"National policies often neglect to consider our interest at all, or do so only as an afterthought (e.g. by adding "and the Territories" to pieces of legislation.) Policies developed specifically for the Territories are too often developed without proper input From the affected island governments and peo- ple. | Furthermore, these policies have tended to lack a strong sense of direction, have had varying degrees of commitment | from President to President and Congress to Congress, and have often lacked the necessary understanding of what it is like to live and work in an American territory in the Pacific or Caribbean, thousands of miles away from Washington, D.C. Correspondingly, there has never been a good understanding of the role, if any, that the Territories should play in | / " national policy. As a result, policies for the Territories have been haphazardly developed. | to There problems. have For been piecemeal example, applied to some Territories without apparent reason, or with the intent and letter of legislation, or, are simply outdated. The lack of input tories and policies lem." are the two inconsistent aspects of laws responses have been but not others have conflicted earlier enacted irrelevant or from the Terri- development the same of prob- Territory officials identified examples of foreign, economic, and domestic policies which in their view did not adequately consider the territories' interests and needs, and adversely impacted economic development. The most prominent examples were the Caribbean Basin Initiative (CBI) and foreign relations, Treasury rulings on investment bonds and a legislative attempt to eliminate a corporate tax incentive in Puerto Rico. : The CBI and territory interest in foreign relations All the territories are becoming more active in foreign and regional activities, in some casos as representatives for the U.S. government. In addition, many of the territories are interested in expanding foreign and regional relations to enhance economic development and attract investment. However, officials from some of the territories believe that the United States has not adequately considered their potential role or has formulated policies which could adversely affect them. 7 9000233 26

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