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OF THE INTERIOR REQUIRED OUR GOVERNMENT TO ACCEPT TWO SUBSIDIARY AGREEMENTS. THIS WAS DONE EVEN THOUGH OUR COMMONWEALTH WAS

ENTITLED TO, AND THE UNITED STATES WAS OBLIGATED TO PAY, THE PROCEEDS OF SECTION 702 WITHOUT CONDITION BY THE TERMS OF THE COVENANT. TO US IN THE COMMONWEALTH, SUCH MANIPULATION AND RESULTING FUNDING DELAYS CAUSED BY THE DEPARTMENT OF THE INTERIOR INSULTS THE VERY ESSENCE OF OUR COVENANT RELATIONSHIP WITH THE UNITED STATES. BECAUSE WE HAVE NOT YET BEEN ABLE TO SATISFY ALL OF THE CONDITIONS FOR RELEASING SUCH FUNDS, OUR PEOPLE ARE OFTEN LEFT WITHOUT WATER SERVICES FOR MOST OF THE DAY AND NIGHT,

OFTEN WITHOUT POWER.

AND

IN ADDITION, WHILE INTERIOR OFFICIALS PROMISED MONTHS AGO AN EARLY DRAWDOWN OF THE FUNDS, NEW CONDITIONS HAVE BEEN IMPOSED. YET, THE FACT REMAINS: 1) AS REQUIRED BY INTERIOR, WE ARE WORKING HARD TO COMPLETE A SEVERY-YEAR CAPITAL DEVELOPMENT PLAN FOR THE BOND; 2) WE ARE IN THE PROCESS OF PRIVATIZING OUR UTILITIES AS REQUIRED BY INTERIOR; AND, 3) WE ARE WORKING TOWARDS FULL COST RECOVERY AS REQUIRED BY INTERIOR. THEREFORE, WE RESPECTFULLY REQUEST THAT YOUR SUBCOMMITTEE DO EVERYTHING POSSIBLE TO HELP UNTANGLE THIS PROBLEM WITH THE DEPARTMENT OF THE INTERIOR REGARDING OUR BOND ISSUE. PLEASE HELP US RECEIVE OUR PROMISED OTHERWISE, THE CONTINUING WITHHOLDING OF THESE

COVENANT FUNDS.

FUNDS WILL SOON JEOPARDIZE ALL THE DEVELOPMENT AND PROGRESS THAT HAS BEEN MADE TO DATE.

WATER DEVELOPMENT ON SAIPAN

THE PROBLEM OF SAIPAN'S WATER SHORTAGE IS OUR NUMBER ONE

PRIORITY IN THE COMMONWEALTH.

WATER RATIONING HAS BEEN A FACT OF

LIFE ON SAIPAN FOR MORE THAN TEN YEARS. ALTHOUGH SAIPAN'S

POPULATION HAS DOUBLED SINCE 1980, AND DESPITE A RAPIDLY GROWING TOURIST INDUSTRY, THE AVAILABILITY OF WATER ON SAIPAN HAS NOW

REACHED CRISIS PROPORTIONS.

IN MANY AREAS OF SAIPAN, WATER IS

AVAILABLE ONLY FOR SEVERAL HOURS A DAY. LOCAL RESIDENTS AND
TOURISTS ALIKE BATHE FROM BUCKETS. DIRTY DISHES AND LAUNDRY

OFTENTIMES CANNOT BE WASHED. TOILETS OFTEN REMAIN UNFLUSHED.
MOST OF SAIPAN'S WATER CANNOT BE DRUNK FROM THE TAP. MOST OF THE
ISLAND'S WATER TRANSMISSION LINES ARE CRACKED AND LEAKING FROM
OLD AGE AND RUST, AND ABOUT 50% TO 60% OF THE WATER PUMPED IS

LOST THROUGH LEAKAGE IN THESE BAD PIPES.

CONSEQUENTLY, MOST

PIPES ARE CONTAMINATED WITH GROUND WATER. THE CONTAMINATED
GROUND WATER IS PIPED TO THE CONSUMER MIXED WITH CONTAMINATED

RUST AND HEALTH THREATENING BACTERIA.

FOR THIS REASON, THE COMMONWEALTH LEGISLATURE CREATED A

SPECIAL JOINT COMMITTEE ON WATER RESOURCES IN MARCH 1988 TO
ASSIST OUR ADMINISTRATION IN FINDING PRACTICAL SOLUTIONS TO THIS
SEVERE PROBLEM. THE JOINT COMMITTEE'S FINDINGS WILL BE PUBLISHED

IN A REPORT EXPECTED IN A FEW WEEKS, WHICH WILL INCLUDE SOME
INITIAL FUNDING ESTIMATES. WORK SHOULD BEGIN AT THE EARLIEST

POSSIBLE DATE ON A PHASE-BY-PHASE BASIS. IN THE INTERIM,
HOWEVER, SEVERAL FACTS REMAIN UNDISPUTED: 1) WATER TRANSMISSION

LINES AND EQUIPMENT ARE A PATCH WORK AFFAIR AND NEED UPGRADING; 2) WATER INFRASTRUCTURE LAGS FAR BEHIND SAIPAN'S RAPID PACE OF DEVELOPMENT; 3) ALTERNATIVE WATER SOURCES DESPERATELY NEED TO BE

SOUGHT AND DEVELOPED.

FORTUNATELY, THE FIRST COMPLETE SCIENTIFIC SURVEY OF SAIPAN'S WATER SOURCES IS ABOUT TO BEGIN BY THE U.S. GEOLOGICAL SURVEY. WHILE WE ARE NOT SURE WHEN THE CONTRACT WITH USGS WILL BE COMPLETED, WE EXPECT SOME TEST HOLES TO BE DUG SOON, WHICH CAN BE CONVERTED INTO NEW WELLS. BUT IT WILL UNDOUBTEDLY TAKE AN OVERCEILING APPROPRIATION FOR THESE VITAL NEEDS, AND WE SOLICIT YOUR SUPPORT IN THIS REGARD.

PORT DEVELOPMENT

OUR COMMERCIAL PORT AT SAIPAN IS THE MAIN DOCK FOR ALL SHIPPING ACTIVITIES IN THE NORTHERN MARIANAS.

YET WE ARE WORKING

WITH A PORT INFRASTRUCTURE THAT WAS BUILT BY THE JAPANESE, LEFT OVER FROM WORLD WAR TWO, AND REBUILT BY THE U.S. MILITARY. AT PRESENT IT IS IN AN EXTREME STATE OF DISREPAIR AND POSES HAZARDS TO ALL USERS. MEANWHILE, SHIPPING ACTIVITIES AT OUR SAIPAN PORT HAVE MORE THAN DOUBLED IN THE PAST THREE YEARS, AND THIS UPWARD TREND UNDOUBTEDLY CONTINUE IN THE FORESEEABLE FUTURE.

THREE OR

FOUR SHIPS ARE OFTEN MOORED OUTSIDE THE SAIPAN HARBOR WAITING
THEIR TURN TO DOCK AT OUR OBSOLETE AND CONGESTED PORT AREA.
SHIPS ALSO REPORT TOUCHING BOTTOM IN THE SAIPAN CHANNEL ENTRANCE.
THEREFORE, THE ASSISTANCE WE URGENTLY NEED IS TWOFOLD: 1) TO

DREDGE SAIPAN'S ENTRANCE CHANNEL AND THE TURNING BASIN; AND, 2) TO EXPAND THE BERTHING, DOCK, AND RELATED SHORESIDE FACILITIES.

SEVERAL YEARS AGO THIS CONGRESS AUTHORIZED $14,000,000 TO BE APPROPRIATED FOR THE BADLY-NEEDED DREDGING OF THE ENTRANCE

CHANNEL AND TURNING BASIN. THE ARMY CORPS OF ENGINEERS ALSO RECENTLY COMPLETED THE REQUIRED FEASIBILITY STUDY. HOWEVER, A STUDY OF THE CORPS OF ENGINEERS SUBSEQUENTLY CONCLUDED THAT THIS PROJECT WAS NOT JUSTIFIABLE, WHICH WILL HAVE A DEVASTATING EFFECT ON OUR ECONOMY. INDEED, WE DO NOT UNDERSTAND THE CRITERIA THAT THE ARMY CORPS OF ENGINEERS USED IN ARRIVING AT THIS NEGATIVE RECOMMENDATION, EVEN THOUGH THE CORPS OF ENGINEERS STUDY NOTED THAT THE U.S. BALANCE OF PAYMENTS WOULD BE BENEFICIALLY AFFECTED

BY THIS PORT IMPROVEMENT PROJECT.

THE COMMONWEALTH PORTS AUTHORITY HAS ALREADY COMPLETED THE

CONSTRUCTION AND DESIGN DOCUMENTS FOR THESE IMPROVEMENTS, WHICH
WILL COST AN ESTIMATED $28,000,000 TO BUILD AND THREE YEARS TO
COMPLETE. IF THE DREDGING PROJECTS PROCEED AT THE SAME TIME WITH
THE BERTHING AND DOCK IMPROVEMENTS, A NET SAVINGS OF $6,000,000
TO $8,000,000 WILL BE REALIZED. IN THIS MANNER, DREDGED
MATERIALS CAN BE UTILIZED AS FILL MATERIAL FOR THE DOCK AND

BERTHING FACILITIES, ACCORDING TO ARMY ENGINEERING ESTIMATES.

THESE PROJECTS ARE COMPLETED SEPARATELY, IT WILL COST ABOUT $42,000,000 TO ACCOMPLISH BOTH PROJECTS. ON THE OTHER HAND, TO COMPLETE BOTH PROJECTS TOGETHER WILL REQUIRE ABOUT $35,000,000

AN ESTIMATED SAVINGS OF $7,000,000.

IF

IN SHORT, THE IMPORTANCE OF THESE PROJECTS CANNOT BE

OVEREMPHASIZED DUE TO THE OLD AGE AND DANGEROUS CONDITION OF OUR PRE-WORLD WAR TOW DOCK FACILITIES.

IN FACT, PART OF THE DOCK HAS

ALREADY COLLAPSED DUE TO THE USE OF HEAVY EQUIPMENT, BUT FORTUNATELY NO ONE WAS INJURED. WE, THEREFORE, URGE YOUR SUPPORT FOR AN OVERCEILING APPROPRIATION REGARDING THE SAIPAN PORT AND

HARBOR IMPROVEMENT PROJECT. JUST AS THE NEW COMMONWEALTH HEALTH CENTER BECAME A REALITY THROUGH AN OVERCEILING APPROPRIATION, THE PRECISION NEED FOR CERTAIN PROJECTS SOMETIMES DICTATES URGENT ACTION WHICH MAY BE BEYOND THE MOST CAREFULLY PLANNED BUDGET

PROJECTIONS.

THE PORT AT THE ISLAND OF TINIAN, HOWEVER, REQUIRES A DIFFERENT SOLUTION BECAUSE OF A MILITARY JOINT-USE AGREEMENT TINIAN'S BREAKWATER, BUILT BY THE SEABEES IN 1944, HAS DETERIORATED SO MUCH THAT IT CANNOT HOLD BACK THE SEA DURING STORMS. PRIVATE AND COMMERCIAL VESSELS, INCLUDING A FLEET OF U.S. TUNA BOATS, ARE ALWAYS IN IMMINENT DANGER DURING TYPHOONS. UNDER OUR LEASE AGREEMENT, MAINTENANCE AND REPAIR OF THE BREAKWATER IS THE RESPONSIBILITY OF THE U.S. GOVERNMENT. IN SUMMARY, THESE CONTRACTUAL RESPONSIBILITIES NEED TO BE FULFILLED. ANOTHER YET-TO-BE FULFILLED REQUIREMENT OF THE TINIAN LEASE AGREEMENT IS THE CREATION OF A JOINT CIVIL-MILITARY COUNCIL WITH THE NAVY'S PLANS TO BUILD THREE RADAR TRACKING STATIONS ON

TINIAN, THE NEED TO COORDINATE PLANNING THROUGH THIS COUNCIL IS

IMPERATIVE.

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