Table Of Content

'' ^ ^ VIRGIN ISUNDS, GUAM, AND NORTHERN MARIANA ISLANDS ISSUES 31/3:104-94 Y 4. R INGS , Virgin Islands, Guan and northern "-^^jj^ 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 disposal ofWater Island. The legislature of Guam has enacted Resolution 433, which requests 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 attorney 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 hearings, 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 regarding 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 opportunity 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 position 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 status. 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 accordance with the National Environmental Policy Act and other Federal laws. Second, a process could be established to develop a habitat conservation plan for private or Guam owned lands, in conjunction with the Government ofGuam, the Department ofDefense and private 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 endangered 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, administration policy is generally against the creation ofnew commissions. Alternatively, we would recommend that the Office of Insular Af- fairs and Governor Schneider explore the possibilities of an agreement for technical assistance to achieve the purposes of Title VIII. Mr. Chairman, thank you for this opportunity to present the administration'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