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The Interagency Task Force reviewing territorial policy is addressing various issues, incliding tax administration, considered in these
sections. Presidential decisions will be forthcoming later this year.

Among the options to be considered by the Administration will be

Federal training and technical assistance for territorial tax collection
agencies.

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SECTION 204

SECTION 302

Section 302 would forgive the payment of interest by Guamon all
funds borrowed pursuant to the Guarm Rehabilitation Actof November 4, 1963, and would apply interest already paid against principal

owed.

The 1963.Act was designed to aid Guamin its rehabilitation after
the destruction of typhoon Karen in 1962. The amount originally
borrowed under the authorization was $41,500,000. Principal in the
amount of $5,900,000 and interest in the amount of $18,000,000 have
been paid by Guam through May 15,1979. Lf previously paid interest
were converted to principal according to H.R. 3756, the principal

outstanding would be reduced froin $35,600,000 to $17,500,000.

The Administration continues to oppose debt forgiveness for Guam
because valid existing debts should be repaid in order to affirm the
principle of fiscal responsibility.
SECTION 303

Section 303 would extend from December 31, 1980, to December 31,
2010, the loan to the Guam Power Anthority (approximately $36,000.000) guaranteed by the Secretary of the Interior against the possibility that the Guam Power Authority may not be able to refinance
this obligation in the private market by December 31, 1980; provide

for repayment through the Governmnent of Guam; and forgive interest
to the Governmentof Guam.

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tion for maintenance and operation, and up to $3,000,000 for development. The Administration supports section 205.

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~ in World WarII fighting on Saipan and as a facility for recreation.
Section 205 of H.R. 3756 would provide for an open-ended authoriza-

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Section 5(¢) of Public Law 95-845 authorized $3,000,000 for the
“development, maintenance and operation” of the American Memorial
Park on Saipan. The Government of the Northern Mariana Islands
is interested in developing the park as a memorial to those who died

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SxCcTIONn 205

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1979, to January 1, 1982. Federal income tax laws became applicable
to the Northern Mariana Islands beginning January 1, 1979. ‘he Administration has no objection to section 204.
wt
The Governor of the Northern Mariana Islands states that section
904 would result in the loss of approxunately $300,000 in revenue to
the Northern Marianas’ treasury and he prefers the provisions of section 3(d) of P.L. 95-348 to section 204,
.

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Section 204 would extend the date of initial applicability of the
Federal incometax to the Northern Mariana Islands from January1,

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