ment. Accordingly, the key feature of the development strategy for the Aguadilla area developed by the EAC team has been the establishment of Borinquen Airport (the portion of the base to be made available to the Commonwealth). It was felt that this new civilian facility could become, inter alia, a major port of entry, providing U.S. Customs, Immigration and Department of Agriculture inspection services and major refueling and cargo services for international air traffic between North and South America. Training of technicians to meet the needs of the commercial airlines was considered another possible use of the installation. Related development, off-base, would include: revitalization of the agricultural economy of western Puerto Rico; realization of new industrial development potentials in the western part of the Island through the encouragement offered to industries of high and medium technologies which use air freight as a regular means of shipping part of their production; improvement of certain highways in the vicinity of the base to provide better access to the commercial aviation facilities; improvement of electric power, water and sewerage services to support additional industrial and other activity; expansion of technical education facilities to provide an expanded trained labor force; and development of much needed recreational facilities and tourist attractions and accommodations to take advantage of the increased accessibility of the area by air.

The closure announcement of April 17, 1973 provides an opportunity for the Commonwealth Government to intensify and expand its development efforts at Ramey through acquisition of title to the entire base or a major part of it. A base use plan submitted to the EAC by the Commonwealth in early June 1973 continues the original development strategy with respect to the Base, providing for civil aviation, health and education, park and recreation and industrial uses.

Accomplishments under the Aguadilla program since its inception in August 1971, have included: (a) development at Borinquen Airport of passenger traffic by local scheduled airlines and air cargo traffic by non-scheduled carriers; (b) funding by the Federal Economic Development Administration, the Environmental Protection Agency and the Commonwealth Government of Water and Sewer Systems and an industrial park with a total cost of $10 million; (c) preparation of an Industrial Profile for Aguadilla by EAC; and (d) preparation by EAC of a Schematic Base Utilization Plan for Ramey AFB.

The Commonwealth Ports Authority currently enjoys joint use of the flight facilities at Ramey with the Air Force and occupies the greater part of the land and buildings south of the runway under a long-term lease from the Air Force. Upon closure of the base, the Commonwealth hopes to acquire all of the 3900 acres of base property for multi-use development. The Navy has stated that it has a requirement to retain 371 acres, including housing, administration and warehouse buildings, and schools. A similar, smaller requirement for the Coast Guard exists. Following the precise determination of excess, the normal property disposal procedures will be followed.

Assessment

Termination of Air Force operations at Ramey Air Force Base will undoubtedly worsen an already serious unemployment situation. However, the opportunity afforded the Commonwealth to acquire the base and devote the property to a variety of productive uses, including the possible establishment of the island's second international airport, is one which should in time, serve to revolutionize the economy of the Aguadilla area.

Current Status

The immediate key to progress under the economic adjustment program for Aguadilla is final determination of Navy and Coast Guard ongoing requirements for facilities. When this question has been decided, the Air Force may issue an interim lease to the Commonwealth for whatever part of the Base property may ultimately become available for conveyance to the Commonwealth.

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Community Location

Newport, with a population of 81,700, is located on the southern tip of Aquidneck Island on the eastern side of the Narragansett Bay. It is approximately 45-50 miles directly south of Providence and is connected to the eastern shore of mainland Rhode Island by bridges to and from Conanicut Island. North of Newport, the towns of Middletown (29,290 population) and Portsmouth (12,521 population) occupy the remainder of Aquidneck Island.

DoD Impact

The U. S. Naval Station at Newport is to be disestablished and related activities reduced. At the Naval Station a total of 386 military positions and 197 civilian positions will be relocated to the Naval Schools Command, Newport, Rhode Island, and 81 military positions and 144 civilian positions will be reduced. Seven Navy Fleet Unit Staffs and 39 Naval ships with 12, 694 military positions will be relocated to other homeports. Minor realignments will also take place at the Naval Hospital, the Navy Exchange, the Naval Construction Battalion Unit 408, and at other facilities. The net effect will be the dislocation of 725 civilian jobs and 13, 162 military jobs. Other key indicators of the pervasive effect of this impact is evident in that 5, 119 Navy occupied housing units in the communities are expected to be vacated with no immediate replaceable demand. Commercial activity is also expected to be affected seriously; as an example, 60% of 126 businesses surveyed in Newport indicate that they expect to close. The local tax base will be weakened, and school budgets dependent on Federal assistance funds and social services will experience long term negative effects. This impact has been eased somewhat for certain individuals since 219 personnel retired on June 30 and 50 have been placed in other jobs.

EAC Involvement

Since April 18, eight visits have been made by EAC members to develop information for a viable recovery program for the area, including a reconnaissance visit on 22-24 May 1973. A reconnaissance report detailing the findings and suggested strategies is being prepared by the Office of Economic Adjustment and will be provided by the end of July.

Governor Noel has formed a State-wide Economic Renewal Coordinating Committee composed of representatives from the public and private sectors of the impacted cities and towns. This task force is coordinating all proposals regarding the conversion of the surplus facilities at Newport. OEA has proposed 38 specific development actions to the State, of which 30 have been completed and eight are still in process. These actions focus primarily on the organizational and technical assistance tasks necessary for a viable recovery program for Aquidneck Island.

Local organizations such as the Newport County Chamber of Commerce and government committees, are investigating possible community uses for Navy property to be excessed at the Newport Naval Complex. Needs and suggestions are being channeled through the State-wide task force for consideration.

Grants totaling $230,400 for conversion planning have been made by the Economic Development Administration (EDA), Department of Housing and Urban Development (HUD), and the Department of Labor (DOL). A $4.6 million urban renewal project has been approved for Newport, and the Small Business Administration (SBA) held two development workshops for small businessmen in Newport in June 1973. Major manpower retraining resources are also being mobi lized and additional planning funds will soon be made available.

Disposition of DoD Property

The Navy is expected to submit three disposal reports to the Armed Services Committees: Naval Station proper, the Naval Public Works Center and the Naval Supply Station.

Assessment

The magnitude of the Navy's withdrawal indicates that severe initial and long term effects will be felt on Aquidneck Island. Because the economy of the three Aquidneck Island communities depends so heavily upon the Navy, it will be a long term process to develop substitutes needed to generate comparable economic well being. The individual communities are limited in providing for their own recovery without major Federal and State assistance and without approaching the problems on a regional basis. The State has organized to meet the challenge, and has demonstrated that its resources will be brought

to bear on this impact problem. The critical impact period is seen as the next 12 months, and the delivery of EAC, State and local resources should be concentrated during this time frame. EAC assistance will focus on the creation of an area-wide development organization capable of maximizing those opportunities inherent in the re-use of excess DoD facilities.

Major program support is anticipated in tourism and recreation with emphasis to be placed on Bicentennial-related developments in order to enhance the area's permanent ability to draw tourists. This activity is seen as the prime means to replace small business jobs eliminated by the Navy cuts.

Industrial re-use of properties to be excessed by DoD is also being pursued with a focus on developing interests with civil maritime users.

Current Status

Completion of a reconnaissance report outlining specific recovery actions to be taken in Rhode Island, including Newport, is expected by the end of July. This will provide guidance for further EAC activities and serve as background for a full EAC Federal team visit scheduled for August. EAC continues to work with the Governor's task force and the communities on key interim actions.