Ask the Scholar
Document scope · 1 page
Scholar
Ask about this object, its catalog metadata, its source description, or the page inventory.
For page-specific OCR and visual context, open one of the page chats.
Scholar Source Context
Document identity
localId
1668996
label
1975/05/28 S326 Trust Territory of the Pacific Islands
core
doc
dtoType
document
citationUrl
pageCount
1
Source metadata
id
1668996
sourceUrl
contentType
document
title
1975/05/28 S326 Trust Territory of the Pacific Islands
citationUrl
collections
White House Records Office: Legislation Case Files
Legislation Case Files
subjects
Micronesia
Northern Mariana Islands
Legislation
thumbnailUrl
largeImageUrl
imageCount
1
hasImages
yes
source
import
hasTranscription
no
Source extras
naId
1668996
coverageEndDate
logicalDate
1975-05-31
month
5
year
1975
coverageStartDate
logicalDate
1975-05-01
month
5
year
1975
levelOfDescription
fileUnit
recordType
description
ocrSource
nara-archive
Single page context
seq
1
pageIndex
0
type
document
mediaId
73eb8d21a32742e9
ocrText
The original documents are located in Box 25, folder "5/28/75 S326 Trust Territory of the
Pacific Islands" of the White House Records Office: Legislation Case Files at the Gerald R.
Ford Presidential Library.
Copyright Notice
The copyright law of the United States (Title 17, United States Code) governs the making of
photocopies or other reproductions of copyrighted material. Gerald R. Ford donated to the United
States of America his copyrights in all of his unpublished writings in National Archives collections.
Works prepared by U.S. Government employees as part of their official duties are in the public
domain. The copyrights to materials written by other individuals or organizations are presumed to
remain with them. If you think any of the information displayed in the PDF is subject to a valid
copyright claim, please contact the Gerald R. Ford Presidential Library.
Exact duplicates within this folder were not digitized.
Digitized from Box 25 of the White House Records Office Legislation Case Files at the Gerald R. Ford Presidential Library
5/5/28
APPROVED MAY 28 MAY 28
ACTION
THE WHITE HOUSE
Last Day: May 30
WASHINGTON
May 26, 1975
Posted
5/28
MEMORANDUM FOR
THE PRESIDENT
FROM:
Jo archives
JIM CANNON June
SUBJECT:
Enrolled Bill S. 326
5/29
Trust Territory of the Pacific Islands
Attached for your consideration is S. 326, sponsored by
Senator Jackson, which:
-- Increases the FY 75 appropriation authorization
ceiling for civil government activities of the
Trust Territory of the Pacific Islands from
$60,000,000 to $75,000,000.
--- Authorizes an appropriation of $1,500,000 to fund
the transition of the Mariana Islands District
from the Trust Territory Government to Commonwealth
status if such status is approved by the Congress.
A discussion of the features of the bill is provided in
OMB's enrolled bill report at Tab A.
OMB, Interior, Max Friedersdorf, Phil Buchen (Lazarus)
and I recommend approval of the enrolled bill.
RECOMMENDATION
That you sign S. 326 at Tab B.
1 is THE 01/330
WTM
PRESIDENT
EXECUTIVE OFFICE OF THE PRESIDENT
APPROVED MAY 28 STATES UNITED
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
MAY 2 3 1975
MEMORANDUM FOR THE PRESIDENT
Subject: Enrolled Bill S. 326 - Trust Territory of the
Pacific Islands
Sponsor - Sen. Jackson (D) Washington
Last Day for Action
May 30, 1975 - Friday
Purpose
Increases the fiscal year 1975 appropriation authorization
ceiling for civil government activities of the Trust
Territory of the Pacific Islands and authorizes certain
funds for planning the transition to Commonwealth Status
for the Mariana Islands District of the Trust Territory.
Agency Recommendations
Office of Management and Budget
Approval
Department of the Interior
Approval
Discussion
Under provisions of a trusteeship agreement concluded in 1947
with the Security Council of the United Nations, the
United States is responsible for the promotion of political,
economic, educational, and social advancement of the people
of the Trust Territory of the Pacific Islands (TTPI).
Governmental functions are carried out by a civil government
composed of an executive branch headed by an appointed
High Commissioner, a judicial branch and a bicameral elected
legislature. The United States has an obligation under the
Trusteeship Agreement to offer the people of the Trust
Territory the opportunity to vote on what form of future
FORDO is
2
political relationship (s) with the United States or other
nations they prefer. The future political status of TTPI
has been the subject of negotiations between the
United States and the Congress of Micronesia Joint
Committee on Future Status (JCFS) since 1969. The amounts
of annual U.S. financial assistance for the TTPI have been
one of several principal issues in these continuing
negotiations.
Under present law, the fiscal year 1975 appropriation
authorization for the TTPI's civil government functions is
$60,000,000 in grants appropriated to the Interior Department
plus up to $10,000,000 to offset reductions in, or termination
of, Federal programs under which the TTPI is eligible to
receive assistance (no amount has been requested or appropriated
under the $10,000,000 authorization). Currently there is no
appropriation authorization for 1976 and subsequent fiscal
years.
In August 1974 and again in February 1975, the Administration
proposed legislation to extend the appropriation authorization
for civil government beyond fiscal year 1975. In addition,
the Administration draft bills provided:
1. An increase in the 1975 authorization of $15,000,000
to a total of $75,000,000 (this would have no impact
on the $10,000,000 authorization for reduced or
terminated categorical programs). This increase
was proposed principally as the first year increment
of a six year accelerated capital improvements
program which was tentatively agreed to in talks
during early April, 1974, by the negotiators
representing the U.S., and the Congress of Micronesia,
subject to subsequent approvals by their governments.
Presidential approval for the amounts negotiated was
given early in July, 1974, after the chairman of the
negotiating Committee for the Micronesians had
indicated the amounts had been approved by his full
Joint Committee on Future Status.
2. An authorization for a separate appropriation of
$1,500,000 to assist in the planning transition
of the Mariana Islands District of the TTPI to
a proposed new status as a U.S. commonwealth. The
U.S. has conducted separate negotiations with this
3
district since December 1972 in response to a request
by the District legislature. These negotiations re-
sulted in a draft covenant to establish a Northern
Mariana Islands Commonwealth with the U.S. The draft
commonwealth covenant was signed by the negotiators on
February 15, 1975 in Saipan, and was approved by the
Mariana Islands District legislature on February 20.
If approved by the plebiscite now scheduled for June 17,
the draft covenant will then be ready to be transmitted
to the U.S. Congress by the President. The $1.5 million
authorized by this bill would be used to help pay the
cost for a constitutional convention and referendum,
political education programs and economic, fiscal, and
physical planning studies.
The enrolled bill amounts conform to the Administration re-
commendations as set forth on points 1 and 2 above. However,
Congress amended the bill so that none of the funds authorized
to aid the Mariana Islands District transition could be obli-
gated or expended until after final agreement by the Mariana
Political Status Commission and the United States has been
approved by the Congress. Further, S. 326 does not provide
appropriation authorizations for the periods after fiscal
year 1975 that had been requested by the Administration.
In its letter on the enrolled bill, the Department of Interior
notes that:
"
The accelerated capital improvements program had
been agreed upon because, despite a great expansion of
Micronesia's capital plant over the past six years,
much remained to be done. The accelerated program was
designed for construction of such rudimentary physical
infrastructure as will be necessary for a sound and
self-sufficient economy. To the extent possible, we
would like to have this physical infrastructure in place
within the next few years before the trusteeship gives
way to a new political status for Micronesia in order
to make economic self-sufficiency a more feasible goal
when the trusteeship ends.
"The request for the additional $15 million for fiscal
year 1975 was in the nature of an emergency authorization
to keep on schedule in meeting the above goals
"
4
The 1976 Budget included both the $15,000,000 increase in
the 1975 annual appropriation authorization for the TTPI
and the $1,500,000 for the Marianas transition costs as
amounts to be transmitted later after enactment of the
necessary authorizing legislation. Consequently, no request
has been transmitted to the Congress requesting appropriation
of either these amounts. The Senate Appropriation Committee
has included an $8,050,000 appropriation for the TTPI
(contingent upon enactment of the $15,000,000 authorization
increase) in the Second Supplemental appropriation bill.
The items which the Committee selected to fund within the
$8,050,000 amount generally appear to be those the TTPI
Government and Interior have identified as having highest
priority.
In the meantime, the Congress of Micronesia has enacted a
resolution rejecting as "inadequate" the amounts for
FY 1975 and future years which were agreed to in the
negotiations as described above. Consequently, Interior
is organizing a task force to review the Capital Improvements
Program for the TTPI and to make recommendations as to the
amounts which would be required to achieve specified
objectives. We are working with Interior to define the
scope of that task force review.
In light of these recent developments, as well as the fact
that only five weeks remain in fiscal 1975, we recommend
that no request for a supplemental to appropriate the
remaining $7,000,000 (of the $15,000,000 increase in the 1975
authorization for the TTPI) be transmitted to Congress. We
will work with Interior and the Office of Micronesian Status
Negotiations to determine when the $1,500,000 for the
Marianas transition planning should be transmitted to Congress.
Jamesm. Frey
Assistant Director for
Legislative Reference
Enclosures
THE WHITE HOUSE
ACTION MEMORANDUM
WASHINGTON
LOG NO.:
Date: May 23
Time: 800pm
FOR ACTION:
CC (for information):
Norm Ross on
Max Friedersdorf the
Jim Cavanaugh
Jack Marsh
Ken Lazarus
FROM THE STAFF SECRETARY
DUE: Date:
Time:
May 26
200pm
SUBJECT:
H.R. S. 326 - Trust Territory of the Pacific Islands
ACTION REQUESTED:
For Necessary Action
For Your Recommendations
Prepare Agenda and Brief
Draft Reply
For Your Comments
Draft Remarks
REMARKS:
Please return to Judy Johnston, Ground Floor West Wing
PLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED.
If you have any questions or if you anticipate a
delay in submitting the required material, please
K. R. COLE, JR.
telephone the Staff Secretary immediately.
For the President
THE INTERIOR OF THE INTERIOR
United States Department of the Interior
OFFICE OF THE SECRETARY
March
3,
1849
WASHINGTON, D.C. 20240
MAY 21 1975
Dear Mr. Lynn:
This responds to your request for our views on the enrolled bill
S. 326, "To amend section 2 of the Act of June 30, 1954, as amended,
providing for the continuance of civil government for the Trust
Territory of the Pacific Islands. "
We recommend that the President approve the enrolled bill.
Public Law 93-111 currently authorizes the appropriation of $60
million for fiscal year 1975 for the activities of the civil
government of the Trust Territory of the Pacific Islands. S. 326
as enrolled would authorize a total annual appropriation of $75
million for fiscal year 1975. Section 2 of S. 326 would authorize
$1.5 million for a special program to aid transition of the Mariana
Islands District to a new commonwealth status as a territory of
the United States.
On February 18 and 26, 1975, we respectively transmitted to the
Senate and House the Department's proposal to authorize appropriations
for the continuance of the civil government of the Trust Territory
for fiscal years 1975 and 1976, the transition quarter July 1,
through September 30, 1976, and fiscal year 1977. In that proposal,
we had requested a supplemental authorization of $15 million for
fiscal year 1975.
The bulk of the increased annual authorization under our proposal
was devoted to the Department's accelerated capital improvement
program which the Secretary of the Interior had announced in a
January 1974 speech to the people of Micronesia. The accelerated
capital improvements program had been agreed upon because, despite
a great expansion of Micronesia's capital plant over the past six
years, much remained to be done. The accelerated program was
designed for construction of such rudimentary physical infrastructure
as will be necessary for a sound and self-sufficient economy. To
the extent possible, we would like to have this physical infrastructure
CONSERVE
AMERICA'S
ENERGY
Save Energy and You Serve America!
RECEIVED
'75 MAY 21 PM 4:23
OFFICE OF MANAGEMENT
AND BUDGET
in place within the next few years before the trusteeship gives way
to a new political status for Micronesia in order to make economic
self-sufficiency a more feasible goal when the trusteeship ends.
The request for the additional $15 million for fiscal year 1975
was in the nature of an emergency authorization to keep on schedule
in meeting the above goals. A number of high priority items are
urgently required. They are: $500,000 for fuel and supplies for
both power plants and inter-island ships: $1,484,000 for the Yap
hospital; $166,000 for procurement of four new inter-island ships;
$150,000 for development planning; $200,000 for architecture and
engineering; and $945,000 to cover the deficit incurred by Trans
Pacific Lines, Inc.
It is our understanding that the Senate has passed a supplemental
appropriation for the Trust Territory for fiscal year 1975 at
$8,050,000. The House version of the supplemental appropriation
bill did not include this item. We anticipate the bill's going
to a Conference Committee after the Memorial Day recess. The
Congress did not take action on the Department's authorization
request for fiscal year 1976, the transition quarter, and for
fiscal year 1977. We anticipate that the Congress will consider
this part of our proposal in this session, as such increased
annual authorization will be necessary to complete the Department's
accelerated capital improvements program.
Section 2 of S. 326 as enrolled relates to the negotiations between
the United States and the Marianas Political Status Commission
which will lead to a new Commonwealth status as a territory of the
United States for the Marianas Islands District. The U.S. Congress
has final approval authority over these negotiations. Section 2
would authorize the appropriation of $1,500,000 for a special pro-
gram of transition in the Marianas which will include, among
other things, a constitutional convention and referendum, a
political status plebiscite, political education programs and
economic, fiscal and physical planning studies. The need for these
funds is quite urgent since the agreement was signed on February
15, 1975. The transition period is scheduled to begin as soon as
the political status agreement is approved by the people of the
Northern Marianas in a plebiscite tentatively scheduled for June, 1975.
Assistant
Honorable James T. Lynn
Secretary Sincerely yours, of the Interior Hughes
Director
Office of Management and Budget
Washington, D.C. 20503
2
THE WHITE HOUSE
WASHINGTON
May 26, 1975
MEMORANDUM FOR:
JIM CAVANAUGH
FROM:
MAX L. FRIEDERSDORF m.6
SUBJECT:
Action Memorandum - Log No.
S. 326 - Trust Territy of the Pacific Islands
The Office of Legislative Affairs concurs with the agencies
that the President sign the enrolled bill.
Attachments
THE WHITE HOUSE
ACTION MEMORANDUM
WASHINGTON
LOG NO.:
Date: May 23
Time: 800pm
FOR ACTION:
CC (for information):
Norm Ross
Jim Cavanaugh
Max Friedersdorf
Jack Marsh
Ken Lazarus
FROM THE STAFF SECRETARY
DUE: Date:
Time:
May 26
200pm
SUBJECT:
S. 326 - Trust Territory of the Pacific Islands
OK NEW
ACTION REQUESTED:
For Necessary Action
For Your Recommendations
Prepare Agenda and Brief
Draft Reply
For Your Comments
Draft Remarks
REMARKS:
Please return to Judy Johnston, Ground Floor West Wing
&
FORD
GERALD
PLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED.
If you have any questions or if you anticipate a
delay in submitting the required material, please
telephone the Staff Secretary immediately.
For
the
5-27
THE WHITE HOUSE
ACTION MEMORANDUM
WASHINGTON
LOG NO.:
Date: May 23
Time: 800pm
FOR ACTION:
CC (for information):
Norm Ross
Jim Cavanaugh
Max Friedersdorf
Jack Marsh
Ken Lazarus
FROM THE STAFF SECRETARY
DUE: Date:
Time:
May 26
200pm
SUBJECT:
S. 326 - Trust Territory of the Pacific Islands
ACTION REQUESTED:
For Necessary Action
For Your Recommendations
Prepare Agenda and Brief
Draft Reply
For Your Comments
Draft Remarks
REMARKS:
Please return to Judy Johnston, Ground Floor West Wing
No objection. -- Ken Lazarus 5/27/75
PLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED.
If you have any questions or if you anticipate a
delay in submitting the required material, please
James H. C
telephone the Staff Secretary immediately.
For the
Calendar No. 22
94TH CONGRESS
SENATE
REPORT
1st Session
No. 94-20
AMENDING SECTION 2 OF THE ACT OF JUNE 30, 1954, AS AMENDED,
PROVIDING FOR THE CONTINUANCE OF CIVIL GOVERNMENT FOR
THE TRUST TERRITORY OF THE PACIFIC ISLANDS
February 24 (legislative day, February 21) 1975.-Ordered to be printed
Mr. JOHNSTON, from the Committee on Interior and Insular Affairs,
submitted the following
REPORT
[To accompany S. 326]
The Committee on Interior and Insular Affairs, to which was
referred the bill (S. 326) to amend section 2 of the act of June 30,
1954, as amended, providing for the continuance of civil government
for the Trust Territory of the Pacific Islands, having considered the
same, reports favorably thereon with an amendment and recommends
that the bill as amended do pass.
The amendment is as follows:
Insert the following new section:
"SEC. 2. There is authorized to be appropriated $1,500,000
to aid in the transition of the Mariana Islands District to a
new Commonwealth status as a territory of the United States.
Provided, however, That no part of such sum may be obli-
gated or expended until final agreement between the Mari-
anas Political Status Commission and the United States has
be approved by the Congress.
PURPOSE OF BILL
The purpose of S. 326, as amended. is to increase the authorization
ceiling for fiscal year 1975 for the activities of the civil government of
the Trust Territory of the Pacific Islands from the current authoriza-
tion of $60 million to $65,650,000. and to authorize the appropriation
of $1,500,000 to fund the transition of the Mariana Islands District
from the Trust Territory Government to a new commonwealth status
as a territory of the United States if such new status is approved by
the Congress.
38-010:
2
3
BACKGROUND
MEDICAL SUPPLIES AND REFERRALS, $500,000
The Trust Territory of the Pacific Islands is administered by the
United States pursuant to a strategic trusteeship agreement concluded
Increasing capabilities in health services for Micronesia's 115,000
in 1954 with the Security Council of the United Nations. Govern-
people require an increase of drugs and medical supplies. The costs of
mental responsibilities are carried out through a territorial govern-
drugs and supplies have jumped from $700,000 in fiscal year 1972 to
ment which has executive and judicial branches, and a bicameral legis-
$1,485,000 in fiscal year 1974. The original 1975 request could not antic-
lative body composed entirely of Micronesians.
ipate spiraling cost increases of this magnitude. Coupled with this,
Under the trusteeship agreement, the United States is charged
air fares have risen about 20 percent which is rapidly depleting funds
with the promotion of political social, educational and economic
for medical evacuees. At present, to meet these costs, it is necessary
development.
to take them from other medical areas, at best an undesirable
U.S. authority is vested in a High Commissioner, who is appointed
alternative.
by the President, by and with the advice and consent of the Senate.
OPERATIONS AND MAINTENANCE, $3,500,000
The High Commissioner's legislative authority was granted to the
(a) $3,000,000; fuel cost increases and operation and maintenance
Congress of Micronesia on the day of its first session in 1965, but the
High Commissioner retains veto power over measures passed by the
supplies
Congress.
These funds are required to cover unanticipated, and therefore un-
Since 1969, the United States and Micronesia have been negotiating
budgeted, cost increases for fuel and supplies. At the time the orig-
the future political status of the territory's six districts and termina-
inal trust territory budget was being prepared, there was no energy
tion of the trusteeship.
crisis, with its attendant skyrocketing fuel costs. Since then the price
of diesel fuel has increased 84 percent from 20 cents per gallon to 36.7
LEGISLATIVE HISTORY
cents. Gasoline is up 88 percent from 22 cents to 41.4 cents per gallon.
The cost of other oil products, such as lubricants, solvents, and greases,
Public Law 93-111, enacted in the first session of the 93d Congress,
has almost kept pace with fuel. The prices of incidental maintenance
currently authorizes the appropriation of $60 million for fiscal year
supplies have also increased sharply since the fiscal year 1975 budget
1975 for the government of the Trust Territory. Late in the second
was formulated.
session of the 93d Congress legislation was introduced and hearings
(b) $500,000; fuel and operating costs for inter-island ships
were held on the administration's request for increased funding au-
This is required for the sea transportation program, primarily to
thorization for the Trust Territory for fiscal years 1975 and 1976. At
cover increased costs for the operation of the trust territory's inter-
the hearing on September 25, 1974, the Department of the Interior
testified that the $15 million which was requested for fiscal year 1975
island ships. Of the total amount, $250,000 is required to support addi-
tional operating costs of the fleet resulting from the fuel price
was for capital improvement projects but could not provide the com-
increases noted above. Abnormally high drydocking costs required to
mittee with a comprehensive plan on the specific projects. The De-
partment was requested to provide a breakdown of the $15 million
keep these old ships in operation and price increases for supplies and
request. but responded too late for action prior to adjournment of the
equipment account for the remaining $250,000.
93d Congress.
YAP HOSPITAL, $1,484,000
Subsequently, members of the staff of the committee conducted an
investigation in the area and reported to the committee that there are
The present hospital, built around the old Japanese hospital, is
critical needs in the districts, especially for fuel and medical supplies.
badly deteriorated and clearly inadequate with no room for expansion.
The committee agrees that a portion of the requested supplemental
Good efforts by public health officials and other medical personnel have
authorization should be granted, but that a portion of the amount
convinced more and more Micronesians to use the hospital rather than
requested should be deferred pending further review of the manage-
rely on traditional "native" cures, thus taxing the present facility
ment of public works programs in the trust territory.
above its capabilities.
S. 326, which was introduced by Senator Jackson in the 94th Con-
A plan for a new hospital was completed in 1973 before rampant
gress, incorporates new authority for only $5,650,000. The critical
inflation. $4,245,000 in FY 1975 funds were appropriated for the proj-
needs for this amount are set forth below.
ect. The unanticipated escalation of the cost of construction materials
requires additional funding to now meet the basic plan.
NEED
The following are the budgetary items which the committee believes
DISPENSARY MATCHING FUNDS, $166,000
are critical to the basic welfare of the Trust Territory:
The only health facility available to about 60,000 people scattered
in remote villages and outer islands are dispensaries manned by a
S.R. 20
S.R. 20
4
5
health aide or nurse. There is a total requirements for 115 dispensaries
COST
of which 70 have been or are now under construction. This request
would provide matching funds which would enable the trust territory
As previously stated, S. 326, as amended, will add $5,650,000 to
to receive $1,500,000 under the Hill-Burton Act for 26 additional dis-
the amount of ($60 million) already authorized by Public Law 93-
pensaries. Half of the $1,500,000 will be lost to the trust territory if it
111 for the civil government of the Trust Territory of the Pacific
cannot be obligated prior to June 30, 1975.
Islands for fiscal year 1975 and authorizes $1,500,000 for the transi-
tion for the Mariana Islands district from the trust territory gov-
TOTAL AMOUNT OF ABOVE ITEMS $5,650,000
ernment to commonwealth status as a territory of the United States.
COMMITTEE AMENDMENTS
COMMITTEE RECOMMENDATION
An agreement which will lead to commonwealth status for the Mari-
A quorum of the Committee on Interior and Insular Affairs present
ana Islands district has been reached and was signed on February 15,
in open markup session on February 19, 1975, unanimously ordered
1975, by the United States and the Marianas. The committee amended
S.326, as amended, reported favorably to the Senate.
S. 326 by adding a new section 2 to authorize an appropriation of
$1,500,000 for a special program of transition in the Marianas which
CHANGES IN EXISTING LAW
will include, among other things, a constitutional convention, and ref-
erendum, a political status plebiscite, political education programs,
In compliance with subsection (4) of rule XXIX of the Standing
and economic, fiscal and physical planning studies. A breakdown of the
Rules of the Senate, changes in existing law made by the bill (S.
costs of this transition program is set forth below as follows:
326), as reported, are shown as follows (existing law proposed to be
omitted is enclosed in black brackets; new matter is printed in italic;
Economic and social planning :
Economic and social development planning
$225, 000
existing law in which no change is proposed is shown in roman) :
Fiscal and revenue planning
50, 000
Physical planning
225,000
ACT AS OF JUNE 30, 1954 (68 STAT. 330) AS AMENDED
Impact on relocation of capital
50,000
*
*
*
*
*
Subtotal
550, 000
SEC. 2. There are authorized to be appropriated not to exceed
Administration (2 years) :
$25,000,000 for fiscal year 1967, [and for each of the fiscal years 1974
Joint Commission
40, 000
and 1975, $60,000,000] for fiscal year 1975, $65,650,000 plus such
Secretariat
460, 000
sums as are necessary, but not to exceed $10,000,000, for each of such
Contingencies
50, 000
fiscal years, to offset reductions in, or the termination of, Federal
Subtotal
550, 000
grant-in-aid programs or other funds made available to the Trust
Territory of the Pacific Islands by other Federal agencies to remain
Schedule transition steps:
available until expended, to carry out the provisions of this Act and
Political status education program and status plebiscite
50, 000
Constitutional convention
75,000
to provide for a program of necessary capital improvements and
Constitutional education program and constitutional referendum
50, 000
public works related to health, education, utilities, highways, trans-
Election of new government
25,000
portation facilities, communications, and public buildings: Provided,
That except for funds appropriated for the activities of the Peace
Subtotal
200, 000
Corps no funds appropriated by any Act shall be used for admin-
Research and Planning
istration of the Trust Territory of the Pacific Islands except as may
Studies and Planning Constitutional convention
50,000
be specifically authorized by law.
Research and Planning Government reorganization
50,000
Initial Legislative Program
50,000
Research U.S. Federal programs and services
50,000
Subtotal
200,000
Grand total
1,500,000
While the committee is aware that the need for these funds will be
urgent if the agreement is implemented, it wishes to emphasize the fact
that adoption of this amendment is not intended in any way to affect
the ultimate decision which has to be made by the Congress of the
United States with respect to this agreement. The committee, there-
fore, provided that the authorized sum may not be expended until the
Congress has approved the agreement.
S.R. 20
S.R. 20
94TH CONGRESS
HOUSE OF REPRESENTATIVES
REPORT
1st Session
No. 94-188
AMENDING SECTION 2 OF THE ACT OF JUNE 30, 1954, AS AMENDED,
PROVIDING FOR THE CONTINUANCE OF CIVIL GOVERNMENT FOR
THE TRUST TERRITORY OF THE PACIFIC ISLANDS
MAY 1, 1975.-Ordered to be printed
Mr. HALEY, from the Committee on Interior and Insular Affairs,
submitted the following
REPORT
[To accompany S. 326]
The Committee on Interior and Insular Affairs, to whom was re-
ferred the bill (S. 326). To amend section 2 of the Act of June 30,
1954, as amended, providing for the continuance of civil government
for the Trust Territory of the Pacific Islands, having considered the
same, report favorably thereon with an amendment and recommend
that the bill, as amended, do pass.
The amendment is as follows:
Page 1, line 7, strike out "$65,650,000:"." and insert "$75,000,000'."
PURPOSE
The purpose of S. 326, as reported by the Committee on Interior and
Insular Affairs, is to increase the authorization ceiling for fiscal year
1975 for the activities of the civil government of the Trust Territory
of the Pacific Islands from $60,000,000 to $75,000,000, and to authorize
the appropriation of $1,500,000 to fund the transition of the Mariana
Islands District from the Trust Territory of the Pacific Islands to a
new commonwealth status as a territory of the United States if such
new status is approved by Congress.
Bills were also introduced by Mr. Phillip Burton (H.R. 5192 and
H.R. 5343), and by Mr. Sam Steiger (H.R. 5215). No action was taken
at this time because, in addition to the provisions of S. 326, these bills
provided for budget authorizations for fiscal years 1976 and 1977.
BACKGROUND
In an executive communication to the Speaker, dated February 26,
1975, which is included in this report, the Department of the Interior
recommended the enactment of the legislation described above, except
38-006
2
3
that the proposal provided that the $1,500,000 for the Mariana Islands
ing the availability of funds for the Marianas transition until Con-
transition period could be obligated and expended at the time final
gress has approved the Covenant to establish a Commonwealth of the
agreement between the Marianas Political Status Commission and the
Northern Mariana Islands is retained.
United States had been signed.
The Senate approved S. 326, which provides for an increase in the
COST AND BUDGET ACT COMPLIANCE
fiscal year 1975 authorization of $5,650,000, in place of $15,000,000 re-
quested by the Department of the Interior. Also, S. 326 establishes the
Enactment of the bill will increase the fiscal year 1975 authorization
date of Congressional approval of the Marianas Covenant as the time
ceiling by $15,000,000, and a one-time authorization of $1,500,000 is
at which funds to aid the Mariana Islands in the transition period
provided for.
will become available for obligation and expenditure, in place of the
This authorization covers only fiscal year 1975 and projection for
earlier time of the signing of the Covenant by the United States and
future years, including the five subsequent fiscal years, will probably
the Northern Mariana Islands. Under the Departmental proposal, the
be in the same range; however, in any event, the Congress will have
funds would have been immediately available upon authorization and
an opportunity to consider those funding levels at a later time.
appropriation, because the Covenant was signed on February 15, 1975.
INFLATIONARY IMPACT
NEED
The expenditures authorized in S. 326 involve necessary govern-
The increase of $15,000,000 in the ceiling authorization of the
mental activities and programs in remote areas. It is the sense of the
Trust Territory government is needed for the purposes listed below.
Committee that these outlays will not result in any significant infla-
Such needs are caused by the extreme impact of inflation on the cost
tionary impact.
of supplies and fuel, and by the prolonged deferral of needs such as
OVERSIGHT STATEMENT
adequate inter-island ships, hospitals, etc.
1. $500,000; Medical Supplies.
Pursuant to Rule X, clause 2(b) (1) the Subcommittee on Terri-
2. $2,555,000; Operations and maintenance (primarily increased fuel
torial and Insular Affairs continues to exercise oversight responsibili-
costs).
ties in connection with territorial legislation. No recommendations
3. $8,000,000; New inter-island ships.
were submitted to the Committee pursuant to Rule X, clause (b) (2).
4. $1,484,000; Hospital for Yap District.
5. $166,000; Matching funds for dispensary construction.
COMMITTEE RECOMMENDATION
6. $150,000; Comprehensive developmental planning study.
The Committee on Interior and Insular Affairs recommends, by
7. $200,000; Architectural engineering revolving fund.
voice vote, the enactment of S. 326, as amended.
8. $945,000; Fiscal year 1974 deficit caused by need to advance funds
to Transpace receiver to continue operations.
EXECUTIVE RECOMMENDATION
Also, the proposed legislation relates to the negotiations between
the United States and the Marianas Political Status Commission
The Executive Communication from the Department of the Inte-
which will lead to a new Commonwealth status as a territory of the
rior recommending this legislation follows:
United States for the Marianas Islands District. The U.S. Congress
has final approval authority over these negotiations. Section 2 would
U.S. DEPARTMENT OF THE INTERIOR,
authorize the appropriation of $1,500,000 for a special program of
OFFICE OF THE SECRETARY,
transition in the Marianas which will include, among other things, a
Washington, D.C., February 26, 1975.
constitutional convention and referendum, a political status plebiscite,
Hon. CARL B. ALBERT,
political education programs and economic, fiscal and physical plan-
Speaker of the House of Representatives,
ning studies. The need for these funds is quite urgent since the transi-
Washington, D.C.
tion period is scheduled to begin as soon as the political status agree-
DEAR MR. SPEAKER: Enclosed is a proposed bill to amend section 2
ment is acted upon by the U.S. Congress, if such action is favorable.
of the Act of June 30, 1954, as amended, providing for the continuance
of civil government for the Trust Territory of the Pacific Islands.
COMMITTEE AMENDMENT
Late in the 93rd Congress legislation was introduced and hearings
were held on the Administration's proposal to authorize appropria-
The Committee on Interior and Insular ffairs recommends the ap-
tions for the continuance of the civil government of the Trust Terri-
proval of S. 326 by the House of Representatives with an amendment
tory for fiscal year 1975 and 1976. The reason for the two year proposal
deleting the amount "$65,650,000" and inserting in lieu thereof $75,-
was that it would coincide with Stage I of the transition of Micronesia
000,000", thus bringing the authorization up to the ceiling requested
to a new political status. Since that legislation was introduced, nego-
by the Department of the Interior. The Senate provision for delay-
H.R. 188
H.R. 188
4
5
tiations with the Congress of Micronesia's Joint Committee on Future
square miles of ocean. The proposed program will reflect a policy of
Status have experienced some delay. It now appears that Stage I of
holding down the cost of governmental operations in order that maxi-
the transition will also include fiscal year 1977. The attached Depart-
mum funding may be devoted to important capital improvement proj-
mental proposal has been amended to reflect that change in schedule
ects. The on-going Trust Territory Government program of replacing
by including fiscal year 1977. In addition, authorizations have been
U.S. personnel with qualified Micronesians will remain an integral
included for the transition quarter between fiscal year 1976 and fiscal
part of policy in Micronesia. Future requests for appropriations will
year 1977. This transition quarter will cover July 1, 1976 through
also seek to continue the fledgling program for education in self-
September 30, 1976. We recommend new consideration of the proposed
government and on-going programs in the fields of health and edu-
bill and strongly urge that it be enacted.
cation. In addition, we look for improvement in communications and
Public Law 93-111 currently authorizes the appropriation of $60
transportation among the 2,100 islands of Micronesia.
million for fiscal year 1975. Our proposed bill would authorize a total
The bill provides an authorization of $80,000,000 for 1976,
annual appropriation of $75 million for fiscal year 1975, and the 1975
$15,100,000 for the transition quarter and $79,000,000 for 1977 plus
constant dollar equivalent of $80 million for 1976, $15.1 million for
or minus such amounts as will offset changes in the purchasing power
the transition quarter and $79 million for 1977. Section 2 of our pro-
of the U.S. dollar measured by the Gross National Product Implicit
posed bill would authorize $1.5 million for a special program to aid
Price Deflator. This last provision is necessary for implementing an
transition of the Mariana Islands District to a new commonwealth
agreement reached in the negotiations. The selection of the GNP Im-
status as a territory of the United States.
plicit Price Deflator as the appropriate index is based on the need to
The Trust Territory of the Pacific Islands is administered by the
have as broad and objective an indicator as possible of the changes
United States pursuant to a strategic trusteeship agreement concluded
in the purchasing power of the U.S. dollar.
in 1947 with the Security Council of the United Nations. Governmen-
Our proposal for an expended authorization would make unneces-
tal responsibilities are carried out through a territorial government
sary the existing authorization of $10,000,000 for terminated categori-
which has executive and judicial branches, and a bicameral legislative
cal grant programs past its present expiration date at the end of fiscal
body composed entirely of Micronesians.
year 1975. We note that in fiscal year 1975 only $700,000 were appro-
Under the trusteeship agreement, the United States is charged with
priated to cover such terminated grants.
the promotion of political, social, educational, and economic develop-
Section 2 of the proposed legislation relates to the negotiations
ment. Beginning in 1964, with the establishment of the Congress of
between the United States and the Marianas Political Status Com-
Micronesia, political development in the Trust Territory has been
mission which will lead to a new Commonwealth status as a territory
rapid and, by most accounts, effective. Indeed, the United States has
of the United States for the Marianas Islands District. The U.S. Con-
been engaged since 1969 in continuing negotiations with the Micro-
gress has final approval authority over these negotiations. Section 2
nesians to determine new political relationships for the area. One major
would authorize the appropriation of $1,500,000 for a special program
topic of the negotiations is the future financial assistance by the United
of transition in the Marianas which will include, among other things,
States to Micronesia.
a constitutional convention and referendum, a political status plebi-
The bulk of the increased annual authorization would be devoted
scite, political education programs and economic, fiscal and physical
to the Department's accelerated capital improvement program which
planning studies. The need for these funds is quite urgent since the
the Secretary of the Interior announced in a January 1974 speech to
agreement was signed on February 15, 1975. The transition period is
the people of Micronesia. The accelerated capital improvements pro-
scheduled to begin as soon as the political status agreement is ap-
gram has been agreed to because, despite a great expansioin of Micro-
proved by the people of the Northern Marianas in a plebiscite tenta-
nesia's capital plant over the past six years, much remains to be done.
tively scheduled for June 1975.
The accelerated program is designed for construction of such rudi-
The proposed increases in authorization are endorsed by Ambas-
mentary physical infrastructure as will be necessary for a sound and
sador Franklin Haydn Williams, the President's Personal Representa-
self-sufficient economy. To the extent possible, we would like to have
tive for Micronesian Status Negotiations. The proposal in section 1 is
this physical infrastructure in place within the next few years before
deemed vital to our negotiating efforts since it reflects the tentative
the trusteeship gives way to a new political status for Micronesia in
agreements reached with the Congress of Micronesia's Joint Commit-
order to make economic self-sufficiency a more feasible goal when the
tee on Future Status at Carmel, California, in March 1974. Section 2
trusteeship ends.
supports the agreement on a Marianas transition program reached in
This policy dovetails with concern over the economy expressed by
Saipan in May 1974 during the Fourth round of Marianas political
members of the Congress of Micronesia who cite roads, airports, and
status negotiations.
shipping facilities as high priority items. Construction or improvement
The Office of Management and Budget has advised that the presenta-
of these and other facilities is vitalto education, health, commerce, and
tion of this proposed legislation is in accord with the program of the
even the most simple operations of government and private enterprise
President.
in the, Trust Territory. Their importance is underlined by the fact
Sincerely yours,
that Micronesia's 115,000 population is scattered across 3,000,000
ROYSTON C. HUGHES,
Assistant Secretary of the Interior.
Enclosure.
H.R. 188
H.R. 188
6
A BILL To amend section 2 of the Act of June 30, 1954, as amended
providing for the continuance of civil government for the Trust
Territory of the Pacific Islands.
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled, That
section 2 of the Act of June 30, 1954 (68 Stat. 330), as
amended, is amended by deleting "and for each of the fiscal
years 1974 and 1975, $60,000,000" and inserting in lieu thereof
the following: "for fiscal year 1975, $75,000,000; and for fiscal
year 1976, $80,000,000; for the period beginning July 1, 1976
and ending September 30, 1976, $15,100,000; and for fiscal
year 1977, $79,000,000 which amounts for each fiscal year or
other period shall be adjusted upward or downward, in the
budget transmitted to the Congress for the next succeeding
fiscal year, to offset changes in the purchasing power of the
United States dollar by multiplying such amounts by the
Gross National Product Implicit Price Deflator for the third
quarter of the calendar year preceding the fiscal year or other
period for which the appropriations are made and dividing
the esulting product by the Gross National Product Implicit
Price Deflator for the third quarter of the calendar year 1974.
SEC. 2. There is authorized to be appropriated $1,500,000
to aid in the transition of the Mariana Islands District to a
new Commonwealth status as a territory of the United States;
Provided however, That no part of such sum may be obligated
or expended until final agreement between the Marianas Polit-
ical Status Commission and the United States has been signed.
CHANGES IN EXISTING LAW
In compliance with clause 8 of rule XIII of the Rules of the House
of Representatives, changes in existing law made by the bill, as re-
ported, are shown as follows (existing law proposed to be omitted is
enclosed in black brackets, new matter is printed in italic, existing law
in which no change is proposed is shown in roman) :
ACT OF JUNE 30, 1954 (68 STAT. 330) AS AMENDED
*
*
*
*
*
SEC. 2. There are authorized to be appropriated not to exceed $25,-
000,000 for fiscal year 1967, [and for each of the fiscal years 1974 and
1975, $60,000,000] for fiscal year 1975, $75,000,000 plus such sums as
are necessary, but not to exceed $10,000,000, for each of such fiscal
years, to offset reductions in, or the termination of, Federal grant-in-
aid programs or other funds made available to the Trust Territory of
the Pacific Islands by other Federal agencies to remain available until
expended, to carry out the provisions of this Act and to provide for a
program of necessary capital improvements and public works related
to health, education, utilities, highways, transportation facilities, com-
munications, and public buildings: Provided, That except for funds
appropriated for the activities of the Peace Corps no funds appro-
priated by any Act shall be used for administration of the Trust
Territory of the Pacific Islands except as may be specifically author-
ized by law.
H.R. 188
S. 326
Ainety-fourth Congress of the United States of America
AT THE FIRST SESSION
Begun and held at the City of Washington on Tuesday, the fourteenth day of January,
one thousand nine hundred and seventy-five
An Act
To amend section 2 of the Act of June 30, 1954, as amended, providing for the
continuance of civil government for the Trust Territory of the Pacific Islands.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, That section 2 of the
Act of June 30, 1954 (68 Stat. 330), as amended, is amended by deleting
"and for each of the fiscal years 1974 and 1975, $60,000,000" and insert-
ing in lieu thereof the following: "for fiscal year 1975, $75,000,000".
SEC. 2. There is authorized to be appropriated $1,500,000 to aid in
the transition of the Mariana Islands District to a new Commonwealth
status as a territory of the United States: Provided, however, That no
part of such sum may be obligated or expended until final agreement
between Marianas Political Status Commission and the United States
has been approved by the Congress.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.
May 19, 1975
Dear Mr. Director:
The following bills were received at the White
House on May 19th:
H.R. 6894
S. 326
Please let the President have reports and
recommendations as to the approval of these bills
as soon as possible.
Sincerely,
Robert D. Linder
Chief Executive Clerk
The Honorable James T. Lynn
Director
Office of Management and Budget
Washington, D.C.