Canned Fish: Among the top varieties of canned fish readily purchased by the Western German population, according to this survey, were sardines in oil (79 percent of those interviewed purchased sardines in oil), followed by herring in tomato sauce (61 percent), herring fillets in oil (39 percent), and herring in mustard sauce (36 percent).

Canned sardines in oil have more power of attraction than any other type of canned goods. The housewives kept on stressing the preference of their family for sardines in oil. Both country and cities represent an interested selling outlet. The consumption percentage of the upper income groups for sardines in oil was the highest met during the whole survey.

The majority of the housewives named herring in tomato sauce among the available types of canned fish which they liked to buy. On the whole, there were more people who liked herring in tomato sauce in Northern Germany than in Southern Germany, in upper and lower income groups.

Herring fillets in oil ranked before herring in mustard sauce on the preference list. As in the case of herring in tomato sauce, the number of people who refused to buy herring fillets in oil was very small.

Herring in mustard sauce were as popular as herring in tomato sauce in the Rhine Palatinate and in Baden, but in the other provinces they were by far less appreciated than herring in tomato sauce. Rejection was stronger in the country than in the city.

Interesting was the fact that housewives showed a considerable distrust for canned fish salad. The number of housewives who refused to buy fish salad was three times higher than the number who were in favor of it.

Processed Fish (Other than Canned): Kippers, grilled herring, rollmops, pickled herring, and herring in jelly led the processed fish group. Kippers were readily purchased by 78 percent, grilled herring by 56 percent, and rollmops by 52 percent.

Although fish sausage was by no means unknown to housewives, the number of people who liked it was very small. In the large cities especially, the number of housewives who refused to buy fish sausage was considerable and there was hardly one housewife who bought it readily. Rejection was particularly strong in the higher income groups.

Fresh Fish: Among the top varieties of fresh fish (except herring) readily purchased by the Western German population were haddock, cod, and salmon (58 percent, 48 percent, and 44 percent, respectively). Fresh herring was readily purchased by 61 percent and salted herring by 57 percent.

The liking for salmon was evenly distributed in the different provinces. In Schleswig-Holstein, Hamburg, Bremen and lower Saxony, salmon was more appreciated than haddock and cod. It enjoyed the same favor in country towns and in medium and big cities.

General Comments: A fundamental dislike for fish was found in only one tenth of the households. A further 20 percent of the housewives stated that one member of their family had a dislike for fish. Only 7 percent of the housewives claimed that fish was tasteless and limited their consumption accordingly.

According to their statements, the housewives contemplated increasing above all their consumption of herring, processed, and canned fish (i.e., to eat more fish at breakfast and at dinner).

In reply to the question as to what kind of fish they would rather buy, fish fillets in general were named by 14 out of 100 housewives, fresh herring by 11, all types of canned fish by 16, and canned sardines specifically by 8.

DEFLATION AFFECTS GERMAN FISHERIES: The general deflationary tendencies in Germany have become apparent in the fishing industry. Normally, the Lenten season is one of high fresh fish production (cod, pollock, haddock), at high price levels. In mid-March, wholesale fish prices remained near the cent-per-pound minimum despite only moderate landings. Even at this very low price, wholesale purchasers were hesitant and appreciable quantities of quality fish had to be disposed of to fish meal factories, an American consular report from Bremerhaven dated March 16 states.

German fish prices now lie below the world market level, and the domestic industry does not now fear foreign competition. The prospects for a market for Icelandic fresh fish in Germany have become much less favorable in recent weeks because of the German deflation.

It is expected that the deflation will rationalize the German fisheries by forcing the retirement of the less economic vessels and the reduction of the difference between the price to the consumer and the return to the producer.

The campaign of fishing interests to promote fish consumption is expected to end around the middle of March. The campaign, the motto of which is "Fish Once a Day," appears to have had little effect in increasing consumption.

SMALLER GERMAN IMPORTS OF FISHERY PRODUCTS FROM ICELAND PLANNED: Discussions regarding the trade agreement negotiations with Iceland took place in Hamburg on March 6, with specific reference to the distribution of the amount of $2.5 million provided for Icelandic fish imports, according to a March 16 Hamburg and a March 16 Bremerhaven American consular report.

This German-Icelandic trade agreement (concluded in Frankfort on March 15, 1950) permits Icelandic trawlers to land iced fish (other than herring) at German ports during the period August 1 to November 15 up to a maximum value of $1,600,000. No fixed quantity was agreed upon as the Icelanders will receive as payment only what their fish will bring at auction.

Germany also agreed to approve importation (on an f.o.b.-Icelandic-port basis) of a maximum of $400,000 of salted herring, $200,000 of frozen fish (other than herring), $200,000 of iced herring, and $100,000 of salted and dried herring. Iceland agreed to approve exports of herring oil and herring meal to Germany for which Germany will pay in pounds sterling.

The German-Icelandic trade agreement respects the demand of German trawler owners that foreign trawlers be allowed to land iced fish in German ports only during the German herring season.

If occasion arises for any adjustments, these will be determined at a later The Icelandic The Icelandic delegation again expressed the wish that the total amount for imports be increased to $4.5 million, but this was refused by the Germans.

date.

*

UNITED STATES TRAWLERS IN GERMAN FISHERIES: The 12 motor trawlers purchased in 1949 by the United States Army for use in the German fisheries have been in German hands for more than 6 months and their value to the German fisheries can be assessed now on the basis of the performance data at hand, states a March 30 American consular report from Bremerhaven.

Since the time of the purchase, the German food supply situation has greatly improved, and it can be said that the German domestic production of fish together with German fish imports have created an oversupply of fish.

In recent weeks, large quantities of iced fish fit for human consumption have been consigned to fish meal factories for lack of other purchasers. The number of the active German trawlers is less now than it was one year ago before the American vessels arrived; 65 of Germany's 234 trawlers are now laid up as compared with 8 out of 188 on April 1, 1949. The purchase of the 12 motor trawlers has not resulted in an increase in the number of German trawlers operating.

Hold capacity of the active fleet, however, is now somewhat more than that of one year ago as 50 of the 180 vessels in operation last year have been replaced by new vessels having more capacity, thus more than compensating for the laying up of 11 vessels without replacement.

Since January 1, 1950, six new trawlers have been completed by German shipyards for German firms. These trawlers range in size from 400 to 644 gross registered metric tons, the median size being 540 gross registered tons. All are coal-burning steam trawlers. The American trawlers on the other hand range in size from 200 to 340 gross registered tons and are Diesel-powered. Some German firms are planning to build Diesel trawlers, but the American trawlers are of a type which no German company would build today.

The purchase price of the 12 trawlers was high by German standards. The 9 larger vessels are valued at approximately $142,800 for insurance purposes, which valuations are high by German standards, considering the size and age of the ships. The 3 smaller ones are valued at $119,000 and are similarly overvalued by German standards. At the time the ships were purchased, German shipyards would have been able within a period of 9 months to construct comparable new vessels for no more than 90 percent of the price paid in the United States for the used vessels. The recently constructed German trawlers of the 540-gross-ton class have cost about $275,000. German firms early in 1950 purchased in Belgium 3 oil-burning trawlers of 475 gross registered tons in operational condition for $175,000 each.

Up to March 1, 1950, the 12 trawlers landed fish in German ports valued at $602,312. The expense of converting the trawlers to meet German requirements has amounted to $221,340; the cost of transporting the vessels to Germany was $99,960. The total burden on the vessels, apart from the purchase price, is $321,300. From the gross return from the sale of the trawlers' catch, 11 percent must be paid by the operators to the Fischdampfer Treuhand, the public corporation acting as trustee for the United States. The Fischdampfer Treuhand retains 1 percent of the proceeds for administrative expenses and pays the remaining 10 percent to the Staatliche Erfassungs-Gesellschaft, the public corporation which advanced the funds to cover the transport and conversion costs. At prevailing price levels, the 12 trawlers may be expected to land fish valued at $71,000 per month. Thus, $7,140 per month will be available to pay back the $360,800 still outstanding as of March 1, 1950. The current long-term interest rate on first-class risks in Germany is 7 percent per annum. If commercial interest rates were charged by the Staatliche Erfassungs-Gesellschaft, about 42 months would be required to repay the loan; if no interest were charged, 36 months would be required. Unless prices increase, the 12 trawlers must be kept in operation for at least three more years in order to earn enough to pay back incurred Deutsche-mark costs. However, as more and more new trawlers capable of fishing in bad weather and able to remain on Icelandic fishing grounds longer than 12 days are put into operation, the 12 American trawlers will find the competition stronger. The 3 smaller trawlers, which were returned to the Fischdampfer Treuhand by the original charterers in the winter 1949-50, may have to be laid up permanently after the end of the 1950 herring season.

In short, the 12 trawlers sent to Germany under the GARIOA appropriation have been useful to date in supplying fish to an already well-supplied German market. It is problematical if the 3 smaller trawlers will be in operation long enough to repay Deutsche-mark transport and conversion costs. The earning capacity of the trawlers in Germany is too small to permit the vessels to be sold in Germany for more than 50 percent of their procurement cost.

ल

Germany (Russian Zone)

DRIFTERS TO BE TURNED OVER TO SASSNITZ FISHERY: Of the 158 welded steel drifters to be built in the Russian Zone of Germany in 1950, around 100 will be used by the Sassnitz "peoples-own" fishery, according to a March 16 report from the American consulate at Bremerhaven. The drifters will be manned by 26-men crews and can remain at sea for 30 days.

Reconstruction of the harbor at Sassnitz (at the western end of the Baltic Sea) is proceeding. Three or four landing stages, one with Diesel bunkering facilities, are to be built this year. Under construction are concrete quays with coaling bunkers, ship and engine repair facilities, and a two-story discharging building with cold-storage rooms.

FISHING INDUSTRY, 1949:

Hong Kong

Since the end of World War II, the fishing industry of Hong Kong experienced its best year, according to a March 29 American consular dispatch from Hong Kong.

In 1949, the quantity of fresh fish sold in the Government-controlled markets has quadrupled that for 1947. Early estimates place the amount at approximately 24,241,500 pounds, compared with 16,242,000 pounds in 1948 and 592,200 pounds in 1947.

The increase in fish production is attributed to good fish runs and the use of motorized junks, which are able to reach the fishing grounds and return to port without depending on the weather. Ten junks were mechanized during the year, bringing the total motorized vessels to about 50.

Iceland

EFFECTS OF ECA AID ON ICELAND'S ECONOMY: Iceland is well on the road toward readjustment of dislocations in her economy as she enters the third year of the Marshall Plan, the Economic Cooperation Administration announced on April 4.

Summarizing the progress made by Iceland in the program of expansion for the fishing industries, the Icelandic Minister of Commerce recently said: "Iceland has been undergoing rapid economic development since the end of the war. Production has exceeded, by far, prewar levels. The average annual fish production during 193539 amounted to 257,000 metric tons, while in 1948 it reached 409,000 metric tons; and in 1949, 337,000 metric tons. The volume of exports have also about doubled since the prewar years.

"These results have been possible due to the modernization and expansion of the fishing industry and the favorable export markets for Icelandic products all during the Forties."