ay 7, 1979

CONGRESSIONAL RECORD--HOUSE -

steps necessary to prevent this from occurring. In addition, the Northern Mavianas government is directed to take

any action necessary to deal locally with

any other preblems that might temporarily occur hecause of this delay.
As far as the American Memorial
Park in Saipan goes, we includ? a technical amendment to last year’s bill which
rings into conformity with other parks
the operations and maintenance casts
as distinguished from development costs.
In no way do we intend by this language
to attempt to obtain any interest in this
land
belonging
to ‘the
Northern
Marianas.
Last year the House approved language that eliminated future interest
payments on a Federal loan that was
granted ta the government of Guam in
1963 to offset both typhoon and World
War IT damage. Also included in last
year’s House-approved language was a
provision crediting interest payments
made to date toward the principal. Once
arain, we are including this and hopeful that the other body will see its way
to helping the government of Guam by
approving of it.
Another provision in the Guam section allows the Secretary of the Interior
to extend tne guarantee provision now
in existing law so that.the Guam Power
Authority will be able to refinance its
indebtedtess to cover its obligations.
Also, for Guam as well as for the
Northern Marianas, the bill authorizes
the Secretary of the Treasury to administer and enforce customs in these areas.
Guam, in particuiar, has become the entryway for iNeca!l drug traffic into the
United States und this provision is in-

tended to help prevent this from con-

tinuing.
:
In the section on the Virgin Islands,
we extend for 10 years an act that expires this year which authorizes the
’ Virgin Islands government to issue bonds.
We also convey title from the US.

Government to the Virgin Islands gov-

ernment of certain parcels of land no

longer needed by us. The Department
of Interior requested much of this language of us and so it is included. In no
way is this provision to be construed to
include Water Island, which is federally

owned at present.

As far as Water Island goes, we provide that no extension, renewal, or renegotiation of the master lease can be
made prior to 1992 expiration date without the express consent of the House Interior Committee and the Senate Enerry and Natural Resources Committee.
This is designed to protect the interests
of both the United States and Virgin
Islands governrnents.
It was brought to our attention that
in last year's omnibus act, language that
was intended to have the Unitcd States
pick up the cost of collecting customs
and taxes under 28(a) of the Virgin Islands Revised Organic Act was not hav-

ing the desired effect. Instead of bene-

fiting the financially hard-pressed Virgin Islands government, we discovered
that due to a contract between the Virgin Islands government and Hess Oil,
the bulk of the benefits were to go to
the oil company. A provision to remeiy

H 2755

phis situation has been included in this
ill.
‘
For American Samoa, we provide that
the Federal Comptroller's salary and

House passed similar provisions only to
be overruled by the other body.
Sonie of the inhabitants of Bikini.
Enewetak, Rongelap, and Utirix wer
expenses be paid by the Interior Depart- subjected to radiation hazards as a rek.
ment. This is the current practice, it -sult of U.S. nuclear testing in the Pac:itc.
should be noted, and we are merely in- For the first timé, section 103 establishes suring that it be part of statutory law. a comprehensive medical progrum uncer
Additionally, we provide that custams the direction of the Secretary to insure
be administered and enforced by the proper medical treatment in the future.
Secretary of the Treasury, at no cost te
As @ result of the Micronesian future
the American Samoa govenment, should _ political status negotiations, the adminthe Governor request this service.
istration has deemedit advisable to terAnd finally, we mandate for the De- minate all Federal programs to Micropartment of Interior the implementation nesia by 1981. In our opinion, the adof title V in the 1977 omnibus territories ministration is too optimistic in believing
bill (Public Law 95-134). To date little that a satisfactory conclusion to the neProgress has been made by the Depart- gotiations will occur by 1981. Moreover,
ment under the 1977 act. Hence, my col- Federal programs to the Micronesicns
leagues on the committee and I believe are 4 congressional mandate and should
this action is necessary. While title V not be terminated at the whim of the
affects all departinents and agencies, we

are only making it mandatory for the
Department of the Interior since it is
the lead agency for these insular areas.

Although Mr. Wox Par (Guam) and

Mr. Evaus

(Virgin Islands)

have ex-

pressed their opposition to the IRS collection provision, we have bipartisan
agreeinent that this provision is mast

executive. Consequentiy, section 104 requires the express permission of Conzre_s
to cease the application of .Pe2eral programs to the Trust Territury of the Pa-

cific Island.
.
:
Section 201 and 501 directs the Secre-tary of the Interior to pay the salaries
and expenses of the Federal comptrollers
in the Northern Marianas Islands and
Guam. This merely makes a inatter os

important and shoulda remain in the bilL
My coNeasues and © believe we are Jaw what has been a matter of practice
offering 2 good constructive bill for these - under executive agreement.
insular arenas and we urge the support
Medical facilities in the Northern
of all Members of the House.
Mariana Isiands are woefully inadequate
Mr. LAGOMARSINO. Mr. Speaker, I and fall below the minimum standard

yield myself such time as I may consume.
(Mr. LAGOMARSINO asked and was
given permission to revise and extend
his remarks.)

:

:

Mr. LAGOMARSINO, Mr. Speaker, I
rise In support of H.R. 3756. The biil represents the combined efforts and experience of both majority and the minority

members of the Committee on Interior

and Insular Affairs. Countless hours of
discussicns with territorial leaders, business representatives, Federal officials and
technicians are reflected in its provisions
which in summary areas follows:

Section 101 provides authorization for
continuance of the government of the

Trust Territory of the Pacific Islands. tn
extending this authorization beyond
1981—the administration's target date
for termination of the U.N. trusteeship—.
we demonstrate our misgivings in the
current trend of Micronesia’s future political status negotiations and provide
the administration with more time in
which to reach a settlement, equitable to
both America and the Micronesian
States,
- In 1971, the Conpress established a U.S.
Claims Commission to ascertain Micronesian World War II claims. $34 million
in claims were awarded; however, only

$10 millfon—$5 million by the United
States, $5 million by the Japanose—have

thus far been paid. An authorization pre-

Sently exists wherein the United States
will pay the remainder when the Japanese meet their share. Thus far, the

Japanese have not honored their obliga-

tion nor, do they show any indication
that they ever will. Accordingly, section
102.permits the United States to pay its
share—that is 50 percent—of the $24

million in outstanding claims. In both
the 94th and the 95th Congresses, the

necessary to qualify for HEWprograms. .
Section 202 authorizes $24.4 million—in
accordance vith a territorial study—to

bring health care on a par with other t
U.S. offshore areas.
Section 203 directs the Secretary of
the Treasury to assume responsibility for

income tax collection and custom opera-

tions in the Northern Marianas. In tis
regard, I would like to point out here as

well as for the other offshore areas in

H.R. 3756 that in fairness, residents of

the territories will not be held liabte for
tax irregularities preceding implementa-

tion of this legislation.
:
Under the terms of the Covenant to

Establish a Commonwealthcf the Northern Mariana Islands in Political Union

with the United States, residents of the
Northern Marianas will abide by the
Internal Revenue Code in paying the ter-

vitorial income tax. Section 204 delays

implementation of this provision unti!
January 1, 1982, providing preparation

time for the Common:realth to becomes

familiar with the complex nature of the
IRC, In the interim, the Jocal tax code

of the Nothern Marianas will continue in

eect. In this regard, it is not our intent
to create a tax haven in the Northern

Marianas. This is especially true for the
residents of Guam. Wedirect the atten-

tion of the Secretary of the Treasury to
this situation and request his close surveillance of future investment patterns.
Section 205 is a technical amendment
which makes clear that title to the park
land on Saipan is not transferred to the
Federal Government, which would contravene the terms cf the covenant, and
separates development from operational

and maintenance funds.

.

Section 301 and section 402 direct the
Secretary of the Treasury to administer

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