CONGRESSIONAL RECORD— HOUSE HI i20 the islands are favorably renegotiated or if the pending Federal suit finds that petroleum excise taxes must be returned to the Virgin Islands Treasury, territorial fiscel problems would dematerialize. Consequently, in deauthorizing Fed- eral funds to bridge the gap, the other body has reduced the Virgin Islands’ negotiating position to one of weakness. ‘We, in the House, deplore this shortsightedness and shall continue to support the Virgin Islands’ government as it seeks to restore its financtal self-respect. Lastly, I wish to draw your attention to an absurb situation in American Samoa and the Northern Marianas, Because both governments are new and the economics are still underdeveloped, a gooddeal of financial support stems from the Federal Government. Now, both ter- ritories are also eligible for Federal programs, many of which stipulate a matching component. As a result, American Samoa and the Northern Marianas are expendinz Federal funds to meet a Federal matching requirement. Accordingly, H.R. 3756 is amended to eliminate this - absurdity with the waiving of all matching requirements less than $100,000. Therefore, Mr. Speaker, as amended H.R. 3756 ameliorates many difficulties confronted by Americans living in the insular areas, Therefore, I urge it unanimous passage. Mr. Speaker, I withdraw my reserva~ : tion of objection. The SPEAKER pro tempore. Is there objection to the request of the gentleman from California? There was no objection. The pro SPEAKER tempore. The Clerk will report the proposed House amendments to the Senate amendment. The Clerk read the House amendments to the Senate amendment, as follows: In title I, after section following newsection: 103, insert the “Sec. 104. Notwithstanding any other pro- vision of law, except in cases in which the Federal program is terminated with respect to all recipients under the program, Federal programs in the fields of education and health care shall not cease to apply to the Trust Territory of the Pacific Islands or any successor government or governments, nor shall participation in any applicable Fed- eral programs in the fields of education and health care by the Trust Territory of the Pacific Islands or any successor government Or governments be denied, cecreased or ended, either before or after the termination of the trusteeship, without the express approval of the U.S. Congress.” In title II, after section 203, insert the following new rections: "SEc. 204(2) Section 3(da) of the Act entiticd ‘An Act to authorize annropriations for certain insular areas of the United States, and for other purposes’ (Public Law 95-348; 92 Strat. 487) is amended by inserting ‘(1)° after ‘(d)’ and by inserting ‘or 1twon receipt of a resolution adopted by both houses of the legislature of tre Northern Martana Isiands accompanied by a letter of request from either the Governor or the Lieutenant Governor of the Northern Marlana Islands,’ after ‘Constitution of the Northern Mariana Islands,’ the first place it appears, and by adding at the end of ‘(d)’ the following newParagraphs: this subsection, the Secretary of the Treasury (hereinafter In this subsection referred to as the ‘Secretary’), or his detegate, at no cost to the Northern Martanas government, may (A) employ citizens of the Northern Marlana Islands (as defined by Article IIT of the Covenant to Establish a Commonwealth of the Northern Marlana Islands in Political Union with the United States (approved, Public Law 94-241; 90 Stat. 265)), or (B) use tha services of employees of the government of the Northern Mariana Islands, upon agreement to pay such government for the us® of such services. In addition, the Secretary, or his delegate, shall make every effort to assure that citizens of the North- fl x o oat r Bow wt _ ou ws not later than September 30, .1980, that Sections 1,2, 3, 4 and 5 of chapter 2 of Public Law 1~30 of the Commonwealth of the North- ern Mariana Islands or its successor, have been repealed in their entirety, effective De- ecember 31, 1931. “(c) It is the sense of Congress that the term ‘rebate’ as used in section C02 of Public Law 94-241 does not permit the abatement of taxes.”. In title Il, change “Sec. 301." to “Sec. 301. (a)and add the following new subsec~ tion: : . ~“(b) Any civil action under soction 204 of the Omnibus Territories Act of 1977 (91 Stat. 1162) shall bs barred unless it !s commenced ern Mariana Islands (a3 so defined) are trained to ultimately assume the adminis- not later than April! 1, 1982." In title IV, (a2) delete all of secticn 403 and insert in teu thereof the following: the Secretary or his delegate under this section. Notwithstanding any other prorision of law, the Secretary or his delegate is au-- vised Organic Act of the Virgin Islands ta tration and enforcement duties required of thorized to the maximum extent feasible in administering and enforcing the requested sections of the Covenant, to employ and train Northern Marlana Islands’ citizens without regard to U.S. Civil Servica hiring or job classification laws or any employment cellinga t{mposed upon the Secretary. The preceding sentence shall not exempt such Northern Martana Islands’ citizens so hired from any other laws affecting Federal or IRS employees’ and shall remain In effect wntit the end of the third full Ascal year following the date of enactment, “(3) AS part of the administration of taxes required by this subsection, the Secretary or “Sec. 403. (a) Subsection 28(a) of the Re- amended by inserting afcer the words ‘and naturalization fees collected in the Virgin Islands,’ the following: ‘(less the cost of collecting such duties, taxes and feces as may be directly attribut- able (as certified by the Comptroller of the Virgin Islands) to the imaportation of petro- leum products until January 1, 1932: Pro- vided, That any other retained’ costs not heretofore remitted pursuant to the Act of August 18, 1978, shall be tammediately remitted to the Treasury of the Virglna Islands notwithstanding law).’ - any other provision : of (b) The paragraph entiticd ‘U.S. Customs Service’ Involving the collection of customs his delegate shall establish, at no cost to the Northern Marianas government, a taxpayers Information service to provide suchine formation and assistance to citizens of the Northern Mariana Islands (a3 so defined) as q@uties in the Virgin Islands in the Act of July 25, 1979, is hereby repealed.” tions 601, 692, 603, and 604 of the Covenant the Virgin Islands. “Sec. 406. Not later than two years efter wealth of the Northern Mariana Islands. ministrator of the General Services Administration shall convey, without consideration, (b) After section 404, insert the following new sections: “Sec. 405. Any excise texes levied by the Legislature of -the Virgin Islands may be may be necessary for the filling of returns and levied and collected as the Legislature of the the payment of such taxes.” “(b) The Secretary shall take such stevs ‘Virgin Islands may direct as soon as the &S are necessary to ensure that the proceeds articles, goods, merchandise and commediof taxes collected under the provisions of sec- ties subject to sald tax are brought Into (PL. 94-241) are covered directly upon collection into the treasury of the Common“Sec. 205. (a) Except as provided in sub- section (c)}, any person, including an indlvidual, trust, estate, partnership, association, company or corporation, which js a resident of or which ts organized under the laws of the Commonwealth of the Northern Mariana Islands and which js subject to the provisions of section 601 of the Covenant to Establish the Commonwealth of the Northern Mariana Isiands in Political Union with the United States (P.L. 94-241), shall be exempted from the requirements of such section with respect to income derived frorn sources within the Commonwesith of the Northern Marlana Is- lands for taxable years beginning after December 31, 1978 and before January 1, 1981. Nothing tn thls section shall be construed as relieving such person from the obligation to comnly with the requirements of section 601 with resoect to Income derived from sources outside of the Commonwealth of the Northern Marfana Islands. : “(b) Except as provided in subsection (c), any person, including an individual, trust, estate, partnership, assoclation, company or corporation, which ts a resident of or which the date of enactment of this Act, the Ad- all right, title and interest of the United States in and to the property known as the former District Court Buliding (including the parcel of land upon which sald building is located), 48 B Norre Gade, St. Thomas, Virgin Islands, to the Government of the Virgin Islands. . “Sec. 407. Subsection (f) of section 2 of the Act entitled ‘An Act tp authorize the government of the Virgin Islands to Issue bonds In anticipation of revenue receipts and to authorize the guar«ntee of such bonds by the United States uncor specified conditions, and for other purposes’ (90 Stat. 1193; Pub- lic Law 94-392; 48 U.S.C. 1574b) is amended by striking out the last sentence and Inserting in leu thereof the following language: ‘No commitment to guarantee may be issued by the Secretary, and no guaranteed but unobligated funds may be obligated by the government of the Virgin Istands after October 1, 1984. After October 1, 1984, any unobligated proceeds of bonds or other obligations Issued by the government at the Virgin Islands pursuant to this section shall is organized under the laws of the Comumon-~ wealth of the Northern Martens Islands and which is subtect to the provistons of section be repaid immediately by the government of (Public Law 94-341), shall be exempt from lands’ making such repayment, the Secretary shall deduct the requis.:te amounts from 601 of the Covenant to Establish the Commonwealth of the Northern Mariana Islands the requirements of such section with re- spect to income from sources within the Northern Mariona Islands for its taxable year beginning after December 31, 1980, and before January 1, 1982, provided that, the (2) For purposes of carrying out any ad- : Secretary receives written notice from the ministration and enforcement required by February 25, 1980 Governor of the Northern Marlana Islands the Virgin Islands to the Jenders wlth the agreed upon interest. Should there be any Gelay in the government of the Virgin Is- moneys under his contro! that would otherwise be paid to the government of the Virgin Islands under section 28(b) of the Revised Organic Act of the Virgin Islands.'." In title VI, (a) amend section 601 to read as follows: