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TRUST TERRITORY OF THE PACIFIC ISLANDS

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1 Selected resources as of June 30 are as follows: Unpaid undelivered orders: 1963, $5,291 thousand; 1964, $0; 1965, $0.

Under the terms of the Trusteeship Agreement between the United States and the Security Council of the United $9.293 Nations, the United States exercises full jurisdiction over the territory and has undertaken to promote the political, economic and educational advancement of the inhabitants. The territory encompasses some 3 million square miles of ocean over which are scattered 2,141 islands with a land area of 687 square miles. The population is approximately 80 thousand. The Department of the Interior is responsible for administration of all the territory.

For expenses necessary for the Department of the Interior in administration of the Trust Territory of the Pacific Islands pursuant to the Trusteeship Agreement approved by joint resolution of July 18, 1947 (61 Stat. 397), and the Act of June 30, 1954 (68 Stat. 330), as amended (76 Stat. 171), including the expenses of the High Commissioner of the Trust Territory of the Pacific Islands; compensation and expenses of the Judiciary of the Trust Territory of the Pacific Islands; grants to the Trust Territory of the Pacific Islands in addition to local revenues, for support of governmental functions; [$17,500,000 $17,344,000, to remain available until expended: Provided, [That the revolving fund for loans to locally owned private trading enterprises shall continue to be available during the fiscal year 1965: Provided further,] That all financial transactions of the Trust Territory, including such transactions of all agencies or instrumentalities established or utilized by such Trust Territory, shall be audited by the General Accounting Office in accordance with the provisions of the Budget and Accounting Act, 1921 (42 Stat. 23), as amended, and the Accounting and Auditing Act of 1950 (64 Stat. 834): Provided further, That the government of the Trust Territory of the Pacific Islands is authorized to make purchases through the General Services Administration: Provided further, That appropriations available for the administration of the Trust Territory of the Pacific Islands may be expended for the purchase, charter, maintenance, and operation of aircraft and surface vessels for official purposes and for commercial transportation purposes found by the Secretary to be necessary in carrying out the provisions of article 6(2) of the Trusteeship Agreement approved by Congress [: Provided further, That notwithstanding is authorized to receive, during the current fiscal year, from the the provisions of any law, the Trust Territory of the Pacific Islands domestic distribution in any State, Territory, or possession of the United States, without exchange of funds, such surplus food com

1. High Commissioner's Office.-This office provides executive direction for the development programs and the administration of the territory.

2. Judiciary. The judiciary consists of the high court of the trust territory, the court of appeals, and the lesser courts of the territory.

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3. Grants. The cost of operating the government of the territory is defrayed by these grants and local revenue. The grants are distributed as follows (in thousands of dollars):

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ALASKA RAILROAD REVOLVING fund

The Alaska Railroad Revolving Fund shall continue available until expended for the work authorized by law, including operation and maintenance of oceangoing or coast wise vessels by ownership, charter, or arrangement with other branches of the Government service, for the purpose of providing additional facilities for transportation of freight, passengers, or mail, when deemed necessary for the benefit and development of industries or travel in the area served; and payment of compensation and expenses as authorized by section 42 of the Act of September 7, 1916 (5 U.S.C. 793), to be reimbursed as therein provided: Provided, That no employee shall be paid an annual salary out of said fund in excess of the salaries prescribed by the Classification Act of 1949, as amended, for grade GS-15, except the general manager of said railroad, one assistant general manager at not to exceed the salaries prescribed by said Act for GS-17, and five officers at not to exceed the salaries prescribed by said Act for grade GS-16. (48 U.S.C. 301-308; Department of the Interior and Related Agencies Appropriation Act, 1965.)

PAYMENT TO THE ALASKA RAILROAD Revolving fun d

For payment to the Alaska Railroad revolving fund for authorized work of the Alaska Railroad, including repair, reconstruction, rehabili tation, or replacement of facilities, and equipment, damaged or deavailable until expended. stroyed as a result of the Alaska earthquake, $3,000,000, to remain

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THE UNIVERSITY OF MICHIGAN LIBRARIES

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Applicable receipts..

The Alaska Railroad is authorized to perform generally all the usual duties of a common carrier by railroad so as to best aid in the development of agricultural, mineral and other resources of Alaska, the settlement of public lands, and in the national defense effort (48 U.S.C. 301308). The Railroad's main line extends 470.3 miles from Seward to Fairbanks, and 12.4 miles from Whittier to Portage Junction. There are also 194.8 miles of branch lines, passing and spur tracks, and yards.

The revolving fund is derived from earnings of the Railroad and is used for operating and maintenance expenses, as well as improvements and additions. Except for repair of damage caused by the 1964 Alaska earthquake direct appropriations have not been necessary since

1956.

Budget program.-A return to a normal operations and maintenance rail line program and the continuation of the related capital improvements program are planned for 1966. Improvements deferred when forces were diverted to disaster recovery will be accomplished. The Railroad sustained $27 million in damages as a result of the Alaska earthquake. The major portion of the restoration work will be done in 1965 with completion scheduled

for 1966.

Financing. An appropriation of $3 million for 1966 will complete the financing of the earthquake disaster recovery

costs.

Operating results.-The estimates for 1965 and 1966 are predicated upon annual revenue of $15 million. There are indications, however, that these amounts may not be realized. During the first 4 months of 1965 revenues declined more than 62% compared with the same period last year. If this trend continues revenues will be about $1 million less than originally estimated. The drop in large part is attributed to the complete cutoff of movements of petroleum products from Seward as a result. of the disaster. This traffic will not be restored. major oil companies have enlarged their storage facilities in Anchorage and now bring in petroleum by tankers. Unless new sources of revenue are found a similar effect on 1966 financial results may be expected. Deficit operations for both years under these circumstances may result.

The

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SURVEYS, INVESTIGATIONS, AND RESEARCH

For expenses necessary for the Geological Survey to perform surveys, investigations, and research covering topography, geology, and the mineral and water resources of the United States, its Territories and possessions, and other areas as authorized by law (72 Stat. 837 and 76 Stat. 427); classify lands as to mineral character and water and power resources; give engineering supervision to power permits and Federal Power Commission licenses; enforce departmental regulations applicable to oil, gas, and other mining leases, permits, licenses, and operating contracts; control the interstate shipment of contraband oil as required by law (15 U.S.C. 715); administer the minerals exploration program (30 U.S.C. 641); and publish and disseminate data relative to the foregoing activities; [$67,165,000 $12,826,000, of which [$10,900,000] $11,550,000 shall be available only for cooperation with States or municipalities for water resources investigations, and $616,000 shall remain available until expended, to provide financial assistance to participants in minerals exploration projects, as authorized by law (30 U.S.C. 641-646), including administration of contracts entered into prior to June 30, 1958, under section 303 of the Defense Production Act of 1950, as amended: Provided, That no part of this appropriation shall be used

(k) National Science Foundation.. (1) Miscellaneous Federal agencies. 4. Water resources investigations: (a) States, counties, and municipalities...

(b) Permittees and licensees of the Federal Power Commission.. (c) Miscellaneous non-Federal

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