Government subsidy should not exceed $25,000 per year. Prior appropriation citations for "Administration of territories" have authorized expenditures for purchase, charter, maintenance, and operations of surface vessels for official purposes and for commercial transportation which is found by the Secretary to be necessary. We have not, however, recently budgeted for this type of cost. This Government would be subject to severe criticism should an emergency occur because of isolation and corrective action could not be taken because of lack of transportation. Social security contributions, $65,000.-With the passage of Public Law 86-778. all employees of the government of American Samoa, exclusive of Federal employees contributing to the Federal retirement system were extended coverage under the Federal old-age survivors and disability insurance system. The Governor of the territory requested coverage as of January 1, 1961, which was approved by the Secretary of the Treasury. No provisions were made in the fiscal year 1962 budget to absorb this additional government's share to the plan. Based on current and expected personnel requirements, exclusive of construction personnel, which amount is included in construction estimates, it is estimated that the cost of this program for the fiscal year 1962 will amount to approximately $65,000. This cost cannot be absorbed in the present approved budget ceiling. Revolving funds, $375,000 General supply revolving fund, $300,000.-In order to carry out an effective procurement program, this government must establish an adequate revolving fund. The minimum stock level required to be maintained for normal operations runs approximately $700,000, consisting of approximately 16,000 different items. Procurement must be made prior to fiscal year in which funds are made available. Departments allotments charged when issues are made. Because of the time lag between order placement and receipt of merchandise, the obligations run four times the rate of issues. The present fund of $100,000 has never appeared in the budget and is completely inadequate to carry on operations. This is a major fiscal problem and with expanding government operations, it must be solved. Marine railway revolving fund, $75,000.-To enable this operation to commence operating on a business-type basis, it is practicable and economical to segregate it from the ordinary government operations and establish as a selfsustaining entity. The marine railway provides drydocking and repair facilities to Japanese fishing vessels and local interisland vessels. It is expected that with increased shipping traffic to this territory, the local facilities will be in increasing demand. Department of education, $874,800.-The estimate will provide funds for the following: Construction of 4 junior high and 1 senior high school__ $571,000 239,000 4 buses and drivers' salaries___. 24, 800 40,000 874, 800 Preliminary study as to the feasibility of constructing and installing an educational television system___. Total_____ Medical services, $39,000.-The amount requested will provide funds for three housing units, including furnishings, for a stateside doctor and two nurses. South Pacific Conference, $357,380.-The additional funds will finance the cost of dismantling and reconstructing a new lumber shed estimated at $24,000; beautification program, landscaping. $11,000; additional communication facilities, $22,380; and an auditorium for the Conference, $300,000. Public works, $711,000.-The estimate will provide for the following projects: Road construction, $1,520,200.-The existing unsealed, coral roads present a definite health hazard during dry seasons. To prepare for industrial development along with accelerated tourism, roads must be sealed. It is proposed to seal 15 miles of main shore roads from the airport site to Breakers Point. During subsequent years the remaining 20 miles will be sealed. To open up the north and south shore areas which are presently isolated and almost inacessible, for agricultural and other development, heavy equipment consisting of approximately two bulldozers will be assigned to outlying areas which have agreed to provide all labor necessary, gratuitously, to construct badly needed access roads. Trained operators will be assigned and the government will supervise operation. A cost schedule follows: Estimated contract price to lay 15 miles of aggregate and apshalt at $26,260 per mile will total $393,900; labor and materials to construct subbase course, base course, and installation of approximately 45 culverts along with minor alinement $413,000. Equipment needed to carry out the initial phase of the program will be purchased from the contractor at an estimated cost of $671,300, and will be available in subsequent years to complete the program; it includes two D-8 bulldozers, eight 5-ton dump trucks, one 2-yard dragline, one tandem 10-ton roller, two D-7 bulldozers, three D-12 caterpillar graders, four compressors, three 2-ton pickups, two jeeps, one 15-ton compactor, one ripper, one 11-cubic-foot concrete mixer, one D-4 dozer, and miscellaneous tools. Salaries and transportation of two additional stateside employees, construction superintendent and heavy equipment supervisor, estimated at $20,000; housing for these employees estimated at $22,000. It has been definitely determined that the present condition of the roads shortens the life span of automotive vehicles, causing unnecessary and costly repairs. If this territory is to attract industry and tourism, the roadways must be constructed to allow for normal traffic. American Samoa has approximately 40 miles of road of which less than 3 miles is tar surfaced and in very poor condition. This is the biggest sore point with the local population and is precluding industrial development. It would be cheaper to lay 15 miles of roadway while the hot-mix contractor is laying the airport runway during fiscal year 1962; and in addition, it would probably cut the unit cost of the airport runway. HOUSE ALLOWANCE Chairman HAYDEN. The House allowed $4,500,000. Please indicate to the committee the occurrences which have given rise to this additional request, which, if granted, will be an addition to the $5,834,000 provided in the regular budget. Mr. TAITANO. Thank you very much, Mr. Chairman. We have just appointed a new Governor in Samoa and representatives of the Department have recently gone to the islands and we just had a special delegation from the Senate go out to look over the operations of the government and the general conditions of American Samoa. All have agreed that we must upgrade the operations and the economic conditions of the government of American Samoa. The request for $5 million will entail making it possible to have all students who are eligible to go to elementary and secondary schools by next fall. Chairman HAYDEN. Could this wait until next January? SOUTH PACIFIC TERRITORIES CONFERENCE Mr. TAITANO. Mr. Chairman, I would not recommend it. It could wait, but I would not recommend it. As you perhaps know, next July we are going to have a Conference of people from the territories of the South Pacific. They will be there in July. We want to have these schools really ready by that time so that when they come in they will say, "Yes, the U.S. Government is interested in this territory." ADDITIONAL FUNDS FOR CONFERENCE Chairman HAYDEN. You request $357,380 for the South Pacific Conference. In the third supplemental appropriation bill enacted earlier this year there was provided $465,000 for this same purpose. What is the need for the additional funds which was not known when the money was made available earlier? Mr. TAITANO. This is an additional amount requested for the South Pacific Conference so that American Samoa may have an auditorium where the delegates from the different territories can meet rather than try to improve existing buildings which we think should not be improved, but just go right ahead and step up our program for the auditorium. Originally the auditorium was scheduled for the 1963 budget. ROAD CONSTRUCTION FUNDS Chairman HAYDEN. Why is it not possible to wait until the fiscal year 1963 budget to provide road construction funds in the amount of $1,520,200? Mr. TAITANO. The roads in Samoa right now are very, very poor. During the summer it is very dusty. During the rainy season it is muddy. We have only about 3 miles of paved road. What we want is to have paved roads in the bay area, from the airport around the bay area, which is the main travel portion. Chairman HAYDEN. You want them, but do you have to have them right now? Mr. TAITANO. We think, sir, that with this money we can open the south section and the northern section for the farmers. It will take a lot of time to plan for it and there is a company now working on the airport. We feel that it would be more economical to try to use the contractor while they are there to pave the roads rather than to get the money later and then to bring in another contractor. This of course, would mean higher costs. Chairman HAYDEN. Thank you. TRUST TERRITORY OF THE PACIFIC ISLANDS REPLACEMENT OF AIRPLANE Chairman HAYDEN. The Trust Territories of the Pacific. The Department requests $200,000 for replacement of an airplane which was lost recently. The justification for this request will be placed in the record. The House disallowed the entire amount. (The justification follows:) Trust Territory of the Pacific Islands Request_ Appropriation to date_--- PURPOSE AND NEED FOR SUPPLEMENTAL FUNDS $200,000 6, 104, 000 The $200,000 requested in this estimate is needed to cover additional obligations for the Trust Territory of the Pacific Islands not anticipated when the 1962 budget estimates were prepared. This amount is needed to acquire, modify, overhaul, repair, and ferry an SA-16 aircraft to Guam. The request for supplemental funds for fiscal 1962 in the amount of $200,000 is in the nature of an emergency measure to renew vital air transportation by replacing an SA-16 seaplane lost in a recent accident at Koror on July 20. The plane was on a routine scheduled flight from Guam to Koror via Yap. It was making normal landing when the accident occurred. While it will not be known what actually caused the accident until FAA has made a formal investigation, it was formally learned that on landing, the bottom of the aircraft was ruptured, resulting in the left wingtip float digging into the water and being torn off. The plane waterlooped and came to rest in a normal position. When it was discovered that the hull of the plane had been ruptured and was taking water, the passengers and crew were immediately evacuated and picked up by the crashboat which stands by for all water landings and takeoffs as a safety measure. There were two persons injured as a result of the accident. The plane sank in 50 feet of water and is considered to be a total loss. The loss of the plane leaves trust territory with only one operational plane. The other plane is currently being overhauled in Hong Kong and will not be delivered to Guam prior to August 15, 1961. An attempt will be made to maintain a schedule as close to the previous one as possible utilizing just the remaining aircraft. This $200,000 will enable the territory to acquire a comparable plane from surplus and spend money necessary to modify, overhaul, repair, and ferry it to Guam. This will then permit resumption of the three-plane service which had been the extent of the previous service. FEASIBILITY OF LAND-BASED AIR SERVICE Chairman HAYDEN. In your justification you indicate that after this plane was wrecked, there was only one aircraft left to maintain a schedule. I note that a second plane, which was being overhauled in Hong Kong, was scheduled for delivery to Guam by August 15. Has that plane now been delivered? Mr. TAITANO. Yes, sir. Chairman HAYDEN. I understand that you have been conducting a study to determine the feasibility of converting your air service in the Pacific to a land-based system. What is the status of that study and is there available to you a land-based aircraft which can be purchased within the sum you have requested? Mr. TAITANO. The study has been completed and in fact, we received it the latter part of last month. The study recommended that ultimately we convert to land-based planes, not immediately, but rather to start by replacing the lost plane by purchasing one landbased plane, a DC-4, as soon as possible. USE OF COMMERCIAL AIRCRAFT Chairman HAYDEN. What thought has been given to the use of commercial aircraft where available and to charter service otherwise to provide transportation for employees of the Trust Territory of the Pacific Islands? Mr. TAITANO. The contractor looked into that, sir, and he was not able to find any commercial carrier interested. We have the Pan American which is based in Guam and in fact, is now operating, under contract, our two amphibious planes over the trust territory, but they are not interested in operating either privately or on a charter basis. Chairman HAYDEN. Are these aircraft made available for passenger service for other than employees of the trust territories? If so, are these passengers charged for the transportation at a rate which would be comparable to a commercial flight? Mr. TAITANO. They are available to the people of the trust territories, yes, sir. Chairman HAYDEN. Do you charge for that? Mr. TAITANO. Yes, sir. Chairman HAYDEN. Thank you. Mr. TAITANO. Thank you. BUREAU OF COMMERCIAL FISHERIES STATEMENT OF DONALD L. McKERNAN, DIRECTOR RESEARCH ON FISH MIGRATION OVER DAMS Chairman HAYDEN. The Bureau of Commercial Fisheries is next; $800,000 is requested to accelerate research on fish migration over dams, for which $527,000 was appropriated in the regular 1962 budget. The justification for this request will be placed in the record. (The justification follows:) Management and investigations of resources, 1962 Request for 12 months from July 1961. Appropriation to date---- |