CLINTON’S ECONOMIC PLAN FOR CNMI No major promises

President Clinton’s policy-making group for the CNMI has recommended several immediate measures to help the islands ensure economic growth, but these fall short of definite commitment from Washington.

The so-called Interagency Group on Insular Areas (IGIA) has released its report compiled following discussions between senior White House officials and governors of the CNMI, Guam, American Samoa and the Virgin Islands.

While local concerns raised by Gov. Pedro P. Tenorio during the meetings early this year were included in the report, significant issues, such as school-to-work program and Medicaid cap, have been omitted, according to administration officials.

There was no immediate reaction, however, from the governor on the 21-page report which came days after Office of Insular Affairs Director Ferdinand Aranza briefed Mr. Tenorio on its highlights during a visit last Thursday.

The IGIA report lumped 15 major issues from all the four territories with potential for immediate progress, while specific issues were detailed for each of the islands that are longer term in nature.

It provides “a roadmap of follow-up items planned for each issue and lays out the work that remains,” the report said. “The IGIA plans to engage insular area representatives during the next few months to bring closure to as many of these issues as possible.”

Although actions plans were enumerated, the report did not indicate specific date to satisfy the recommendations when the Clinton administration is nearing the end of its term in six months. Formed in August 1999, the group is tasked to give guidance on policy concerning the four islands.

CNMI concerns

Among short-term issues cited in the report included the polychlorinated biphenyl (PCB) contamination in Tanapag and the mitigation bank problems on Saipan.

OIA, which is the lead agency dealing with insular areas, will continue to facilitate coordination among federal agencies involved in addressing the PCB problem in Tanapag and to provide update to Commonwealth officials.

Pending the outcome of the blood study results, the U.S. Department of Health and Human Services and the Agency for Toxic Substances and Disease Registry (ATSDR) expect to initiate follow-up village investigations next month, the report said.

Technical assistance will continue to be provided by OIA, while regular joint meetings between federal and local officials will be held to discuss medical investigations, cleanup, remediation costs, funding sources and disposition of contaminated soil, it added.

As for efforts by the CNMI government to have greater control over federal lands on Saipan, the Fish and Wildlife Service will work closely with the governor to address the mitigation bank issues, according to the report.

Three long-term issues, on the other hand, were addressed by IGIA — the impact of migration of Freely Associated States citizens into the CNMI, investment and tourism promotion, and tax reforms.

The report had no commitment, and only reiterated Mr. Aranza’s earlier statement that OIA is still reviewing the Commonwealth’s demand of $108 million in reimbursement for extending assistance to Micronesians since 1986.

For tourism promotion, the group said they may tap the U.S. Department of Commerce’s Economic Development Agency to assist the CNMI in evaluating its visitors program.

Noting that the island’s complex tax system is an obstacle to investment, the IGIA suggested implementation of a local tax scheme that mirrors the federal tax code as well as de-linkage from federal rates.

Other issues

Action plans were outlined by the group on 15 issues that are common among the four territories, such as designation as New Markets, assistance for economic planning and federal trade missions as well as “open skies” policy on air transportation and taxation.

The federal government is looking at seeking grants for the islands to develop economic plans, to improve and expand vocational counseling in high schools and to strengthen job training.

A review of visa requirements, including that of a waiver for Filipinos wishing to visit Guam, is also part of the recommendations, so are reimbursement for housing illegal immigrants and habitual residence regulations, specifically for FAS.

Other proposals involved management and control of federal grants and aid provided to insular areas and federal lands and programs.

Moreover, IGIA suggested that insular areas be afforded greater participation in bilateral negotiations and the U.S. “open skies” agreements as it noted the heavy dependence by the islands to reliable air transportation.