(Adds Bonino comments, details)

By Peter Blackburn

BRUSSELS, Nov 13 (Reuter) - The European Union and Morocco

initialled a new four-year fisheries agreement on Monday that

will allow mainly Spanish fishing vessels to return to Moroccan

waters but with reduced fishing rights.

Under the new agreement, the EU's most important external

fisheries pact, the EU will also increase compensation payments

and land part of its catch in Moroccan ports.

"It's a fair agreement for both sides. Nobody wins and

nobody loses," EU Fisheries Commissioner Emma Bonino told a news

conference.

The fisheries deal, which follows a new EU-Morocco trade and

cooperation accord concluded on Saturday, will come into force

on December 1.

It will effectively allow around 600 fishing boats from

southern Spain, the Canary islands and Portugal to resume

fishing in Moroccan waters. The number will fall to under 500 in

the final year of the accord.

Around 645 vessels fished in Moroccan waters in the last

year of the previous pact, scrapped by Rabat in April.

EU payments will rise to $162.5 million a year, from $133

million under the previous three-year agreement.

Out of this total, payments for catches were trimmed to $115

million a year from $117 million. But aid for fisheries controls

and cooperation will surge to $47 million a year from $16

million.

Bonino warned that the EU and Moroccan fishing industries

will have to restructure.

Spain and Portugal will have to reduce their fishing fleets

while Morocco will have to improve its port and fish landing

facilities.

From the second year of the accord EU vessels will have to

unload part of their squid and octopus catches in Moroccan

ports. Morocco originally demanded 100 percent landings.

The agreement gives priority to small vessels which will

even enjoy some increased fishing opportunities.

The agreement also strengthens fisheries controls including

observers in EU and Moroccan ports and a pilot satellite system

to track movements of fishing vessels.

The final obstacle in the nine-month negotiating marathon

was the length of annual rest periods to allow squid and octopus

stocks to recover. This was kept to September and October with a possible third month if mutually acceptable.

Despite a global fisheries crisis, Bonino said that the

Spanish fishing fleet, the EU's largest, still has a future but

only if it restructures.

"It's no good burying your head in the sand...there just

isn't enough fish...we fish the wrong fish and we fish too

much," she warned.