Protection and Development of Resources

The Guam Rehabilitation Act, a boon to the territory's capital improvement program, was given . an added boost by Congress early in fiscal year 1969 when its funding authorization of $45 million was raised to $75 million. This increase paved the way for the continuation of rehabilitation projects vitally essential to Guam.

Of the original $45 million authorization, $43,061,000 has already been appropriated, with the overall program only partially accomplished.

Thus far, a total of 36 projects has been accomplished under the Rehabilitation Act since 1963.

Four capital improvement projects under the Rehabilitation Act were completed during the year under review. These included the Science Building at the University of Guam, two elementary schools and a power substation.

In addition, that portion of the new $11 million Commercial Port of Guam designed for container operation was completed and opened for operation in May, 1969.

Projects contracted for during the year included the Central Area Water Project comprising wells, pipelines and reservoirs; a sewer system 'incl a treat-. ment plant for Agat and Santa Rita villages; construction of additional 32 elementary classrooms at four schools; and the third increment of the new Commercial Port at Cabras Island.

A total of 13 projects were also in various stages of construction at the end of the year under review.

During fiscal year 1969, a total of $10,078,577 was withdrawn from the U.S. Treasury for construction expenditures under the Rehabilitation Act. This brings the grand total withdrawn as of June 30, 1969 to $35,553,777. Of this sum $21,033.077 represent loans which must be repaid.

Repayment of such loans began July 1, 1968 and two payments totaling $986,918 were made during fiscal year 1969.

The territory participated in many other grants-in-aid programs and almost all agencies of the government benefited under such programs.

The air passenger service on Guam received another boost from a decision handed down by the Civil Aviation Board in the Pacific Route Case. The decision authorized a third major airline, in addition to Pan American and Continental/ Air Micronesia, to operate through Guam. Trans World Airlines, Inc., will commence operations on August 3, 1969 with daily flights east and west connecting Guam with Honolulu, Saipan, Okinawa, Taipei, and Hong Kong in its round-the-world route.

The Guam-Tokyo flight by Pan American continued to show an increasing popularity as the number of Japanese tourists went up. To meet the demand for greater accommodation,

Pan Am increased its schedule from four to seven flights per week by the end of the year. April was the peak month for arrivals from Japan with a total of 2,154. Of this number, 1,683 were Japanese, almost double the figure for the same period in fiscal year 1968.

Flight activities at the Guam International Air Terminal, the island's only commercial airport, also saw an increase during the year. International flights averaged 36 per week compared to 26 the preceding year, and scheduled flights to and from the neighboring trust territory increased by seven, from 23 to 30 per week.

During the year, the terminal serviced 92,469 international passengers and handled 3,931,370 pounds of air cargo and 6,437,991 pounds of mail. Additionally, 60,785 trust territory passengers were serviced, and 2,563,361 pounds of air cargo and 563,701 pounds of mail were handled to and from the trust territory.

The terminal's revenue for the fiscal year totalled $248,557, an increase of 25 percent compared to the previous year's total of $188,067.

The Air Terminal Master Plan was also completed during the year. It calls for major improvements and expansions of the present facilities in order to meet the demands resulting from the continually increasing air traffic in the Western Pacific.

As in the previous years, tourism continued to receive major emphasis. The Guam Tourism Commission, under the Department of Commerce, increased its advertising and tourist promotion campaign in an intensified attempt to "sell" Guam in various places abroad. It placed coupon advertisements in periodicals such as the American Legion Magazine, PAA Clipper, Asia Magazine, Esquire Magazine, Hawaii Business Industry, Holiday, Independent Travel Program, Journal of American Chamber of Commerce of Japan, Los Angeles Times, National Observer, New Yorker, New York Times, Pacific, Sunset, TAM, Travel, Travel Agent, Travel Trade, and the Veterans of Foreign Wars magazines.

A new poster and a new brochure in Japanese as well as a new information booklet were also produced and distributed by the Commission during the year.

According to the Guam Tourist Commission, 18,000 visitors came to Guam during the year. These included thousands who made brief stops on Guam aboard cruise liners destined for other. points in the Pacific and Far East areas.

The Guam Economic Development Authority obtained a financial grant from the U.S. Economic Development Administration on a 50-percent basis for site development of the Tamuning Commercial-Industrial Park. This grant was for the construction of the first increment of 10 acres at a total cost of $134,100 for the purpose of setting up commercial buildings as part of a shopping center complex. Site development was approximately 75 percent completed.

The remaining portion of the Tamuning park consists of 16 acres. It will be developed for light industry under the second increment which is scheduled to begin in next fiscal year.

GEDA has another industrial park in the offing. It consists of 32 acres of property located near the new Guam • Commercial Port at Cabras Island. Although GEDA has finn plans for development, the property has not yet been transferred from the Government of Guam which currently owns it. GEDA already has a number of applicants which have submitted proposals for lease. They include ESSO Inter-

national, Maritime Services Division of the Dil'lingham Corp., Kaiser Cement and Gypsum Corp., and Mobil Oil.

Negotiations are underway with

Government of Guam to transfer the park area to GEDA, and the transfer is expected to be made shortly.

During the year under re".'iew,

GEDA received 11 applications for qualifying certificate. Six of them were approved and issued, two were denied or withdrawn, and three were pending.

This brings to 17 the total number of qualifying certificates approved and issued since GEDA was established in 1966. Of these, 12 qualified firms are now in operation or have commenced construction of their facilities. They include four watch assembly plants, four tourist hotel facilities, one watch band plant, a commercial feedmill, a lumber treating plant, and an oil refining company.

Because of limited local private capital, GEDA requested the Guam Legislature to authorize the issuance of a $45 million revenue bond. Proceeds from the bond sales would be used solely to purchase mortgages insured by Federal and other government entities. By doing so, this would ease the limitation of funds earmarked for mortgage purchases by FNMA of approximately $11 million for Guam.

The revenue bond measure was passed by the Legislature in June 1969, hut has yet to be acted upon by the

Governor.

If approved with a commitment to purchase by GEDA, local banks would • extend an interim financing for construction of needed facilities. These mortgages would eventually be sold to

GEDA, thus easing out the tight money situation.

The Guam Legislature approved two appropriations for the benefit of bona fide farmers. One was $100,000 for agricultural loan purposes and the other, for $50,000, was for an agricultural expense insurance fund to cover bona fide farmers in case of disaster.

With the tourist industry steadily increasing, four major hotels were un• der construction during the year. They are the Fujita Hotel, Guam Tokyu Hotel, Guam Hilton, and the Continental Hotel.

The Fujita Hotel was completed in February 1969 and is now in operation. The Guam Tokyu is scheduled to open its doors by November 1969, the Continental by August 1970, and the Guam Hilton by 1971. Upon completion of these four hotel projects, there will be approximately 1,000 additional rooms available for the visitors.

Imports during the year totaled 286,928 tons, 40,072 tons less than in the previous year. Exports totaled 75,105 tons, an increase of 3,603 tons over last year's total. Transshipments of cargo totaled 20,203 tons, a decrease of 6,368 tons compared with the previous year's total.

Carriers servicing Guam included the American President Line; Crusader Shipping Co.; Daiwa Navigation Co.; Dominion Far East Line, Ltd.; Micronesian Interocean Line, Inc.; Pacific Far East Line; Pacific Navigation System, Inc.; Saipan Shipping Co.; Maria Dolores Line, Ltd.; Dillingham Shipping Line, Ltd.; and the Indo China Navigation System.

The Department of Commerce's Economic Research Center initiated a program of standardization of data gathering, utilizing the latest techniques. Under this program, statistics are compiled on a monthly, quarterly, and annual basis. Computerized methods are used in compiling statistics, including the study of contract workers, income tax returns, and baggage declarations.

The Standard International Trade Classification System also has been im-

plemented in recording of imports and exports to and from Guam.

The 5-Year Socioeconomic Plan of Guam was completed by the Commerce Department during the year. It is a detailed analysis of business performance and income patterns, population trends, employment, education, and priority assignment of government expenditures .based on cost-output ratios.

The department also continued its regular publications of the "Quarterly Review of Business Conditions," "Facts About Doing Business on Guam," and the annual "Business Directory."

The Department of Agriculture reported total local production of fruits and vegetables reached 2,230,493 pounds valued at $404,919. This represents an increase of 452,621 pounds ( valued at $95,249), or 24.1 percent over the previous year's production.

Total annual egg production reached 1.3 million dozens for an average of 108,750 dozens a month. This is an increase of 23.6 percent over the 1968 rate of 88,000 dozens per month. The broiler production, however, decreased considerably from 69,000 pounds in fiscal 1968 to 36,000 in fiscal year 1969-a drop of 47.8 percent. The decrease in broiler output was attributed to the rather heavy emphasis in egg production.

Up 15 percent over last year, there were an estimated 85,000 layers on Guam during fiscal year 1969. Projections indicate there will be some 100,000 layers by the -end of the 1969 calendar year. •

In contrast to the increase in fruits, vegetables and egg production, there was a decline in the number of fulltime commercial and noncommercial farmers during fiscal year 1969. In the two previous years, there were approximately 250 full-time farmers while in the year under review the combined number dropped to 192. Part-time farmers numbered 428 for this fiscal year, showing also a decrease of 197 compared to the preyious year's total of 625.

The Guam Farmers Cooperative Association reported . an increase in business volume, averaging $32,132 a month in calendar year 1968. This was $2,132 a month more than was transacted in the preyious year. The increase was largely attributed to the step-up of sales to the military on contract basis. Major items sold were eggs, vegetables, feeds, fertilizers, and farm chemicals.

Subsequent to the enactment of Public Law 9-117 by the Guam Legislature, the Department of Land Management transferred a portion of the Y-Sengsong area in Dededo to the Department of Agriculture for the administration of agricultural leases. Totaling an area of 265 hectares, this tract of land has been apportioned to 71 lease applicants at an average of 3.72 hectares each.

The Agriculture's Extension ~ervice Division continued to disseminate proven and up-to-date agricultural information directly to the farmers through a variety of outdoor educational programs. During the year, it placed emphasis on poultry, swine, livestock, fruits, vegetables, and 4-H Club work.

The Division cosponsored with the J & G Motor Co. and the local Ford dealer a fann equipment demonstration at a private farm in Talofofo, an agricultural community in the southern part of Guam. The affair was attended by approximately 100 farmers who were given demonstration in the use of attachments such as mold-board, disc-plow, spring toothharrow, digger, rotavator, and others.

The Melon Fly Eradication Project assumed full operational status in

The Department of Agriculture has, as one of its major tasks, the effective control of crop pests and diseases. Photo shows a group of local farmers visiting the Agriculture's experimental farm to witness demonstration in pest control.

March 1969 with an initial release of 18 million sterile flies. Having gained proficiency in rearing techniques coupled wth improved physical and ecological conditions within the rearing facility, project personnel were able to increase releases from about 18 to nearly 80 million sterile flies per month.

Field observations have indicated favorable results, and it is anticipated that by the end of 1969 Guam should be free from the melon fly pest.