the capacity to increase vastly its contact with the rest of the world. A contract for paving had already been awarded. 41. Airline service was growing slowly. Charter service was already available from Japan to Saipan and Palau; South Pacific Island Airways had resumed service in and through the Territory to Papua New Guinea and Hawaii; and Continental Air Micronesia served Manila, Japan and Hong Kong, with connecting flights to Hawaii and the United States mainland. 42. The High Commissioner informed the Council that her office would soon end its involvement in the operations of the Economic Development Loan Fund (EDLF). The fund, currently worth over'$US 2.5 million, would be divided among the four Governments in accordance with agreements and formulae arrived at in 1976 and 1982. EDLF had stimulated the development of small-scale private-sector enterprises throughout the islands and promised more beneficial economic activity in the years to come. 43. The High Commissioner reported that, in more traditional development, a seaweed farm was being established in Kosrae and a button factory, a department store and a milk reconstitution plant in the Marshall Islands. A fisheries complex was soon to be constructed on the island of Dublon in Truk and other, Smaller projects were under way throughout the Territory. All of them generated revenues which would augment the funds to be provided under the status agreements with the United States. 44. The Hiqh Commissioner said that each of the government centres had a completely functioning commercial satellite communications system linking the islands with the outside world. In addition, work on improving internal telephone communications was progressing and the use of solar-powered short-wave radios had improved communication with the outer islands. 45. The High Commissioner stated that nearly $400 million g/ in projects begun under the five-year Capital Improvement Program, 1978-1982, were in various stages 
**Analysis**
The text primarily focuses on the development of infrastructure, services, and industries in the Pacific Island Territory, highlighting the growth of airline services, establishment of new businesses, and improvement of communication systems. It also touches on the allocation of funds and the impact of these developments on the local economy.

**Category**
Economic development, Transport and communication, Industry