Mr. ELLIOTT. Is that all, Mr. Moore? Does that conclude your testimony?

Mr. MOORE. Yes.

Mr. ELLIOTT. I wish to thank you gentlemen, and to say that we appreciate the testimony you have brought to us this morning. I am sure it will receive every consideration by the committee.

(The lease and memorandum with cover letter, referred to earlier, are as follows:)

LEASE BETWEEN THE GOVERNMENT OF AMERICAN SAMOA AND THE VAN CAMP SEA FOOD COMPANY, INC.

This LEASE, made and entered into as of the first day of January 1956, by and between the GOVERNMENT OF AMERICAN SAMOA, represented by the Governor of American Samoa, hereinafter referred to as the "Government", and the VAN CAMP SEA FOOD COMPANY, INC., Terminal Island, California, hereinafter referred to as the "Lessee".

WITNESSETH

Whereas the parties hereto made and entered into a lease on the third day of December 1953, as amended as of September 29, 1954, pertaining to the operation of a fish cannery in American Samoa;

Whereas Article XVI of the said lease provides for amendments to the lease at any time during the lease term by mutual agreement of the parties;

Whereas the Lessee desires to continue to engage in the business of processing fish and manufacturing fish products in American Samoa, and the Government considers that the Lessee's operations will be beneficial in making available wages to the civilian economy; and

Whereas the parties wish to modify the terms of the lease of Decmber 3, 1953, as amended, so as, among other things, to extend its termination date from December 31, 1958 to December 31, 1960;

Now, therefore, the Government and the Lessee, in consideration of the rent to be paid by the Lessee as hereinafter provided and of the covenants and conditions herein contained, mutually agree that the lease of December 3, 1953, as amended as of September 29, 1954, shall read as follows:

I. PURPOSE OF LEASE

The purpose of this lease is (a) to provide for the operation in American Samoa of a fish cannery designed to process raw fish and other products of the sea, (b) to provide for the manufacture of fish products and other products of the sea, and (c) to provide for improvement of the economy of American Samoa by developing the skills relating to fishing and fish processing among the Samoans, by providing local income through wages, and by ensuring a local supply of raw, frozen, and processed fish.

II. PREMISES AND EQUIPMENT

The premises covered by the lease are described in Exhibit A, attached hereto and made a part hereof. The equipment on the leased premises is listed in Exhibit B, attached hereto and made a part hereof.

III. TERM

(1) This lease shall be for a period of five years commencing on January 1, 1956 and ending on December 31, 1960.

(2) At the expiration of this lease, the Lessee shall have the option to renew it upon the same terms for a period of five additional years, and thereafter, for additional periods of five years each, not to exceed three such additional periods in all under the terms of this agreement: Provided, That Articles IX and XI (1) (e) hereof shall be renegotiated, and they may be amended or deleted, prior to the execution of any such additional five year lease.

(3) Upon the expiration or termination of this lease, the leased premises, together with the equipment, shall be surrendered to the Government in as good condition as when received, reasonable wear and tear and loss or damage under Article X (2) hereof excepted.

IV. RENT

(1) Within thirty (30) days of the end of each year of the period of this lease, the Lessee shall pay to the Government at Tutuila, American Samoa, either the sum of Two Thousand Five Hundred Dollars ($2,500) or Two Dollars Fifty Cents ($2.50) per short ton of tuna processed, frozen, canned, or stored for eventual shipment or sale at said cannery, during such year, by the Lessee, whichever is greater. In the event that any fish other than tuna is processed, frozen, canned, or stored for eventual shipment or sale at said cannery by the Lessee, the Lessee shall pay to the Government such sum per short ton of such fish as may be mutually agreed upon by the parties..

(2) If the Lessee exercises its option to renew this lease for any one or all of the additional periods of five years each, provided for in Article III (2) hereof, then such rental price of Two Dollars Fifty Cents ($2.50) per short ton shall, for the purposes of each such additional five-year period, be adjusted in the following manner:

Such rental price, for each such additional five-year period, shall bear the same relation to the average price reported by brokers and cannery representatives of canned, light meat, chunk style, advertised brand tuna, to the U. S. Fish and Wildlife Service's Market News Office, San Pedro, California, for the three month period immediately preceding the effective date of renewal of this lease, as Two Dollars Fifty Cents ($2.50) bears to such average price for the last three months of the calendar year 1955.

(3) In the event of termination of this Lease, as provided in Articles XI (1) (a) and (e), requiring the Lessee to vacate the premises prior to the expiration of a full calendar year, the Lessee shall be entitled to an adjustment of rental prorated to the date the premises are vacated.

V. ALTERATIONS, INSTALLATIONS, IMPROVEMENTS AND MAINTENANCE

(1) The Lessee hereby agrees to accept the premises and equipment covered by this lease in the condition in which they are at the time of the execution of this lease, and with the understanding that the Government is under no agreement or promise to decorate, repair, or improve said premises and equipment in any manner. The Lessee further agrees that it will keep and maintain said premises and equipment in good repair and in as good condition as they were when received, ordinary wear and tear excepted, and the Lessee will make all such repairs and improvements which may be necessary during the term of this lease. The Lessee agrees to pay the cost of any repair, changes or reconstruction of every kind and no portion thereof shall be reimbursed to the Lessee by the Government. And additions, enlargements or betterments to the plant may be installed after agreement in writing by the parties hereto as to their disposition in the event of the termination of his lease. The Governor of American Samoa shall have the right at all reasonable times to enter the leased premises for the purpose of inspecting the condition of the premises and equipment covered by this lease and for the purpose of inspecting any additions, enlargements, or betterments to the plant.

(2) The Government shall not be liable for any damage occasioned by failure to keep the leased premises and equipment in good repair or for any damage done or occasioned by plumbing, water, gas, sprinkler, steam or otherwise, pipes or sewage or the bursting, leaking, or the running of any boiler tank, wash stand, water closet or waste pipe, in, above, upon, or about the premises or buildings. The Government shall not be liable for damages for injury to the property of the Lessee, or for death, injury, or damage to the person or property of the Lessee's agents or employees or of any person on the premises at the sufferance of the Lessee or of the Lessee's agents or employees, whether such death, injury, or damage arises out of the condition of the premises or use of the premises by the Lessee, and the Lessee agrees to indemnify and hold harmless the Government against any claim or demand arising out of such death, injury or damage.

VI. UTILITIES AND SUPPLIES

(1) The Lessee shall have the right to purchase and the Government will furnish, when available, at the Government's cost and in accordance with appropriate regulations of the Government, potable water, ice, and telephone and sewer service in reasonable quantities for the sole and exclusive use of the Lessee, to be used only in connection with the Lessee's cannery operations. Charges for water, ice, and telephone and sewer service shall be determined by separate meter

ing or by other arrangements determined to be mutually satisfactory by the Lessee and the Government and shall be paid monthly. The Government may require a reasonable deposit for such utility service in an amount not in excess of one (1) month's estimated charge for each service, which will be reimbursed to the Lessee upon the termination of this lease, in the event that all charges for such services have been paid.

(2) This lease includes existing connections and interconnections for furnishing water, electric power, telephone lines and sewer service to the leased premises, but the Lessee shall be responsible for maintenance of such connections and interconnections in good condition and for installation of such additional connections or interconnections as may be necessary or desirable for the operation of the cannery.

(3) The Lessee shall be permitted to purchase from the Government, when available, at the Government's cost, such supplies of fuel oil as are normally made available to private purchasers. The cost of such fuel shall be determined by the Governor within 30 days of the delivery of fuel oil to American Samoa. In determining the cost of such fuel, the Governor shall take into consideration the cost to the Government of fuel oil on hand at the time of new deliveries, as well as the cost to the Government of such new fuel, and the price so determined shall apply to all fuel oil sold by the Government to the Lessee from the date of delivery of such fuel oil in American Samoa to the next date of delivery of fuel oil to the Government. The term "fuel oil" includes gasoline.

(4) The Lessee shall have the right to purchase and the Government will furnish electric power, when available. Such power shall be sold to the Lessee at 3¢ per KWH: Provided, That if, for reasons beyond the control of the Government, the cost to the Government of electric power rises above 3¢ per KWH, or if the cost to the Government falls below 2.5¢ per KWH, the Lessee shall be charged such rates as are mutually agreed upon by the parties. Charges for electric power shall be determined by separate metering or by other arrangements determined to be mutually satisfactory by the Lessee and the Government and shall be paid monthly.

(5) The Government shall assist the Lessee to the greatest extent possible. in the transmission of wireless messages, in the transportation of persons and property, and in providing supplies for the Lessee's operation or the operation of fishermen contracted to the Lessee. The Lessee shall pay regular rates for the transmission of such messages, such transportation, and such supplies.

VII. OPERATING REQUIREMENTS

(1) Only United States citizens and nationals will be employed in the cannery and related shore activities, except as approved by the Governor and no aliens, or their dependents, shall be allowed to enter American Samoa in connection with fishing operations relating to the cannery without the permission in writing of the Governor: Provided, That subject to the laws of the United States applicable to American Samoa and to the laws of American Samoa, the Governor shall permit aliens and their vessels to land fish for delivery to the Lessee, to enter the harbor therefor, and to enter the harbor for the purpose of obtaining fuel and supplies.

(2) The Lessee shall take practicable positive steps, at the earliest feasible date, and by January 1, 1958, if possible, with a view toward the establishment of a fishery capable of supplying the full capacity of the cannery with fish caught by Samoans on boats operating out of American Samoa, and shall submit to the Governor quarterly reports on the steps taken to that end.

(3) The Lessee agrees to take those precautions which are reasonable in connection with good commercial business practices in the fish cannery business to avoid harbor pollution and the emanation of offensive odors and to abide by such requirements or regulations in regard thereto as the Government may prescribe.

(4) As an additional consideration for this lease, the Lessee hereby agrees to make available for sale to local establishments or in the local market, for local consumption only, a reasonable amount of raw, frozen and processed fish at prices which shall not exceed the cost to the Lessee of such raw, frozen and processed fish plus the cost of handling and a fair return upon the Lessee's investment in American Samoa.

(5) The Lessee covenants and agrees to comply with the applicable provisions of the Code of American Samoa.

(6) It is expressly agreed that the Government shall have a lien upon such personal property of the Lessee as is installed in or about the leased premises, for unpaid rent under Article IV (1) and for unpaid bills under Article VI.

VIII. LIMITATION OF RIGHT

This lease shall not be construed as an exclusive franchise in American Samoa.

IX. CUSTOMS DUTIES AND TAXES

During the term of this lease, the Lessee shall be exempt from any and all taxes, customs duties, assessments, license fees, or other levies imposed or levied by the Government: Provided, That the Lessee shall not be exempt from the export duty on fresh or frozen fish: Provided, further, That with respect to the preceding proviso, the Lessee and its agents and persons contracted to it, shall be exempt from the export duty (a) on any fresh or frozen fish other than tuna incidentally caught while fishing primarily for tuna, and (b) on 30% of the total tonnage of tuna tendered to the Lessee in American Samoa by its agents and persons contracted to it. This percentage shall be computed against the total tonnage tendered to the Lessee in American Samoa by its agents and persons contracted to it during each three month period of this lease. The parties hereto agree that such 30% shall be, to the greatest extent possible, made up of tuna not suitable for canning. The second proviso of this Article shall apply only to such fish as shall be designated by the Lessee as within the exceptions therein stated, as either incidentally caught or tendered in good faith.

X. DESTRUCTION OF PREMISES

(1) The Lessee shall obtain insurance covering loss by fire, explosion, and other loss included in extended coverage policies not, however, including loss by act of God, war, or other causes beyond the Lessee's control, covering the buildings and equipment on the leased premises as of the effective date of this lease in an amount not less than $220,000. The Lessee shall place such insurance in a responsible company or companies and, in addition thereto, shall carry such coverage as it deems adequate for its own protection and shall maintain all such insurance coverage during the lease term.

The Lessee shall pay all premiums upon said insurance policies throughout the term of this lease and any renewal thereof. Such policy or policies of insurance shall name the Lessee and the Government as the insured and shall contain a loss payable clause requiring adjustment of loss with the Lessee and the Government as their respective interests appear. The Lessee's liability for loss or damage to the property of the Government shall not exceed the obligations assumed in this Article of the lease. If all or any part of the buildings, equipment, or structures located on the leased premises as of January 1, 1954, are destroyed or damaged and are covered by insurance, and if the Lessee agrees to rebuild or replace the property so damaged or destroyed in a manner mutually agreeable to the parties, then the Government shall pay its share of the insurance proceeds to the Lessee.

(2) If all or any part of the buildings, equipment or structures located on the leased premises as of the date of this lease are destroyed or damaged by reason of act of God, war or other cause beyond the Lessee's control which is not covered by insurance, then

(a) The Government may rebuild or repair any such buildings or structures so destroyed or damaged.

(b) If the Government shall not within ninety (90) days of any such destruction or damage with due diligence commence to rebuild or repair any such buildings or structures, this lease shall forthwith terminate, unless the Lessee shali elect to rebuild or repair at its own expense.

(c) The Government and the Lessee shall agree upon an adjustment of the annual rental for the period during which the Lessee is deprived of the use of such buildings or structures which adjustment shall be based upon the extent to which the Lessee is required to curtail its operations by reason of the destruction or damage of such buildings, equipment, or structures.

XI. TERMINATION

(1) This lease shall be terminated:

(a) immediately, in the event the leased premises, in whole or in part, are necessary for naval, military, or defense purposes, and the Government shall notify the Lessee thereof: Provided, That nothing herein contained shall be or shall be construed to be a waiver by the Lessee of any and all claims for just compensation for its property taken for naval, military, or defense purposes; or (b) at the option of the Government, if the Lessee shall be in default in the performance of any term, condition, covenant, or restriction of this lease, and shall have failed to remedy such default, within a reasonable time after receipt of written notice of such violation from the Government. Reasonable time as herein employed shall be related to the circumstances involved and, in no event, shall be more than thirty (30) days, unless the default is such that it cannot be remedied in thirty (30) days; or

(c) at the option of the Government, in the event of the filing of a petition by or against the Lessee for adjudication as a bankrupt, for reorganization or for arrangement within the meaning of the Bankruptcy Act of July 1, 1898 (30 Stat. 544), as amended (Tit. 11 U. S. C., 1952), or as hereafter amended, or in the event of the appointment of a receiver or trustee of the property of the Lessee; or (d) at the option of the Lessee, in the event that the United States Government imposes a duty on fresh or frozen fish brought into American Samoa or imposes a duty on the products of the cannery entering the continental United States or other Territories of the United States, or in the event that the determination of the Bureau of Customs of the United States Treasury Department that under the Act of September 2, 1950 (64 Stat. 577, 46 U. S. Č. sec. 251), a foreign-flag mother ship or fishing vessel is not prohibited from landing in any port of American Samoa fresh or frozen fish taken on the high seas and that a United States flag vessel may land fish in ports of American Samoa transferred on the high seas from a foreign-flag ship is reversed or withdrawn; or

(e) at the option of the Lessee: Provided, That the Lessee shall give the Government no less than six (6) months notice in writing of such proposed termination and shall pay to the Government the sum of $1,000.

(2) Upon any such termination, as aforesaid, the Government shall have the right immediately to retake possession of the leased premises, in whole or in part, without notice, all legal notice being specifically waived by the Lessee. If this lease is terminated as provided in Articles XI (1) (a), (d) or (e), the Lessee shall have the right to remove any of its personal property installed in or about the leased premises within 30 days. At the option of the Government, any or all such property may be sold by the Lessee to the Government at a price mutually agreed upon by the parties.

XII. LEASE TO BE NONASSIGNABLE

Neither this lease nor any interest therein may be transferred or assigned, either voluntarily or by operation of Law, nor shall the premises or any right with respect thereto, be sublet or granted, without the written consent of the Government. The Lessee may, however, transfer this lease to its wholly owned subsidiary, or to a corporation organized by the Lessee for the purpose of operating the property.

XIII. REPORTS

The Lessee agrees to submit to the Governor, with copies thereof to the Fish and Wildlife Service, Department of the Interior, Washington 25, D. C., the following reports:

(1) Monthly and annual reports stating the number of pounds of fish landed, by species; and the value thereof including the basis on which the value is determined; and the production of canned fishery products and the yield of fish meal and oil, if any.

The data on the production of canned fishery products shall indicate for each species the size of can and type of pack (such as "in oil," "not in oil," or "in tomato sauce," "solid pack," "chunk style," etc.). The annual reports on the production of canned fishery products shall include a statement of the value of the total annual production thereof, computed in terms of United States West Coast prices for the several species, less cost of transportation of such products from American Samoa to the United States West Coast. The information as to value herein specified shall be considered confidential and shall not be disclosed to the public.