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OUR ::GOVERNOR ?:IS AGRESSIVELY PURSUING INDUSTRIALIZATION JHROUGH THE :: ATTRACTION OF FOREIGN COMPANIES TO ESTABLISH MANUFACTURING FACILITIES. WHILE WE ARE BEGINNING TO SEE SOME OF THE FRUITS OF HIS EFFORTS, THE PROCESS HAS BEEN EXACERBATED BY: THE--UNFAVORABLE - ECONOMIC CONDITIONS EMANATING EROM HIGH LABOR COSTS COMPARED TO OUR ISLAND NEIGHBORS AND THE INEFFECTIVENESS OF THE INCENTIVE SCHEMES SUCH AS THE HEAD NOTE 3(a). WE ALWAYS FIND OURSELVES IN A VERY WEAK NEGOTIATING POSITION WHICH RESULTS IN OUR COMPROMISING AND SACRIFICING TAX REVENUES THROUGH OFFERING OF TAX INCENTIVES TO IMPROVE THE ECONOMICS OF DOING BUSINESS IN THE TERRITORY. WE FIND OURSELVES IN THE SAME PREDICAMENT WITH THE CANNERIES. UNLESS THE TERRITORY'S ECONOMIC BASE IS EXPANDED, WE WILL CONTINUE TO SEEK BEFORE YOU SOLICITING FINANCIAL SUPPORT TO MEET THE NEEDS OF OUR PEOPLE. IT IS CRITICAL THAT WE BEGIN THE PROCESS OF REMOVING ECONOMIC BARRIERS PRECLUDING THE ABILITIES OF YOUR TERRITORIES TO PURSUE ECONOMIC INDEPENDENCE THROUGH DIVERSIFICATION.

WITH YOUR HELP, WE HAVE CONSTRUCTED AN INFRASTRUCTUAL SYSTEM TO ACCOMMODATE DEVELOPMENT. THE TASK OF KEEPING &AHEAD -- OF--DEMAND - HAS BEEN - VERY DIFFICULT, HOWEVER, BECAUSE :OF THE TREMENDOUS AMOUNT OF MONEY THAT HAS GONE INTO REHABIEITATING THE OLD SYSTEMS AND THE CONTINUAL GROWTH IN OUR POPULATION. ONE OF THESE EXAMPLES IS OUR WATER SYSTEM. WE ARE VERY APPRECIATIVE OF CONTINUED SUPPORT OF OUR WATERSYSTEM-DEVELOPMENT PROGRAMAS-MANIFESTED IN THE INCLUSION OF FUNDS FOR FISCAL-YEAR 1989,

THE AMERICAN SAMOA HOUSE OF REPRESENTATIVES IS APPRECIA TIVE OF THE INCORPORATION OF $1.2 MILLION FOR THE NEW-DOCR AT FALEASAO, MANU'AI FEEL SOMETIMES THAT WE HAVE FAILED TO PROVIDE THE NECESSARY ATTENTION TO THE NEEDS OF THE MANU'A ISLANDS.

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THIS FACT IS. MORE. PRONOUNCED WITH THE CURRENT - PROBLEMS FACED IN OUR HURRICANE TUSI REHABILITATION EFFORTS: THE BASIC CONTRIBUTING FACTOR IS THE UNSAFE CONDITIONS OF THE EXISTING. WHARF ON TA'U. THE DESIGN, WHICH WAS DEVELOPED BY THE CORPS -OF-ENGINEERS, FAILED TO - PROVIDE A SAFE HAVEN FOR BOATS SERVICING THE MANU'A ISLANDS. TRANSPORTATION OF CONSTRUCTION MATERIALS TO MANU'A HAS BEEN MADE IMPOSSIBLE BECAUSE OF THE UNSAFE CONDITION OF THE WHARF. AS A RESULT THE PROJECTS ARE NOT MEETING THE TIME SCHEDULE. ANY EFFORTS IN THE FUTURE TO PROMOTE SOCIAL AND ECONOMIC DEVELOPMENT WILL BE AN EXERCISE IN FUTILITY !F NOTHING IS DONE TO UPGRADE THE BASIC INFRASTRUCTURAL SYSTEM. THE ISLANDS DEPEND ON TRANSPORTATION FOR THEIR LIVELIHOOD, THUS THE IMMEDIATE NEED TO CONSTRUCT A NEW WHARF IN FALEASAO AS RECOMMENDED BY THE ARMY CORPS OF ENGINEERS.

WE ARE THANKFUL FOR THE LCLUSION OF $1 MILLION FOR OUR HEALTH FACILITIES AND $1 MILLION FOR THE LEONE WHARF. I AM A STRONG ADVOCATE OF LONG TERM DEVELOPMENT AND THE NEED TO PROPERLY-ORCHESTRATE ALL OUR EFFORTS TO ENSURE ATTAINMENT OF OUR LONG TERM DEVELOPMENT GOALS: YOU HAVE HEARD OUR GOVERNOR EXPLAIN THE ECONOMIC UNCERTAINTIES FOR FISCAL YEAR 1989 BECAUSE OF THE ELIMINATION OF FACTORS CAUSING THE TEMPORARY AND ARTIFICIAL JUMP IN OUR REVENUE COLLECTIONS. FOR FISCAL YEAR 1987 AND 1988. THIS FACT ACCENTUATES THE NEED FOR US TO DESIGN LONG TERM STRATEGIES TO PROMOTE SUSTAINED GROWTH PROGRAMS TO WARD OF ROLL-A-COASTER TYPE OF DEVELOPMENT THAT IS DESTRUCTIVE TO SYSTEMATIC, ORDERLY AND CONTINUED PROGRESS IN SOCIAL, ECONOMIC AND POLITICAL STATUS OF YOUR PACIFIC AMERICANS. I WOULD LIKE TO ADD FOR YOUR CONSIDERATION, FUNDING EARMARKED SPECIFICALLY FOR RENEWABLE RESOURCE DEVELOPMENT PROGRAMS. A GOOD EXAMPLE IS THE CONSTRUCTION OF A SLAUGHTER FACILITY TO COMPLETE THE LIVESTOCK DEVELOPMENT PROGRAM WHICH HAS BEEN IN EXISTENCE FOR YEARS, AND THUS MAXIMIZING CAPITALIZATION ON IMPORT SUBSTITUTION BENEFITS INHERENT IN THIS PROGRAM.

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LOTUT COMMERCIALIZATION OF SOME OF THE RENEWABLE RESOURCE PROJECTS HAS BEEN RETARTED BY THE ABSENCE OF VENTURE CAPITAL. AQUACULTURE, FISHERIES, TOURISM, AND AGRICULTURE POTENTIALS DO EXIST, HOWEVER, FUNDS AND TECHNICAL ASSISTANCE ARE NEEDED TO CAUSE ACTUALIZATION OF THESE ECONOMIC BENEFITS.

REDO ISHARES THE GOVERNOR'S OPTIMISM --AND-PRIDE OVERZOUR PERFORMANCE BLASTI:8 YEAR BECAUSE SACRIFICES ALMERE ZMADE WHEN THEY WERE, NEEDED. THIS ALSO SHOWS THE RESILIENCE OUR PEOPLE AND THE VIGILANCE OF ITS LEADERS TO FACE REALITY. AS OUR "GOVERNOR --MENTIONED, 2 SACRIFICES WILL CONTINUE-TO-BE MADE FOR INDOING SO WE FEEL A SENSE OF PARTICIPATION AND SHARING "EQUALLY IN THE PAINS AND TRIBULATIONS OF OUR NATION. OBSERE VERSAND CRITICS-WHO. TRAVERSE THE SAMOAN ISLANDS-OFTEN-COMMENTING AND EXPRESSING THEIR DISBELIEF AT THE DIFFERENCES BETWEEN.: AMERICAN AND :2 INDEPENDENT WESTERN - SAMOA. WHEN THEY SPEAK-OF-THEFUNDS WE RECEIVE FROM THE FEDERAL GOVERNMENT, THEY TERM IT "HANDOUTS". WHEN THEY SPEAK OF FUNDS THAT WESTERN SAMOARECEIVES - FROM THE METROPOLITAN COUNTRIES INCLUDING THE UNITED STATES, THEY - TERM-IT-FOREIGN-AD.

WE ARE NOT HERE MR-CHAIRMAN, FOR HANDOUTS WE ARE HERE EBECAUSE WE ARE AMERICANS, STRIVING-TO-ATTAIN THE LEVEL--OF EQUALITY OF LIFE PACIFIC "AMERICANS ASPIRE FOR..

SOIFUA,

TUANA' ITAU F, TUIA
Speaker of the House

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ASG TOURISM PROSPECTS

Mr. MURTHA. Thank you, Mr. Speaker.

Mr. TUIOLOSEGA. Mr. Chairman, the American Samoan President of the Senate has already submitted a statement, and I just want to touch on one point.

While tourism is large in our islands, we are studying a budget of $350,000 only for two reasons.

Now, the Hawaiian alliance has just made American Samoa the hub of transportation in the South Pacific Islands. Right now they are flying to New Zealand, Australia. They are flying to Tonga, Rarotonga, and they all land in American Samoa. Now, I would like this Committee to look into this particular item for our operating budget because if we have to make Samoa a showcase of the South Pacific, we will have to promote tourism just like all other countries so this may be known. This is the number one industry in Hawaii and the Virgin Islands, Puerto Rico, Western Samoa and Tonga. So, I would ask this Committee to look hard at this operating item of our budget, and we can submit any figures later on if this Committee wishes. Mr. MURTHA. Thank you very much.

ASG/OTIA GOOD WORKING RELATIONSHIP Mr. SUNIA. Mr. Chairman, I am sorry I missed the agency's presentation this morning. In past years Mr. Yates has always shown a great deal of interest in finding out how the agency is treating the territories and how well they are working together. For most of the last 12 months, we have not had an assistant director to run that office. But in his absence, we have had what I would call good working relations with the people who have been running the office, most recently by Mark Hayward and his staff.

I say this because I'm probably the one delegate who makes more criticisms of OTIA during the year than anybody else. However, my own criticisms have been directed at policies and issues rather than the technical part of the operation in which we have had smooth working relations in the past year. And I say that for the record and with deep appreciation for the assistance of the agency to this territory.

Mr. MURTHA. Thank you very much, and thank all of you for coming

Mr. SUNIA. Thank you, Mr. Chairman.
The statement of Letuli Toloa follows:

- SPEECH

OF THE

HONORABLE LETULI TOLOA

PRESIDENT OF THE SENATE

LEGISLATURE OF AMERICAN SAMOA

AT THE

F.Y. 1989 CONGRESSIONAL APPROPRIATION HEARINGS

WASHINGTON, .D.C.
APRIL 20, 1989

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