agency should be the Forest Service since the area is contiguous to the Ashley National Forest, with existing staff, equipment, and facilities readily available. This Department and the Department of Agriculture recently entered into a formal agreement providing for the administration of the entire area solely by the Forest Service. A portion of the land and water area included in the national recreation area is now within the Ashley National Forest. The bill provides that all public domain lands of the United States within the boundaries of the national recreation area, all lands within such boundaries which the United States acquires for the purpose of the recreation area, and, with certain exceptions, the lands acquired or reserved for use in connection with the Colorado River storage project are added to and made a part of the Ashley National Forest. The administration of the Flaming Gorge National Recreation Area as a part of the Ashley National Forest is an acceptable arrangement. The bill permits the continuation of the leasing of minerals within the national recreation area under the Mineral Leasing Act for Public Lands and the Acquired Lands Mineral Leasing Act, subject to certain restrictions and conditions. The bill provides for the removal of nonleasable minerals in the manner prescribed by section 10 of the act of August 4, 1939 (53 Stat. 1196), as amended (43 U.S.C. 387), which gives the Secretary of the Interior broad discretion in the methods by which he may permit the removal of such minerals. Other uses of the natural resources within the national recreation area will also be permitted to the extent such uses are consistent with the purposes of the recreation area. It is contemplated that this Department and the Department of Agriculture will cooperate with regard to the grazing use of lands within the national recreation area and the adjacent public domain lands administered by this Department. It will be our joint purpose to administer such use so as to have the least possible impact on existing grazing lessees and permittees without impairing the objectives of the national recreation area. The national recreation area will provide a highly significant water-based recreation area on lands largely in Federal ownership in the part of the United States where water is scarce. Its establishment will help meet the rapidly increasing needs of the American people for wholesome outdoor recreation, and will preserve for them outstanding natural, historic, scenic, and recreation resources. The Bureau of the Budget has advised that the enactment of S. 444 would be in accord with the program of the President. Sincerely yours, STEWART L. UDALL, COMMITTEE RECOMMENDATIONS The Committee on Interior and Insular Affairs recommends enactment of H.R. 15245 as amended. 90TH CONGRESS HOUSE OF REPRESENTATIVES 2d Session REPORT {No. 1855 AMENDING THE ACT ENTITLED "AN ACT TO PROVIDE FOR THE REHABILITATION OF GUAM, AND FOR OTHER PURPOSES", APPROVED NOVEMBER 4, 1963 SEPTEMBER 4, 1968.-Committed to the Committee of the Whole House on the State of the Union and ordered to be printed Mr. CAREY, from the Committee on Interior and Insular Affairs, submitted the following REPORT [To accompany H.R. 16801] The Committee on Interior and Insular Affairs, to whom was referred the bill (H.R. 16801) to amend the act entitled "An act to provide for the rehabilitation of Guam, and for other purposes,' approved November 4, 1963, having considered the same, report favorably thereon with an amendment and recommend that the bill as amended do pass. The amendment is as follows: Page 1, after line 6, add a new section as follows: SEC. 2. Said act is further amended by inserting in the first paragraph of section 3, immediately after the date "June 30, 1968," the following language: "with respect to sums transferred on or prior to that date, and over a period of 30 years from the date of each such transfer with respect to sums transferred after that date." PURPOSE The purpose of H.R. 16801, as amended, is to amend the act of November 4, 1963, Public Law 88-170, by increasing the amount authorized to be appropriated from $45 to $75 million, by extending the time for making payments to the Government of Guam for a period of 5 years, and to provide for the reimbursement of such funds, with interest, over a 30-year period from the date of transfer of the funds to the Government of Guam. NEED The act of November 4, 1963, Public Law 88-170, known as the "Guam Rehabilitation Act," provides special Federal assistance to Guam as the result of inadequate rebuilding of the island following World War II and the devastation caused by Typhoon Karen in 1962 and Typhoon Olive in 1963 to both public and private facilities. To date, 31 of the original 50 projects contemplated under the act have been completed. Ten projects are presently funded and under construction. Seven projects are to be funded from the $8.2 million requested under the act for fiscal 1969, and two remaining projects will be funded from less than $2 million left of the original $45 million authorization. The projects funded and completed include 15 school facilities, three college buildings, one village development project, 11 public works projects, including sewer systems and public buildings, an air terminal facility, a new commercial part, an economic development plan, and eight utility projects for water, power, and telephone services. Funding of the seven projects planned for fiscal 1969 will exhaust almost all of the $45 million presently authorized. Of the $45 million presently authorized, $13.6 million will have been spent for education, $3.3 million for village development, $10.4 million for public works, $12 million for resources development, and $5.6 million for utilities. The Guam rehabilitation program is essentially a loan program in which approximately 63 percent of the funds appropriated by the Federal Government are returned with interest by the Government of Guam. In fiscal 1969, Guam will begin repayment of the estimated $28.5 million it owes the Federal Government for loans made under the original $45 million authorization. The funds expended under the Guam Rehabilitation Act have provided Guam with a significant start in making it a modern and efficient American community. While Guam has benefited considerably from these funds, the original goals initially presented to the Congress in 1963 as justification for the program have not been achieved. The original goals have not been attained because the original estimates of costs were low as the result of being made hurriedly and under emergency conditions, and secondly, Guam, like many other local governments has been caught in the spiraling construction costs of the past few years. Construction costs on Guam are estimated to be almost twice the average mainland costs. Over the next few years certain vital capital improvements will be needed on Guam in addition to those which can be funded from local revenues and bonds. For example, the civilian community of the island of Guam is almost totally dependent on the military for its supply of electrical power. Any escalation in electrical power for military requirements requires a corresponding cutback in civilian community requirements. These essential capital improvement projects cannot be funded without additional Federal assistance. Furthermore, an extensive study of the local tax system by private tax consultants and the U.S. Treasury Department indicates that any further tax increase within a short period after the levies of the Guam Legislature last year will act as a brake on the local economy. Therefore, the need for these capital improvements in the next few years serves as the basis and justification for this request to increase the ceiling authorization by $30 million under the present act. These projects will provide the necessary facilities that Guam must have in order to meet the expanding civilian and military population demands and the future demands of Guam's role as the image of an American community in the Western Pacific. COMMITTEE AMENDMENTS The committee adopted an amendment, adding a section 2 to the bill to provide for the repayment of all loans made under the act over a 30-year period from the date of transfer of funds from the Federal Government to the Government of Guam. The committee also adopted a technical amendment to conform to proper legislative drafting. COSTS H.R. 16801, as amended, authorizes a Federal appropriation of $30 million to be paid to the Government of Guam in such sums as may be requested by the Governor of Guam and approved by the Secretary of the Interior. Approximately $18 million of the $30 million will be reimbursed to the Federal Government resulting in a net Federal expenditure of approximately $12 million. DEPARTMENTAL REPORT The report of the Department of the Interior, recommending enactment of this legislation with amendments, follows: U.S. DEPARTMENT OF THE INTERIOR, Hon. WAYNE N. ASPINALL, OFFICE OF THE SECRETARY, Chairman, Committee on Interior and Insular Affairs, DEAR MR. CHAIRMAN: This is in response to your request for the views of this Department on H.R. 16801, a bill to amend the act entitled "An act to provide for the rehabilitation of Guam, and for other purposes," approved November 4, 1963. We strongly recommend the enactment of the bill if it is amended as discussed in this report. The bill amends section 2 of the act of November 4, 1963, by deleting the figure "$45,000,000" and inserting in its place the figure "$75,000,000". This raises the amount of money authorized for the rehabilitation program to $75 million. The bill also deletes the date "1973" from section 2 of the bill and inserts in its place the date "1978". This extends the period for payments to Guam from June 30, 1973, to June 30, 1978. Without this provision, the Government of Guam would be placed in the awkward position of being required to request the payment of all of the funds authorized and appropriated, including the additional $30 million made available by this bill, prior to June 30, 1973. The 5-year extension will allow for an orderly program of rehabilitation. Further, this situation could work to the detriment of the Federal Government, since it would draw down on funds in the U.S. Treasury before they are actually needed. We recommend the addition of a section 2 to the bill to read as follows: SEC. 2. That such act is further amended by inserting in the first paragraph of section 3, immediately after the date "June 30, 1968", the following language: "with respect to sums transferred on or prior to that date, and over a period of 30 years from the date of each such transfer with respect to sums transferred after that date." As written, Public Law 88-170 requires that the Government of Guam repay loans made to it under the act within 30 years from June 30, 1968. At the same time, the act authorizes loans to be made from time to time until June 30, 1973. Under the existing law, therefore, the time for repayment will vary from 30 to 25 years depending upon when funds are transferred to Guam. It is our suggestion that provision be made, as the amendment does, for the repayment of all loans over a 30-year period from the time each transfer of funds is made, and each "loan" comes into being. If this bill is enacted, and if the time for requesting funds is extended to 1978, as we have suggested in our first amendment, it is even more important that this second amendment be adopted because otherwise the Government of Guam could find itself obligated to repay amounts transferred to it on or about June 30, 1978, within only 20 years. We believe that it was the intent of the basic act to provide a liberal repayment term of 30 years, and our second amendment would extend this intent to all funds made available by the act, including the additional funds provided by this bill. The reason for the special Federal assistance provided for in Public Law 88-170 was the inadequate rebuilding of Guam just after the leveling of that territory by the ravages of World War II. This inadequacy was pointed up dramatically by the widespread damage to the flimsy public and private facilities caused by Typhoon Karen in December of 1962, followed by Typhoon Olive in April of 1963. We are pleased that Guam has demonstrated that it has used the funds granted wisely and well. Members of both the Senate and House Committees on Interior and Insular Affairs, in a visit to Guam in January of this year, were able to see the fine public facilities already built or being built, including the new George Washington High School and the much needed civilian air terminal. Congress is now reviewing our request for $8.2 million in funds under the rehabilitation program for fiscal year 1969. Assuming a favorable response to this request, Guam will then have reached the present ceiling of $45 million authorized by the Guam Rehabilitation Act. Fifty projects have been, or will be, funded by the $45 million; i.e., 43 projects already funded, plus seven to be funded by the $8.2 million presently requested. The 50 projects, 31 of which have already been conlet ed, inclde the following: 19 elementary and secondary school tacilities, 3 college facilities, 4 village development projects, 13 public works projects (sewer systems and public buildings), 8 utilities projects (water, power, and telephone), 1 new civilian air terminal, |