28 Sep 2005

American Samoa Senate says US rules have led to dependency

9:44 am on 28 September 2005

A study by American Samoa's Senate says economic chaos would result if the territory's canneries were forced to leave the territory if tax credits provided by American tax authorities are discontinued.

It says although the United States has poured millions of dollars into the territory since 1900, these millions came with strong strings attached thus precluding the allocation of funds to activities that would build the territory's economic system.

It also blames the application of federal rules for the steady rise in the overall costs of doing business in the territory and effectively discouraging investment.

The report notes that political self sufficiency and self reliance were the federal government's main goal for American Samoa.

But it says through its policies the US government has successfully accomplished the transformation of American Samoa into a totally dependent country.