'
aoe
risadicbanatee oto ett
Life savings insurance provides
similar benefits with respect to a
member’s savings. When a member
dies, the insurance company will
match the amount ofhis savings at the
time of death. This is considered an
incentive for members to save and to
refrain from withdrawing their savings
except for urgent needs.
Seventeen credit unions have
subscribed to surety bond coverage,
which protects them from embezzlement.
Coverage
is
limited
to
$1,000,000.
Cooperatives in the Territory also
have increased their volume of business. By the end of fiscal year 1968,
active cooperatives numbered 33, an
increase of nine from the previous
year. These cooperatives were buying
copra and retailing trade goods, often
in remote areas where there was no
other trading company; catching and
marketing fish; producing and marketing handicraft, constructing low-cost
homes for members. and building and
repairing boats.
tail eaten
Total sales and other revenues of
Trust Territory cooperatives will
exceed $5,000,000 for fiscal year
1968. At the end of 1967, 7,499
te ee
Micronesians were members. Good
operating results enabled cooperatives
to show net savings of $453,201 and
to pay an estimated $259,363 in
patronage refunds.
Chapter 3
INVESTMENTS
The Administering Authority recognizes
that
outside capital and
expertise, particularly for large-scale,
46
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wy
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sophisticated enterprises, are neec
to carry out economic ventures in !
most efficient and profitable mann
The Director of Economic Devel:
ment analyzes proposed outside inve
ment, obtains views of concerr
persons, and formulates a_ reco
mendation for the High Commissior
to license or charter any enterpr
involving non-Micronesians.
In reviewing a business venti
application, the following crite:
among others, are considered:
(a) the economic need for
service or activity to be performed
(b) the promoters’ willingness
joint Micronesian ownership of |
venture
{c) the degree to which such
operation effects a net increase
exports or a net decrease in imports
(d) the extent of participation
Micronesian citizens at the outset a
in the future at the management le
and at lower leveis, and the provisic
for Micronesian personnel training
(e) the
financial,
lack
technical,
of
capabilit:
managerial
otherwise—of Micronesians to oper.
such a business now or within t
reasonable future.
Investment which meets the abc
considerations, resulting in an infl
of capital and needed know-how a:
increasing the productivity of Mic:
nesian workers, is welcomed and fac
tated.
Part VI—Economic Advanceme