Date: 1983-10-03
Speaker: WON PAT (democrat)
Chamber: H

Mr. Speaker. S. 589 was Introduced at the request of the administration. The bill encountered no opposition in the Senate where it was revised slightly. There was unanimous. bipartisan agreement to approve it in the Committee on Interior and Insular Affairs with an amendment. This was to effect necessary updating of previous territorial legislation as well as changes needed to adopt statutes. and regulations under them. to the unique circumstances of the Insular areas. The amendment I have proposed as a substitute with bipartisan committee support incorporates the committees initial amendment but makes technical and other worthwhile improvements. It conforms with the purposes October . 1983 CO~ referenced in the committees approval of the bill and other goals which enjoy bipartisan support. The amendment has no adverse budgetary implicrtions. It responds to needs identified by the administration or the insular areas. The primary purpose of the bill Is to authorize essential capital improvements in my home territory of Guam. Appropriations for most of this workwater and sewer Infrastructure needed to develop our key private sector industry. tourismhave been approved by both Houses. They are also within the budget approved by this House. This project was endorsed by the administration after having beepi identified by our visionary Governor. Ricardo Bordallo. as his top priority request. The other funds are needed to complete the penitentiary for which appropriations were made in 1980. The cost of the project expanded to accommodate design changes. including those needed to meet concerns of the Inspector General of the Interior Department who is doing an exemplary job in the territories. Section 2 of the Senate bill would transfer the existing authorization for the construction of a hydroelectric power project on Ponape. a state of the Federated States of Micronesia. from the Departmunt of the Interior to the Corps of Engineers. The corps. which conducted the feasibility study for the facility. is willing to handle construction. The $8 million project would result in substantial savings by replacing Ponapes current dependence upon imported petroleum with use of an abundant local resource. My amendment would revise section 3 of the bill as reported by the committee to accommodate the concerns of the administration and the Senate as we have heard them and of the Northern Mariana Islands. The overall intent of the amendment is the same as the committee reported section. however: To facilitate implementation of an equitable system of Income taxation as provided for in the covenant between the United States and the Northern Marianas. Section 601 is an integral part of our understanding with our newest territory. It provides that the Northern Marianas will have the same income tax rates as the United States applied as they are in Guam. The necessit.* for section 3. as reported by the committee. Is well explained in the committees report. Chairman UDALLS May 19 further explanation to the House. and a committee staff paper on the background of this issue. I ask. at this time. that this latter document be Included In the RECORD at the conclusion of my statement. To summarize. though. I would say that section 3 was needed to make the Northern Marianas understand that while the Internal Revenue Code may