STATEMENT OF HARRISON LOESCH, ASSISTANT SECRETARY OF THE INTERIOR FOR PUBLIC LAND MANAGEMENT, AT ORIENTATION BRIEFINGS PERTAINING TO TERRITORIAL AFFAIRS BEFORE THE SUBCOMMITTEE ON TERRITORIAL AND INSULAR AFFAIRS OF THE HOUSE OF REPRESENTATIVES, ON APRIL 20, 1971

Mr. LOESCH. Thank you, Mr. Chairman. I do have a formal statement, and I am pleased to have with me, of course, Mrs. Farrington, our Director of the Office of Territories, who has a statement.

It is my understanding that the committee at this session would probably prefer to zero in on specific questions, certainly immediately after the formal statement; and I hope that we are prepared to answer such questions as the committee may have. But perhaps it would be well to review a little, with my formal statement, the background of our responsibilities.

I am pleased to be here to present this statement, addressed to my relationship and the Office of Territories relationship with the affairs of the several territories and with the Trust Territory of the Pacific Islands-which are of concern to your committee.

I don't know if we have any new members of the committee here today. To review briefly, the relationship stems from Article IV, Section 3 of the Constitution of the United States, which vests in the Congress plenary authority with respect to the territories.

The Interior and Insular Affairs Committees of both Houses have provided the basic territorial legislation for implementation by the executive branch. And, I should add, for implementation by the territories themselves.

Over the years, such legislation has taken a number of forms which have resulted in a variety of kinds and degrees of political status. These, in the past, as a definitive solution, have included independence, for instance, the Philippines; commonwealth, Puerto Rico; and and statehood, Alaska and Hawaii. I might amend this statement to the extent that the possibility of statehood in Puerto Rico is always a lively issue.

In the past, the U.S. Congress, in finally reaching definitive status for its former territories, has dealt with each of them on an individual basis, making provision for each according to its needs and the desires of its peoples. This policy usually was the end result of ever-increasing statutory authority for the territories to run their affairs to the fullest extent possible, with a minimum of supervision at the Federal level. This Department has also fostered that program and is now so doing in dealing with the affairs of the four territorial governments with which we are still concerned. At this time, the American territories of Guam and the Virgin Islands are organized territories, while American Samoa is not an organized territory. An organized territory is one for which the Congress has provided an organic act which may be analogized to that of a State constitution.

The Trust Territory is not an American territory. I would like to emphasize that, because the way it is treated both by us and elsewhere. Sometimes, it seems to me that a good segment of our population is in error in its thinking about the Trust Territory. It is, of

course, an area that the United States administers under the provisions of a trusteeship agreement with the United Nations.

Recently, Guam and the Virgin Islands, which have tended to move in tandem in recent years insofar as their political development is concerned, had the privilege of installing their own elected governors. At the instant of that installation, the authority and responsibility of the Secretary of the Interior to exercise general supervision over the governors and governments of their respective territories, ceased.

So it might be said that our relations with the everyday overall governmental affairs of these two territories have become much less direct. I must temper this statement, however, because at the same time that the Congress permitted the respective territorial populaces to elect their own governor, it provided, for each of the territories, a Federal Comptroller, whose primary functions are, first, to audit the accounts of the territories; second, to indicate deficiencies and irregularities; and third, to make recommendations for improvements in governmental administration. These Federal Comptrollers are under the general supervision of the Secretary of the Interior, and it is mainly by this means that we work as closely as possible with the territorial governments to make their operations more efficient.

In American Samoa and in the Trust Territory, our responsibility is more direct, and consequently a great deal more of our activity is geared towards furthering the progress of those areas.

As to American Samoa, we review its budgetary requirements through the regular appropriation process, based on authorizing legislation provided by the Congress a number of years ago. The emphasis, in the past few years in the territory, has been on improving the educational and health levels of the Samoans and in providing the kind of basic infrastructure, public facilities, roads, water, sewers, power, which we on the mainland know is a prime requirement if an economy is to develop. This emphasis will continue for the next few years.

Politically, the Samoans, who incidentally are American nationals, are progressing, and recently we authorized the legislature to operate on a full-time basis. We did this by amendments to the Samoan Constitution which was developed by the Samoan people and approved by the Secretary of the Interior.

Now, I might add at this point, that the Samoan legislature has also appointed a representative to represent it and the Samoan people here in Washington, and he is presently taking up residence, Chief Fuimaono whom you might have met.

Similarly, the emphasis in the Trust Territory has been one of providing the basic infrastructure to enable the peoples there to reach a living standard more in accord with modern life, and again to provide that physical environment which must necessarily be available in order to further economic development.

Members of this committee were briefed last year by me on the series of discussions we have had with the Political Status Delegation of the Congress of Micronesia. We expect continuation of these discussions, and of importance is the appointment of a personal representative by the President of the United States, Dr. Franklin Hay

dn Williams, to lead the negotiations in the future. He will work closely with the Secretary of the Interior as we move along in this area. I should add that he will also work through the Under Secretaries Committee, and at present, there is no plan to change the general chain of command under which we have been operating.

I look forward with enthusiasm to working with you on territorial matters. The history of this committee in those matters is an outstanding one. You may be assured of my fullest and most enthusiastic cooperation, and that of the Director of the Office of Territories, Mrs. Elizabeth Farrington, who also has a statement to make, if the committee desires it at this time.

Mr. BURTON. Mrs. Farrington.

STATEMENT OF ELIZABETH P. FARRINGTON, DIRECTOR, OFFICE OF TERRITORIES, AT A BRIEFING ON ACTIVITIES OF THE OFFICE OF TERRITORIES BEFORE THE HOUSE TERRITORIAL AND INSULAR AFFAIRS COMMITTEE

Mrs. FARRINGTON. Mr. Chairman and members of the committee. It is a pleasure to once again have the opportunity to appear before this distinguished committee and to brief the committee on developments in the territories since our last session in April of 1969.

I would like to thank the committee first for the cooperation it has offered us during the past 2 years. This cooperation has been offered on a nonpartisan basis. I am confident that I can look forward to the same cooperation, as well as call upon you for your advice in this vital area of territorial matters.

Our program of action for the territories has been, and will be, designed to accelerate the political, economic and social welfare of the islands.

I would now like to discuss the progress which has been made during the last 2 years. In regard to Guam and the Virgin Islands, I believe great progress has been made and will continue.

In January of this year, both Guam and the Virgin Islands inaugurated their first elected Governors. Both of these elections were hard fought, and more than 80 percent of the qualified voters participated in these elections.

In view of the political maturity reflected in the past elections of these territories, I believe that there is an excellent chance that this Congress will act favorably on a nonvoting delegate bill for both Guam and the Virgin Islands.

Because of the advent of the elected Governors in these territories, and the movement towards greater autonomy in Guam and the Virgin Islands, we are currently re-examining the relationship of the Department of the Interior with these territories. In the Virgin Islands, one of our main interests in the near future will be in working with the current Virgin Islands administration through the Federal Comptroller, toward better fiscal management and more effective use of the fiscal resources available.

From the Federal standpoint, we are interested in ascertaining whether, through appropriate efforts at a local level, local revenues

may be increased, thereby allowing in the future a reduction in the reliance on a Federal contribution through the matching funds. Currently, there is no direct appropriation of money for the Virgin Islands.

In Guam, we are also working with the Government and the Federal Comptroller to improve fiscal management and promote greater efficiency in Government, to better meet the demands of the time. Through the Guam Rehabilitation Act, we are continuing to promote the economic development of the islands, by helping Guam to build the necessary infrastructure in the form of adequate schools, health facilities, water and sewer systems, and sea and air transport facilities. To accomplish these goals, we have requested, under the Guam Rehabilitation Act, $9.6 million for fiscal year 1972. This will be an increase of approximately $1 million over the current year.

In the Trust Territory, High Commissioner Edward E. Johnston is continuing to push the building of the required infrastructure so that modern amenities of life can be accorded to the Micronesians, and also to provide the basic structure by which economic development can progress.

Through the generosity of this committee and its counterpart in the Senate, the Congress authorized a raise in the ceiling authorization through fiscal year 1973 from $50 million to $60 million. As a result, we are able to provide greater moneys for capital improvements than in the past. This building program is just now becoming visible, and I expect will become even more so within the next 2 or 3 years, when the new hospitals, water and sewer systems, school buildings, and other public facilities now being built, are completed. One of the most promising developments in the Trust Territory is the Micronesian Occupational Center in Palau, where 500 students are expected this coming September to learn the useful skills so badly needed in the Trust Territory.

Having just returned from American Samoa, I can attest to the fact that, under the dynamic leadership of Governor John M. Haydon, American Samoa also is progressing with primary emphasis on the building of the infrastructure, including roads, and water and sewer systems. In order to accomplish these objectives, we have proposed a program in fiscal year 1972 for American Samoa of $11.2 million, which is an increase of $3 million over the current year. We are also striving to supplement the basic commercial enterprises of the tuna processing and canning industries there. In this regard, the Bulova Watch Company has just been awarded a quota for watch manufacture. This enterprise will develop skills in watch assembly techniques. In addition, other commercial enterprises are being encouraged.

Mr. Chairman, this concludes my statement, with the exception of a couple of pages here which I would like to have entered in the record as part of it. It is a recitation of certain physical and geographic characteristics of each of the territories that I thought the committee members might be interested in, and I didn't want to take your time reading it.

Mr. BURTON. Without objection, the material will be included in the record at this point.

(The information referred to follows:)

U.S. DEPARTMENT OF THE INTERIOR, OFFICE OF TERBITORIES

Major Areas of Responsibility

AMERICAN SAMOA

American Samoa is an unincorporated and unorganized territory of the United States administered by the Department of the Interior. It is the most southerly of all lands under United States sovereignty. It comprises the eastern islands of the Samoan group, approximately 2,300 miles southwest of Hawaii, and 1,600 miles northeast of the northern tip of New Zealand. There are seven islands in the group, with a total area of 76.2 square miles. They include the principal island of Tutuila, Aunuu, the three islands of the Manua group, Swains Island, and Rose Island. American Samoa was acquired by the United States pursuant to the Tripartite Treaty of 1899 between the United States, the United Kingdom and Germany. This was followed by the cession of the island of Tutuila in 1900 and the islands of the Manua group in 1904. Swains Island, 210 miles to the north-northwest, was ceded to the U.S. in 1925 and is administered as an integral part of American Samoa. Samoa has a bicameral legislature. The 18 members of the Senate are elected by the traditional chiefs of the county councils, in accordance with Samoan custom. The 20 members of the House of Representatives are popularly elected. The Governor is appointed by the Secretary of the Interior. The Samoans are United States nationals. Population, 27,769 (1970 Census est.).

GUAM

Guam is an organized, unincorporated territory of the United States, located in the southermost of a chain of volcanic islands in the western Pacific known as the Mariana Islands. Guam lies about 6,000 miles southwest of San Franciso and 1,500 miles southeast of Manila. It is the largest and most populous of the Marinas, 30 miles long and varying from 4 to 8 miles in width. Guam was ceded to the United States by Spain under the Treaty of Paris of December 10, 1898, following the Spanish-American War. During World War II the island was occupied by Japan, from late 1941 until its liberation by Americanforces in mid-1944. Its government is established under the Organic Act of August 1, 1950, which also granted U.S. citizenship to the Guamanian people. Guam has a 21-member unicameral legislature popularly elected. The Governor of Guam is popularly elected. Population, 86,926 (1970 Census est.).

VIRGIN ISLANDS OF THE UNITED STATES

The United States Virgin Islands is an organized, unincorporated territory administered by the Department of the Interior. The islands are part of that curving chain of the Greater and Lesser Antilles separating the Caribbean Sea and the Atlantic Ocean. Of the more than 50 islands and cays making up the American Virgin Islands, only three have any size or population of significance -St. Thomas, St. Croix, and St. John. Most of the other islands are uninhabited and uninhabitable. The Virgin Islands were purchased from Denmark in 1917 for a payment of $25 million. United States citizenship was granted in 1927. A unicameral legislature of 15 senators is elected by the people every two years. The Governor of the Virgin Islands is popularly elected. Population 63,200 (1970 Census est.).

TRUST TERRITORY OF THE PACIFIC ISLANDS

Micronesia, "land of small islands," aptly describes the Trust Territory of the Pacific Islands. Embracing the Marshalls, Carolines, and the Marianas (except Guam which is a U.S. territory), the Trust Territory includes more than 2,000 islands (approximately 100 inhabited) covering less than 700 square miles of land, set in some 3.000,000 square miles of ocean. The Philippine Islands lie to the west, only 500 miles distant at one point; to the east of Hawaii, some 1,800 nautical miles from the Marshalls' eastern border. The Trust Territory, under Japanese mandate from the League of Nations before World War II, is administered by the United States under a trusteeship agreement with the United Nations Security Council, approved July 18, 1947. The headquarters of the Government are in Saipan. There are six administration districts-Saipan, Mariana Islands; Palau, Western Caroline Islands; Truk, East