In particular, we cbject to the provisio ns whereby Guam Power Authority mast pay principal and inte rest to the Uonement of mam but the Govermment of Guam is forgiven the payment of interest to the December 31, 1980, as proposed by section 303 would lea th Secre tary of the Interior with a liability for which no fundsare appropriated. Wille we support an extension, we object strenuously to the nonpayment of interest provision of section 303. We have been informed by officials of the Guam Power Authority that, with the approval by the Public Utility Commission of two rate-increases, the Guam Power Authority will be able to achieve a 2.0 . ratio of income to debt service requirements that would make its long-term ebligations attractive to the private bond market. Assuming that such a ratio could be maintained, it is anticipated that within 10 years or less the Authority will be able to obtain private financing amd end its dependence on the Federal quarantee and loan. We widerstanéd that, for this reason, the Guam Power Authority would prefer a l0-year extension to the 30-year extension contained in section 303, which “ provides for the amortization of a principal. There is ample incentive for the Guam Power Authority to retin to the Private market as scon as possible. ‘The private tax free bond rates should be substantially less than comparable Federal rates. -Additionally, Guam Power Authority is very moch interested. in reestablishing its credit rating in order to reenter the private bond market for expansion financing. The Administration endorses the idea of a 10-year extension am proposes that the following language be substituted for the current language of section 303: + MOM ec Frm gl Tae cae a te 8 eo wee Sec. 3037" Sectimr 32 ofthe Organic Act of Guam > (6% Seat. 387y"48 U.S.C. 1423a), as amended, is hereby grended by deleting all after the words “Decenber 31, 1980.", and mbetituting the following Language: iran : - eg : & . . ~s ed so y ams [ao . “7 Me sR oe ee, Mete cued ie “ moe