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I AM VERY CONCERNED THAT WE WILL NOT BE AS FORTUNATE IN FISCAL YEAR 1989. FOR THIS REASON, OUR REQUEST FOR OPERATION IS HIGHER THAN FROM THE PREVIOUS YEARS AS OUTLINED BY OUR · GOVERNOR. THE PEOPLE OF THE TERRITORY ARE VERY THANKFUL FOR THE ANNUAL FINANCIAL SUPPORT ALTHOUGH THE AMOUNTS HAVE DECLINED GIVEN THE RISING INFLATION AND 1.85% PERCENT ANNUAL POPULATION GROWTH. THE AMERICAN SAMOA GOVERNMENT HAS BEEN OFFSETTING NOT ONLY THE DECLINE IN FEDERAL SUPPORT DUE TO INFLATION AND RISING DEMAND FOR SERVICES DUE TO POPULATION GROWTH, BUT ALSO TO MEET ITS SHARE OF THE RISING COST OF GOVERNMENT.

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EVER SINCE I HAVE HAD THE PRIVILEDGE AND THE HONOR TO APPEAR BEFORE THIS DISTINGUISHED FORUM, I HAVE BELABORED THE POINT RESPECTING THE RESTRICTIVE NATURE OF OUR ECONOMIC SYSTEM. YOU HAVE HEARD MANY A TIME, I AM SURE, THAT THE ECONOMIC SYSTEM OF THE TERRITORY IS COMPRISED ON THE GOVERNMENT SECTOR AND THE CANNERIES. ALL THE OTHER ECONOMIC SECTORS EVOLVE AROUND THESE TWO. THIS POINT IS CLEARLY ILLUSTRATED BY THE IMPROVED ECONOMIC HEALTH EXPERIENCED BY THE TERRITORY IN 1987, BASED ON THE INSERTION OF HURRICANE TUSI FUNDS AND WINDFALL TUNA TAX REVENUES. THE REVENUE COLLECTION FOR THE TERRITORY IS PROJECTED TO DECLINE IN FISCAL YEAR 1989 DUE TO THE TERMINATION OF HURRICANE TUSI PROJECTS AND NON ANTICIPATION FOR ANY WINDFALL TUNA TAX SETTLEMENT. THE POINT THAT I AM TRYING TO STRESS IS THAT FEDERAL ASSISTANCE SHOULD BE COGNIZANT OF THE NEED TO FOSTER THE CREATION OF A CONDUCIVE ECONOMIC ENVIRONMENT TO FACILITATE LONG TERM ECONOMIC DEVELOPMENT AIMED AT EXPANDING THE TERRITORY'S REVENUE BASE.

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OUR GOVERNOR IS AGRESSIVELY PURSUING INDUSTRIALIZATION THROUGH 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 FROM 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 WATER*SYSTEM DEVELOPMENT PROGRAM AS MANIFESTED IN THE INCLUSION OF FUNDS FOR FISCAL YEAR 1989.

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"THE AMERICAN SAMOA HOUSE OF REPRESENTATIVES IS APPRECIA TIVE OF THE INCORPORATION OF $1.2 MILLION FOR THE NEW DOCK 'AT FALEASAO, MANU'A I 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 BASICCONTRIBUTING 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 IF 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 INCLUSION 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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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.

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DO SHARE THE GOVERNORS OPTIMISM AND PRIDE OVER OUR PERFORMANCE LAST YEAR BECAUSE SACRIFICES WERE MADE WHEN THEY WERE NEEDED. THIS ALSO SHOWS THE RESILIENCE OUR PEOPLE AND THE VIGILANCE OF ITS LEADERS TO FACE REALITY. AS OUR: 'GOVERNOR-MENTIONED, SACRIFICES WILL CONTINUE TO BE MADE FOR IN DOING SO WE FEEL A SENSE OF PARTICIPATION AND SHARING EQUALLY IN THE PAINS AND TRIBULATIONS OF OUR NATION. OBSER VERS AND CRITICS WHO TRAVERSE THE SAMOAN ISLANDS OFTEN COMMENTING AND EXPRESSING THEIR DISBELIEF AT THE DIFFERENCES BETWEEN.: AMERICAN AND INDEPENDENT WESTERN SAMOA WHEN THEY SPEAK OF --THE FUNDS WE RECEIVE FROM THE FEDERAL GOVERNMENT, THEY TERM IT "HANDOUTS”. WHEN THEY SPEAK OF FUNDS THAT WESTERN SAMOA RECEIVES FROM THE METROPOLITAN COUNTRIES. INCLUDING THE UNITED STATES, THEY TERMIT FOREIGN AID, WE ARE NOT HERE MR CHAIRMAN, FOR HANDOUTS WE ARE HERE BECAUSE WE ARE AMERICANS, STRIVING TO ATTAIN THE LEVEL--OF EQUALITY OF LIFE PACIFIC AMERICANS ASPIRE FOR

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SOIFUA,

TUANA'ITAU F. TUIA

Speaker of the House

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:]

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