have reprogramed a sum appropriated earlier for an urban renewal project which has not yet come to pass. With the reprograming and the new money which we seek, it will be possible for Guam to carry on a rehabilitation program involving sewers and water projects and schools, totaling roughly $5 million during fiscal 1967. For purposes of answering your questions with respect to the Guam rehabilitation program, Governor Guerrero from Guam is here, together with Mr. Ingling, the Assistant Secretary, who is principally responsible within the Guam government for rehabilitation projects. Secondly, with respect to Samoa, we seek approximately $9 million this year. This is the sum which is roughly $5 million more than that which was appropriated for the current year. The rise is accounted for by the fact that many projects which this committee had authorized to be commenced in earlier years and which have now been commenced now require the financing which had not been provided at earlier points. In support of the Samoa appropriation there is present Governor Lee, the secretary of Samoa, Mr. Owen Aspinall, and the director of administrative services for the government of Samoa, Mr. Screen. All of these people, as well as those from Guam, are known to this committee, having appeared here before. Thirdly, with respect to the trust territory, we will ask you for precisely the sum of $17,494,000. This is only $6,000 less than the maximum now permitted by law. As you are aware, there is a statutory ceiling of $17.5 million on trust territory appropriations. This amount, of just under $17 million, would in fiscal 1967 permit us very slightly to expand capital improvements, particularly in the education and health fields which are priority areas. The amount would otherwise permit us roughly to continue the status quo. In connection with the trust territory appropriation, there is now present the High Commissioner, Mr. Goding, whom you know, and two people whom you have not before met, the assistant commissioner of the trust territory for community services, Mr. Hawkins, community services involving among other areas health and education, and the director of budget and finance for the trust territory government, Mr. Patton. Mr. Patton and Mr. Hawkins are both relatively new employees of the trust territory government. The last category can be regarded as miscellaneous. It represents relatively little money, somewhat under $1 million, and it is in this category that we place the Office of Territories Administration in Washington, the Offices of the Governors in the Virgin Islands and Guam, the Virgin Islands controller, and Alaska public works. Here from the Office of Territories are Mr. Heller, who is our Guam expert, and Mr. Mangan and Mr. Milner, expert on American Samoa and the trust territory. All of those here from both abroad and at home will be glad to answer your questions. Finally I will mention, as we represented to you last year, the Virgin Islands Corporation will for all practical purposes cease to exist on June 30 of this year, and we accordingly seek neither funds nor program authority for it beyond that date." That, Mr. Chairman, concludes my summary. Mr. DENTON. Thank you very much. We shall insert pages 1 through 5 of the justifications. (The pages follow:) HIGHLIGHT STATEMENT The major purpose of the Office is to assist in guiding the growth of the nonself-governing territories and the trust territory toward full economic and political maturity. Included in this program are the Virgin Islands, Guam, and American Samoa. The government of the Trust Territory of the Pacific Islands, which is also under the supervision of the Office of Territories, is discussed separately in this presentation. All of these areas are in different stages of political and economic development. They are encouraged to and are constantly moving toward a greater degree of home rule and economic development. The budget year estimate of about $5.5 million for Guam provides for continuation of the rehabilitation program authorized by the Guam Rehabilitation Act, Public Law 88-170, approved November 4, 1965. Initial appropriations totaling $19 million were made available by the Congress in fiscal 1965 to start the program. The appropriation for the current year is approximately $9.7 million. The budget year estimate of $9.1 million for American Samoa contemplates continued emphasis on programs for education, public health, economic development, communications, and public works. INTRODUCTION The Office of Territories promotes the economic and political development of those territories and the trust territory which are under U.S. jurisdiction and within the responsibility of the Interior Department. It originates and implements Federal policy, guides and coordinates certain operating programs, provides information and services, and participates in foreign policy and defense matters concerning the territories and the trust territory. In addition, the Office represents the Governors of the Virgin Islands, Guam, and American Samoa and the High Commissioner of the Trust Territory in Washington. SUMMARY OF INCREASES AND DECREASES, 1967 Virgin Islands: Net increase in operating costs for legislative expense and the Comptroller's office---Guam: Funds for legislative expense no longer required To provide for continuation of the rehabilitation program.. -53, 000 -$24,000 -9,049, 000 -9,073, 000 Administration of territories-Continued American Samoa: Net increase in grants due mainly to increased Canton Island administration: Funds no longer required---- General administration: Increased operating costs__ Net decrease, 1967----- +$14,000 +5, 042, 000 +$5,056, 000 -17, 000 +21,000 -4, 066, 000 10, 513, 000 Mr. DENTON. There is nothing for the support of the Virgin Islands? Mrs. VAN CLEVE. Only for the support of the office of the Governor which we are required by law to support. GUAM WITNESS MANUEL F. L. GUERRERO, GOVERNOR Mr. DENTON. We shall take up Guam now. The 1967 estimate for Guam is $5,503,000. As principal witness for this request, we have with us this morning Governor Manuel F. L. Guerrero. Governor, the committee would like to extend a cordial welcome to you and your assistant, Mr. George Ingling. As you know, this committee follows with great interest the progress of your work in Guam. GENERAL STATEMENT We shall insert your prepared statement in the record at this point and ask you to give the committee a brief oral summary of it. STATEMENT OF THE GOVERNOR OF GUAM Mr. Chairman and members of the committee, I am pleased to have again the privilege of addressing this committee. Guam has experienced another year of high construction activity resulting from the projects approved by Congress under the Guam Rehabilitation Act of 1963, Public Law 88-170. Today, I would like briefly to review what has been accomplished, and to ask your favorable consideration of projects proposed for the coming fiscal year. Mr. George Ingling, who has accompanied me previously and is known to many of you, is with me today. He has served the Government of Guam for 10 years, as director of finance and in other top positions, and for the past 2 years has been coordinator of all Federal programs. He will assist me in answering your questions. Since our last appearance here, Guam has completel the construction of its first major facilities financed by rehabilitation appropriations which to date total $28,657,000. These include two public schools, a headquarters for the department of education, a new public works center, a new penitentiary and detention home. During 1966, some 17 other facilities now underway will be completed. They include a new senior high school, a trade and technical high school, two junior high schools, four elementary schools, two college buildings, a new air terminal, public utilities administration and shop buildings, a supply warehouse, telephone exchange, power substation, and a well-water system. These rehabilitation and capital improvement projects helped Guam reach a record $127 million in value of goods and services for fiscal 1965. They will continue to be a vital ingredient in the health of our economy, not only directly, but as a catalyst to other construction and other activity. The year 1965 saw important improvements on Guam in many fields. The National Aeronautics and Space Agency constructed its Dandan tracking station-a valuable tool in our Nation's "man in space" efforts and certainly a valuable asset for Guam. The Australian cable station was nearly completed-a new supporting communications link with the areas of the Pacific-and a new benefit for our territory and its future as a communications center. The year brought Guam a morale-building visit from the cruise ship Himalaya with her 1,300 passengers-most of whom took a tour of Guam, and liked what they saw. The Himalaya will be back with us in March. Last year brought a big increase in farm production by our own farmers, and the promise of an extensive farm and processing operation by an off-island group. Local farm produce in calendar year 1965 totaled 1,300,000 pounds-an increase of more than 600,000 pounds over 1964-and was valued at $254,000-almost three times the value of 1964 production. Retail prices, however, remain high. The year 1965 brought accreditation for our hospital and college. Recently a program of nurse training involving both these institutions was announced. This is a commendable development that reflects Guam's increasing ability to provide for itself in professional areas. The year brought us our first watch assembly plan and signs of more to come--and the application of tax benefits under the new Guam Economic Development Authority. A master plan for land use was completed. This plan gives us for the first time a basic guide to the development of zoning and proper land use. In 1965, after years of frustration, a beginning was made in correcting the problem of fractionalized lots that has prevented redevelopment of our capital city. Schools remain a major need and you will see this reflected in our proposals for fiscal 1967. Our permanent population is increasing rapidly. Guam's growing role in the military structure of the Nation means new personnel, new families who must be served by the public schools of Guam. We seek for next year appropriations for a new school in Yigo to help serve Andersen Air Force Base and expansion of the Dededo school to help serve civilian needs. Water and sewer improvements make up a large portion of our requests for 1967. A sewer trunkline for the west-central island, with pumping station and outfall, is now under construction. We seek funds to complete this construction, and to extend it to other villages. Pollution of our beaches will remain a problem until a central sewage system serves these heavily populated areas of the island. Our water resources are being developed rapidly. A series of wells tapping underground water supplies have been drilled, and we are requesting funds for 1967 to drill 10 more. These wells will allow us to relieve critical shortage areas and will be an essential supplement to the reservoir system which is under military control. Eventually, we hope, these newly developed water resources will practically free the civilian population from dependence on the reservoir system. |