4 + REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS


Secretary Udall; Governor Paiewonsky and Mrs. Paiewonsky cutting ribbon dedi-
cating the Buck Island Underseas Park on March 18, 1962.

The Industrial Incentive Act was revised in November 1961 for the
purpose of attracting and encouraging private investment from the
outside. In addition to this program, the big inducement to manu-
facturing firms is the provision contained in section 301 of the U.S.
Tariff Act of 1930, as amended, which permits duty free entry into
the United States of items of Virgin Islands manufacture containing
foreign materials of not more than 50 percent of its total value.
 Practically all manufacturing firms make use of this provision
and ship the bulk of their goods to the United States. These small
industries are engaged in manufacturing, processing, or assembling
such diverse products as clothing, costume jewelry, watches, watch
bands, thermometers, chemicals, aluminum jalousies, wool yarn and
shower proofing of textiles. These concerns now employ about 864
persons with annual payrolls averaging $2,100,000, and add strength
and stability to the economy.
 A major achievement was accomplished in attracting new industries
to the islands when, with legislative concurrence, a contract was signed
with the Harvey Aluminum Co., to build a $25,000,000 plant
in St. Croix to process bauxite into alumina. Besides the capital


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