theabove-cited Public Law, only $22,000,000 had been drawn down by June 1,°1979. An additional $10,000,000 is available to be frawn down for projects approved by this Department. Of the $22,000,000 in cash transferred to the Virgin Islands, only $5,000,000 has been obligated, leaving $17,000,000 umsed. Only $3,000,000 has been actually paid out for construction. The Virgin Islands is paying interest and principal to the Federal Fi i Bank on the $22,000,000 but also receiving interest on its deposits. The Administration recommends a three year extension, until 1982, and we further recommend that all funds borrowed, but not obligated by that time, be returned to the lending institution from which they were borrowed. Such a plan would encourage the early obligation of funds with the benefit of meeting some of the urgent capital inprovement needs of the territory. Section 403 Section 403 would transfer to the Virgin Islands property that was acquired from Denmark by the United States and that was not reserved or retained by the United States in accordame with provisions of P.L. 93-435. In addition, a Committee amendment to the original Administration proposal includes parcels of land on St. Croix purchased by the Goverrment of the Virgin Islands from the General Services Administration (GSA), subject to a mortgage. It is our understanding that the GSA and Virgin Islands officials discussed the matter of release of approximately ten, of more than 230, acres mortgaged in order to construct a National Guard armory. The amount Owing on the ten acres is appraxdmately $125,000. The outstanding balance on the 230+ acres is approximately $2,800,000. GSA is willing to grant such a release upon payment in full of the amunt owing on the ten acres. The committee amencment a@ppears to be an attempt to release the 230+ acres from the mortgage. Section 403, however, mentions nothing about a release from the nortgage, and, in fact, states that the transfer of the 230+ acres would be “subject to valid existing richts,..." (the mortgage). of section The Administration recommends (1) that the substance in red 403 be returned to the form in which it originally appea Hose the that (2) and , section 404 of H.R. 3756 as introduced to be added Committee amendment be stricken and a new section ws: follo as read E.R. 3756, at the end of title Iv, to shall release ~— ° The General Services Administration Sec. '* €xom dated January ‘26, 1972, given by the Govern- the mo rator of the ane of theViroin Islands to the Administ y ten acres atel oxim General Services Administration, appr proposed the of of such mortgaged land for construction of the nt st. Croix armory upon payment by the Governme Virgin Islands of the outstanding principal due on such ten acres. teat! . cue . ot , . nee pete: oun, . oT. . % { spats ~ oe oon Vege .