APPENDIX: III
APPENDIX III
Mr. Frank C. Canahan, Director
many mid-level management officials did not know that the
Northern Mariana Islands had entered into the Covenant and were
totally unaware of the rights guaranteed under that agreement.
Once they became aware, the problems were usually resolved
quickly and to our mutual satisfaction. Other issues required
action at the highest level. For example, President Carter
issued a proclamation in order to allow local people to use
fishing vessels given to our government by Japan. Other issues
which generally involve applicability or inapplicability of
federal laws have been the subject of extensive review and
study by the Commission on Federal Laws.
Unlike many other
territories and insular possessions, our Covenant has built-in
mechanisms for the resolution of disputes. For example, see
Section 902 of Public Law 94-241, which requires that special
representatives meet and consider issues affecting our
relationship.
Although your draft report does not specifically mention the
Commonwealth's relationship with the United States Congress and
the. committees which have oversight over the territories, we
feel an obligation to inform you that we feel that we have been
treated quite fairly.
Since 1978, supplemental appropriations
us, has been most responsive to our requests.
It is true, as indicated in your draft report, that, until
recently, the United States was primarily interested in the .
Trust Territory of the Pacific islands for strategic purposes.
However, in all fairness, the United States did honor its
pledge guaranteeing self-government. The most serious problem
affecting the Northern Mariana Islands is that, on several
occasions, attempts to attract more businesses to our island
have been thwarted because of positions taken by federal
officials.
Although the Department of the Treasury has
indicated that the income tax (which is mirrored after that of
the United States) is inappropriate to our needs, both as a
revenue measure and as an inducement to do business,
the
Department of Interior has been most reticent to act as our
advocate before the appropriate committees of Congress.
Several tax task forces have addressed this problem and we are
ready to transmit draft legislation which would adopt, ina
modified form, the Internal Revenue Code (IRC).
I note that
the IRC does not apply in either American Samoa or Puerto Rico.
More importantly, it is not the local income tax in either the
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have been made to fund needed projects such as a new power
plant, new hospital and improvements to our water system.
Capital improvements funds guaranteed by the Covenant would .
have been insufficient to fund projects of this magnitude and
the United States Congress, which has plenary authority over