By Peter Blackburn

BRUSSELS, Aug 11 (Reuter) - European and Moroccan fisheries officials listed obstacles to a new fisheries agreement on Friday after starting a sixth round of talks which the EU hopes will allow its fleet to return to Moroccan waters next month.

More than 700 vessels, mostly Spanish, have been tied up in port since a previous agreement was scrapped one year early at the end of April.

"They're getting down to business, they've listed six problem areas," a European Commission spokeswoman said, adding that the atmosphere was "frank and cordial.".

The six areas cover fish catch quotas, fishing conditions, controls, management of fish stocks, training for Moroccan fishermen and financial compensation.

Talks were expected to continue late into the night and through the weekend after which fresh proposals could be drawn up on Monday.

European Commission officials, representing the 15-nation EU bloc, were led by Fisheries Director General Jose Almeida Serra.

Spanish, Portuguese, Italian, French, German and Dutch observers were also present.

Moroccòs decision to resume talks after five abortive meetings was welcomed by EU Fisheries Commissioner Emma Bonino.

" m pleased the EU and Morocco have resumed negotiations, it shows the desire of both sides for a new accord to start, I hope, on September 1...," Emma Bonino said in a statement.

An eight-member Moroccan delegation, led by fisheries director, Mohamed Rami, declined comment.

But representatives of the Moroccan fishing industry told reporters the situation was critical as Moroccan fish stocks had been over-exploited during the past 10 years.

"You cannot ask Morocco for more than it has or very soon there will be no fish left," said Mohamed Benjelloun, secretary general of the Moroccan sea fishing association.

Moroccan demands were based on scientific studies about what was necessary to preserve stocks, he added.

The main problem is over Moroccòs demands for sharp cuts in fish catches to protect threatened stocks and allow its fishing fleet to develop. It sought a 65 percent cut in catches of octopus and squid and a 50 percent cut in shrimp and hake trawling in northern Moroccan waters over three years.

Morocco also wants EU vessels to land most of their catches in Moroccan ports. It has shown little interest in EU proposals to create joint fish processing and distribution ventures.

The EU favours financial incentives, such as a reduction in fishing licence fees, to encourage EU vessels to offload their catches in Moroccan ports.

Compensation in exchange for fishing rights would depend on fishing possibilities and conditions. Due to an expected cutback it is likely to be less than the annual $135 million paid under the previous four-year agreement.

Both sides agree on a need to protect fish stocks but still have to settle details of control measures, such as satellite tracking and on-board observers.

The agreement is the European Union's most important external fisheries pact, providing a livelihood for 28,000 people in southern Spain, the Canary Islands and Portugal.