€( € 17 as to its enforcement. The purpose of the proposed legislation is simply to alleviate the threat of burdensome and unnecessary expenditures for the people of Guam. Most importantly, this ts a goal which can be accomplished without anysacrifice in air quality. In approving Title III the Committee deleted those provisions of the Hfouse-passed measure which addressed the administration and enforcement of the local territorial tax for the reasons noted in the discussion of the Northern Marianas provisions. August 4, 1916 for the sum of $25 million. Pursuant to the 1936Or- ganic Act, and the 1954 Revised Organic Act and subsequent amendments, the Virgin Islands is self governing with an elective governor and legislature. Section Analysis and Discussion of Amendinents See. 401——This section wus proposed by the Administration and would transfer to the Virgin Islands property which was acquired from Denmark by the United States and which was not reserved or retained by the United States in accordance with the provisions of Public Law 93-485. In addition, the section includes a provision added by the House which would transfer 230 acres to the Virgin Islands for the construction of an armory. The Committee understands that the Virgin Islands already has title to the property although it ts subject to a mortgage held by GSA. The outstanding balance of the mortgage 1s $2,800,000 of which $125,000 is attributable to the ten acres needed for the armory. In order to assist the V.I. government, the Committee modified the section to require the Administrator of GSA to sever the 10 acres and release it from the mortgage upon payment of the $125,000 remainingon the principal. Sec. 402.'—This section would prohibit any modification of the existing lease on Water Island before 1992 without express Congressional approval. Even the witnesses from the Administration would not defend the terms of the present lease which in some places allows owners to recover fair market replacement value of any unprovements made during the lease. The House passed measure had only required Committee ‘approval, but the Department of Justice testified that such a proviston would be unconstitutional. Accordingly the Committee has modified the provision to require an Act of Congress to approve any modifications. Sec. 403-—-This section authorizes the U.S. to deduet the cost of colluctions from the revenues to be covered into the Virgin Ishunds Treasury pursuant to the Revised Organic Act. ‘The “Committee adopted an Administration supported technical amendment. crs S.Rept. 96-467 --+-- 3 a Description—The U.S. Virgin Islands is an organized, unincorporated territory of the United States. The Virgin Tslands consist of three principal islands and approximately 50“smaller islands and islets Tocated in the Carribean Sea approximately 40 miles east of Puerto Rico. The three principal islands are St. Thomas (where the capital, Charlotte Amalie is located ), St. Croix and St. John. Water Island and Hassel Island adjact to St. Thomas are also inhabited. The territory contains 130 square mules of land area with a popul: ition of around 100,600. The Virgin Islands was acquired from Denmark by a treaty signed owe ee ee ee nem ee TITLE IV-—VIRGIN ISLANDS