sanders of the House Judiciary
Committee scheduled a public hear
ing for Tuesday on a bill which
would permit 19-year-olds to pur
chase liquor.
Sanders said the hearing would
take place in the Superior Court
room on the fifth floor of the State
Capitol at 7:30 p.m. Feb. 19.
SBA Inaugurates
Circuit Rider Program
JUNEAU Itf* — The Small Busi
ness Administration advised the
Alaska congressional delegation
yesterday it will inaugurate a cir
cuit rider program from its An
chorage office next week.
The SBA said the program is de
signed to assist small buisinessmen
operating in the southeast and cen
tral sections of the state.
Willard Oftedal of the Anchor
age office will visit Fairbanks on
the first and third Wednesday of
each month, starting next Wed
nesday.
Harold Kenny has been assigned
to the southeast area and will be
Juneau on the second and fourth
Wednesday of each month, starting
Feb. 27.
State Aid to Prospectors
Gets Approval of House
Resources Committee
JUNEAU — Legislation which ^
would provide state financial as
sistance for qualified prospectors (
received the approval of the House (
Resources Committee today.
The measure would permit ,
grants of up to $1,000 a year for !
individuals and $2,000 for partner- *
ships, for such items as transporta- j
tion and mining equipment and ,
prospecting supplies.
Testifying before the Resources
Committee yesterday, Charles F.
Herbert, an Anchorage consulting j
mining engineer, said the bill ,
could have a very beneficial ef- ,
feet on prospecting. ,
Herbert said prospecting in the
state has been on a steady decline
and he said he believed the bill
might provide just enough finan
cial help to induce qualified pros
pectors to go into the field again.
James Williams, State Director
of Mines and Minerals, told the
committee he agreed with Herbert’s
testimony.
Rep. John Holm, (R-Fbks.), asked
the bill’s sponsor, Rep. R. S. Mc
Combe, (D-Chicken), and Williams
what assurances there were that
the program would not develop
into a welfare-type program for
semi-amateur, summertime pros
pectors.
Williams replied that most of the
qualified prospectors of the state
were known personally by him
or members of his staff, and that
the qualifications of others could
be determined easily.
Under questioning by Rep. Clem
Tillion, (R-Halibut Cove), Williams
said he believed the provisions of
the bill could be carried out with
an appropriation of about $20,000.
PUBLIC DEFENDER SYSTEM
JUNEAU (JPi — Legislation cre
ating a public defender system in
Alaska was introduced in the
House today by Mike Gravel and
John Rader, Anchorage Democrats.
The measure would permit the
presiding judge in each judicial
district to appoint one or more at
torneys as public defenders to re
present indigent persons charged
with felonies, misdemeanors or
ordinance violations.
Attorneys appointed public de
fenders would not be permitted to
engage in private practice with
out the permission of the presid
ing judge and the administrative
director of the court system.
S3 Incentive Pay for Gold
JUNEAU (tf) — A measure which
would require the state to pay a
production incentive payment of
$3.00 per fine ounce of gold newly
mined in Alaska was introduced
in the Senate yesterday.
The measure was sponsored by a
bi-partisan group of 14 members of
the upper chamber.
FAA Officials Here
ro Discuss Taking Over
Nome Airport by City
A1 Hulen, assistant administra
tor, Alaska region, FAA, arrived
this morning from Anchorage ac
companied by Virgil Knight, spe
cial planning coordinator, and Ger
ald Kempton, chief of the Air
ports Division.
They will hold a meeting this
evening at 7 p.m. in the City Hall
on the proposed plan for the city
or state to take over the Nome
airport.
The meeting is an open meeting
being held with the Nome City
Council and representatives of the
Chamber of Commerce.
Hi-Jacked
Venezuelan Ship
Eludes Searchers
CARACUS, Venezuela UP —
Communist terrorists commanding
he hijacked Venezuelan freighter
\nzoategui eluded search planes
ind ships of the United States
ind Venezuela today. A thick over
cast moved into the Caribbean
'rom Puerto Rica, providing pos
able cover for the vessel.
Prime Minister Fidel Castro’s
government broadcast an offer to
?ive the terrorists asylum of they
Dring the ship into Cuba. There
lad been reports the terrorist band
kvould try to take the freighter to
the Cuban port of Santiago or —
failing that — to Mexico.
In Washington, a State Depart
ment official said chances were
remote for the ship’s reaching Cuba
without detection. He did not
elaborate but presumably he
meant U.S. Navy craft used in the
Cuban blockade last October would
locate the Anzoategui if she came
anywhere near Cuba.
The informant said the first
thing the United States will do if
American search craft locate the
vessel is “tell the Venezuelans”
and let them make the capture.
The spokesman declined to say
j how many ships were engaged in
the search but the United States
normally has a score or more war
ships operating in the Caribbean
on training exercises or shake
down cruises. They range in size
from aircraft carriers to subma
rines.
State Withholds $143,000
For Delay In Delivery
Of Ferry Malaspina
JUNEAU UP — The Department
of Public Works said today it has
withheld $143,000, as a penalty
payment to the state, from the pur
chase price of the ferry Malaspina.
Norman Schwalb, special assist
ant to Commissioner Richard A.
Downing, said the $143,000 was
withheld from a 5 per cent pay
ment made to the Malaspina's
builder, the Puget Sound Bridge
and Dry Dock Co., Seattle, late
last month.
The 5 per cent payment, totaling
5164.830.21, was due upon delivery
Df the Malaspina. The state took
aossession of the vessel on Jan. 21.
The state still owes 5 per cent
)f the purchase price, another
5164.830.21. Schwalb said this
imount will be held for a year as
i guarantee fund.
Under the terms of the agree
nent in which Puget Sound con
racted to build the Malaspina and
wo sister ships, the Taku and
datanuska, the company agreed to
)ay a penalty of $1,000 a day for
;ach day of delay in delivering the
vessels, except for reasons beyond
ts control.
The company, in the contract,
igreed to deliver the Malaspina
\ug. 30. It was not delivered until
Ian. 21, 143 days after the con
;racted delivery date.
The Taku, which was scheduled
[or delivery on Dec. 30, is already
into penalty time, under the con
tract. Puget Sound has estimated
it will deliver the Taku now on
March 30.
The delivery date for the Mata
nuska, under the contract, is
April 30, and the company, in its
last estimate, indicated it expects
to meet the deadline.
At Seattle Puget Sound’s presi
dent, James McCurdy, said he had
no comment at this time on the
state’s action.