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“(c) The Secretary of Energy shall report to the appropriate
committees of the Congress, and to the people of the atolls described in subsection (a) of this section, annually, or more frequently if necessary, on the activities of the program provided
by this section. Each such report shall include a description of the
health status of the individuals examined and treated under the
programm, an evaluation of the program by the scientific advisory
committee, and any recommendations for unprovement of the condition of such individuals, Thefirst such report shall be submitted
not later than one year after this section becomes law.”
SECTION 104
Section 104 states that “* * * Federal programs shall not cease to
apply to the Trust Territory of the Pacitic Islands either before or
atter the termination of the trusteeship, without the express approval
of Congress.”
.
We presume that this section is directed, at least in part, toward
a policy concerning Federal programs in the Trust Territory that this
‘Department adopted in November 1978. That policy was in turn based
upon the expectation that, upon termination of the Trusteeship, which
the President has targeted for 1981, the many Federal grant programs
nowapplicable to the Trust Territory would, for the most part, cease.
That 1s the basis upon which the future political status of the Trust
‘Territory is being negotiated. The Federal programs in question are
now of major significance in terms of revenue resources in the Trust
Territory. They have totaled about $25 million per year in recent years
(with the figure excluding a controversial feeding program, whichis
new largely terminated except for emergencies). It was this Department’s view in November 1978, and it remains our view, that the Federal assistance level needs to be phased down, so that the post-trustee-
ship entitics in Micronesia are not required to absorb the shock of a
sudden termination of Federal aid of that magnitude.
That November 1978 policy has, however, been criticized. It has
been argued, for example, that under it this Departinent would be
violating the Impoundment Control Act, because I*ederal funds would
be prohibited from flowing to the Trust Territory when the Congress
had made such flow mandatory. That wasnot then nor is it now our
purpose. We do not intend that any Federal program thatis, by law,
required to be implemented in the Trust Territory be terminated with-
out appropriate notification to the Congress through the authorization/appropriation process, or the Impoundment Control Act. However, our November 1978 policy was mainly directedat “discretionary”
programs, those that the grantor or the grantee can applyif they so
choose, as a matter of policy. It has also been argued that our November 1978 policy interferes with economic development, by foreclosing
the application in the Trust Territory of federal programs directed to
that end. Again, that was not and is not our purpose.
Because of the controversy that has developed on this question, we
are engaged now in a revision of that November 1978 policy statement.
Weshall share the new statement withthe interested Committees when
we have completed our consultations within the Executive Branch.
Under these circumstances, the Administration strongly urges the