DIRECT ASSISTANCE

(a) Bounties and subsidies to pelagic fisheries.-The law for the encouragement of pelagic fishing, dating back to 1905 and since amended on several occasions, in its original form granted bounties to individual fishermen. Since 1918, bounties have been paid to owners of vessels only. At present such owners may receive benefits not exceeding 22 yen per ton (gross) for steam vessels, and not exceeding 18 yen per ton (gross), for sailing vessels.

In both instances at least four-fifths of the crew must be composed of Japanese subjects. The actual rate of the bounty is determined. by the kind of business, its location, the fishing period, and the construction and age of the vessel. The Minister of the Department, however, may disregard the limitations entirely and grant bounties as warranted by individual cases.

No separate data are available with regard to the actual amount expended solely as bounties to owners of vessels. The budgetary figures do not segregate such bounties from the subsidies granted toward the construction of fishing equipment under the terms of the same law.

The distribution of subsidies for the construction and equipment of vessels granted under the terms of the law referred to above is governed by the following rules:

1. Steel vessels of more than 100 tons may receive 20 percent of appraised value.

2. Other vessels may receive 15 percent or less of apprasied value.

3. Not exceeding 30 percent of appraised value may be granted for facilities, such as cold storage, wireless, and fishing equipment.

4. Not exceeding one-third of the expense of building and equipping new, or repairing old, vessels may be granted in accordance with plans approved by the Minister.

5. Discretionary subsidies may also be granted to organizations engaged in training crews and ship carpenters.

Eligibility for the assistance given under the terms of the law referred to above is conditional upon compliance with the rules for inspection of deep-sea fishing vessels. Moreover, the recipient (1) must use the vessel for fishing activities during at least three-fourths of the fishing season for 5 years from the date of receipt of the subsidy; (2) must not sell the vessel to a foreigner or charter it or offer it as security to anyone for 5 years, unless the subsidy received is refunded; (3) may be ordered by the Minister to conduct deep-sea fishing investigations, or to have training students in deep-sea fishing on board; and in general (4) must operate under the supervision of the Minister. The expenses incurred in activities under (3) are defrayed by the Government.

(b) Subsidy for repair of vessels. Since 1931-32 Japanese fishermen have been granted aid for the repair and rebuilding of vessels damaged by storms. This subsidy is granted directly to individual fishermen. In the last 4 years the annual amount of such grants has ranged from 20,000 yen ($5,558) in 1933-34 to 120,000 yen ($54,064) in 1931-32. In 1934-35, 35,000 yen ($10,251) was expended for these purposes. The funds are evidently distributed according to the merits of individual cases.

(c) Subsidy to the aquatic industries of Sakhalin.-This subsidy is appropriated through the Budget of Ministry of Oversea Affairs; the

selection of beneficiaries and the apportionment of the funds among them are entrusted to the discretion of the governor general of Sakhalin. Eligible parties are fishermen's associations and other recognized organizations. The beneficiaries must reside in and operate from Sakhalin, or if nonresident, must have been engaged in the Sakhalin fisheries industry for more than 3 years.

Subsidies may be granted in support of the expenses of construction and the improvement of

(1) Joint warehousing, manufacturing, selling, refrigerating, and ice-house facilities for marine products. The subsidy must not exceed 40 percent of the expenses involved, except for joint manufacturing, warehousing, and selling. In these latter cases the rate of subsidy may be increased by the governor general.

(2) Factory facilities, including tools and machinery, for the production or export of foodstuffs from marine products. The maximum amount of subsidy in these cases may not exceed 30 percent of total necessary expenses.

(3) Fish boxes and curing equipment, fisheries exhibitions, and other facilities designed to promote the industry. The amount of subsidy may not exceed 50 percent of expenses involved.

(4) Facilities to increase marine products in shallow waters. Unless the governor general recognizes a higher limit as reasonable, the subsidy granted for such purposes may not exceed 40 percent of expenses incurred.

(5) Hatchery facilities and activities. A maximum amount of 70 percent of expenses may be granted as subsidy, unless the governor general sets a higher limit.

Since its beginning in 1932-33, the total amount of subsidy appropriated for these five purposes has ranged from 89,795 yen ($22,288) in 1932-33 to 100,295 yen ($29,375) in 1934–35.

(d) Cold-storage facilities.-Appropriations for cold-storage facilities for aquatic products are of comparatively recent date. Such facilities were made necessary by the extension of fishing grounds and to insure the preservation of fish shipped to inland centers.

Subsidies for cold-storage facilities are granted under the authority of two ministerial ordinances, the first dating back to 1923 and the second growing out of the economic revival plan of 1932. In both cases the recipients of the subsidy must be local bodies or legal entities and their entire staff and owners Japanese subjects.

The first measure grants subsidies to (1) cold-storage enterprises and ships for refrigerating aquatic products, and (2) ice houses for storing ice to be used for refrigerating such products.

Subsidies are granted to newly constructed or reconstructed vessels, or to old vessels in which cold-storage facilities are extended, reconstructed, or newly installed. These conditions also apply to coldstorage enterprises. The rules of distribution of subsidies are as follows:

1. Hulls (including wireless equipment) and engines may be subsidized to the extent of not more than 20 percent of construction or reconstruction cost.

2. Ice-storage facilities may be subsidized not to exceed 50 percent of the cost of construction, reconstruction, or extension.

3. For ice-house facilities the subsidy must not exceed one-third of the cost of construction, reconstruction, improvement, or conversion.

In recent years the annual amount of subsidies granted under this first measure has fluctuated between 400,054 yen ($180,237) in 1931-32 and 65,000 yen ($19,037) in 1934-35.

Under the second measure subsidies first appeared in the 1932–33 budget, in connection with the economic revival plan of the Government affecting certain areas. These subsidies are granted in support of specific expenditures of prefectures or public organizations con

cerned with the rehabilitation of fishing villages. Similar grants are made in agricultural and mountain villages. Such a subsidy could be classified as regional assistance and listed as indirect assistance were it not that it is being granted specifically for ice-house facilities. The granting of the subsidy is within the authority of the Minister of Agriculture and Forestry who, in granting it, is governed by the expenditures of the prefectural governments for such purposes. The total amount of the subsidy in 1932-33 was 249,940 yen ($62,037); by 1934-35 it declined to 73,050 yen ($21,396). Although introduced as an emergency measure, the Government may continue to provide the subsidy indefinitely.

Through the two measures discussed, the Japanese Government subsidized cold-storage facilities to the extent of 1,734,368 yen ($601,724) during the last 5 years, the largest sum, amounting to 649,994 yen ($161,334), having been granted in 1932-33. In 1934-35 the total of these subsidies was 138,050 yen ($40,433).

(e) Fish-meal manufacture.-Governmental assistance is granted to Japanese manufacturers of fish meal under two ministerial ordinances, both dating back to 1932.

By virtue of the first ordinance, fishermen's associations and unions of associations, as well as other qualified organizations, may receive subsidies in support of expenses incurred in the construction, reconstruction, or extension of plants or equipment for the manufacture of fish meal. Under this ordinance the subsidy may not exceed 40 percent of the total necessary expenses involved.

The second ordinance applies to floating plants for the manufacture of fish meal. Subsidies are granted up to (1) a maximum of 40 percent of the expenses involved in the purchase and installation of machinery, tools, etc., to be used for manufacturing fish meal in floating plants; (2) a maximum of 20 percent of expenses incurred in the installation of equipment for curing fish on floating plants, in the conversion of ordinary vessels into floating plants, in the construction, reconstruction, or purchase of auxiliary vessels to floating plants, in the purchase and installation of fishing and auxiliary equipment on auxiliary vessels, and in fishing activities connected with the manufacture of fish meal. The subsidy for fishing activities was granted only in 1933-34 and 1934-35.

The aggregate governmental aid extended to fish-meal manufacture during the 3 years of the operation of these measures amounted to 725,500 yen ($196,815). In 1934-35 this subsidy amounted to 225,000 yen ($65,899).

(f) Encouragement of cooperative establishments.-The encouragement of cooperative activities is an important phase of the Japanese subsidy system. The exact measure of pecuniary gain accruing to individuals through such subsidies cannot be determined, but since the subsidy furnishes part of the necessary capital for the various undertakings, it must be regarded as a direct assistance.

The ministerial ordinance, dating back to 1925 and as subsequently amended, provides subsidies for fishermen's organizations, unions, and guilds, for industrial organizations, self-governing local bodies, and other qualified organizations. The purpose of these subsidies is to encourage the establishment of fishing-industry facilities for common

use.

Subsidies are provided for expenses incurred for:

1. Equipment for manufacturing, preparing, and preserving aquatic products; facilities for storage and sale of such products, and for the anchorage and beaching of vessels;

2. Fishing vessels and tools, and facilities for transporting aquatic products; 3. Aquicultural facilities; and

4. Salvaging facilities.

The maximum amount of the subsidy granted for the purposes listed under (1) and (2) may not exceed 40 percent of the total necessary expenses involved. For aquicultural facilities, 50 percent; and for salvaging facilities, 60 percent of expenses incurred may be covered by the subsidy.

During the 5-year period 1930-31 to 1934-35, the subsidies granted for the purposes enumerated above aggregated 1,592,826 yen ($659,579) and ranged from 840,597 yen ($415,624) in 1930-31 to 120,660 yen $35,339) in 1934–35.

INDIRECT ASSISTANCE

(a) Promotion of exports.-There are two items in the Japanese budget appropriated for the promotion of exports of aquatic products. A small amount is granted annually by the Japanese Government to assist organizations in defraying the expenses of inspection of marine products for export. This subsidy is treated by the budget of the Ministry of Agriculture and Forestry as an administrative expenditure. The rules governing the distribution of the subsidy are not available. It is known, however, that not only the fishing industry proper derives benefit from this measure but also such related enterprises as the imitation pearl bead manufacturing industry. The total amount of this grant for the last 5 years was 58,291 yen ($21,172), ranging from 14,667 yen ($7,252) in 1930-31 to 10,332 yen ($2,872) in 1933-34.

Beginning with 1933-34, the Japanese Government has appropriated 57,200 yen annually (equivalent to $15,898 in 1933-34 and $16,753 in 1933-35) to promote exports of marine products. Eligible for such grants are fishermen's crganizations and other entities approved by the Minister of Agriculture and Forestry. Grants are for the purposes of—

1. Conducting market investigations for marine products, distributing samples, testing sales of marine products in oversea countries, and other promotional activities in the export trade;

2. Providing facilities for inspection of exports; and

3. Assisting establishments in the manufacture of marine products for export. These grants, in general, may not exceed 40 percent of expenses incurred in such activities, but the Minister may increase the subsidy to cover all expenses.

There is no way of determining just how these grants are distributed by the various organizations or what benefits accrue to the individuals belonging to them.

(b) Home market promotion.-Governmental funds appropriated for the purpose of extending the domestic market for fisheries products are used for advertising, distribution of samples, holding demonstrations and exhibits, and in general, for the encouragement of the domestic consumption of marine products. The amount so expended in recent years has fluctuated between 50,000 yen ($24,722) in 1930-31