It is the belief by some Fish and Game officials that no effect to the commercial fisheries should be felt until the year 2000. The federal subsistence board will take proposals in the spring of ‘99 and take action on the proposals in the fall of ‘99 with the regulations taking effect in the year 2000.

At this point it is very unclear how the takeover and management will occur.

Rep. Don Young and Sen. Frank Murkowski have submitted legislation to extend the moratorium. It will be difficult for this legislation to pass as there is so little time left in the session.

Sen. Ted Stevens has said he does not plan to extend the moratorium in the interior appropriations bill unless an agreement is made with Interior Sec. Bruce Babbitt.

In a season when fishermen are feeling the effects of low prices and fish runs below average, a bright spot on the horizon is that the insurance underwriters have agreed to a drop in the base hull and machinery rate of $.10 at the time of policy renewal in November. Members of the spring insurance fleet will receive the new rates at the time of renewal in April.

The $.10 reduction will not apply to additional months added beyond the base 5 month period.

USAG’s thanks go to our Insurance broker John Long for his acknowledgement of the struggling fishing industry and his efforts to lower the rates.

Season didn’t go well for you. Don’t ignore your permit and boat payments.

Go see your lender today. Discuss the issue with them prior to the payment due date. You might be able to get an extension or work out some other arrangement that will not affect your credit rating.

The important thing to do is deal with the issue prior to the due date. If you can only make a partial payment, you might see if your lender would let you pay on the principal and defer the interest until a later date. This will save you money in the long run.

Do you have any suggestions for Board of Fish Proposals for USAG to submit? Please send your ideas in as soon as possible. We would like to have all the ideas possible for the Board of Directors work session in November, develop the ideas more thoroughly - get the ideas back to the chapters to look at and then have the board work on the proposals again and have them submitted by the April 9th, 1999 deadline.

Fish and Game at the request of the Lynn Canal Gillnetters Association tried to conduct a test fishery to test the effectiveness of 90 mesh deep nets on the Chilkat sockeye. The bids went out in the spring and as no bids were received, the test fishery was not conducted.

The annual membership meeting and our celebration of 20 years as an organization will be held in Seattle on Friday night during FISH EXPO weekend. (Nov. 19-21, 1998)

All SE AK permit holders are welcome to attend the meeting. USAG members will receive an invitation and an agenda in the mail in early November. Non-USAG members are welcome to attend - please call the USAG office or the local board member in your area for the final time, date, place and agenda.

Ketchikan 150 60 100

Petersburg 50 20 20

Scarier than that, on September 23rd, several Canadian papers came out with the report that 12 juvenile Atlantic salmon were found in the Tsitika River on Vancouver Island. Scale analysis on the four juveniles caught indicate that they were not of hatchery origin, meaning they had reproduced in the wild. The report went on to claim that there is "fairly strong evidence" they’ve been naturally spawning for two years. The report stated that this does not prove an established population which would take up to five years for the fish to spawn, go out to sea and return to spawn again.

Within Alaska waters a sportsman turned in an Atlantic salmon that he says he caught in the upper reaches of Ward Cove. The fish was cleaned prior to be turned in but the sports fisherman claimed that it was a mature male Atlantic salmon. While Fish and Game has since surveyed that stream and did not find any more Atlantic salmon during its survey, it does not mean that none exist within the stream system.

British Columbia considered lifting the moratorium this spring on new fish farm sites. British Columbia has not lifted the ban on new fish farm sites, yet. USAG will monitor this situation.

Please be sure to turn in to Fish and Game any Atlantic salmon caught during fishing. If you aren’t sure, check with Fish and Game. Don’t sell it to the cannery. This situation must be monitored & as much data collected as possible.

As a practical matter, the Pacific Salmon Treaty exists in name only. Since 1994 Canada has refused to work in the normal treaty process (unless there is a part of it that suits Canadian purposes at the moment). Instead, they have tried to arrange for political fixes in Washington, D.C. that would seriously disrupt our traditional salmon fisheries. That strategy has not worked, so far, but out government provides Canada with reason to hope by agreeing to some new mediator or special negotiator every time Canada squeaks.

Canada has been sniping constantly to the U.S. State Department and even to the Vice-President about how unhappy they are with the Treaty and especially with Alaska’s behavior in it. Our government has not been persuaded by the Canadian arguments, but Canada has created a problem that the State Department especially just wants to go away. Both Canadian and U.S. federal governments have appointed special negotiators to oversee direct Treaty negotiations and to represent highest level politicians. The U.S. man is Roberts Owen, a Washington, D.C. attorney who knows nothing about salmon or fisheries generally but has represented the U.S. on other topics. His Canadian counterpart is a law professor who also knows little or nothing about the fisheries. These are men whose job is to get a deal - any deal acceptable to the federal governments - whether good for people in the fishing industry or not. Our experience with Owen thus far is that he keeps constant pressure on us to give up a bit more and then some more in order to provide Canada enough gains to obtain their agreement. The fundamental problem with this approach is that Alaskans, including gillnetters, are being pushed to give up fish in exchange only for Canada changing its works and political behavior. Not an attractive prospect for us in the boats.

The coming year’s (as last year’s) negotiations will be influenced greatly by Canada’s internal policy decision to restructure its commercial fisheries. Since 1994 Canada has systematically cut back most of its commercial salmon fisheries including buying back a large portion of existing permits and imposing area registration requirements. Part of this process is a permanent allocation transfer to aboriginal fisheries in the rivers. Part is the result of increased demands from sport fishing interests in B.C.

Important for Alaska is the Canadian government’s attempt to concoct a picture of a general salmon resource crisis as the public rationale for undoing their commercial fisheries. They have invested in an intense public relations campaign to create the impression that important stocks are going extinct and that Alaska is at least partially responsible. In 1998, Canada shut down all fisheries that might harvest Coho in any numbers and did so prior to the fishing season, never checking the strength of the returns. They also imposed serious restrictions on their main sockeye fisheries. In the prior couple of years their main emphasis has been on chinook, again claiming imminent extinction of certain stocks.

The truth, of course, is that Canadian statements about the terrible state of the salmon resource are hugely exaggerated, at least in Northern B.C., and trumped up for public consumption. While the 1998 Skeena sockeye return was not very good, the coho run was strong, not repeating the poor return that all regions experienced in 1997. Chinook stocks that travel far enough north to reach Alaska are very healthy. These facts don’t alter the Canadian line: salmon are in danger of extinction; Canada has cut back its fisheries; by not curtailing fisheries to the same extent, Alaska is overfishing endangered stocks. Also, by simply continuing to fish while Canada shuts down, the imbalance of "interception" is ever greater in Alaska’s favor, a violation of "equity" in the Canadian rhetoric.

This line is repeated often and loudly enough that many in Canada have become true believers. Alaska is accused of stealing Canadian fish, of violating the overfishing and equity provisions of the Treaty, and of forcing Canadian authorities to be even more restrictive on Canadian fishermen. So, conveniently for Canadian internal political purposes, Alaska is identified as the cause of the commercial fishery problems in B.C., not the government policies that really are doing the fishermen in. Canada has staked its entire approach to Alaska on eliciting a purely political reaction to their constant hype and pressure in Washington, D.C. that will produce restrictions in our fisheries that the Canadians could never negotiate within the Treaty Commission. Whether that works or not, much of frustration in B.C. will be directed at Alaska and not turned inward.

This general posture of blaming Alaska for most fishery problems in B.C. Undoubtedly will continue in 1999. The Canadian federal and B.C. provincial governments will try to outdo each other in pointing north for the cause of all their problems. Chinook and coho will probably remain the hot topics in Canada’s newfound concern with conservation. However, Skeena sockeye are expected to be even weaker in 1999 than this year. It should not surprise anyone if they decide that Nass sockeye must also be on the brink and try to bring more pressure on Tree Point. This is especially likely since Canada just concluded a treaty that gives the Nisqa’a substantial fishing rights on Nass River returns. Overall, since the Canadians are still carving up their commercial fisheries, they are probably not going to agree to any fishery arrangements unless we take substantial restrictions or outright closures. This has little or nothing to do with the salmon and doesn’t leave room for meaningful negotiation.

The schedule for discussions this year is still very unclear. No significant talks with Canada are likely before the first of the year when long-term (roughly 10 years) plans for conducting Treaty-related fisheries are the proposed topic. Internal U.S. discussions should begin in October and be preceded by an Alaska Panel strategy session. However, since the normal Treaty process is really not functioning, much of what goes on occurs as phone calls between the special negotiators and between the U.S. negotiators (Owens and Jim Pippin) and Dave Benton in ADFG or the Governor’s office. These calls happen with little or no warning, so it is extremely tough for fishermen in the process to keep track or feel included in the loop. To this extent Canada has succeeded in limiting participation by our industry Panel members.

Canada especially, but also our federal government, Washington State, and the tribes try to limit any serious negotiations to a very small group representing governments only. Canada does not want its fishermen to be involved in negotiations. In part that is their system of government-knows-best. In part it is due to the conflict between B.C. premier Clark, whom the Canadian fishermen support, and the Canadian Feds. In any case, the pressure to keep fishermen out has made it difficult and frustrating for Alaskan Panel members. As long as Canada is permitted to operate outside the normal Treaty process, fishermen members reasonably are going to feel threatened by the possibility of important decisions made without their knowledge or imput.

Alaska accepted the Treaty in large part because its procedures assured us of direct involvement in decisions that affect our fisheries. With the election for governor coming up in November, it would be wise to remind Gov. Knowles especially of this fact and to request that he lean hard on the U.S. Government to move Treaty matters back into the Commission or tell Canada to go looking for another treaty. Passively allowing more and more federal political control of Treaty issues puts all of us at real risk.

Rich Andrew’s board term on the SSRAA board expires December 1998. Qualified individuals interested in serving a three term, which would expire in December 2001, contact the SSRAA office. (907) 225-9605

Nominations must be received by October 28th. An election will be held in November and the appointment will be made at the Dec. 11th, 1998 Board meeting.

The board meets in regular session once a month and all travel expenses are paid by SSRAA. Additional involvement in special committees of the Board is at the discretion of the individual board members.

At this time there is a very small likelihood of an observer program next year, it is more likely to begin in two years. NMFS is considering starting the program in Cook Inlet and Kodiak where there are marine mammals in known decline.

USAG will continue to work on this program, gathering information and trying to help design a program that will have the least impact on fisherman. USAG will also work with UFA and other gear groups at they face this program so that we may learn from their experiences and be able to develop a better program by the time this program reaches SE AK.

USAG has been asked to be involved as the representative on the DEC taskforce for the direct market vessels. This taskforce has been set up to determine categories and permit fees for the seafood processing sector.

The taskforce is in the very preliminary stages but several suggestions have been made so far by members of the group.

• To split the direct market vessel category, under 65’ into several different vessel categories.
• To have a basic fee for fresh fish processing and additional processes would add additional costs.
• If your boat needs a HACCP plan and not just a HA (hazard analysis) an additional cost would be added.

USAG has pointed out to DEC last winter and again in the process of the taskforce that their basic assumption on the amount of time it take to inspect a vessel and the number of inspection a year are inaccurate.

If you have any comments on this subject, please call the USAG office (907) 586-5860 or write, e-mail or fax your opinions and/or suggestions as soon as possible. USAG will be considering whether we need to reintroduce legislation this winter or if we will be able to meet our goals of lowering the cost of DEC permits through the taskforce.

Through Statistical Week 38 (9/13 to 9/19/98) a total of 4,149,570 salmon had been harvested in all Southeast drift gillnet fisheries combined (Table 1). Current indications are that coho salmon returns are strong in central and southern Southeast and fishery openings will likely continue in District 1 and 6 for at least a few more weeks. Coho returns to the Taku River and to Lynn Canal are below average and additional openings will depend on catches observed in week 39.

District 1 1,100 160,000 39,000 645,000 450,000 1,295,100

District 6 500 115,000 236,000 505,000 350,000 1,206,500

District 460 22,000 19,000 40,000 42,000 123,460

District 11 800 69,200 25,200 167,000 295,400 557,600

District 15 510 122,800 19,000 24,100 85,000 251,410

Hatchery 2,600 11,800 1,600 112,100 587,400 715,500

______________________________________________________________________________________

Sockeye: Overall catches of sockeye were below average during the 1998 season. The total catch of about 500,000 sockeye is below the 1960 – 1997 average of 516,000 and is the lowest drift gillnet fishery catch since 1981. Sockeye catches in District 6 were well below the most recent 10-year average and less than half of the record catch of 311,000 sockeye in 1996. The poor catches were mainly due to a poor Tahltan sockeye return. Sockeye catches and returns were also well below average in District 11. The catch of 69,200 sockeye in District 11 was the lowest since 1988 and well below the catch of 95,000 in 1997 and the record catch of 199,000 in 1996. The District 15 sockeye catch of about 123,000 was well below the 1960 to 1997 average of 177,000. The record sockeye catch in District 15 of 472,000 occurred in 1989. The poor sockeye catch in District 15 was due mainly to a very poor return to Chilkoot Lake (escapement of only 13,000 this year).

Chum: The total chum salmon catch of almost 1.5 million (including hatchery areas) was roughly twice the 1960 to 1997 average but still well below the record catch of 2.6 million that occurred in 1995. The lower catches compared to recent years was due mainly to below average returns to DIPAC facilities in northern Southeast. The chum salmon catch in District 1 of 645,000 and 505,000 in District 6 were actually all-time records. The strong catch in these fisheries was due mainly to record returns to SSRAA hatchery facilities.

Coho: Coho fishing is still occurring in all districts so catches will continue to increase. However the total 1998 catch is not expected to exceed 400,000 coho. Although this catch is well above the 1960 to 1997 average catch of 240,000, it is still well below the record catch of 745,000 that occurred in 1994. Still the 1998 catch was a significant improvement over the 1997 season when only 170,000 coho were harvested in all drift gillnet fisheries combined. Coho salmon catches in District 6 have been exceptional and may be the second highest catch on record by the end of this season.

Sport fishermen from the Mat-Su Valley attempted to file a statewide ballot initiative for the year 2000 general election.

The initiative was filed with the names of 100 registered voters as required by law. However, the Division of Elections has returned the petition as not all the voters included their signature. The petition can be resubmitted after being signed or dropped.

See side box for the details of the initiative. The initiative has not been re-filed yet! In the meantime it is the belief that the short term goal is to work with the legislature to dismantle the limited entry permit system and provide a priority for the sport and personal use fisheries through legislation. As this petition was geared for the election in the year 2000, the sponsors have plenty of time to resubmit the petition to be included on the ballot if legislation is not introduced.

Will the legislature consider passing legislation of this nature? This past winter language was inserted in a bill regarding the moratorium statute that would eliminate transferability of permits. While that legislation did not make it through the system, we must be on constant guard to prevent this type of legislation.

Another topic that has been generating a lot of interest is the idea of a buy back program for permits in various fisheries. While nothing definite has been decided, the idea will be pursued during the winter months.

Bruce Twomley, Commissioner of CFEC will be meeting with the United Fishermen of Alaska during their board meeting this October to discuss the idea of buy back programs.

One aspect of any buy back program is that it must be industry supported and funded. The users of the resource will have to fund the purchase of permits and each fishery will have to be analyzed and designed differently.

When discussing the issue of permits being bought back, we must keep in mind the statues that govern limited entry permits. Under state law a fishery can become too exclusive and therefore new permits would be issued. There is also the complaint that was heard in Washington State in the late 1970’s when a buy back program was conducted. Permits that had not been fished and were sitting idle were the permits sold back to the state and therefore no effect was felt by the remaining fishing fleet.

Any buy back program must take that lesson to heart and be designed carefully. USAG will follow this issue and keep the member informed of what is happening.

Be sure to vote in the November 3rd General Election. Your vote is important to help elect legislators that will support the commercial fishing industry.

The USAG Board of Directors held a teleconference in September and endorsed the following candidates. USAG does not have a political action fund to make monetary contributions but we will be writing a letter of support for the following Candidates:

• Tony Knowles and Fran Ulmer as Governor and Lt. Governor
• Bill Williams for State Rep. Dist. 1 (Ketchikan)
• Ben Grussendorf for State Rep. Dist. 2 (Sitka)
• Bill Hudson for State Rep. Dist. 4 (Juneau)
• Al Kookesh for State Rep.. Dist. 5

The Board did not endorse any candidates at this time for Senate Dist. B (Don Abel vs. Kim Elton) and for State Rep. Dist. 3 which after the primary has Beth Kertula running unopposed.

The commercial fishing industry is being attacked on all sides by issues. These include buy back programs, federal takeover, sport priority of the resource which would include charter boats, changing the limited entry program by doing away with the ability to sell your permit, and there is talk about fish farms being the answer to Alaska’s problems (article in Anchorage Daily News Sunday 9/20/98). Do you have all the contacts to follow all these issues? Are you plugged into DEC, the Federal Government, NMFS, US Coast Guard, Alaska State Legislature, U.S. Legislature, Board of Fish, Dept. of Fish and Game and talk to fishermen from other areas to understand what their concerns, interests and issues are? USAG tries to be aware of all immediate issues and the concerns of the individual fisherman that could affect the SE AK Gillnet fishery plus aware of the commercial fishing industry as a whole. The time has come and gone when we can be insulated from the bigger issues that are facing the industry today.

Not only is your membership important to protect your investment, way of life and protect your future but also in dealing with state and federal agencies the number of members in an organization plays an important role in the effectiveness of the organizations efforts.

Don’t let some of the members’ pay for your organization. Become involved! Your participation in meetings determines the actions of the board of directors and sets the priorities of the organization. Not exactly happy with the organization, call the USAG office or a board member and discuss your concerns.

Chilkat Lake- This was the first year for 5 year old sockeye returns from the Chilkat Lake fry stocking program. With Chilkoot Lake returns at an historic low, the sockeye catches in upper Lynn Canal speak volumes for the success of the enhancement program.

During weeks 27 to 31 (end of June to August 1) the gillnet fishery harvested over twice the twenty year average. Week 32 also saw a larger than average harvest, while beginning in week 33 the harvest fell below the twenty year average. The amazing thing is that weeks 27 to 31 were the target or window the program was designed to enhance when eggs were first taken back in 1993. For the returns to dovetail so well with the narrow chinook and chum conservation window on either end of the sockeye enhancement is quite rewarding.

The enhanced proportion of the sockeye catch was about 20%, although this is misleading since the total abundance of the wild and enhanced components is what drives catch. The presence of enhanced fish during the high catch weeks was likely 40% to 50% of the total. The enhanced portion of the escapement to Chilkat Lake (being conducted now) will complete the picture of performance of the program.

Unfortunately, there is a down side to this story. It appears that harvest of Chilkat fish could have been even greater as the escapement of these early fish is tremendous. Lee Close who has been at the lake for day to day operations for 8 years, says he has never seen so many sockeye on the spawning grounds. And recovery rates at the lake from the Chilkat fishwheel marked sockeye bare this out. More alarming though are the preliminary estimates for Chilkat River mainstem spawners (also early run fish) which are below desired levels, suggesting that the aggressive harvest strategy used this year will need to be reined in somewhat next year. This suggests that the benefits from the enhanced fish will not be fully realized unless mainstem spawners can be protected. If the benefits cannot be brought into line with the long-term costs of the project, the program is in jeopardy. Some creative thinking is needed to solve this problem…weir on outlet of Chilkat Lake to accurately meter fish in and harvest surplus?

Chilkat Lake smolt and zooplankton production increased slightly from 1997 levels but remains low enough to warrant caution, and; hence no eggs were taken for the stocking program this year. Smolt and productivity studies will continue through next June to determine whether to conduct an eggtake in 1999. Mathew Whitman, an NSRAA employee, will attend the University of Alaska and conduct a study at Chilkat Lake to gain a better understanding of the lake’s ecology. Drs. Jeff Koenings and William Smoker will be on Mat’s graduate committee to provide advice and direction. "We are very lucky to have this kind of expertise on the committee" remarked Steve Reifenstuhl, NSRAA Field Programs Manager.

Deep Inlet- Chum returns to Deep Inlet and Medvejie set a new record with a total near 3 million when the last fish is counted in late September. The Deep Inlet rotation began in early July and continued until September 13^th. Gillnet participation started off slow but gained momentum in late July and August with 40 to 55 boats during the peak of the return. About 435,000 chum (15%) were harvested by the gillnet fleet, a value of nearly $600,000.00. Total chum harvest by the seine fleet was 1.98 million or 70% of the total return. During late July Sitka Sound came under pink salmon management and therefore, some 45% the chum harvested by the seine fleet occurred outside of the Deep Inlet SHA. Cost recovery harvest was completed on 24th of August and represented 11% of the return. Overall, 88% of the return was take by the common property harvesters.

A significant change to the Sitka Sound seine fishing boundary line from the 1997 pink salmon management regime kept the seine effort farther away from Deep Inlet this year. This modification undoubtedly allowed more chum to reach the terminal area. Cost recovery got off to a slow start in July due to the heavy fishing effort both inside and outside the SHA. The SHA was expanded for cost recovery in early August. This expansion enabled the rotational fishery in Deep Inlet to continue, and was the least disruptive option to the gillnet and seine fisheries.

The NSRAA Board term for the Haines gillnet seat held by Mike Saunders and the At-large gillnet seat held by Chris Crowe expires in March of 1999. Qualified individuals interested in serving a three year term, which would expire in March of 2002, please contact the NSRAA office.

The NSRAA office must receive nominations by October 29th, 1998. Nominations must include the signature of three other permit holders involved in the commercial salmon fishery in Districts 9-16.

The board meets twice a year and all travel and per diem expenses are covered by the association. Other special meetings and committee work sessions are additional meetings and scheduled accordingly.

Summer chum: Approximately 30 million pounds of summer chum returned to the terminal area at Neets Bay in 1998. We were a little surprised by the magnitude. Slightly more than a third of the terminal return was harvested in 4 rotational openings and two additional openings of district 101-90, which were directed at these fish. These common property openings and the cooperation of several local processors allowed us to harvest the return without waste or loss. The openings were also essential in helping us remain more aggressive with harvest, which resulted in better quality fish in the marketplace.

The eggtake went well and slightly more than 80 million summer chum eggs are now incubating at Neets Bay.

Preliminary information on the strength of the 1995 year class suggests the Neets Bay summer chum run will be more normal-sized in 1999. The large returns of the last two years were driven in large part by the 1994 year class. These fish were 4-year-olds this summer and will not make up a significant portion of the 1999 harvest as five-year-olds.

Cost recovery has gone well. We are tracking close to our projection, which should enable a substantial loan payment in the spring of 1999.

Snow Pass Coho: In order to gain name recognition for these first coho available in the marketplace, we are calling these fish Snow Pass coho. The first return of summer-run Snow Pass coho to Neck Lake was a pleasant surprise. The return was twice our preseason projection; we expected 50,000 and close to 100,000 were harvested. The gill net fishery in District 106 seems to have been the primary benefactor while a substantial number of fish were harvested by trollers. The fish also provided an early-season sport fishery in Whale Pass for residents of Prince of Wales and the Ketchikan area. We were a little surprised in the portion of the return harvested by the cumulative common property fishery, between 55 and 60%.

Chinook: We had a large number of chinook minijacks return to Whitman Lake Hatchery this summer, something we have not seen for a number of years. It is possible that chinook survival in southern SE has finally taken an upturn. With increases in both the number of smolt released and in the survival of smolt, it is possible a significantly greater number of chinook may be returning to the Ketchikan area beginning in 2000.

Salmon returns to DIPAC hatcheries were generally successful during the 1998 season. Good to excellent numbers of all five species of Pacific salmon returned to the Gastineau, Sheep Creek and Snettisham hatcheries. Minimum thresholds for cost recovery were met or exceeded in all cases and egg take goals were nominally met as well.

The summer chum cost recovery harvest of 6.6 million pounds (737,000 fish) fell within the anticipated range of 6-10 million pounds, but short of the desired goal of 8 million pounds or more. While the season started out strong and steady, it ended unexpectedly about 8 days earlier than anticipated. Harvesting occurred at both Amalga Harbor and Gastineau Channel, with a total of 4.6 million pounds (509,000 fish) and 2.0 million pounds (228,000 fish), respectively. No cost recovery harvest was conducted at Boat Harbor or Limestone Inlet.

The chum egg take was considered successful with a total of 108 million fertilized eggs from approximately 128,000 broodstock, although the unexpected shortfall in chum returns meant we did not reach the desired goal 111 million eggs. A major improvement was made this year in the electro-anesthesia process which resulted in a dramatic improvement in the initial survival rates of chum salmon eggs (97% compared with 87% the last two years).

Sockeye cost recovery at Port Snettisham went very well this year. A total of 199,400 pounds (33,500 fish) were harvested from July 10 through August 27. Although the number of fish harvested was slightly below projection, higher prices resulted in the total sockeye revenue exceeding the financial goal. Broodstock collection was successful and egg takes are expected to begin in late September.

This year’s pink salmon return was much greater than expected, with about 164,000 fish returning from a release of approximately 5.8 million fry. The DIPAC Executive Committee (EC) adjusted the pink egg take goal downward from 9 to million 6 million eggs to bring production levels more in line with current corporate goals. The EC also instructed staff to study the issue of pink salmon production more and return with additional recommendations in the future.

The chinook return was less than in previous years with about 600 fish removed from the adult holding system this summer. Egg take operations were complicated by the requirement to separate Andrew Creek and King Salmon River chinook stocks prior to spawning. This effort proved to be only partially successful and hatchery staff ultimately had to import gametes from Crystal Lake Hatchery in order to meet the goal of 650,000 eggs.

The coho return to date has been very good. Through week 37, an estimated total of 27,200 DIPAC coho have been harvested in the commercial fisheries, including 22,000 by trollers, 3,500 by gillnetters and 1,700 by seiners. Sport harvest estimates are incomplete at this time, although an estimated 885 DIPAC coho out of a total of 2,808 coho were caught in the Golden North Salmon Derby. Coho cost recovery harvest began on August 28 and 23,000 fish have been harvested as of September 16. Harvest is expected to continue until the end of September.

CFAB has retired all state owned stock 22 months ahead of schedule despite what CFAB in it’s annual report called fiscal year 1998 a "somewhat poor year". The original state investment in 1980 of $32 million was to be paid by July 2000 according to the state statute that created CFAB. In 1991, CFAB and the State signed an agreement for early retirement of the debt. The State Dept. of Revenue and CFAB worked hard to make sure that a fair deal was worked out between the parties and that the early pay off schedule could not be considered a sweetheart deal.

CFAB will continue to exist under the terms of the statute (AS 44.81) that created it. The governor will continue to appoint two of the seven board members and the bank will remain subject to legislative audits while also being required to submit an annual report to the Governor and the legislature.

CFAB’s annual report made the point that when they are asked for information regarding loan volumes and delinquencies, they always include the observation that CFAB’s borrowers, in general are individuals who have at some point demonstrated that they are competent financial managers, have achieved a level of stability over time, have established a record of consistently successful harvesting operations, and have been willing to expose their vessels, permits, gear, or other assets to risk of loss. In other words, they are not a "cross section"; they are a group presumed to be motivated to perform as well as capable of performance. The point is that when CFAB’s loan portfolio reflects distress within this group - even though the negative impact on CFAB may be relatively modest, as is true in 1998 - "there is clear reason to believe that there is more acute and pervasive distress within Alaska’s resident harvester population as a whole".

According to the CFAB annual report, one of the increased expenses during fiscal year 1998 was CFAB committed considerable resources to legal research and counsel in an effort too determine if and how CFAB might effectively and positively impact the Bristol Bay Lawsuit. The CFAB Board and Management continue to believe that the "Bristol Bay lawsuit is, and will be proven to be, one of the most lasting destructive events ever to befall the Alaska salmon business and that the wake of its destruction will severely impact CFAB".

The intent of this celebration is to emphasize that development as an accomplishment of the entire commercial seafood community. During the reception the members of the 1979-80 Alaska State Legislature will be honored for being instrumental in the creation of CFAB.

A more important and more basic intent of this occasion is to emphasize the scope, size and impact of the commercial seafood business in Alaska.

All commercial harvesters are invited to attend!

Event: AK Commercial Seafood Community Reception

Date: Thursday, November 12, 1998

Time: 6:30 p.m. to 9:00 p.m.

Place: Howard Rock Ballroom, Sheraton Anchorage Hotel, Anchorage Alaska