APPENDIX III

woe

Mr. Frank C. Canahan, Director

APPENDIX.“IITs

Marshalls or the Federated States of Micronesia.
Why should
the Commonwealth of the Northern Mariana islands be treated
differently, particularly when we are specifically given the
power to rebate such taxes should we desire to do so? Again,

we are hopeful that the issue of taxation can be resolved early
next year. However, we need the support of the Department of
Interior.

Another pending problem best exemplifies our frustrations.
Provisions in our Covenant enable us to benefit from Headnote
3(a), which allows us to export goods into the United States
duty free provided certain requirements are met.
Without
notice to us, the Department of the Treasury, pursuant to a

Presidential Executive Order, promulgated regulations which
would effectively deliver a death blow to our infant textile
industry.
Support from the Department of Interior has been

lukewarm at best. . Opposition forces in Washington, D.C. fail
to recognize that we are also members of the American political

family and that our citizens will be deprived of their livelihood should the regulations take effect in their present form.
Due to the infancy of our textile industry, it has become

necessary to allow the importation of skilled workers.
However, every attempt is being made to replace such persons

with local people once they acquire the necessary skills
through training.

Both of the above examples demonstrate that, when we make a

sincere attempt to become self-sufficient, our efforts become

frustrated.

I do feel that the Office of Territorial and

International Affairs in the Department of Interior does a very

credible job in providing oversight, in providing us with
.
technical assistance and in acting as our advocate when called

upon.

Unfortunately, it often lacks the necessary resources

and manpower to successfully present our views when serious
opposition appears.

The territories and insular possessions

may be best described as a group of half-brothers or halfsisters who need a strong father figure in Washington who

understands our problems, our goals and our aspirations.

We in

the Northern Marianas have been dominated by foreign powers for
approximately four hundred years. We desire, ultimately, to be
economically independent. At the same time, we recognize that
we are small and powerless pawns in the hands of foreign powers
other than our chosen ally, the United States.
One area where improvement is needed involves our dealings with
the various agencies of the federal government.
Local governmental departments which have a history of dealing with their
federal counterparts have, for the most part, developed close

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