es)
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
ucres 1s approximately $125,000. The outstanding balance on the 230+
acres 18 approximately $2,800,000. GSA is willing to grant such a
release upon payment in full of the amount owing on the ten acres.
The committee amendment appears to be an attempt to release the
230+ acres from the mortgage. Section 403, however, mentions nothing
about a release from the mortgage, and, in fact, states that the transfer
of the 230+ acres would be “subject to valid existing rights, ...” (tho
mortgage).
The Administration recommends (1) that the substance of section
403 be returned to the form in which it originally appearedin section
404+ of H.R. 3756 as introduced, and (2) that the House Committee
amendment be stricken and a newsection be added to H.R. 3756, at
the end of title IV, to read as follows:
Sec.
. The General Services Administsration shall release
‘from the mortgage dated January 26, 1972, civen by the Govern-
~ment of the VirginIslands to the.Administrator of the General
Services Administration, approximately ten acres of such mortgaged land for construction of the proposed St. Croix armory
upon payment by the Government of the Virgin Islands of the
outstanding principal due on such ten acres.
This proposed new section would allow construction of the armory
and at the same time permit fulfillment of Virgin Islands contractual
obligations.
.
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SECTION 404
Section 404 would require express approval of the House Committee
on Interior and Insular Affairs and the Senate Committee on energy
and Natural Resources for any extension, renewal, or renegotiation of
the lease of real property on Water Island, to which the United States
is a party, before 1992. We defer to the Department of Justice for
the position of the Administration on this matter.
SECTION 405
Section 405(a) would reinstate (with the exception of the deduction
attributable to preclearance operations) the deduction of the cost of
collection from duties, taxes, and fees covered into the treasury of the
Virgin Islands for the period from August 18, 1978, to January 1,
1982. If sections 402 and 405 are both enacted as currently written,
they would be in conflict with each other during the 1978-1982 period.
Section 402 would require the Seeretary of the Treasuryto collect all
customs duties derived from the Virgin Islands “without cost to the
government of the Virgin Islands.” Section 403(a) states that such
cuties will be covered into the treasury of the Virgin Islands “less
the cost of collecting.”
Section 405(b) is intended. as a conforming amendment. Language
would be inserted in section 4(c) (2) of the Act of August 19, 1978,
after the phrase “the amount of duties, taxes, and fees.” That phrase
appears three times in section 4(c) (2). The Administration supports
enactment of section 405(b) if section 405(a) is enacted. In the interest of clarity, however, we suggest that the period at the end of sec-