CHAPTER 7 SUMMARY OF AGENCY AND TERRITORY COMMENTS The Departments of American Samoa, Interior and State and the governors of the Northern Mariana Islands, Puerto Rico, the Virgin Islands, and Guam provided written comments on a draft of this report, which .re included in appendixes I through VII. Interior's comments support our observation that its role has diminished over time to a point where it no longer exerts much direct influence over the territories. Interior points out that while it is committed to advocating territorial interests, the realities of a massive federal bureaucracy limit federal attention to territorial concerns. In consonance with the concept of self-government, Interior believes the individual terri- tories must develop their own priorities and work with Interior to help achieve them. The Department of State said organizational options for the federal-territorial relationship should reflect the direction of that relationship--greater autonomy within determination. the context of self- State said greater centralization of territorial affairs within the federal qovernment could be perceived by the territories as a move to reverse the present direction of U.S. territorial policy. State recognizes the need for better coordination of both policy and program issues and suggests that an interagency coordinating committee fulfill those needs. State opposes establishment of a single committee for both the flag territories and the Micronesian states, preferring a separate federal interagency organization for each. Finally, State. Said it is sensitive to the desire of many flag territories : 2 : to expand foreign and regional relations and that it attempts to take these interests into account in formulating foreign policy initiatives, such as the Caribbean Basin Initiative. The governor of the Virgin Islands report is comprehensive and informative. the Congress promptly enact a law giving concluded that our He recommended that the flag territories authority to develop a federal policy compact which encompasses and determines economic and social direction as well as political status of each territory. The policy should include a sig- nificant economic development, developing assistance States. a long-term agreement He said economic between that U.S. | financial assistance package. The governor of American Sanoa also said our report comprehensively presents the issues associated with present U.S. policy on the insular territories. He also supported the concept of . development American policy on Samoa the and and | financial the United territories needs clearer definition and more effective direction. The governor said that a single federal agency, such as Interior, cannot 5000251 50 , a i