“
ae it
a ss es

The Council expressed the hope
that the proposed significant increase
in the Economic Development Loan
Fund will be realized. It recommended
that the Administering Authority
continue its efforts to insure the economic viability of the Territory.
Public Finance. The Council noted
with satisfaction the continuing increase in the funds being made available by the Administering Authority
and expressed the hope that they can
be authorized for a period of several
years thus permitting maximum
flexibility in the economic development plans for the Territory. The
Council welcomed the decision to
appoint a revenue officer to review the
existing system of tax collection and
increase its efficiency. The Council
reiterated its recommendation that the
Congress of Micronesia consider
adoption of a suitable system of direct
taxation applicable to all residents of
the Territory. The Council also recommended that to increase the funds
available for appropriation by the
Congress of Micronesia, the administrative costs of the Congress be defrayed by funds appropriated by the
Congress of the United States.
Agriculture and Livestock. The
Trusteeship Council reaffirmed its
view that agriculture should be accorded a high priority in the development programs. The Council therefore
welcomed efforts of the Administering
Authority to diversify agricultural
production, with emphasis on products which can be exported. The

ous

ana

tions concerning the potential i
portance of the fishing industry in thie
Territory, was pleased to note thy
following developments in this field{&
(a) measures taken by the Administe.J&
ing Authority to expand and improv
the fishing industry and to increagi
Micronesian interest and participation
in it. (b) the survey being carried oy
in Truk as a result of indications 9
commercial interest in fishing ang

canning operations there, and (jim
introduction of legislation in the US®

Congress for a lowering of U.S. impon
tariffs on Micronesian canned fish.
The Trusteeship Council expresse4

hope that plans for establishmentof,

marine biological research station ai

Palau will be implemented.

“|

Industry. The Trusteeship Cound

welcomed measures taken in coop
eration with Air Micronesia to expand
the tourist industry in the Territory

and in particular the decision to buill

a chain of hotels and train Micronesia

personnel to staff them.
Transport

and

2

Communication

The Trusteeship Council welcomed tk

significant progress achieved in a

transportation in the Territory and th

important participation of local is
terests in Air Micronesia. The Coune
also noted that despite improvement
in sea communications, the situations™

still difficult in certain areas and

therefore, urged the Administering
Authority to take the necessary step

to bring shipping services to a levd

which will meet the needs of tm

Council, however, noted the decrease

Territory’s growing economy. Tb

Fisheries, The Trusteeship Council.
reaffirming its earlier recommenda-

The Trusteeship Council welco \
the passing of a Social Security Act fa

Council also urged the Administerig

it

in the export of copra reflected in
Authority to continue efforts @
Statistics contained in the Administer.improve the road network in the Tem
ing Authority’s report and urged the
tory.
ie:
Administering Authority to take all
A
possible steps to remedy the situation. Social Advancement

136

Part X--U.N. Resolutions and Recommendat oF

Select target paragraph3