The trend in federal involvement in the territories is marked by (1) a significant increase
in the number of federal agencies involved in

programs

and

territories

making

and

(2)

a

decisions
shift

affecting

the

in the traditional

role of Interior from direct territorial admin-

istrative authority to limited oversight,

ter-

ritory advocate, and assistance provider.
Territory officials are generally satisfied with
the

current

decentralized

administration

provided

by

approach

to

individual

program

federal '

agencies and indicated that good working rela-

tionships have been established with most agencies.
However,
they believe better federal
policy coordination is needed to systematically
address
development
needs -when
formulating

individual agency policies.

Many

territory

institutional

officials

capacity

of

also

criticize

the

the

Department

of

Interior to .meet their needs.
For example,
they believe Interior does not have sufficient
influence to represent them in the budget process or in policy matters involving other federal agencies.
Within Interior, there is some
disagreement on its role vis-a-vis the territories in terms of federal oversight, program and
policy coordination,
and
territory advocacy.
(See pp.

Several

federal

44

to 49.)

proposals

have

organizational

territories.

centralized,

The

been

made

to

responsibility

options

interagency

range

from

change

for

organization

a

the

more

to

a

decentralized approach with no single federal
agency responsible,
as
currently exists
for
Puerto Rico.

No clear consensus exists in the territories on
what approach is best suited to their needs..
Many territorial leaders see no need to make
major changes in the current federal approach
in administering programs,
However, many sSupport the concept of a high-level interagency
group
to
handle
policy-related
matters
and
address major territorial concerns.
The territories
agreed
that
the
federal government
should
be
more
responsive
to
their
needs,
regardless of the organization arrangement.

In

GAO's

view,

responsibility

5000202

a

for

change

in

territorial
vi

organizational
affairs

might

Select target paragraph3