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. . | 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-