[Congressional Record Volume 143, Number 36 (Wednesday, March 19, 1997)]
[Extensions of Remarks]
[Page E513]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                  FREEDOM AND PROSPERITY FOR THE CNMI

                                 ______
                                 

                             HON. TOM DeLAY

                                of texas

                    in the house of representatives

                       Wednesday, March 19, 1997

  Mr. DeLAY. Mr. Speaker, last week, joined by my colleague and friend 
Phil Crane, the chairman of the Trade Subcommittee, I had the pleasure 
of meeting Gov. Froilan Tenorio of the Commonwealth of the Northern 
Marianas Islands [CNMI]. Governor Tenorio has embarked on a bold course 
to promote economic and political liberty in the CNMI. The brave men 
and women who died for freedom at the battle of Saipan would be proud 
to know that Governor Tenorio has been a true champion of freedom in 
the Western Pacific.
  Governor Tenorio recognizes that the market, and not the government, 
is the engine of job creation. Governor Tenorio has pushed forward with 
a program of privatization, fiscal restraint, and lower taxes for his 
people. Governor Tenorio did not come to Washington looking for 
taxpayer benefits, welfare, or handouts. He came to promote his market 
reforms. Mr. Speaker, Governor Tenorio deserves our support.
  During his administration, Governor Tenorio has actively pursued and 
courted businesses around the globe to open shop in the CNMI. Like 
President Reagan in the 1980's, Tenorio has kept taxes low. Low tax 
rates have actually increased productivity, which in turn, increased 
revenue for the government of the CNMI. Additionally, the Governor has 
recognized the importance of trade and has demonstrated how trade with 
Asian markets can bring prosperity.
  The economic changes that have taken place in the CNMI have been 
nothing short of miraculous. In 1970 most roads were unpaved and most 
homes lacked running water. There were 55 licensed businesses on the 
islands, with combined assets of $2 million. There was one bank and one 
credit union. Then the island tried free markets.
  CNMI dropped laws common elsewhere in Micronesia that restricted 
foreign investment. It reduced the regulatory burden on business. The 
island also reformed its punitive tax system. The result has been 
economic growth. As Peter Ferrara of Americans for Tax Reform said, 
``Once a dismal outpost of failed state socialism, the islands have now 
been thoroughly integrated in the dynamic economy of the Pacific Rim.''
  The number of businesses on the islands has grown from 55 to 5,000. 
Gross business revenue rose from $244.4 million in 1986 to $1.477 
billion in 1994. Only 1,056 people were employed in 1970, most by the 
government. Twenty years later, 25,965 people were working, 22,795 of 
them for the private sector. Unemployment has fallen from 15 percent to 
4 percent since 1980.
  The pro-growth economic policies of the CNMI have been in stark 
contrast to the experiences of other American territories in the 
Pacific, such as Guam and American Samoa. The unemployment rate in 
Samoa is close to 16 percent. The government is the most important 
provider of jobs in the American Samoa and, as of 1989, nearly 60 
percent of the residents had incomes below the poverty lines. In Guam, 
where the local economy has benefited from United States military 
presence on the island, but the unemployment rate remains higher than 
in the CNMI.
  The Governor's efforts have not come without criticism by some who 
believe that Washington knows better how to create jobs for the people 
of the islands than the people of the CNMI themselves. Rep George 
Miller of California believes that Washington should impose the Federal 
minimum wage on the people of the CNMI. Make no mistake about it, 
passage of that bill would kill jobs, growth, and opportunity.
  Most Members of Congress recognize that a higher minimum wage would 
result in a withdrawal of industry from the islands and widespread 
unemployment. Factories would move from the CNMI to other Pacific 
outposts that were not burdened by Washington wage controls.
  Instead of trying to impose redtape and mandates on the people of the 
CNMI, we should look to the CNMI as a model of reform. Like the CNMI, 
Washington should provide tax relief for the American people. We should 
recognize that pro-business policies create jobs. And we should 
recognize that free trade creates prosperity. The CNMI is proof 
positive that these policies work.
  While we shouldn't impose Washington mandates on the CNMI, we should 
also allow the people of the island more control over their own lands. 
Governor Tenorio described to Mr. Crane and me the trouble the people 
of Tinian are having with unreasonable Federal control of their land. 
Governor Tenorio asked us to look into assisting the people of Tinian 
with opening up more of their land for development and use in 
accordance with their cultural and economic interests. Congressman 
Crane and I hope to become active in bringing a positive resolution to 
this matter and other areas where we can help the people of the CNMI.
  The CNMI is on the right track. Their Pacific neighbors should view 
the economic policies on the CNMI as a model. Washington should also 
acknowledge that Governor Tenorio's policies are on the right track. 
Let's not nip job creation and economic reform in the bud with ill-
conceived Washington knows best legislation. It's time that we 
recognize and respect the impressive progress that this group of 
American citizens halfway around the world has achieved.

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