SECTION 105 (m) OF U.S PUBLIC LAW 99-239. MR. CHAIRMAN AND MEMBERS OF THIS COMMITTEE. OUR REQUESTS FOR ADDITIONAL FUNDING ARE NOT NUMEROUS AND THE SUMS NOT GREAT. HOWEVER, WITH OUR BUDGET AND OUR LIMITED LOCAL REVENUES WE SEE NEED FOR THIS ASSISTANCE TO MEET THE MINIMUM STANDARDS FOR PUBLIC SERVICES TO AN AMERICAN COMMUNITY. ONCE AGAIN, ON BEHALF OF THE NEW AMERICAN CITIZENS FROM THE COMMONWEALTH OF THE NORTHERN MARIANA ISLANDS, I EXTEND OUR APPRECIATION FOR YOUR INTEREST AND SUPPORT IN THE CONTINUED GROWTH AND DEVELOPMENT OF OUR ISLANDS AND WE LOOK FORWARD TO CONTINUING THAT PARTNERSHIP IN THE FUTURE. THANK YOU FOR THE OPPORTUNITY TO APPEAR BEFORE THIS COMMITTEE. MY STAFF AND I ARE PREPARED TO ANSWER ANY QUESTIONS THAT THE COMMITTEE MAY HAVE WITH RESPECT TO THE COMMONWEALTH OF THE NORTHERN MARIANA ISLANDS. JOINT STATEMENT BY THE HONORABLE BENJAMIN T. MANGLONA PRESIDENT OF THE SENATE AND THE HONORABLE PEDRO R. GUERRERO SPEAKER OF THE HOUSE OF REPRESENTATIVES SIXTH NORTHERN MARIANAS COMMONWEALTH LEGISLATURE TO THE SUBCOMMITTEE ON INTERIOR AND RELATED AGENCIES HOUSE COMMITTEE ON APPROPRIATIONS UNITED STATES CONGRESS APRIL 26, 1988 HONORABLE CHAIRMAN YATES, DISTINGUISHED MEMBERS OF YOUR SUBCOMMITTEE: IT IS WITH DEEP REGRET THAT URGENT LEGISLATIVE MATTERS ON SAIPAN HAVE PREVENTED US FROM ATTENDING THESE IMPORTANT DELIBERATIONS. HOWEVER, WE WISH TO EXTEND OUR WARMEST GREETINGS TO YOUR SUBCOMMITTEE, AND TO THIS CONGRESS, ON BEHALF OF OUR LEGISLATURE AND ALL THE PEOPLE OF THE NORTHERN MARIANAS. THANK YOU FOR INVITING US TO TAKE PART IN THESE IMPORTANT HEARINGS. IT WAS OUR INTENTION TO ACCOMPANY OUR LIEUTENANT GOVERNOR, THE HONORABLE PEDRO A. TENORIO, AT TODAY'S HEARING TO SHOW OUR FULL SUPPORT FOR HIS BUDGET PRESENTATION. IT IS, THEREFORE, OUR SINCERE HOPE THAT WE WILL CONTINUE TO MERIT THE SUPPORT THAT OUR YOUNG COMMONWEALTH GOVERNMENT HAS BEEN SO FORTUNATE TO RECEIVE FROM YOUR SUBCOMMITTEE IN PREVIOUS YEARS. RELATIONSHIP WITH THE UNITED STATES MANY CENTURIES OF RULE BY FOREIGN NATIONS, INCLUDING SPAIN, GERMANY, AND JAPAN, CULMINATED WHEN OUR ISLANDS WERE MADE A UNITED NATIONS TRUSTEESHIP AFTER WORLD WAR TWO. OUR POLITICAL SOVEREIGNTY WAS, IN EFFECT, HELD IN ABEYANCE. SURRENDERED TO ANYONE. IT WAS NEVER IN 1975, NEGOTIATIONS WERE CONCLUDED TO CREATE A UNIQUE POLITICAL RELATIONSHIP TO END THE POSTWAR U.N. TRUSTEESHIP. A COVENANT TO ESTABLISH A COMMONWEALTH OF THE NORTHERN MARIANA ISLANDS IN POLITICAL UNION WITH THE UNITED STATES WAS APPROVED BY OUR PEOPLE IN A U.N.-OBSERVED PLEBISCITE, THE U.S. CONGRESS, AND THE PRESIDENT OF THE UNITED STATES. - - NOT THE TEN ARTICLES CONTAINED IN THE COVENANT PROVIDES FOR A RELATIONSHIP THAT CAN BEST DESCRIBED AS SHARED SOVEREIGNTY OUTRIGHT ANNEXATION WHICH WAS THE CASE FOR ALL OTHER INSULAR POSSESSIONS OF THE UNITED STATES. IN OTHER WORDS, FOR THE FIRST TIME IN THE HISTORY OF U.S. TERRITORIAL AFFAIRS, THE FEDERAL GOVERNMENT AGREED TO AN UNAMBIGUOUS LIMITATION ON ITS POWER. THE COVENANT TAKES SPECIAL NOTE OF THIS, AND CONSEQUENTLY WE HAVE OUR OWN TAX SYSTEM, CONTROL OUR OWN IMMIGRATION. WE HAVE A BICAMERAL LEGISLATURE SO OUR ISLANDS CAN SHARE LAWMAKING AUTHORITY IN THE COMMONWEALTH SENATE. ONLY CERTAIN PROVISIONS OF THE U.S. IN THE CNMI ONLY BECAUSE OUR PEOPLE VOLUNTARILY CONSENTED TO TERRITORIAL CLAUSE OF THE U.S. CONSTITUTION WAS NOT INTENDED TO APPLY IN THE NORTHERN MARIANA ISLANDS. WE ARE, THEREFORE, VERY CONCERNED OVER HOW THE DEPARTMENT OF THE INTERIOR, OTHER FEDERAL AGENCIES, AND FEDERAL COURTS ARE INTERPRETING THE POLITICAL SOVEREIGNTY OF OUR ISLANDS PURSUANT TO THE COVENANT. WE ARE VERY CONCERNED ABOUT THE PROLIFERATION OF U.S. STATUTES THAT FEDERAL AGENCIES AND THE U.S. CONGRESS HAS ATTEMPTED TO APPLY IN THE COMMONWEALTH, WHICH ARE CONTRARY TO OUR RIGHT TO FULL INTERNAL SELF-GOVERNMENT. THE COVENANT NEVER INTENDED FOR THE UNITED STATES TO BECOME INVOLVED IN MATTERS OF STRICTLY LOCAL CONCERN. WHEN WE ENTERED INTO NEGOTIATIONS WITH THE UNITED STATES, WE DID SO AS AN EQUAL BARGAINING PARTNER. OUR POLITICAL SOVEREIGNTY WAS STILL INTACT. TWO SOVEREIGN PEOPLES SAT ACROSS FROM ONE ANOTHER AT THE BARGAINING TABLE. THE UNITED STATES WAS NOT NEGOTIATING WITH A STATE, OR A COUNTY GOVERNMENT. THE UNITED STATES WAS NEGOTIATING WITH A SOVEREIGN PEOPLE. SOVEREIGN PEOPLE DO NOT HAVE TO CLAIM IMMUNITY FROM THE U.S. CONSTITUTION'S 11TH AMENDMENT, AS THE 9TH CIRCUIT COURT NOW INSISTS IS OUR CASE TODAY. SOVEREIGN PEOPLE HAVE IMMUNITY TO FEDERAL SUIT AS A MATTER OF COMMON LAW RIGHT. THE SOVEREIGNTY OF THE PEOPLE OF THE NORTHERN MARIANAS CANNOT BE RELEGATED TO THE SECOND CLASS STATUS OF A COUNTY GOVERNMENT. RELATED FINANCIAL ISSUES THE INTEGRITY OF THE COVENANT RELATES DIRECTLY TO THE BUDGET BEING CONSIDERED BY YOUR SUBCOMMITTEE. THE UNITED STATES HAS FINANCIAL OBLIGATIONS TO THE COMMONWEALTH UNDER THE COVENANT. SECTION 701 OBLIGATES THE UNITED STATES TO PROVIDE SUFFICIENT FINANCIAL ASSISTANCE TO PROVIDE MEANINGFUL ECONOMIC PROGRESS. WE HAVE TRIED TO KEEP UP WITH THE RAPID PACE OF DEVELOPMENT IN THE COMMONWEALTH BY ISSUING A $140,000,000 TAX EXEMPT BOND TO MEET THE IMMEDIATE AND CRITICAL NEED TO PROVIDE, AMONG OTHER THINGS, ADEQUATE POWER AND WATER FOR OUR PEOPLE. TO OBTAIN THE BOND, IT WAS NECESSARY TO PLEDGE AS COLLATERAL THE PAYMENTS THE UNITED STATES WAS OBLIGATED TO PAY UNDER SECTION 702 OF THE COVENANT. HOWEVER, TO OUR GREAT DISMAY AND DISAPPOINTMENT, OUR AGED, PATCHED-UP INFRASTRUCTURE NOW FACES A VERY CRITICAL CRISIS BECAUSE OF CONTINUED DELAYS IN OBTAINING THE FIRST DRAWDOWN OF PROCEEDS FROM THE BOND. WHAT STARTED AS A CREATIVE FINANCING EFFORT TO SUPPORT OUR UNPRECEDENTED AND UNANTICIPATED GROWTH HAS UNFORTUNATELY TURNED INTO A SERIES OF DELAYS. AS A CONDITION TO ALLOW THESE COVENANT FUNDS TO SERVE AS COLLATERAL, THE DEPARTMENT |