theabove-cited Public Law, only $22,000,000 had been drawn down by Jume 1, 1979. An additional $10,000,000 is available to be Srawn down for projects approved by this Department. Of the $22,000,000 in cash transferred to the Virgin Islands, only $5,000,000 has been obligated, leaving $17,000,000 umsed. Only $3,000,000 has been actually paid out for construction. The Virgin Islands is paying interest and principal to the Federal Fi i Bank on the $22,000,000 but also receiving interest on its deposits. The Administration recommends a three year extension, until 1982, and we further recommend that all fimds borrowed, but not obligated by that time, be returned to the lending institution from which they were borrowed. Such a plan would encourage the early obligation of funds with the benefit of meeting some of the urgent capital inprovement needs of the territory. Section 403 Section 403 would transfer to the Virgin Islands property that was acquired from Denmark by the United States and that was not reserved er retained by the United States in accordance with provisions of P.L. 93-435. In addition, a Committee amendment to the original Administration proposal includes parcels of land on St. Croix purchased by the Goverrment of the Virgin Islands from the General Services Administration (GSA), subject to a mortgage. It is our understanding that 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 armory. The amomt Owing on the ten acres is approximately $125,000. The outstanding balance on the 230+ acres is approximately $2,800,000. GSA is willing to grant such a release upon payment in full of the amumt owing on the ten acres. The committee amendment @ppears to be an attempt to release the 230+ acres from the mortgage. Section 403, however, mentions nothing about a release from the nortgage, and, in fact, states that the transfer of the 230+ acres would be “subject to valid existing rights,..."(the mortgage). section The Administration recommends (1) that the substance of in 403 be returned to the form in which it originally appeared House the that (2) and uced, section 404 of H.R. 3756 as introd added to Cammittee amendment be stricken and a new section be H.R. 3756, at the end of title IV, to read as follows: "-"* Sec. . e he General Services Administration shall releas ¢fom the mortgage dated Jamuary 26, 1972, given by the Govern- _ ment of the Virgin Islands to the Administrator of the General Services Administration, approximately ten acres of such mortgaged land for construction of the proposed st. Croix ammory upon payment by the Government of the Virgin Islands of the outstanding principal due on such ten acres. cen