Micronesian Door Opens For The Yen

Now that strictures on foreign investment in Micronesia have been removed Japan can be expected to take a keen interest in the area. The Japanese held sway in Micronesia from 1914 till close to the end of World War 11. Till recently the United Nations trusteeship agreement with the United States prohibited investment in Micronesia by any UN member, except the US.

Japanese businessmen are keen to get back to Micronesia. There is little doubt they will be welcomed, particularly by the older Micronesians who have nostalgic memories of the old days, and chiefly of the “better” things, when Japan was in control.

Micronesia vies with the southern islands of the Pacific as a tourist area, with a warm climate, clean water and white beaches. It has a number of good hotels, and now that the Japanese are “discovering *’ it as a tourist area, more hotels will go up quickly, backed by Japanese capital.

The territory was the scene of fierce battles during World War 11 Japanese veterans are now returning to look at the old battlefields. Noting changes, they have taken word back to Japan about Micronesia’s holiday possibilities.

Micronesia has a big advantage as a tourist area for the Japanese—its pr °* l , mity J° Japan. Although more and more Japanese are going further afield, to Europe and America, many of them still want their holidays closer to home, and this is to Micronesia’s benefit. In a largely subsistence economy, a thriving tourist industry would generate a big cash flow and boost the finances of the territory.