The Administration opposes this provision becmme it believes that

the Department of the Interior should not be singled out in this

mermmar. ‘The Department has only four programs that provide the type
ef grants to the territories that we believe Title V of P.L. 95-134
was intended to cover. : The grants of two of these prograns have
already been consolidated. The Department has under consideration the
possibility of consolidating the other two grant-in-aid programs.
Further, the Department of the Interior has explored the implications
of waiving local matching requirements for these grants before deciding
to await the results of the ongoing Interagency Policy Review on
Territories.

It also appears that the provisions of section 601 would apply to

the various forms of financial assistance provided armmually to the
territories through appropriations to the Department's Office of
Territorial Affairs. If so, it would be possible for a territory
to utilize funds appropriated for the construction of health cure

facilities for other purposes authorized by grants provided by

;

. the Department, such as historic preservation. ‘The Administration
not believe that this type of flexibility ds in the best dntessers or
the territories or the Federal Goverment.

Section 602
Section 602 provides that moneys authorized by this Act but not
appropriated would be authorized for succeeding years. ‘The Administration
has no objection to section 602.
* Section 603

Section 603 provides that governments of the territories and Trust
Territory of the Pacific Islands may avail themselves of the services,

facilities, and equipment of agencies and instrumentalities of the

United States Government on a reimbursable basis.

Federal services,

facilities, and equipment now extended to the territories on a

non-reinbursable basis would continue to require no reimbursement.
The Administration has no objection to section 603.
‘Section 604

Section 604 would make authorizations for appropriations enacted
under H.R. 3756 effective on October 1, 1979. ‘The Administration

no objection to section 604.
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Section

Section 605 would provide that new borrowing, or paying, authority

provided in H.R. 3756 would be effective only to the extent and in _.

such amounts as are provided in advance in appropriation Acts.
Administration has no objection to section 605.

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