e. Under section
Strict administrator
‘mmuts to citizens of
pt where thedistrict
ermines the public
eopardized.

1100(b) the High
given authority to
1 reasonable condiescribe, noncitizens
mic activity within
aided such activity
Opportunities for
nent of Territory
citizens desiring to

>

Territory

must

| 1118 of the Code
he bare minimum
ch the articles of
contain. Upon
cles of incorporave High Commisection [116, may
S are provided by

nent.

ON AND
MONS

d

Communica-

S in the Admin-

rogram for im-

of Micronesians

viable economy

service, transrole in accom-

‘ion’s goals for

the

Trust

Territory.

Modernizatj

and expansion of the transpor
which travel from
tatiggStield trp vessels
B district centers to out-islands and
system, particularly in the
maritin,
area, must go hand-in-hand
are excluded from the above
with ca which
contract. Because of limited revenue
ital improvement and other deve
lo
from operation of the vessels. the
mental programs. Past efforts
- Government subsidize

s portions of

improve maritime transportati
on hay

operating costs to meet service requirenot been particularly impressive,
but
steps are being taken to
ments in all areas. The 100-foot, steelimprov,
constructed, diesel-powered cargo and
service and acquire new vessels.
passenger vessels—the M/V Truk
jiander and the M/V Yap fslander—
The Territorial Government
OWn

provide field trip service in Truk and
three major logistic vessels whi
ch hay,
Yup Districts. They are operated by
been operated since 1965 on cont
rac.
by the United Tanker Corpor
the Truk Transportation Company and
ati

New York. This corporat
ion
charter from the Governmen
t
lishing a local corporation.
nesian Line, which oper
ates

on af
has 2
estab.
Micro?
these

vessels: the M/V Palau
lslander, MV

ihe Yap Shipping Cooperative Associa-

tion

respectively.

In

Ponape,

the

j34-foot M/V Kaselehlia is operated

In March 1968, the Admi
nistration‘

began negotiations with seve
ral ship*
ping lines for a new, !0-year
contract
for operation of the Trust
Territory’sf
logistic shipping. At year’s
end, several:
bidders were competing for
the mari-t
t ime
contract; improved shipping
service for ithe Territory,
including

direct service from the
United States
will result.

‘
:

Local Micronesian companies
operate the fleet of Governmen
t-owned £
Part VI—Economic Adv
ancement

|

|

Local Micronesian companies on a
private enterprise basis handle stevedore, terminal, and shipping agency
functions at district ports.
Published Port Regulations provide
uniform rules consistent with commercial port regulations throughout
the world on the regulation and operation of ports in the Trust Territory.
Micronesians have been selected to
serve as port managers at each district

hy the Ponape Federation of Coopera-

port.

tive Associations. The 176-foot M/V
Ran Annim is operated in the Marianas

Air Transportation

Gunner's’ Knot and M/V
_ Pacific
hy the Saipan Shipping Company. In
slander. Micronesian Line,
during the
the Marshall Islands District, service is
year under review, purchased
a fourth”
provided by the 157-foot M/V
vessel. the M/V Majuro, whi
ch hows
Militobi, operated by the Kwajalein
service in December 1967.
Islands Trading Company. Additional
service in the Marshalls is provided by
Twenty-three Micronesians
ar” the M/V Ralik-Ratak, owned and operserving in a licensed offi
cer capacity
ated by the Marshall Islands [mport
aboard the four vessels.
Of the four
I'xport Company. During the year. the
Micronesians who completed
training”
o-foot Government-owned M/V
at the Philippine Maritime
Academy
fcioech was transferred from Truk to
during the year, three are
assigned to”
the Marianas where it will provide
the logistic vessels and one
to terminal
shuttle service between Saipan, Tinian,
Operations in Ponape.
One others
and Rota.
Micronesian continues {rai
ning at the,

Academy.

“ment and began service in April 1968.
Negotiations are underway for acquisition of two additional vessels for
administrative use.

fo upgrade the Territory’s logistic
lhansportation, the Administration has
begun to place in service additional
udministrative vessels to meet educational, medical, and community servICes
requirements throughout the
lerntory. Previously such services
have had to be combined with regular
‘icld trip service. By separating them,
the field trip vessels will be able to
confine their operations to meeting
the direct logistic needs of the people.
Ihe

first

administrative

| /S-foot,. all-steel
(ovk,

vessel, the

M/V James ™.

was obtained by the Govern-

Air transportation has improved
considerably since May 1968, when
Air Micronesia took over air service in

the Trust Territory. Air Micronesiais a
corporation formed by Continental
Airlines, Aloha Airlines and the United
Micronesia Development Association.
Jet travel among the Marianas,
Truk, the Marshalls, and Guam and to
Honolulu in the east and Okinawa in
the west has been inaugurated with Air
Micronesia’s Boeing 727. Air Micronesia also operates a DC-6AB between

Guam, Saipan, Rota, Yap, and Palau

and the two Government-owned
SA-16 Grumman amphibious aircraft
between Truk and Ponape. Jet service
will be extended to Ponape when the
airfield under construction is completed in 1969, and to Yap and Palau
when airfield improvement is completed in Palau.

liscal Year 1968

ee

Air service now consists of: Daily

jet and/or DC-6ABflights from Saipan
to Guam. with stops in Rota twice a
week: twice a week from Guam to Yap
and Palau: twice a week to Truk and
69

Fe ie

4%

Select target paragraph3