1962 Annual Report of the

 Governor of the Virgin Islands

 Ralph M. Paiewonsky, Governor



FISCAL year July 1, 1961 to June 30, 1962 was a year in which
 tremendous progress was made in the Virgin Islands on all
fronts-political, social, economic-as this Annual Report will show.
This progress took work-plain, hard work on the part of the execu-
tive branch of the government, the legislative branch of the govern-
ment, and on the part of the people. It also required and received
the cooperation and understanding of local problems by the officials
of the Department of the Interior.
 During the year the Governor appointed an Economic Development
Board consisting of Government officials and private business and
Government representatives to prepare an Overall Economic Develop-
ment program to make the Virgin Islands eligible for financial assist-
ance under the U.S. Area Redevelopment Act. By the end of the
fiscal year a comprehensive report was submitted to the Governor and
forwarded to the U.S. Area Redevelopment Administrator. This
report details the economy of the islands, bases for economic growth,
and sets forth the major problems of housing, public works, tourism,
education, industry, trade, transportation, agriculture, hospitals and
public health. It spells out the three major problems of housing, water
and electricity which are typified in all aspects and phases of living
and working in the islands.
 In the field of Housing, the number one problem of the islands,
advances include the appointment of a Housing ,Coordinator; estab-
lishment of a local office of the Federal Housing and Home Finance
Agency; renovation of public villages in St. Croix; commencement of
a resettlement project in one of the worst slum areas; and, at year's
end, the creation of a new Department of Housing and Community
Renewal.
 A concerted effort was made to stimulate a program of land and
home development. In emergency housing considerable progress was
made in St. Thors, and in St. Croix over 80 families evicted from pri-
vate estates were relocated on government-owned land. Applications
were filed with the Housing and Home Finance Agency for Federal