Based upon the 1989 registration system, the FAJ will adopt a new regulatory system for the high seas large-mesh driftnet fishery at the earliest possible time within 1990. The regulatory system will impose a limited entry system which will restrict the number of vessels which can participate in the high seas fishery for 1990 and beyond, strictly limit new entrants to the fishery, and prohibit expansion of the capacity of fishing vessels. Furthermore, the regulatory system will provide for the adoption of measures which require the deployment of transmitters on all high seas vessels, prohibit transfers at sea, and mandate the submission of vessel position reports. Other regulatory measures will be adopted as necessary.

In the event of the violation of any of the regulations above, penalties will be imposed in accordance with the Japanese domestic regulations.

Licensing certificates will be issued to squid driftnet fishing vessels operating in the North Pacific late in May after the necessary domestic procedures. The number of licensed vessels is limited to that of the previous year.

The list of the licensed vessels, including enlisting name, license number and vessel registration number, will be made available to the Canadian and U.S. authorities on request at the earliest possible time after the licenses are issued. In addition, each driftnet vessel must submit to the FAJ a color photograph of each side of the vessel.

(b) Large-mesh Driftnet Fishery

Based upon the 1989 registration system, the FAJ will impose a new regulatory system to limit the number of fishing vessels to be engaged in the high seas large-mesh driftnet fishery to a number less than the actual number of vessels which operated during the last twelve months. The FAJ estimates that no more than 200 vessels will be permitted in this high seas fishery for the 1990 season and beyond. In addition, each driftnet vessel must submit to the FAJ a color photograph of each side of the vessel. The list of the vessels will be made available to the Canadian and U.S. authorities upon request as soon as possible after the regulatory system is adopted.

The operation of the squid driftnet fishery is permitted only within the limits of the waters surrounded by 20 degrees N, 170 degrees E, 145 degrees W and the northern boundary that changes by month (40-46 degrees N). The period in which the operation is permitted is limited from June to December. The northern and eastern boundaries have been specifically established to minimize incidental takes of anadromous species.

For squid driftnet vessels operating during the 1990 fishing season in the area between 170 degrees E to 145 degrees W longitude, the northern boundaries are established as follows:

The FAJ will, if necessary, revise in subsequent years the northern boundaries established for the months of July and August taking into account the information from the observer program and research cruises and also the views of the Canadian and U.S. sides.

The FAJ will maintain existing time and area restrictions (Figures 1 and 2), including the prohibition of the large-mesh driftnet operation in the following areas.

2) north of the northern boundaries between 170 degrees E and 145 degrees W longitude described below;

The FAJ will introduce additional northern boundaries established as follows for the indicated areas and times for the large-mesh driftnet fishery, as a part of the new regulatory system.

In order to facilitate the identification of squid driftnet vessels at sea, displaying vessel's name, license number and vessel's registration number in a specified size on the hull is mandatory for all the licensed vessels.

Each squid driftnet vessel is to be assigned a license number. This license number is to be displayed on both sides of the hull and on both sides of the bridge in a color in contrast to the background. The license number affixed to the hull must be in Roman letters and Arabic numerals at least 50 cm in height. The license number affixed to the bridge must be in Roman letters and Arabic numerals at least 30 cm in height. In addition, each squid driftnet vessel will have two blue stripes, one at least 30 cm in width and the other at least 20 cm in width, surrounding the bridge.

(b) Large-mesh Driftnet Fishery

Each large-mesh driftnet vessel will have one black stripe at least 30 cm in width surrounding the bridge. For the identification of large-mesh driftnet vessels at sea, displaying the vessel's name and the vessel's registration number in a specified size on the bridge is mandatory. The registration number affixed to the bridge must be in Roman letters and Arabic numbers at least 30 cm in height and in a color in contrast to the background.

Each driftnet vessel is to use methods to identify the driftnet gear it deploys by permanently marking at every tan (45-50 m) of net with the name of the vessel and its corresponding license number or port of registry if the vessel has not been issued a license number. Each vessel is also required to refrain from discarding used or damaged driftnets, to stow them on the vessel, and to return them to port for proper disposal upon completion of the vessel's voyage. The location, date, and amount of lost fishing gear must be reported to the FAJ.

Driftnet vessels may only carry the gear type for which they are permitted (large mesh (15 cm or more) or small mesh (10-13.5 cm)). No driftnet vessel can be permitted to engage in more than one kind of driftnet fishery during any given scheduled fishing trip.

In the 1990 season, enforcement activities such as the deployment of patrol boats and surveillance at landing ports by Japanese enforcement officers will be maintained.

The number of vessel-days of patrol cruises focusing mainly on the enforcement of the northern boundary will be maintained in the 1990 season (5 patrol-boats to be deployed for about 600 vessel-days in 1990).

FAJ will conduct surveillance and boardings of Japanese driftnet fishing vessels, both dockside and at sea. On the high seas, FAJ will coordinate with the appropriate U.S. authorities communications between their respective patrol units. Both sides will use state-of-the-art communications equipment such as International Marine Satellite (INMARSAT) and facsimile to facilitate communications, where possible.

(iii)

Utilization of the information supplied by the U.S. officials in Japanese investigations

The Japanese side intends to continue to utilize, to the maximum extent, the information supplied by the U.S. officials indicating alleged violations by the Japanese driftnet fishing vessels, in the investigation and identification of the violator. In order to facilitate the investigation on the Japanese side, photographs are expected to be as clear as possible, and/or with reliable information of sighting positions.

The Japanese side intends to continue to provide the U.S. authorities with the results of its investigation, which has utilized the information supplied by the U.S. officials, including specific penalty imposed on the violators.

(iv) Notice of the outline of Japanese enforcement activities:

The Japanese side intends to continue to be prepared to provide the Canadian and U.S. authorities with the outline of the Japanese enforcement activities on a voluntary basis.

The Japanese side is prepared to invite a U.S. observer to at least one 30 day patrol cruise of the Hakuryu-maru of FAJ in 1990.

The Japanese side understands that the U.S. side will invite a Japanese observer to get on board a U.S. Coast Guard surveillance plane. The flight will stage out of Coast Guard Air Station, Kodiak, Alaska or other appropriate U.S. facilities.

The Japanese side also understands that both sides will pay the travel and per diem costs of their own observers and each side will cover all operational costs of their patrol operations.

In 1990, real-time automatic satellite position fixing devices (transmitters) will be deployed by the relevant fishery organization on board 100% of the Japanese squid and large-mesh driftnet fishing vessels which allow automatic, real-time monitoring of the location and identity of each vessel.

All squid driftnet vessels which have pre-scheduled their first cruise from the beginning of the fishing season have ordered transmitters to be installed before their first scheduled departure. Those vessels which will not be able to install transmitters before their first scheduled departure due solely to reasons beyond the control of the vessel owner will be required to be equipped with the device in their second cruise. In any case, all vessels leaving port after July 1 will be equipped with operating satellite transmitters.

Real-time vessel location and identification data and information from the satellite transmitters will be made available to the FAJ under contract with Argos. Based upon the information received from Argos, the FAJ will take immediate and appropriate action as required.

The FAJ authorizes Argos to make those data and information available to the appropriate Canadian and U.S. authorities under contract between Argos and these authorities. In this connection, it is confirmed that such access by those Canadian and U.S. authorities to the said data and information shall not be deemed to authorize in any way the Canadian and U.S. sides to be engaged in enforcement activities with respect to Japanese high seas squid driftnet fishery and large-mesh driftnet fishery. The Japanese side understands that raw transmitter data shall be kept confidential within these authorities.

V.

Exchange of information on driftnet operations by the vessels of non-contracting parties to the INPFC

When Japanese patrol vessels have witnessed driftnet operations by the vessels of non-contracting parties to the INPFC which are deemed to be engaged in fishing for anadromous species, the Japanese side will continue to transmit the following information on those vessels to the Canadian and U.S. sides as quickly as possible.

All driftnet vessels of non-contracting parties to the INPFC sighted by the Japanese salmon fishery patrol vessels and those vessels of non-contracting parties to the INPFC sighted in operation in waters north of the northern boundary by the Japanese squid fishery patrol vessels will be reported. Information will include if available:

7.

activities, including description of fishing procedures, nature of catch, and estimated course and speed