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Draft Foreign Investment Act and Regulations

PALIKIR, Pohnpei (FSM Information Service): March 11, 1997 - Acting President Jacob Nena transmitted to Congress Speaker Jack Fritz for consideration a proposed bill and pertinent regulations, on Foreign Investment in the FSM, which Nena says has potential capacity as an economic cornerstone for the FSM, according to a letter of March 4, 1997.

Nena said the draft legislation has undergone review with the "key" assistance of the EMPAT advisors, International Finance Corporation and the World Bank's Foreign Investment Advisory Service located in Australia, and the FSM Attorney General. Review of the FSM Foreign Investment legislation was recommended by the FSM and the State Economic Summits and draft legislation and regulations for the FSM States were also drafted, Nena added.

"There is no question that our existing foreign investment regime is out-dated and serves as a disincentive to foreign investors," Nena told Fritz. He urged that the National and State policy-makers hold discussions to reach consensus on the proposal.