PUBLIC HEARING ON H.R. 6129 AND H.R. 6378 TO AMEND SECTION 2 OF THE ACT OF JUNE 30, 1954

THURSDAY, APRIL 12, 1973

HOUSE OF REPRESENTATIVES,

SUBCOMMITTEE ON TERRITORIAL AND INSULAR AFFAIRS, COMMITTEE ON INTERIOR AND INSULAR AFFAIRS, Washington, D.C. The subcommittee met, pursuant to notice, at 10 p.m., in room 1302, Longworth House Office Building, the Honorable Phillip Burton (chairman of the subcommittee) presiding.

Mr. BURTON. We will call the subcommittee to order. I would like to personally welcome our friends and colleagues from Micronesia. As I hope you know, this particular subcommittee considers itself, right or wrongly, as a friendly group. We will do our best to be of help to the Micronesian people in these rather interesting days.

I am going to first call Mr. Carpenter to testify with respect to H.R. 6129.

Mr. Carpenter, do you want to come up? It is good to have you with us again today.

Mr. BURTON. At this point I would like to have the bills H.R. 6129 and H.R. 6378 placed in the record.

[H.R. 6129 and H.R. 6378 follow:]

[H.R. 6129, 93d Cong., 1st sess.]

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 "for each of the fiscal years 1971, 1972, and 1973, $60,000,000", and inserting in lieu thereof the following: "such sums as may be necessary".

[H.R. 6378, 93d Cong., 1st sess.]

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 "for each of the fiscal years 1971, 1972, and 1973, $60,000,000", and inserting in lieu thereof the following: "such sums as may be necessary".

Mr. BURTON. Before you start your testimony, would you like to do the honors and introduce our friends?

Mr. CARPENTER. Yes; I'd like to do that.

May I first introduce the High Commissioner, Mr. Johnston; and then we have three congressmen from the Congress of Micronesia, Congressman Ray Setik, who is chairman of the Joint Committee on Program and Budget Planning; Senator Pangelinan, member of the Joint Committee on Program and Budget Planning; and Congressman Endy Dois.

We also have Mr. Frank Ada, who is the District Administrator of the Marianas Islands.

STATEMENT OF HON. STANLEY S. CARPENTER, DEPUTY ASSISTANT SECRETARY FOR TERRITORIAL AFFAIRS, DEPARTMENT OF THE INTERIOR

Mr. CARPENTER. Mr. Chairman, it's a pleasure to appear before the subcommittee this morning, and I appreciate the opportunity in support of identical bills, H.R. 6129 and H.R. 6378, and recommend enactment of this legislation by the Congress.

Public Law 91-578 currently authorizes the appropriation of $60 million for fiscal years 1971, '72, and '73, but it makes no provision for funds for the civil government of the trust territory beyond fiscal year 1973. The proposed bills would authorize the appropriation of such sums as may be necessary for the civil government of the trust territory.

The Trust Territory of the Pacific Islands is administered by the United States pursuant to a strategic trusteeship agreement concluded in 1947 with the Security Council of the United Nations. Under this agreement, the United States is charged with the promotion of political, social, educational and economic development.

The trust territory was originally under the administration of the Secretary of the Navy, but in 1951, the administrative responsibility was transferred to the Secretary of the Interior.

By secretarial order, there has been established a territorial government which generally follows the American separation-of-powers model: Executive authority is vested in a High Commissioner appointed by the President and confirmed by the Senate; the bicameral Congress of Micronesia is elected by the citizens of the trust territory and is vested with comprehensive legislative authority; and the judicial authority rests in the High Court whose three justices are appointed by the Secretary of the Interior.

Substantial strides have been made in the development of political institutions of which the establishment in 1964 of the territorial legislative body, the Congress of Micronesia, has been the most notable step.

Educational progress also has been substantial, and universal education through the 12th grade has been established as an attainable goal. Utilization of the area's limited natural resources has lagged until recently although tourism and the utilization of the resources of the surrounding seas present immediate opportunities for gainful employment and income.

The trust territory government has made substantial progress in recent years in developing and implementing a coordinated program, which is normally projected 5 years in advance. The complexity of the current political situation with respect to Micronesia, however,

makes it difficult to predict with certainty the needs for that long a period into the future. We are recommending, therefore, an appropriation authorization not restricted as to either an annual amount or for a single year.

While the 1974 budget includes an appropriation of $56 million for the trust territory, we do not foresee this amount as necessarily an indication of appropriation levels for future years, since the outcome of the present negotiations on the future political status of the area is so uncertain.

Even with the status negotiations continuing, however, it seems clear that appropriations for the civil government of the trust territory are likely to continue for some period beyond fiscal 1974. Accordingly, we believe it is desirable not to limit the amount or period of years for which appropriations are authorized for maintaining the civil govern

ment.

The U.S. Government has for over 3 years been negotiating with a delegation of the Congress of Micronesia towards a mutually beneficial form of association. We have come a long way in developing with that Congress the basis of a compact of free association under which Micronesia would be internally self-governing and the United States would be responsible for the foreign affairs and defense of Micronesia. Other areas of the relationship have yet to be resolved, but future negotiations are expected to outline in greater detail the framework of the obligations and commitments between the United States and Micronesia.

It should be noted also that separate negotiations have been initiated with, and at the request of, the people of the Mariana Islands District, looking toward their desired goal of a close association with the United States, separate from the rest of Micronesia. Moreover, it is possible that an agreement on an association of the Mariana Islands with the United States may develop rather quickly.

The High Commissioner will speak in greater detail to notable aspects of the trust territory program for FY 1974 and subsequent years. Basically, the fiscal year 1974 program reflects a policy of holding increasing costs of operations to a minimum in order that maximum amounts may be made available for needed capital improvements.

Additional staffing will also be held to a minimum but consistent with the need to insure the operation of new facilities. The replacement of United States personnel by qualified Micronesians characterizes many programs during this program, and emphasis will continue to be directed toward the development of a physical infrastructure.

Mr. Chairman, I will be pleased to answer any questions which members of the committee may have.

Mr. BURTON. Thank you, Mr. Carpenter.

It occurs to me it may be useful to have the High Commissioner join you at the table.

So, Mr. Johnston, could you please come forward also?

We would like to welcome the High Commissioner. Do you have a statement for us, Mr. Johnston? If so, would you please give it to us? Mr. JOHNSTON. Thank you, Mr. Chairman.

If I may, Mr. Chairman, in the interest of time, a few of the section

Mr. BURTON. You may read it in full.

Mr. JOHNSTON. All right, sir.

STATEMENT OF HON. EDWARD E. JOHNSTON, HIGH COMMISSIONER OF THE TRUST TERRITORY, ACCOMPANIED BY MR. WILLIAM OYLER, PROGRAM AND BUDGET OFFICER FOR THE TRUST TERRITORY

Mr. JOHNSTON. We are pleased to appear today in support of H.R. 6129 and H.R. 6378, identical bills providing for continuance of civil government for the Trust Territory of the Pacific Islands and authorizing appropriation of such sums as may be necessary for that purpose. Our current authorization of $60 million, which has been in effect since fiscal year 1971, expires June 30, 1973.

The Trust Territory of the Pacific Islands includes the Northern Mariana Islands, the Eastern, and Western Carolina Islands, and the Marshall Islands. There is a total of 2,141 islands. Although they are scattered over 3 million square miles in the Western Pacific Ocean, they have but 700 square miles of land. An estimated population of 107,000 inhabits 97 of the islands. The territory is divided for administrative purposes in six districts, each of which exhibits notable cultural and linguistic differences.

The responsibilities and mission of the United States in Micronesia are set forth in the July 18, 1947, Trusteeship Agreement between the United States and the United Nations Security Council. The obligations assumed under that agreement require the United States to promote the economic, social, political, health, and educational development of Micronesia toward self-government.

Executive Order 11021 of May 8, 1962, vested executive, legislative, and judicial authority for the administration of civil government in the Secretary of the Interior. Secretarial Order No. 2918 of December 27, 1968, as amended, delimits the extent and nature of the authority of the government of the trust territory and prescribes the manner in which the relationships of that government shall be established and maintained with the Congress of the United States, the Department of the Interior and other Federal agencies, and with foreign governments and international bodies.

Following the U.S. separation-of-powers model, executive authority is vested in a High Commissioner appointed by the President. A bicameral Congress of Micronesia exercises legislative authority. Judicial authority rests in a high court whose three justices are appointed by the Secretary of the Interior. District administrators, appointed by the High Commissioner, are responsible for territorial affairs, including execution of laws passed by the district legislature, in their respective jurisdictions.

The trust territory program derives from the fundamental need of any government to provide programs and services to the people which cannot be effectively or efficiently supplied by the individual or family. The territorial government as a whole renders the full range of services comparable in range, if not in size, to those obtaining at Federal, State, and local levels of the U.S. Government.

The United States is directly responsible within the territory only for national defense, the postal system, and the monetary system. Indirect responsibility is exercixed over other functions through

executive and legislative control of U.S. appropriations and grants to finance the major share of trust territory government operations. Programs include education, health services, resources and development, public works, public affairs, transportation and communications, the attorney general, personnel, finance and several staff functions. Directors of these activities are responsible for establishment and implementation of territory-wide policies and programs. District administrators are responsible for program operations of each activity in their districts. Decentralization of authority and responsibility for program operations is proceeding in the face of immense problems. involving communications, distance, and the lack of trained, qualified personnel at the district level.

The United States has only recently begun to finance the level of government services required to help bring Micronesia and the Micronesians into the 20th century. There still exists a tremendous backlog of requirements for even rudimentary public facilities and programs. A start has been made to provide basic infrastructure in the centers of population.

Systems for water supply, sewage disposal, and electric power are still essentially limited to government and the larger commercial establishments, although private consumers are beginning to receive utility services. Adequate docks, harbors, airports, and roads are vital to continuing development of this scattered island society, but present facilities are far from suitable.

A new fleet of trust territory inter-island ships is an absolute necessity in view of the rapid and increasing deterioration of our vessels, most of which were constructed during or shortly following World War II.

The level of health is quite good in the trust territory, but the majority of health care is rendered in poorly constructed, crowded, and inadequately equipped hospitals and outer-island dispensaries. Universal elementary education is currently provided for the most part by local teachers who possess, on the average, slightly less than a high school education. Lack of classroom and dormitory facilities and instructional staff make it as yet impossible to enroll all eligible elementary graduates in high school.

Negotiations have been underway for over 3 years now to develop a long-term relationship between Micronesia and the United States. Progress has been made but many details remain to be mutually agreed upon. It is anticipated that the relationship will include specific agreement on future financial support by the United States, but the status negotiations have not yet focused on this point in detail. Pending agreement on the future status of Micronesia, we are requesting continuing U.S. support of the trust territory through the regular authorization and appropriation process.

Programs for the trust territory have been developed in anticipation of gradual increases in the level of U.S. appropriations over the next several years. Such increases would allow orderly progress toward meeting our objectives for economic, social, political, educational and health development in the trust territory.

They would also make it possible to keep up with the ever-increasing cost of living and providing Government services. The President's budget for fiscal year 1974 is $56 million. Future budget requests will be based on annual evaluation of requirements in the budget process.

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