eee aE ee en 5 me 8S OF ee . ~ og. we ao aE Section 205 Section 5(g) of Public Law 95-348 authorized $3,000,000 far the developrent, maintenance and operation" of the American Menorial Park on Saipan. The Government of the Northern Mariana Islands is interested in developing the park as a memorial to those who died in World War II fighting on Saipan and as a facility for recreation. Section 205 of H.R. 3756 would provide for an open-ended authorization for maintenance and operation, and up to $3,000,000 for Gevelopment. The Administration supports section 205. —— ae Section 302 Section 302 would forgive the payment of interest by Guam on all funds borrowed pursuant to the Guam Rehabilitation Act of November 4, 1963, and would apply interest already paid against principal owed. The 1963 Act was designed to aid Guam in its rehabilitation after the ‘destruction of typhoon Karen in 1962. The ammoumt 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. If previously paid interest were converted to principal according to H.R. 3756, the principal outstanding would be reduced fram $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. cc ome... - Section 303 Section 303 would extend fram December 31, 1980, to December 31, 2010, the loan to the Guam Power Anthority (apprendmately $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 cbligation in the private market by December 31, 1980; provide for repayment through the Government of Guam; and forgive interest to The Administration supports extension of the guarantee ard loan. However, as noted below, we favor modifying certain aspects of this section. TER be vee, eee oe ws . eos - + z : } IPT % WeOse. ee ye ete al . o be Se - Fe : NW ay ‘ y ae FUGt peeeS we 5 tee ree awe ae US gee Se So/ ; * oo re . . laa oe Le a