e Providing the basic physical and resource developments necessary for economic growth by expanding a Trust Territory-wide construction program which includes rehabilitating and building roads, airports, and harbor facilities; and improving and expanding water, electrical, sanitary, and other basic utilities. e Encouraging Micronesians to establish their own business enterprises by providing them with necessary technical assistance and long-term loans. These enterprises include establishment of cooperatives, small home industries, expanded production of handicraft, search for markets, and instruction in modern methods of production. e Providing for capital participation in economic enterprises which are otherwise beyond the financial capacity of local investors, by providing an economic climate which applications to the Board for its « sideration. Loans are made directl. in the form of a loan guarantee commercial bank by the Territ: Government, with the Board sei aside cash in reserve equivalent to of the total loan guaranteed. to: Loans may be made or guaran (a) A citizen or resident of Trust Territory, or a group or ass: tion of Trust Territory citizen: residents, whom the Board of D tors regards as a suitable borrower. (b) Corporations and cooper. societies authorized to conduct ness in the Territory; citizens or dents of the Territory engage: agriculture, manufacturing, or . will allow business, commerce and mercial fishing: improvement of ism; and improvement ofreal proy for industrial purposes which Board specifically determines t beneficial, desirable and necessar the economic development of Trust Territory and which meets or more of the followingcriteria: food processing, and other fabri- —Creates new employemnt; industry a profit while providing productive employment opportunities for Micronesia’s growing population. Enterprises which may require such participation inchude commercial transportation and travel facilities, fisheries, large-scale tropical agricultural production, cating and manufacturing industries. Credit Facilities The Economic Development Loan Fund is one important device for stimulating the local economy. The Loan Fund is administered by a seven- member Board of Directors, chaired by the Director of Economic Develop- ment. A general rule established by the Board of Directors requires that loan 44 applicants attempt to secure Cr directly from commercial banksin area, and that only when such as ance is not available may they sut —Replaces imports, increases ex pc —Reduces consumerprices; —Provides vitally needed facilities services. During the year under re direct loans totaling $115,300 made and $164,200 worth of tional loans were guaranteed commercial banks. At year’s $23,000 in loans were pending ai Part VI—Economic Advance. +%}