Enelosure K STATEMENT OF MRS. RUTH G. VAN CLEVE, DIRECTOR, OFFICE OF TERRITORIAL AFFAIRS, DEPARTMENT OF THE INTERIOR, ON H.R. 3756, BEFORE THE SENATE COMMITTEE ON ENERGY AND NATURAL RESOUFCES, OCTOBER 10, 1979. Dear Mr. Chairman: We are pleased to have the opportunity to appear before your Committee in order to express the Administration's views on H.R. 3756, an omnibus territories bill dealing with a number of different issues. The Department of the Interior has submitted a rather lengthy report on H.R. 3756; it contains our definitive statement on the individual provisions of the bill. Today, I will endeavor to summarize our views on the bill by referring to those provisions or which we approve, those provisions of which we disapprove, and those provisions of which we would approve, if amended. The Administration approves of the following provisions: - Section 101 would provide an open-ended authorization of funds for the Trust Territory of the Pacific Is- lands after 1980, both as to time and amount. The ‘open-ended language gives recognition to the need for budget flexibility in light of the rapid changes taking place in Micronesia. - Section 104 states ". . . Federal programs shall not cease to apply to the Trust Territory of the Pacific Islands either before or after the termination of the trusteeship, without the express approval of Congress.“ We approve of this section, assuming that it is construed to mean that "legal eligibility for" rather than “participation in" Federal programs by the Trust Territory shall not cease without Congress- ional approval. - Section 204 would extend the date of initial applicability of the Federal income tax to the Northern Mariana Islands from January 1, 1979, to January 1, 1982. We have no objection to such a provision; however, the Governor of the Northern Mariana Islands prefers Section 3 (d) of Public Law 95-348 to Section 204. - OES ea: ee 7 Section 205 would provide an open-ended authorization for maintenance and operation, and up to $3 million . SEE Ig epee rye 1 TEENIE R GT ae Su es LER ABE YG TOS Ah Qe rg vere :