This proposed new section would allow construction of the ampry and at the sane tim permit fulfiliment of Virgin Islands contractual obligations. Section 404 Section 404 would require express approval of the House Committee qm Interior and Insular Affairs and the Senate Committee ar. Energy and Natural Resources for any extension, renewal, or of the lease of real property cn Water Island, to which the Mhited 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 deductio 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 August 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 Guring 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 amendrent. 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 S.pports 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 section 405(b) be stricken and that the words “wherever the latter phrase appears.® be inserted in lieu thereof. * Section 501 Section 501 would provide for the payment of salary and expenses of the government comptroller for Anerican famoa by the Departient E B of the Interior. This Department is already paying such salary and expenses and thus the Administratio objection to section 501. ’ Section 601 7 oe gection 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 : soos ger,: re tage , 6m 7 7, oars bia ese!" see‘ ’ . ' ad oe yt . aye i . ” Sa \ : . tems « application or reports associated with such grants.