APPENDIX II APPENDIX II the Departments of Defense and Interior and with additional personnel seconded by these and other departments and agencies as needed. The Department is sensitive to the desire of many of the territories to expand foreign and regional relations, especially to enhance economic development and attract investment, and it attempts to take these interests into account in formulating foreign policy initiatives. The report, however, notes the perception of some territorial officials that their interests were not taken fully into account in drafting the legislation associated with the Caribbean Basin Initiative. The possibility of adverse effects on the territories was considered in formulation of the policy and input was sought from the territorial governments early in the process. Once input was received from the territorial governments, changes were made to the initiative to provide safeguards for the territories' interests. The Department believes the territories were fairly treated in the formulation of the Caribbean Basin Initiative and it intends to continue to give special attention to seeking policy input from the territorial governments in cases where their interests might be~affected. tallWe Paul Wolfowftz Assistant Bureau of 58 f Secretary East Asian and Pacific Affairs