for International Development assuming lead agency responsibility for the program. Initial objectives included development of competitive commercial processes for producing FPC.9 The program is intended to: -determine and develop the potential market for FPC in selected developing countries; -establish a viable commercial FPC system in at least one proteindeficient country; and encourage other nations and private interests to establish commercial fishing industries in the developing countries. AID has conducted preliminary surveys of the opportunities for developing FPC capabilities in a number of Latin American, Asian, and African nations. As a result of these surveys, more intensive studies have been initiated on a bilateral basis in Chile, Korea, and Morocco to determine whether and in what form FPC-fortified foods can be marketed commercially in these countries. These studies will continue through FY 1970 and will assist potential investors in determining the commercial attractiveness of FPC investments. They encompass: -market analysis including identification of factors contributing to dietary patterns and determination of opportunities for encouraging consumer acceptability of FPC such as introducing FPC into government feeding programs; —supply analysis to determine availability of an adequate supply of inexpensive underutilized fish stocks; and -product development and testing to determine the suitability of FPC in fortifying local foods such as flour, bread, and pasta. During 1968, AID ordered $900,000 worth of FPC from Alpine Marine Products Corporation for use in overseas feeding programs conducted by voluntary agencies. The contract price was 42 cents per pound. This FPC will be used as an additive in a number of basic foods, complementing the product development and testing programs in Chile, Korea, and Morocco. A second purchase is proposed in FY 1970. * Many abundant fish species can be converted into a nutritious and wholesome protein concentrate (FPC) that is tasteless and odorless. The FDA has authorized two processes for producing FPC from hake or hake-like species. FPC is bacteriologically and biochemically safe and stable without refrigeration or other special process. Its protein is easily digestible. It can be easily stored and transported and can be readily added to a variety of foods commercially consumed in the developing nations. Ten grams will provide adequate animal protein to meet the daily requirements of one child. Research is underway to reduce the cost of this daily requirement to less than one cent per day which is expected to make FPC competitive with other protein supplements. 329-466 069- -8 Figure VI-2 presents the current status and planning for implementing the program. Figure VI-2-Phasing Chart for Food-from-the-Sea Demonstration During 1968 the following accomplishments highlighted the FPC development program: -establishment of a special FPC office in BCF; -completion of process development for extraction of FPC from lean fish at laboratory scale and preparation of provisional specifications and engineering data for the full-scale demonstration plant; -award of a contract, as authorized by P.L. 90-549, for design, construction, and operation of a 50-ton per day FPC demonstration plant at Aberdeen, Washington, which is intended to demonstrate feasibility of large-scale FPC processes at reasonable costs and to provide engineering and economic data to assist private industry in construction of commercial plants; -continuation of studies on safety aspects of processing lean fish; -conduct of solvent extraction studies in-house and by M.I.T. and Standard Oil of New Jersey which will provide design parameters for an efficient recovery system; -initiation of laboratory work on extracting FPC from fatty fish; and -extension of research concerning extraction of FPC by biological processes leading to more versatile and cheaper products. In view of the continued promise of FPC as an inexpensive source of protein, the Bureau of Commercial Fisheries will continue FPC research and development at a level of $2.2 million in FY 1970. These efforts will include completion of a prototype process for fatty fish so that industry can have sound engineering designs as well as control and operating data. Work to examine and develop new, lower cost biological and other processes for producing FPC from various fish species will be emphasized. The FPC development program is intended to provide the knowledge for sound and systematic transition from laboratory experiments to an economical and acceptable food production system from fish catching through consumption. It should provide the basis for the development of commercially viable operations in this country as well as overseas. The foodfrom-the-sea budgets of AID and BCF are presented in Table VI-1. Looking to the Future The importance of a healthy fishing industry and of a vigorous Food-fromthe-Sea Program has been widely recognized by government, commercial, and industrial interests. Delay in taking steps to revitalize the industry will lead to further gains by other nations in exploiting resources off our coasts, lost opportunities to turn latent resources into foods, and potential erosion of our position as a maritime nation. Bold and imaginative measures are needed to reverse this trend. Similarly, the problem of hunger has become so serious that innovative approaches are essential. Consideration might be given to such steps as inexpensive, small-scale automated units for processing FPC suitable for operation in isolated coastal regions of developing countries. Optimum utilization of fishery resources also requires development of integrated systems for areas where fishing capabilities are limited and fishing conditions are favorable. Among the possibilities are factory ships operating with satellite catching fleets supplying very large regional processing plants and Table VI-1-Food from the Sea in the War on Hunger development of large aquacultural systems in fresh, brackish, or salt water ponds. As the initial Food-from-the-Sea Program advances, a capability could be established in a few years to provide protein supplement to 7 to 10 million people. In the longer term, FPC has the potential to meet animal protein needs of over 200 million-using only a small percentage of the projected world fish catch. "Rich and various gems inlay The unadorned bosom of the deep." -JOHN MILTON Chapter VII ENCOURAGING DEVELOPMENT OF Ores, minerals, and fossil fuels are basic sources of energy, construction materials, metals, chemicals, and fertilizers and are increasingly required by advancing industrial economies. The importance of offshore petroleum and natural gas is reflected in estimates that, within two decades, 30 to 40 percent of the domestic and world production will come from offshore sources. Currently, 15 percent of U.S. production of sulfur comes from offshore, and additional areas have been identified in the Gulf of Mexico. While the potential for offshore solid minerals is still in the exploratory stage, projections show that U.S. consumption of many commodities will double by 1980. This motivates offshore exploration for selected minerals such as gold, silver, platinum, phosphates, and manganese. Additionally, the demand for sand, gravel, shells, and other construction materials dredged from nearshore waters is increasing significantly in areas where rapid urbanization is simultaneously enlarging the need and excluding land sources of supply. Of course, the keys to offshore production of any of these commodities lie in their actual delineation by surveys and in the development of suitable extraction technologies that would render costs of difficult offshore production competitive with conventional onshore operations. The value of all minerals produced from Federal and State offshore waters in the past decade exceeds $7.5 billion, including petroleum production valued at about $6 billion. Federal bonuses and revenues from de |