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Mr. HAYWARD. When the report comes in, I believe it is given to the Bikini Council. The Bikini Council would have to accept that

particular report.

Mr. MURTHA. How about the funding for the Lawrence Livermore studies in Bikini Island in 1989?

Mr. HAYWARD. I would like to refer that question to Mr. Larry Morgan of my staff, Mr. Chairman, who is directly involved in that particular project.

Mr. MURTHA. Mr. Morgan?

Mr. MORGAN. Yes, sir. We recently met with the Department of Energy, and members of your staff were in attendance, in fact, on a ship in the Bikini langoon, to discuss this very point. The Department of Energy has advised us at this time they do not have any funding in their budget past fiscal year 1989 to continue this program. They have made the government of the Marshall Islands aware of their view that there is a continuing need for such continued monitoring, and that they would be happy to provide that technical assistance on a reimbursable basis.

The Committee, I believe, has been given a copy of a letter from Harry Brown of the Department of Energy to the Chief Secretary, Oscar DeBrum, which outlines the position of the Department of Energy. If you have not, I'd be happy to provide a copy.

Mr. MURTHA. How much money are we talking about here?

Mr. MORGAN. The estimate in this letter currently says that they estimate additional funds to carry out the field effort to be between $500,000 and $1 million.

Mr. MURTHA. Do you believe that meeting the Government's commitment to clean up Bikini will require continued information on the tests conducted there?

Mr. MORGAN. Yes, sir. There is a unified position, I believe, within the Administration that we have recommended to the Government of the Marshall Islands that there is a continuing need. And the Government is prepared to provide that on a reimbursable basis.

ENJEBI TRUST FUND

Mr. MURTHA. Under the compact request, no funds are included for the Enjebi trust fund for which $7.5 million has been provided to date. Why do you state that the $2.5 million added in fiscal year 1988 was a final installment when the fund is authorized at $10 million?

Mr. HAYWARD. The $2.5 million was an authorization, Mr. Chairman, absent an appropriation.

Mr. MURTHA. So, you need more money. Is that what you are saying?

Mr. MORGAN. No, sir. The original commitment on the-

Mr. HAYWARD. Was $7.5 million.

Mr. MORGAN [continuing]. Was $7.5 million.

Mr. HAYWARD. That was the original commitment on the trust fund itself, $7.5 million. And that was consistent with Public Law 99-239.

ENEWETAK PROGRESS

Mr. MURTHA. There are also no funds requested for Enewetak support. What is the current situation with regard to negotiations for the phase-out of Federal support for that activity?

Mr. HAYWARD. Mr. Morgan?

Mr. MORGAN. Yes, sir. I am pleased to report the progress we have made in the last year on the Enewetakese assuming operation. This has gone, I think, better than even we expected. I just recently got in a report this past week from the Department of Energy, which administers the program under an agreement with us. The report indicated that for the first time the Enewetakese took the Wetak II, which is a ship that goes out and picks food up from the field islands, out on their own completely. This is a first. This has never been done before.

In addition, I received a report from the Government of the Marshall Islands on the ordering of foods and what changes they have been making.

Under that concept that was developed last year with the Government of the Marshall Islands, over a period of the next two years, they gradually will assume total control of the operation of that program. So, I think we are very pleased with the success.

RONGELAP REASSESSMENT REPORT

Mr. MURTHA. We have a preliminary Rongelap reassessment report. Have you reviewed this report?

Mr. MORGAN. I just received the report the day before yesterday, sir. I have not yet had a chance to look at it.

Mr. HAYWARD. It takes a while before it filters to my office.

ORDOT LANDFILL, GUAM

Mr. MURTHA. The request for administration of the territories is $71,477,000, a decrease of $6,758,000 in 1988. Included is $1,700,000 for construction and expansion to the Ordot landfill on Guam. What is the status of the land acquisition for which funds were provided in 1988?

Mr. HAYWARD. They are in the process right now, Mr. Chairman, of putting together the plans. They have not yet acquired the property.

Mr. MURTHA. If no EPA funds are available for the cleanup of the existing landfill, what impact will this have on the project?

Mr. HAYWARD. We don't anticipate that this will have any adverse impact on the project whatsoever regarding the $2.7 million. The $1 million from fiscal year 1988, and the request in the President's budget will be adequate resources to accomplish the project. Mr. MURTHA. How about user fees for the landfill?

Mr. HAYWARD. We strongly support user fees for the landfill. That has not been put in place yet, Mr. Chairman. The Administration has been a strong supporter of user fees across the board, including water, power and other municipal type activities.

Mr. MURTHA. When will the heavy equipment of which $400,000 is included be needed?

Mr. HAYWARD. In the original $1 million request?

Mr. MURTHA. In the $1.7 million.

Mr. HAYWARD. That is in fiscal year 1989. Again, it goes back to the fact that there is a need for a plan, and Guam is in the process of preparing the plan to submit to the Department. We believe that will be handled at that time.

AMERICAN SAMOA REVENUE INCREASE

Mr. MURTHA. The request for American Samoa is $21,776,000, a decrease of $2,450,000. Why are the local revenues approximately $10 million higher than was estimated in last year's budget?

Mr. HAYWARD. There has been an aggressive undertaking by the government of American Samoa as it concerns excise taxes, as well as the new 2 percent sales tax that has been instituted by the Fono and the governor of American Samoa.

There has also been a considerable windfall from the Hurricane Tusi construction which is approximately $10 million plus construction on the Islands of Tau, Ofu and Olisinga. And we believe that that may be attributed to the increase in revenues on American Samoa.

AMERICAN SAMOA OIL TANK FARM

Mr. MURTHA. What is the status of the cleanup of the oil tank farm? In 1988 $1 million was provided.

Mr. HAYWARD. We are in the process of preparing a plan, Mr. Chairman. There are a number of outstanding elements to the whole discussion.

The reconstruction and cleanup costs of the areas are estimated at approximately $1.7 million. The government of American Samoa has moved forward in the institution of a 1 percent surtax on gas which would raise the additional $700,000 for the reconstruction of the tanks. Complemented with the million dollars, that would bring them up to the necessary funds for rehabilitation.

VIRGIN ISLANDS DRUG PROGRAM

Mr. MURTHA. The requests for the Virgin Islands is $1.1 million, a decrease of $3.8 million. What is the status of the $2.5 million provided in 1988 for the anti-drug abuse activities?

Mr. HAYWARD. A plan has been submitted to the Department of the Interior. It has been reviewed by the National Drug Policy Task Force. Solicitor Tarr has been actively involved, as well as myself. We have a couple of questions that we have fed back to the Virgin Islands, and upon receiving a schedule of payment and explanation on two specific sections, we will be prepared to release the money to the Virgin Islands, Mr. Chairman.

Mr. MURTHA. Why haven't you requested the balance of funds authorized, $1.5 million, to continue these activities in 1989?

Mr. HAYWARD. Again, Mr. Chairman, given the fact that there are a lot of things we would like to fund, and the constraints that we all have upon us on funding, this was not, unfortunately, one of the areas that we were able to fund. However, there is good cooperation among the Federal agencies. Just yesterday, Governor Farrelly and I met with the DEA which is committed to providing additional training in the Virgin Islands in an assessment of the manpower that they have there. So, we believe that some other ef

forts by other Federal Government agencies will complement the $2.5 million which was appropriated.

CNMI SEVEN-YEAR PLAN

Mr. MURTHA. The request for the Northern Mariana Islands is $40,450,000, an increase of $5,790,000. What is the status of the capital development plan?

Mr. HAYWARD. Mr. Chairman, the status of the capital development plan is that the Northern Mariana Islands has selected a contractor for the development of the plan. It is Arthur D. Little. They are progressing extremely rapidly. We have had very good consultations with the Commonwealth of the Northern Mariana Islands, and we expect that the plan will be in a draft to the Department of the Interior by sometime in mid-August.

We are attempting to expedite the review of that by giving our comments, along with other internal agencies within the Northern Mariana Islands, on a simultaneous review during the period between now and August.

Mr. MURTHA. So, you have met with their government officials as required under the covenant?

Mr. HAYWARD. Concerning the capital development plan, on four separate occasions, Mr. Chairman, since November.

Mr. MURTHA. Why are you proposing to change the language of the bill regarding the agreement of the special representatives?

Mr. HAYWARD. We believe that the change clarifies the position of Public Law 99-396. It does not in any way change the terms which discussed the power of the Secretary of the Interior on withholding. We believe that that particular portion is intact.

DISASTER CONTINGENCY FUND

Mr. MURTHA. No funds are requested for the disaster contingency fund to which Congress added $500,000 last year. How much of these funds have been used to date?

Mr. HAYWARD. Zero funds have been expended to date, Mr. Chairman. There has been a tremendous cooperation by the Federal Emergency Management Agency, as well as the Department of Defense, and we have not been required to tap that particular account. We believe that is sufficient for the fiscal year 1989. And we have had no disasters since the appropriations.

Let me correct the record, Mr. Chairman. We had a disaster, Typhoon Roy which hit Guam and the Island of Rota. Because of the proximity of the military in that instance, there was an immediate response. And I might add that there was a tremendous effort by the local governments there. FEMA was already on-island because they were handling the previous disaster from a few months earlier on the Island of Truk, and they had set up their operations in Guam. So, they were on-site. There was an immediate response and an immediate turnaround of a presidential declaration.

The one area where we did use other resources for technical assistance was in the case of American Samoa which needed immediate assistance. The disaster in American Samoa, Hurricane Tusi, was in the outer islands and there were some problems. And at that time, the Department went forward and paid for airlifts into

American Samoa prior to the declaration. It was not reimbursed by FEMA, and that was one of the reasons for, I believe, the appropriation of the half million dollars, but we have not expended it. We now have an MOU with FEMA, the Department of Defense, as well as the Army Corps of Engineers, and have excellent working relationships with all of them.

Mr. MURTHA. Did we have any trouble getting FEMA to go out there? Do you know?

Mr. MORGAN. They were on-island when the storm hit.

Mr. MURTHA. They had no trouble extending their time, either? Mr. HAYWARD. None whatsoever, Mr. Chairman.

The first couple of disasters, Mr. Chairman, there was a little bit of tension between the Federal agencies. I must say it has been working quite well, and the MOU is signed and is in progress, and we have the cooperation of all Federal agencies in the Pacific. That is critical for responding to needs of this type.

Mr. MURTHA. Thank you very much.

Mr. HAYWARD. Mr. Chairman, I appreciate being here.

TUESDAY, APRIL 26, 1988.

GUAM

WITNESSES

HON. BEN BLAZ, A U.S. DELEGATE FROM THE TERRITORY OF GUAM
FRANK BLAS, LIEUTENANT GOVERNOR

MICHAEL REIDY, BUDGET DIRECTOR

INTRODUCTION OF GUAM OFFICIALS

Mr. MURTHA. We will have the Governor of Guam and the delegate, Mr. Blaz.

Mr. Blaz, if you will introduce your delegation, we are delighted to have a person of your distinguished ability and influence here before the Committee. We appreciate all the work you do for Guam and other work for the country.

If you have a statement, we will put your statement in the record along with that of your other colleagues. Your Lieutenant Governor is here, and Mr. Reidy, the budget director. If you will summarize your testimony for us, we'll put it in the record.

Mr. BLAZ. Thank you very much, Mr. Chairman. You are very generous with your comments and I am grateful to you. I am overwhelmed by your kind words.

With me, sir, is the Lieutenant Governor of Guam, by the same name, Blas, as well, and next to him is Mike Reidy.

Mr. MURTHA. That's an influential panel.

Mr. BLAZ. Yes, sir.

Mr. Chairman, I would rather just give you a quick summary orally so that I may yield whatever time I have to the Governor. Mr. MURTHA. All right.

Mr. BLAZ. Of all the people that could have been sitting here as Chairman, perhaps you are the one who would appreciate more than most the significance of the territory of Guam in its present location and its present situation, given the events that are going

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