C lt € | Description.—At the termination of the Trusteeship Agreement, the Northern Mariana Islands will become a commonwealth in political union with the United States. At the present tine the Northern Marianasis still legally part of the Trust Territory of the Pacific Islands, although its government is wholly separate. ‘The Covenant which provides for the commonwealth status was enacted by Congress on March 24, 1976 (P.L. 94-241, 90 Stat. 263). Constitutional government for the Northern Mariana Islands was inaugurated in January 1978. The Northern Mariana Islands consists of all of the islunds in the Mariana Island chain with the exception of Guam, the southernmost of the group. The Northern Marianas extend some 340 miles north to south, are comprised of 13 single islands andoneatoll of three islands (\faug), and are approximately 1,500 mules south of Tokyo and 3,600 miles west-southwest of Honolulu. The population is approximately 16,000. Section Analysis and Discussion of Amendments See. 201—This section directs the Department of the Interior to absorb the costs of the Government Comptroller for the Northern Marlianas. Since this is presently the policy, the section is strictly technical and conforming amendments offered by the administration were adopted. Vhe federal comptroller provides a necessary and important function not only in monitoring the use and expenditure of federal funds but also in providing technical assistance to the territories. See. 202.—This section authorizes not to exceed $244 million for health care services. The committee recognizes that improved facilities are needed, but notes that the recent acquisition of the Medical Center of the Marianas on Guamoffers considerable capacity for health care. ‘The committee expects that the Secretary will discuss the precise needs of the Marianas with the Secretary of HIEWand will formulate a plan which will integrate the health care services of Guam and the Marianas so as to provide the optimumcare foreach. see, 205.—Thissectioneffects a technical ainendment to conform the authorization for the National Park Service management of the American War Memorial Park in Saipan with other park authorizations. No sums are authorized by this section since the National Park Service already has general authority and responsibility pursuant to the 1916 Organic Act. The committee deleted provisions of the House passed ncasure which would have delayed the application of the federal Internal Revenue Laws to the Marianas and provided for the Secretary of Treasury to administer and enforce the local territorial tax. While the committee is concerned over the recent Comptroller Reports on tax administration in Guam and the Virgin [Islands and ts equally concerned over the implications of the recent actions of the Marianas to institute a local tax system which would increase loeal revenues, the committee believes that the entire question of the fiscal accountability of the territorial governments and the financial relationship of the territories to the Iederal Government (including the mirror tax) is best left to separate hearings. Accordingly, these provisions were deleted from the billand deferred for future consideration. se eT ieatin TITLE II—-NORTHERN MARIANA ISLANDS