Come me ae ce ete em ee em (z Tis proposed new section would allow construction of the ampory and at the sane time permit fulfillment of Virgin Islands contractual ebligations. Section 404 Section 404 would require express approval of the House Committee cn Interior and Insular Affairs and the Senate Committee or. Energy and Natural Resources for any extension, renewal, or Of the lease of real property an 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 the duties, taxes, and fees covered into the treasury of the Virgin Islands for the period from Avgust 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 Secretary of the Treasury to collect all customs duties derived from the Virgin Islands "without cost to the govermment of the Virgin Islands." Section 405(a) states that such duties 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 secticn 405(b) be stricken ard that the words “wherever the latter phrase appears." be inserted in lieu thereof. * Section 501 39 Section 501 would provide for the payment of salary and expenses of the government conptroller for American Sama the Department of the Interior. This Department is already paying such salary and expenses and thus the Administration has ebjection to section 501. ’ Section 601 Section 601 would require the consolidation of all Department of the Interior grants-in-aid to a territory by making certain optional provisions of Title V of P.L. 95-134 mandatory. It would also waive any requirements for local matching funds and for written application or reports associated with such grants. . booty ~ tere ot . — en ' gers ee trar or ay ,otot ~ : . a toe some ee wee wee vis ¢ aeoon ey: . - + od, ade mvs “. * wey wr aon