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%