Table Of Content'' ^ ^ VIRGIN ISUNDS, GUAM, AND NORTHERN
MARIANA ISLANDS ISSUES
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SUBCOMMITTEE ON NATIVE AMERICAN & INSULAR
AFFAIRS
OF THE
COMMITTEE ON RESOURCES
HOUSE OP REPRESENTATIVES
ONE HUNDRED FOURTH CONGRESS
SECOND SESSION
ON
VIRGIN ISLANDS AND GUAM ISSUES
DISPOSITION OF WATER ISLAND IN THE VIRGIN ISLANDS, RESOLU-
TION 433, OF THE GUAM LEGISLATURE, AND CERTAIN PROVI-
SIONS OF H.R. 3721
JULY 24, 1996—WASHINGTON, DC
VIRGIN ISLANDS AND NORTHERN MARIANA ISLANDS
ISSUES
H.R. 3634 (EXECUTIVE OFFICIALS ABSENCE IN VIRGIN ISLAND), H.R.
3635 (AUTHORITY TO MANAGE CHRISTIANSTED NATIONAL HIS-
TORIC SITE) AND FEDERAL-COMMONWEALTH OF THE NORTHERN
MARIANA ISLANDS INITIATIVE ON LABOR, IMMIGRATION, LAW EN-
FORCEMENT, AND RELATED LEGISLATIVE REFORMS
JUNE 26, 1996—WASHINGTON, DC
'ilj
MSerialNo. 104-94
?
Printed for the use of the Committee on Resources
VIRGIN ISLANDS, GUAM, AND NORTHERN
MARIANA ISLANDS ISSUES
HEARINGS
BEFORE THE
SUBCOMMITTEE ON NATI\^ AlMERICAN & INSULAR
AFFAIRS
OF THE
COMMITTEE ON RESOURCES
HOUSE OP REPRESENTATIVES
ONE HUNDRED FOURTH CONGRESS
SECOND SESSION
ON
VIRGIN ISLANDS AND GUAM ISSUES
DISPOSITION OF WATER ISLAND IN THE VIRGIN ISLANDS, RESOLU-
TION 433, OF THE GUAM LEGISLATURE, AND CERTAIN PROVI-
SIONS OF H.R. 3721
JULY 24, 1996—WASHINGTON, DC
VIRGIN ISLANDS AND NORTHERN MARIANA ISLANDS
ISSUES
H.R. 3634 (EXECUTIVE OFFICIALS ABSENCE IN VIRGIN ISLAND), H.R.
3635 (AUTHORITY TO MANAGE CHRISTLANSTED NATIONAL HIS-
TORIC SITE) AND FEDERAL-COMMONWEALTH OF THE NORTHERN
MARIANA ISLANDS INITIATIVE ON LABOR, IMMIGRATION, LAW EN-
FORCEMENT, AND RELATED LEGISLATIVE REFORMS
JUNE 26, 1996—WASHINGTON, DC
Serial No. 104-94
Printed for the use of the Committee on Resources
U.S. GOVERNMENT PRINTING OFFICE
27-245cc WASHINGTON : 1996
ForsalebytheU.S.GovernmentPrintingOffice
SuperintendentofDocuments,CongressionalSalesOffice,Washington,DC 20402
ISBN 0-16-053845-9
COMMITTEE ON RESOURCES
DON YOUNG, Alaska, Chairman
W.J. (BILLY) TAUZIN, Louisiana GEORGE MILLER, CaUfornia
JAMES V. HANSEN, Utah EDWARD J. MARKEY, Massachusetts
JIM SAXTON, New Jersey NICK J. RAHALL II, West Virginia
ELTON GALLEGLY, CaUfornia BRUCE F. VENTO, Minnesota
JOHN J. DUNCAN, Jr., Tennessee DALE E. KILDEE, Michigan
JOEL HEFLEY, Colorado PAT WILLLyVIS, Montana
JOHN T. DOOLITTLE, CaUfornia SAM GEJDENSON, Connecticut
WAYNE ALLARD, Colorado BILL RICHAPJDSON, New Mexico
WAYNE T. GILCHREST, Maryland PETER A. DeFAZIO, Oregon
KEN CALVERT, CaUfornia ENI F.H. FALEOMAVAEGA, American
RICHARD W. POMBO, CaUfornia Samoa
PETER G. TORKILDSEN, Massachusetts TIM JOHNSON, South Dakota
J.D. HAYWORTH, Arizona NEIL ABERCROMBIE, Hawaii
FRANK A. CREMEANS, Ohio GERRY E. STUDDS, Massachusetts
BARBARA CUBIN, Wyoming SOLOMON P. ORTIZ, Texas
WES COOLEY, Oregon OWEN B. PICKETT, Virginia
HELEN CHENOWETH, Idaho FRANK PALLONE, Jr., New Jersey
LINDA SMITH, Washington CALVIN M. DOOLEY, CaUfornia
GEORGE P. RADANOVICH, CaUfornia CARLOS A. ROMERO-BARCELO, Puerto
WALTER B. JONES, Jr., North CaroUna Rico
WILLIAM M. (MAC) THORNBERRY, Texas MAURICE D. HINCHEY, New York
RICHARD (DOC) HASTINGS, Washington ROBERT A. UNDERWOOD, Guam
JACK METCALF. Washington SAM FARR, California
JAMES B. LONGLEY, Jr., Maine PATRICK J. KENNEDY, Rhode Island
JOHN B. SHADEGG, Arizona
JOHN E. ENSIGN, Nevada
Daniel Val Kish, ChiefofStaff
Elizabeth Megginson, ChiefCounsel
Christine A. Kennedy, ChiefClerk/Administrator
John Lawrence, Democratic StaffDirector
SUBCOMMITTEE ON NATIVE AMERICAN & INSULAR AFFAIRS
ELTON GALLEGLY, CaUfornia, Chairman
DON YOUNG, Alaska ENI F.H. FALEOMAVAEGA, American
WAYNE T. GILCHREST, Maryland Samoa
WALTER B. JONES, Jr., North CaroUna DALE E. KILDEE, Michigan
RICHARD (DOC) HASTINGS, Washington PAT WILLIAMS, Montana
JACK METCALF, Washington TIM JOHNSON, South Dakota
JAMES B. LONGLEY, Jr., Maine CARLOS A. ROMERO-BARCELO, Puerto
Rico
ROBERT A. UNDERWOOD, Guam
Tim Glidden, Counsel
T.E. Manase Mansur, Professional Staff
Christopher Stearns, Democratic Counsel
(II)
CONTENTS
VIRGIN ISLANDS, GUAM ISSUES
Page
Hearingheld:
July 24, 1996 1
H.R. 3721 33
Statements ofMembers:
Gallegly, Hon. Elton, aU.S. Representative from Ohio 1
prepared statement 4
Underwood, Hon. RobertA., a U.S. Delegatefrom Guam 4
Statements ofwitnesses:
Barrett-Anderson, SenatorElizabeth, Guam Legislature 21
Prepared statement 74
Bordallo, Lt. GovernorMadeleine Z., Guam 15
Cristobal, SenatorHope, Guam Legislature 23
Faleomavaega, F.H., (prepared statement) 13
Lutali, A. P., (prepared statement) 70
Pangelinan, SenatorVicente C, Guam Legislature (prepared statement) . 94
Stayman, Allen P. DirectorofInsularAffairs, DepartmentofInterior 2
Prepared statement 58
Communication submitted:
ResolutionNo. 433(LS) 84
UnitedNations General AssemblyReport 97
VIRGIN ISLANDS AND NORTHERN MARIANA ISLANDS
Page
HearingheldJune 26, 1996 120
Textof:
H.R. 3634 185
H.R. 3635 188
Statements ofMembers:
Gallegly, Hon. Elton, aU.S. Representativefrom California 120
prepared statement 120, 165
Frazer, Hon. Victor, Delegate, Territory oftheVirgin Islands 121
Hastings, Hon. Doc, (prepared statement ) 142
Statements ofwitnesses:
Aloot, Sebastian, Attorney General, Commonwealth Northern Mariana
Islands 161
Prepared statement 231
Babauta, Juan N., Resident Representative, Commonwealth Northern
Mariana Islands 159
Prepared statement 209.
Kennedy, Roger G., Director ofNational Parks, Department ofthe Inte-
rior 129
Prepared statement 196
Lewis, WUmaA., InspectorGeneral ofInterior 144
Prepared statement 199
McPhetres, SamuelF., President, Saipan ChamberofCommerce 173
Prepared statement 243
Schneider, Hon. Roy L., M.D., GovernorofVirgin Islands 122
Prepared statement 191
Stajonan, Allen P., Director of Insular Affairs, Department of the Inte-
rior 128, 143
Prepared statement 194
(III)
rv
Page
Communication submitted:
Babauta, Juan N,: LetterofJuly 10, 1996to Hon. Elton Gallegly 378
Federal-CNMI Initiative on Labor Immigration, & Law Enforcement, Re-
portofJune 1996 251
Fleming, Evelyn C: LetterofMay 30, 1996 to Hon. Froilan C. Tenorio 374
Lewis, WilmaA.: LetterofJuly 10, 1996to Hon. Elton Gallegly 352
San Nicolas, Jose C: Memorandum ofJuly9, 1996 toJuan N. Babauta ... 375
Stayman, Allen P.:
Answerto questionforJuly24, 1996 391
Answerto question forJuly 26, 1996 396
Tenorio, Froilan C: Letter ofJune 1, 1996 to Hon. Diego T. Benavente
and Hon. Jesus R. Sablan 373
Tenorio, Froilan C: LetterofMay 30, 1996 to PeterJ. Scharwark 380
Additional material supplied:
Ferrara, Peter: Tinkeringwith the success ofliberty ofOct. 10, 1995 298
House Bill No. 10-152, H.D.I of Commonwealth Legislature, Northern
Mariana 361
HouseJoint Resolution No. 10-1 ofCommonwealth Legislature, Northern
Mariana 327
I.G. Questions regardingtheAudits in the NMI 146
Proposed ConstitutionalAmendment 359
Questions forDepartmentofJustice 157
Questions forWilma Lewis, InspectorGeneral 145
Questions Regardingthe Minimum Wage 157
Responsesto Questions from Richard N. Reback, Department ofInterior 345
Responses to Questions fromWilma A. Lewis, DepartmentofInterior . 351
1985 OmnibusTerritories Legislation Herring 386
Opinion: Pacific DailyNews, datedAugust30, 1996 389
—
VIRGIN ISLANDS, AND GUAM ISSUES
WEDNESDAY, JULY 24, 1996
House of Representatives, Subcommittee on Native
American and Insular Affairs, Committee on Re-
sources,
Washington, DC.
The Subcommittee met, pursuant to notice, at 2:30 p.m., in room
1334, Longworth House Office Building, Hon. Elton Gallegly
(Chairman ofthe Subcommittee) presiding.
STATEMENT OF HON. ELTON GALLEGLY, A U.S. REPRESENTA-
TIVE FROM CALIFORNIA; AND CHAIRMAN, SUBCOMMITTEE
ON NATIVE AMERICANAND INSULARAFAIRS
Mr. Gallegly. This oversight hearing will cover the longstand-
ing disposition of Water Island in the Virgin Islands, Resolution
433 of the Guam Legislature, and certain provisions of H.R. 3721.
I welcome our distinguished visitors from Guam, Lieutenant
Governor Bordallo and Senators Barrett-Anderson and Cristobal.
The disposal ofWater Island was identified by the Committee on
Resources as a priority issue in the Committee's Oversight Plan for
the 104th Congress. There are many American citizens who are
still waiting to gain title with the land where their homes stand.
It is unconscionable that the Department has taken nearly 4 years
to conclude this matter. At a minimum, the Department ofInterior
should give clear timeframes for resolving each aspect for the dis-
posal ofWater Island.
The legislature of Guam has enacted Resolution 433, which re-
quests that the Congress give Guam the authority to determine the
method of selecting their attorney general. No doubt there is a
compelling reason the legislature identified the selection of the at-
torney general as a matter of warranting a change in the current
law. However, it is essential for Congress to hear the views ofboth
the executive and legislative branches ofGuam.
My colleague and ranking member of the Subcommittee from
American Samoa has recently introduced legislation with a number
of measures affecting the insular areas of the United States. While
a number ofthese were covered in other earlier congressional hear-
ings, I expect the witnesses will comment on the provisions per-
taining to their territory.
The administration will comprise the first three panels and will
be represented by Allen Stayman of the Office of Insular Affairs
one ofmy favorite offices.
(1)
The second panel will include the Lieutenant Governor of Guam,
Madeleine Bordallo, presenting testimony on behalf of the Gov-
ernor ofGuam.
The last panel includes two senators from Guam, Senator Eliza-
beth Barrett-Anderson, and Senator Hope Cristobal. I understand
Senator Barrett-Anderson has been appointed by the Speaker of
the Guam Legislature, Don Parkinson, to represent the legislature
regarding the proposed change in the Organic Act of Guam regard-
ing the selection of the attorney general. I also understand that
Senator Cristobal has a special interest in the proposed Guam
Land Act.
[H.R. 3721 may be found at the end ofhearing.]
Mr. Gallegly. We will now begin with the first panel. We have
what sounds like a series of votes, and before I yield to Mr.
Stayman, I apologize for coming in late; there was a little glitch,
I guess, in some meetings, although I will take total responsibility
for it and deal with that appropriately later. But in any event, as
you heard, it appears there is a series of votes over on the Floor,
and due to the current leadership's position on the voting rights of
my delegate friends here, they will have a better opportunity to
continue this meeting than I will have.
So with that, ifyou would please excuse me, Mr. Stayman, I will
yield the gavel to my good friend, the delegate from American
Samoa, Mr. Faleomavaega.
Mr. Stayman. Thank you.
STATEMENT OF ALLEN P. STAYMAN, DIRECTOR OF INSULAR
AFFAIRS, U.S. DEPARTMENT OF THE INTERIOR
Mr. Stayman. Mr, Chairman, and members ofthe Subcommittee,
I am pleased to appear before you for this oversight hearing on
Water Island, election of Guam's attorney general, and H.R. 3721.
The Department of the Interior has been the owner and lessor
ofWater Island for more than 40 years. Since before the expiration
of the master lease in 1992, the Department has sought to dispose
of its interest in the island. The process has been long and ardu-
ous. We are confident, however, that the process is coming to a
close, with a fair and reasonable result.
On May 23rd, the Department outlined its plan for disposal of
its interest in Water Island. Each sublessee will have the oppor-
tunity to purchase fee simple title to the subleased land on which
his or her Water Island residence is located.
In addition, the Government of the Virgin Islands will be given
fee simple title to non-subleased portions ofWater Island for public
purposes in exchange for the assumption of certain responsibilities,
including provision ofmunicipal services, cleanup of storm damage,
and establishment ofconservation easements.
In resolution of a suit by the master lessee against the Depart-
ment, the parties submitted a formal settlement by which the De-
partment will pay the master lessee $7.5 million for the lessee's
possessory interest in Water Island.
With the judge's expected approval of the settlement on August
2nd, we believe that this long Water Island transfer process is
drawing to a close.
The Legislature of Guam in Resolution 433 requests that the Or-
ganic Act of Guam be amended to require election of the attorney
general. I believe that the issue of appointment or election of the
attorney general is a local self-government issue which should be
decided in Guam. Accordingly, the Department takes no position on
the matter at this time. We would, however, likely support a posi-
tion based on consensus in Guam.
Turning to H.R. 3721, the administration has no objection to
Title I regarding delegate balloting.
Title II would establish an American Samoa study commission to
conduct a comprehensive study of American Samoa's political sta-
tus. While the administration supports the objective of Title II, its
general policy discourages the establishment ofcommissions. More-
over, I believe that initial discussions on political status should be
undertaken at the local level and that the Federal Government
should become involved only after some local consensus has been
established.
For example, both Guam and the Virgin Islands established local
status commissions to examine status and constitution questions.
Funding for such a local initiative could be made available from the
Department's technical assistance program.
Title III includes a proposal authorizing up to $10 million a year
for fiscal years 1998 through 2003 for capital development in Amer-
ican Samoa. A multi-year funding source was identified by the De-
partment and became law earlier this year, as section 118 ofPublic
Law 104-134. The administration, in response to a letter from Del-
egate Faleomavaega, estimated that American Samoa will receive
a minimum of $9.1 million annually from this guaranteed source
beginning in fiscal year 1998. The proposed authorization would
cap funding from this source at $10 million annually.
The administration endorses the concept of Title V, clarification
of Federal program matching. We do suggest, however, that to
avoid possible confusion, the provision be redrafted to conform to
language adopted earlier this month by the Senate Committee on
Appropriations.
Section 602 authorizes Guam to acquire Federal excess lands on
the island at no cost and ahead of other Federal agencies. It would
waive provisions of the National Environmental Policy Act and the
Endangered Species Act, as well as other laws.
Section 602 also makes no provision for habitat conservation and
threatened/endangered species protection in the event oftransfer to
the Government ofGuam.
For these reasons, we strongly oppose section 602 as introduced.
However, the Department is prepared to enter into discussions to
resolve these concerns based on two principles. First, any unneeded
Federal lands that are outside the boundary of the Guam National
Wildlife Refuge and refuge overlay lands could be transferred to
the Government of Guam provided that such transfers are in ac-
cordance with the National Environmental Policy Act and other
Federal laws.
Second, a process could be established to develop a habitat con-
servation plan for private or Guam owned lands, in conjunction
with the Government ofGuam, the Department ofDefense and pri-
vate interests, to (1) maximize the amount of unneeded Federal
land to go to the Government of Guam and (2) provide adequate
protection to threatened and endangered species and their habitat
in accordance with the Endangered Species Act.
This planning approach would allow all three parties to work to-
gether to determine, after considering all lands on Guam, adequate
habitat needed to meet threatened and endangered species require-
ments. It is possible that private lands. Government ofGuam lands
with compatible uses, military lands not expected to become excess
or surplus, may meet the habitat needs ofmany threatened and en-
dangered species. Other Ismds could then be freed for other uses.
We look to Guam for an expression ofinterest in developing such
a habitat protection agreement.
The administration supports enactment of section 603, which
would repeal the so-called Brooks Amendment.
Finally, Title VIII would establish a six-member commission to
evaluate future economic options for the Virgin Islands. Again, the
administration supports the objective of Title VIII. However, ad-
ministration policy is generally against the creation ofnew commis-
sions.
Alternatively, we would recommend that the Office of Insular Af-
fairs and Governor Schneider explore the possibilities of an agree-
ment for technical assistance to achieve the purposes of Title VIII.
Mr. Chairman, thank you for this opportunity to present the ad-
ministration's views. I look forward to working with the Sub-
committee members and to responding to your questions.
Also, let me ask that my full written statement be included as
a part ofthe record.
Mr. Faleomavaega. [Presiding.] Without objection.
[The statement ofMr. Stayman may be found at end of hearing.]
Mr. Faleomavaega. The chair recognizes the gentlemen from the
Virgin Islands to be part of the hearing process this afternoon and
certainly would like to ask both members if they have any opening
statements.
Congressman Frazer?
Mr. Frazer. No, Mr. Chairman, I have no opening statement.
Mr. Faleomavaega. Mr. Underwood?
STATEMENT OF HON. ROBERT A. UNDERWOOD, A DELEGATE
IN CONGRESS FROM THE TERRITORY OF GUAM
Mr. Underwood. Thank you, Mr. Chairman. I have an opening
statement which I will submit for the record.
Mr. Faleomavaega. Without objection.
Mr. Underwood. I also have some communication from the Com-
piler of Laws on Guam on the issue of the elected attorney general
that I would like to submit for the record as well as a Pacific Daily
News Editorial on the land situation.
Mr. Faleomavaega. Without objection.
[The prepared statement of Hon. Robert A. Underwood follows:]
StatementofHon. RobertA. Underwood, AU.S. Delegate fromGuam
Mr. Chairman, I commend you for your leadership in holding this hearing today
and foryour continued commitment to working with the Delegates on issues impor-
tant to our communities. I also wish to note and congratulate the Chairman for his
introduction of H.R. 3879, the Northern Marianas Delegate Act. This historic bill
is also cosponsored by Chairman Don Young, Subcommittee Ranking Member Eni
