UifITED -,r_._TiOJ_S._VISITIhD MISSI_i__

-" i_iarch,1973 .......L

• f_uswers Supplied by TT _dministration to ._uestions from UI_V_'-__-_ _

(Sybj cots Pertinent to status Issue) 71__/_I _ _

" / Question 6

_L_e Trusteeship Council at its 39th session suggested to the Administering

Authority that in the interim period while constitutional arrangements are

being wor_ed out for a new political status and to facilitate the transition

so that status consideration be given to the possibility of restricting the

applicability of the _ower of disallowance held by the U.S. Secretary of

Interior to specified areas in which U.S. interest continues to be direct.What has Been done?

t_

ANSWER

• i The entire subject of tr-_nsitional arrangements toward a new political

status for the Trust Territory of the Pacific Islands is under continuingdiscussion between the Congress of Micronesia Future Political Status

Committee and Ambassador FranklinHaydn Williams, President Nixon's personal

representative f_r status negotiations. For this reason, no action has been

- .... ._ake_-by _he Trust Territory Executive Branch to put thfs suggestion-into ............effect.

.............. .._uestion-7 ......... _...........__

How.many times in 1972 have officers of the Trust Territory Administrationappeared _efore the committees of the Congress of Micronesia and been inter-

rogated by these committees?

ANSWER

Officers of the Trust Territory Administration have appeared before committees

of the Comgress of Micronesia to be interrogated on legislation whenever re-

quested by the Congress. During 1972 thousands of man hours were spent by theExecutive-Branch officials in this procedure and many trips were made by

- Administration officials to both Palauand Ponape to the regular session andthe special session of the Congress-ofMicronesia.

_uestion 8 " " " • • . "

Is the Bill requiring the advice and consent of the Congress on all major

• administrative appointments'made by the High Commissioner (passed by theCongress im May i[971) signed into law?

ANSWER _-

The bill requiring advice and consent of the Congress of Micronesia on majoradministrative appointments was signed into law by the High Commissioner onApril 12, 1972, and is now Public Law 4C-48. Since that time a number" of

nominations have been made to the Congress, or the appropriate committee thereof,

some of z_hich have been accepte d by the Congress and some of which have been

rejected.

.... ' " .... ,, ........ " U"

/ question 7

/ .According to t_e file, the High Commissioner after meeting with the •represent-

atives of Kusaie on 31 August 1972, said that in principle he had no objectionto the establishment of a separate district for Kusaie. If the information is

correct, does it mean that the Administration will. take steps for the establish-ment of such a district? Did the Administration accept the recurrent costs of

this establishmeut for Kusaie itself?

ANSWER

It is correct that the High Commissioner, both at the 31 August meeting wiCh

representatives of Kusaie and later on •the occasion of the dedication of the

Told Road on Kusaie, indicated that he would give serious consideration to theestablishment of Kusaie as a separate district at some time in the future.. He

also pointed outs on both occ-a-sions, that their method of accomplishing this

•objective should be to work through the Congress of Micronesia and through

whatever process is established for a Micronesian Constitutional Convention.

At this point in time, it is not felt that the action could or should be taken

administratively Without approval of the Congress of Micronesia. As far as

additional costs are concerned_ a study was made by tl_e District Administrator's

Representative on Kusaie, at the request of the High Commissioner, which in-dieated that Kusaie could operate as a separate district for almost identicallyJ%|

II the same axmual ¢-ost now required for its operation as a sub-district.|

ROI-NA_R ISLAND, _AJALEIN ATOLL

Roi-Namur is an island located at the northwest tip of _ajalein Atolls

within the Marshalls District. During the pre-war period, what is now

Roi-Namur consisted of three (3) islands, Ruot, Nimur and Enedrikdrik,

however, these islands were joined due to fill activities of the Japanese

Imperial Government and the United States Government. The island is 420

acres in size. Roi-Namur was occupied by the Japanese prior to World War II

and substantial fortifications, including an airstrip, were constructed.

The island was secured in February, 1944, after active combat. Inl_aJ.

indications were the Japanese had paid for and properly acquired the land

and the United States Government assumed that ownership passed to the

United States as alien property.

However, in 1965, a land title hearing was held and the Land and Claims

Administrator ruled to the contrary holding the Japanese Government had

never actually paid for the land and thus it was still owned by the Roi-

Namur people. Negotiations were conducted with the owners, however,settlement was not arrived at.

During April, ][970, an independent real estate appraiser practicing in

Honolulu was retained by the Department of Defense. His assignment was

to appraise the property and arrive at a fair rental value of the property

to be paid in a lump sum for past use and also a future 25-year period bythe United States.

His appraisal was submitted to the contraoting agency, Department of the

Navy, Pacific Division Naval Engineering Command, on April 2, 1971. A

copy of this appraisal was submitted to the Trust Territory for its review

and comments after which a meeting was scheduled in Honolulu for Septem-

ber I, 1971, to discuss the appraisal conclusions.

During March, 1972, a meeting was held in the office of the District

Administrator, in Majuro, attended by the traditional leaders involved_

Iroij Kabua Kabua, Iroij Lejellon Kabua, Iroij Albert Loeak and Senator

Amata Kabua as spokesman for his father, Iroij Lejellon Kabua. At •

this time those present were informed of the status of the ease and thatthe Navy representatives stated they must obtain certification of funds

available fron the Army, for whose use the land is sought, and authority

to make an offer, before the Navy, as negotiating agency for the Army,

could actually make an offer.

On July 13, 1972, representatives of the Trust Territory met with those

of the Navy to again discuss the case and determine when the owners may

expect an offer to be made, or actual discussion involving monetary compen-

sation to commence and were advised this depends entirely upon when, and

if, the Army approves the appraisers figures, certifies availability of

2.

funds and authorizes the Navy to proceed to enter into actual negotiations

based on a figure acceptable to the Army. No indication was given as towhen such a decision would be made.

The Congress of Micronesia thereaft_ passed a joint resolution introduced

by Congressman Ataji Balos, a copy of which is attached, demanding payment

of compensation declaring that if such was not accomplished within sixty

(60) days of the date thereof, the people would return to their island,

Roi-Namur. On December 13, 1972, the traditional leaders of the owners of

Roi-Namur met on Kwajalein Island with representatives of the United States

Government and Trust Territory to discuss settlement. An offer was made

by the representatives of the United States. The owners rejected the offer

and proposed a counter offer. This figure was discussed and the representative

of the United States advised he was not in a position to respond to the counter

offer at that time but would report the counter offer to Washington and re-

spond thereafter. To date, no formal response has beeh received to the

knowledge of the Trust Territory.

Attachment

t

16 the Roi Namur people _o pay in 1971 thecompensations for their removal !"

!7 and cen=inued use of theiz island by the U. S. _m'ay; and '.""

18 W_I_XE_, ":he leaders and people of Roi Namur have stated that 4_ L..":" ' F:'

19 _b.e Uni_.ed S_a:es will v.o_ pay them just and due eompensatiov_s_ they !"

20 will _ _ six':y . .i.._te_ days from now return to Roi N__ur with or without . _..

21 approval by the United States _-_my; and " .... ':' " : " _ _ " " ' ::_ 'i!'1,

22 ";_ig:tg2G,_ the United States C_varnr:_.ent agreed ur;der the i947 U. N.,; ,' , <

23 Trusteeship Agreement to assist and pr,ot'ect the rights 0f'.the peoo!e of the '."

24 Trust Territoz_y of the Pacific Islands_ including _he people of Roi '.," "..

, : . :024280

+....-_ . • ; • • ...,. .' % .

• _ .. .. .. .- .4.].. " "-. .i:'i ' "._ " .. , • ' ' ...... - ., • : . ,7" . .. !.

• i::U!i<i " " ' ' " : /<}''_ " ' ' ". . , )> ! :-, .. • " H.. .:" J. '..',._.;0, f __:z',_f._"< i " " ." .. ...!. "- . ' 7...:! ..... ' • ,. .<,; < :i);'•.'_. " " i_ ;<:_: 7•t ;. " ; • : 1 BE i£ _SOLVED by the Hous_ cp: i_,'_L_s_ntatzves, ....... _u,_s_._ . .'"... ,..:. ."..._"_-.." ' ' ' ',L" ",

• }::_ ' " ' 2 }Lieronesia, Second S_ccial Session, 1972_" tb:&Senate concurrit:g_ that . . -.. ....:!-, • + '" .C.',', •

' ' 3 the Department of Defense ar,'d.the,_xmy of the.United States are hereby . i_ '

-_ .. .,.. ,_ requested to i_,_-zediatelypay just and due eor;.pei*_sati_nsto the people o_. '

'- 5 _oi N_4ur for the use of their island bb {he.U; So Krmy_' and " •

: 6 BE IT ,vUKT[{ERIIESOLVED that cot.rifled copies of this Joint Resolution ..... [:° ! ,

• • D_,n___,_n_ of Defense., ' .... :'"" ' _"4,. • 7 be trausmitted to the Secretaries of the U.S. _. -_..... _ . ".:...• i7•.' ..:: / • . .: ... ._,_

...,. 8 S_a_e and __nterio_"and _he ,_,-my__ha Chai_m_._ 'of the U.S. Senate Foreign i'

"_ " 9" Relations Co_ittee and House Fo_eign _._fa'irs.Co_r_ittee_ and the U,S. [.y

I_ . ....... []i... ..." i0 Senate and House In,'_eriorand insuia_ Affaizs Co_mnit_ees; the President •

q . ..- .. !.-__ ' " ' ' 7' .i -:C_,.,_,._s_o, e , • '"i!i of the U.N. T',xustaeship Council; and th& High _"'-_ _ n r. . ."

, '. • _ ; ' " . " " ' _-r__ /o _= ' . I_

"_ ..... . . .... \_ _/ _V_" _ f V _ A

', " ' " ,. ." '._, \ A ?_ W_: ,. \ , _vm {h-]_ _ :__' .' . . x! I I itv/_J _ ...... . .._ _ /_ _-_ ---- I '._"

i " ' " :":_ !7:)'' ' ' " " • " " "" : k.t_: ' _-'-K_

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21 • . . " " ' ....... " '.. .. //__;>( '_-'-d,-.... .,/_--,//Y g/ .//

S 2z .. ' ' . ¢-i:'-?_v,..,, r_,.-_-,.,.,%a'/_,'/-.(¢/.`-----'-'-"• . .. . . , .//_ ,. -. :.

' 23 " ' . • .,'. _ ["_, / -"_ 7_: !_-_ :'L:

4 i :: ' ' • . -- ..., _ _ ?_'_-'_c_,,f_h :; 25 ' " . " . .: _=='_'- 2_'.... .i__.,R /

..... .\: ",..........:_".4],_-_._. , t , / -'. . . . . ...... .. -,,.h.<__.f_;iD/Z/D>_.;_,.<,_,-- _.:

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...... ' .... - _?, 0 .->--- /

i ' .....:.-".]_:.: '"" .'-. " " :..:"::":i .< " ' "...... '. .- i

_ . " ' "] . :: ".:{ .:." ." .. ':.k..! .:.:;j..::"..':' .. '": - :. ' :" .."- . • " '

: _ , _<.;:.);<. • :.: ,, [ >,"L ..... -.':.- . '

: oz4zs_< ' ? :; ' "" LM '_ "

I. The Trust Territory Code suggests that by becoming a CharteredDistrict, a district can gain more control over its own affairs.

Has this suggestion been interpreted or tested in any of the sixdistricts?

Section 2 of Title 3 of the Trust Territory Code provides in part:

"Section 2o Responsibilities and powers of districts.District governments may be formed by charter grantedby the territorial government. The jurisdiction of suchgovernment, or governments, will extend to the whole of

an administrative district, as defined by Section 1 of

this Chapter. Unless and until such a district govern-ment is chartered in a district, its government shall

consist of its chartered legislature, the District Admin-istrator, and their respective employees ..."

There is no chartered district government in the Trust Territory ofthe Pacific Islands. However, all of the six district legislaturesand many of the municipalities have been chartered.

6

During the Fifth Congress of Micronesia_ First Regular Session, 1973,the Congress attempted to legislate on the subject matter. Senate

Bill No. 82, dealing with the chartering of district governments, _was introduced and passed by the Senate but the bill did not pass

the House of Representatives. Attached herewith are a copy of SenateBill No. 82, S.D. I and a copy of Standing Committee Report No. 59,dated February 16, 1973. The bill and the Committee Report thereofare self-explanatory.

2. When both some Japanese fishermen and the people of Rongelap

were victims of the nuclear tests it seems that an agreement was

....... ....... 7

0: 42 2

promptly concluded with Japan for the compensation while the peopleof Rongelap did not receive an equivalent compensation. It is

generally said ;:hat this difference of treatment is due to the fact

that the agreem_mt with Japan was negotiated between two independent

states while no such agreement could have been discussed between an

Administering Authority and private persons -- Is there another

explanation?

The 82 people of Rongelap exposed to fallout did receive more compensa-

tion than that of the Japanese crew members of the "Lucky Dragon". In

fact, their compensation per person -- with one exception -- was higher

than that of the Japanese. An Official Unclassified Department of State

Intelligence Report No. 6941, dated May 19, 1955, (copy attached) includestranslation of a note verbale. This note indicates that an exchange of

notes between the United States and Japan resulted in payment by the

United States to Japan of $2,000,000 in solatium money. As indicated

in the Intelligence Report, most of the money went to Japanes_ tuna

fishing firms, according to distribution decided upon by the Japanese

Government. Payments to the individual fishermen amounted to U. S.

$5,556.00 and to the family of one crew member who died, a payment of

U. S. $15,278.00 was made. After the Rongelapese returned to their

homeland in 1957, the leaders of the island and the Administering

Authority held several negotiations regarding compensation_ but

without success. In 1962, H. R. 1988 was introduced in the United

States Congress which later became law (Public Law 485) (copy attached)

on August 22, 1964. The amount appropriated under the act was

$950,000.00. This payment was supposedly for full settlement and

discharge of all claims against the United States. Each exposed

person -- after deduction of legal fees -- received $10,494.19 or,

in case of death of an exposed person, this amount was divided amongthe descendants of the deceased. \,

Compensation in various forms has been paid to the affected individuals

of Rongelap. They have been provided extensive medical care and treat-

ment and they continue to receive periodic examinations and treatment.

They were, of course, provided housing and subsistence from the time of

their evacuation (1954) until their return (1957) to Rongelap. Since

their return, in addition to new houses, several community facilities

have been constructed. Soon after the event small claims for property

losses, such as clothing and handtools, were paid by the Department

of Defense in a total amount of $6,869.00.

_ ...... . ........ _

0 4283

d

+_ _

• /

. . °

• WSAV,_BARY/rjh

Pebru_'ry !2_ 19)'3 __

i

"A_,ohono.ab:o An,don .....__:

h _-' ...... Judlcia__] and

Oovcrr_a_nta! Op_ra_ions " ,,'fh_ S_r:ata_ on%tess of l-lic':on_s'ia

_,Zt..... _ 96950S "ipan_ ,_D.riana .r_- .._

Thai:;O*_....v ha_:t-con.re,quested¢o ce:_ncng on Senate Bilg No. 82, an

a._oinstant bill_ e .....,,,_en....Dill _]o.82_ di_'ect_ the Lio, Cor_mi_i0ne_to charter the go,:,r._-..----,,:-,__._.,__..of c_ch d_,_"-_-":,"Z"and p_ovides for election

da_r_c_ ac_,in_o_rator_ .... d a0sisCanto

De_ar_on= of Interior Order 1.1o.2918, dated Dcce_ber 27, 1968, re-" :.!sting to ti'," .._ t.'. . ", "'" :"_._ e',._cu.,va and le_.;is!e.'_iva ..utI,ora_y of the Cove_n:en=

ri" m *"of the ,ru.._Territory in the i1ighCo_;m'!ssioner_makes elea_ that_'l_ilethe "_e_°!°turo_-o_m_y._l-J_...._a_n_"in "all _;.,___,_-=_"-_"_subjects" such

-co.:.......u_u m_y I.o_ba -_nconu__stentwith o:zders of tho _ccre_a'</ of

_nterior. On the other hand, it is manlfest!y clear that the e:.ecutivenut:':orityis va_tc£ i_tthe !_gh Co:vm_gsioneL-,

Therefor'a, the lasi:_latura may n_t require or d',__v_ctth:_I:_-o_ Co:'-.-ai:_ni0nezto _,:,_o_o_-:,h!_ authority _o another. ""'"_....o..... a._,:t,, _:ouldbe _he effect of ze-£uiri_ the c:<ecut!ve _o charter district ........:'-"-__ox,¢...... nu.,with elective

, ad.._--nist::ators,

I_ in fnlt__,that this ,..__.,._4._.-._._-_tbill intrude3 uoo_%,tI',,.,..e%ccutive n__o_..__v_:-,_4"

and !o con2ra_, to A_u. _.Fnateveritn r::.auxto_it n:u_t of=opposed on th::tg CO un:d.

- Sincerely yours,

l_.m-aoru Naka:_azoa -

_--o Attorney _cnex'al

co: S-,.-P-_-! ..... Affa!ro

Director of !;ublic AfZai_'s

Chief, ba';is_a£ive L_alson DIvls_on "

I

I "• • ['

! I -k

r

024ZB4

JUa;C,ARV_ _Z"

_=o_ A_,,J,_.C._:.-_- FEBRUARY--, 1973

'_2a,_E.s_m. vl¢o-c_,_, 'RE: S.B. No. 82OW_o X. ew'.,e_a

A_,_,o_ The llonorable Tosiwo Nakayama ,.'

w,,,,_ _.Ko,-.d._,, President of the Senate /

Fifth Congress of Micronesia " -__.First Regular Session, 1973 .

Dear Mr. President:

Your Committee on Judiciary and Governmental Operations, to which

was referred Senate Bill No. 82, entitled:

S.B. No. 82, "A BILL FOR AN ACT ESTABLISHING DISTRICT

GOVERNMENTS, AND FOR OTHER PURPOSES.",

begs leave to report as follows:

_The intent and purpose of this bill is to provide for the establishment/'

,':ofdistrict governments. The hill would require the High Commissior_r

/ to submit to the Congress a proposed charter for each district govern-

ment. The district governments would consist of an executive branch,including an elected DistricL Administrator and Depnty District

Administrator, and a cabinet appointed by the District Administrator

with the advice and consent of the district legislature; a legislativebranch, consisting of the presently-organized district legislature;

and a judizial branch, organized in accordance with the provisions of

Trust Territory law.

The bill s[ems primarily from the many previous efforts by the Congress

of Microne._ia to provide for thi_election of District Administrators.

This effort culminated at the Second Regular Session of the Fourth

Congress of Mieronesia in House Bill 154, and-a companion measure in

the Senate, which would simply have provided for elected District

Administra=ors. The Administration's testimony regarding tha_ bill,

wi_h -,.;f_ichboth a Special Co_m_ittee of the House of Representatives

as well as your Conu-nittee agreed, was that by virtue of the intricate

relationships between the High Commissioner, the District Administrators_

and the people, an elected District Administrator could no_ exist in

the absence of a formally chartered district government, outlining the

oz¢zs5

STANDING COM. ILEPT. NO._

,1973RE: S.B. NO. 82

•_,_.n,sL_aLo_ to his dual superiors, therelative ob]igatie1_.s of the ])istrict *-'......" .......

High Commissioner an6 the people. The Administration indicated that it would

support such a measure.

: This measure, then, was drafted and introduced, taking as its authority Section

2 of Title 3 of the Trust Territory Code , which authorizes the territorialgoverlm_ent to charte_ district gover_nents. We interpret this Section as

requiring a charter to be enacted into law by the Congress snd promulgated by

the High Commissioner. There are two ways to accomplish this goal. First isauthorizing the several 'district legislatures to call charter conventions. This

is a very expensive m_d slow method, and, due to both the importance of

executive branch input and the fact that at least two of the branches of the

' district government _ould be relatively unchanged, your Committee believes it

best to try the other approach_ at least prior to the time when a Constitution

of Micronesia provides for the formation of district governments. The other

. approach, as provided in this bill, would require the executive branch t'o submit

proposed charters to the Congress for its consideration and possible eractment.

Additionally, the bill specifically incorporates former reco=_endations of the

Administration as to a numberof important matters.

Not surprisingly, the Administration testif:'iedagainst the passage of this bill,

as it invariably does as to any measure designed to achieve an increasing measure

' of self-government for the people of Micronesia, and as to any measure which even

attempts to control the stranglehold which the }ligh Cor,_nissioner has on the ?

government and its workings. In this case, however, the Administration'scommlents are clearly seen in light of its previous testimony on similar bills.

In such a light, the objections raised to this measure appear particularly trans-

parent. We deal with them in turn.

i. That an insufficient amount of time is provided for drawing up the district

charters. Your Committee finds it inconceivable that this taskshould take longer

than one month per district, even if full district participation is sought.Conferences with elected, appointed, and traditional leaders should not consume

more than two weeks, and the drafting should take not more than an additional two

weeks. Even if this bill did not become law until April i, the Administration

would have fifty percent more time than this, or a total of nine months,, to

complete the charters and transmit them to the Congress.

2. The bill should be held in abeyance until the eompletio_ of the work of

the Constitutional Convention. This is a clear delaying tactic. The Constitution

will not have been rar_ified by the _peop.Le of Micronesia until 1975, under the

present version of the bill calling a Constitutional Conventio_l for Hicronesia.In addition, the Consl:itutien will not take effect until the termination of the

Trusteeship Agreement_ which may well be several years in the future. In theinterim, the need for chartered-district governments, uith elected chief

-2-

024286

I -

STANDING COM. REPT. NO. ____ ,_

RE: s.B. NO. 82

executives, still _.,ists ahd will continue to exist.

3. That the Congress of Micronesia has no power to direct the High \_Co_issioner to do anything. Your Committee is insulted by the arrogance shownby the Administration witness who atlempted to convince the Connnittee of the

legal truth of this proposition. We recognize that constitutional custom in

i the United States -- the separation of powers doctrine -- may prevent the UnitedS_%tes Congress from directing the President to do something, but a number of

thlngs are clear as to Micronesia: (i) the rapid growth of Presidential poweriu.the United States,'with the resulting decline of the role of the Congress, is

i not something which we would like to see take place in Mieronesia; (2) the ChiefExecutive of the Trust Territory Government is not responsible to the people, as

is the Chief Executive of the United States; and (3) the language found in •the

delimitations of power in the Secretarial Order differ substantially from those

i found in the United States Constitution. •In this connection, your Committee. notes that the Congress of Micronesia is given the power to legislate "on all

rightful subjects of legislation," with certain specified exceptions, while the

High Conm_issioner is listed as only the "executive authority" of the Trust

Territory Government. To your Committee, an "executive" is a person who executes,I or carries out, the wishes or orders of another, in the case of the Trust

i Territory Government, it is the responsibility of the High Commissioner to carryout the wishes and orders of the Congress, expressed in laws or resolutions. ......

Clearly, where Congress has not provided directions, or where there is room for ?interpretation, the High Commissioner is left with substantial authority to

interpret and to make policy, but we firmly believe that, when asked to operateas an "executive," he must do so.

Despite this unassailable logic, we have amended the bill to require that the _- _

....Attorney General, rather than the _igh Commissioner, is to be given the responsi_ ....bility for transmitting the proposed charters to the Congress. We do this notonly because of the objections raised by the Administration witness, unfounded as

they may be, but also because we realize that any transmittal by the Attorney

General will have the imprimatur •of the High CommiSsioner in any case, and that,according to the same witness, the High Commissioner's alleged immunity from

Congressional direction does not extend to the Attorney General.

The amendment is listed as follows:

On page i, line l, the words "High Commissioner" are deleted, and the words

"Attorney General"'are inserted in lieu thereof.

Section 2 of Title 3 of the Trust Territory Code antedates the Congress of

Micronesia, having been a part (Section 74a) of the Trust Territory Code, i966

edition. We cannot believe but that, the Administration having drafted thisSection and enacted it into law, it is the Administration's intention to

implement it. We •believe that this bill provides a simple, inexpensive way of

--3--

OZ4Z87

STANDING COM. I_EP_. NO. ,_/____

1973

RE: S.B. NO. 82

implem_c:_tation, and at the same time enables the Administration to live up to

its obligation to pror_ote the development of the people of Micronesia towardself-gover_lent.

Your Com=ittee is thus in complete accord with the intent and purpose of Senate

Bill Eo. 82, as amended, and reco_aends its passage on Second and Final Reading ,,in the amended fom attached hereto. -

7, q _._raich, Chairman Laza_.#_aE. Sally, Vice-Chairman

./_p_'.. _o_ja,M_)_>_ ._Ji-o-s_ej__,__ .

Petr_s Tun, Member _ I "

Q

\\

, OZ4Z_8

FIFTH CONGRESS OF MICRONESIA

_ST REGUI_R SESSION, 1973 S. B. NO. 82_ S.D.I

+_ _>

A BILL FOR _N ACTf

Establishing district governments, and for other purposes.

BE IT ENACTED BY THE CONGP_SS OF MIC$_NESIA:

i Section i. Not later than January i, 1974, the _}_ ¢_s_¢_¢_¢

2 Attorney General shall submit to the Congress of Micronesia a proposed

3 charter for the government of each administrative district of ghe Trust

4 Territory, _hich charter shall provide for the following:!I

5 (I) an executive branch, consisting! of a District Administrator

6 and a Deputy District Administrator who shall be elected by the people of

t

7 of the district every four years, whose relationships with and relative

8 responsibilities to the people and to the High Commissioner shall be _:/'

9 defined in the said cha_ter; a cabinet, consisting of District Departments

10 of Education, Finance, Health Services, Personnel, Public Affairs, Public ...... :"

II Works, Resources and Development, and Transportation and Communications,

12 who shall be appointed by the District Administ_rator with the advice o.ndr_

I13 consent of the district legislature; and such other officials as the District

14 Administrator may, by district or Trust TerritOry law, appoint;I

15 (2) a legislative branch, which shal.l consist of the district -

16 legislature, upon such terms as are provided inlI the charter of such districti

17 legislature _n the effective date of this act; _nd

18 (3) a judicial branch, organized andl I constituted in accordanceI

19 wlth the provisions of Trust Territory law.

20 Section 2. Amendment. (i) Section 51 of Title 3 Of the Trust

21 Territory Code, as amended by Subsection (5) of_ Section 7 of Public Law

i L

22 4C-48, is hereby further amended to read as follows:

23 "Section 51.. There shall be in each _istrict a District

24 Administrator and a Deputy Distri¢_ Administrator, _ _ .

! -

0242 9A

s. B. _o. 82, s.D.i

A

x_ho shall be elected by the people of the district in accordance

5 with the nrovisions of the charter of the district $overnment.

6 The District Administrator shall be responsible _ _ _,'_'_

8 proper administration of the district, in accordance with the

9 _rovisions of the charter of the district _overnment. The

10 District Administrator shall have such powers and perform suzh

ii duties as may be prescribed by law or assigned to him by the

12 High Co_issioner or bY the charter. He shall have such

13 assistants as __ _ __ _ _i_ _ _ _ /' ',.

14 f_ _g_fi!_ may be provided for bZ the charter or bX district law."

15 (2) The provisions of this Section shall take effect irm_ediately .

16 in any administrativ_ district which has been chartered under the provisions _---

17 of Section 2 of Titie 3 of the Trust Territory Code, upon the effective date

18 of such charter.

19 Section 3. Transition. The High Con_issioner may by .regulation provide

20 for the orderly and effective transmission of authority from the present

21 governmental system to the district goverr_ent authorized by any charter

22 enacted into law under the provisions of Section 2 of Title 3 of the Trust

23 Territory Code, prio3: to the effective date of such charter, and following

24 its enactment into law.

25 Section 4. Effective date. This act shall take effect upon its _:

2of 3

024290

S_ B.NO.

i approval by the High Commissioner. or ,_pon it_ beco=Ing law without such

2 approval.

4 I/ /

Date:_.22,73 Introduced by: /s/ O!ympio T. BorJa5 Olymplo T. BorJa

/

6 / /S/ Edward Pangellnan!/

/

8 /

9

i0

ii

13

14

15

16

17

18

19

20

21

22

23

24

25

i"

i

3of3

. i

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_',_,iO _OIJ [_ SLIP . _.... ,_,_,i,. ro.... ¢........ _,,,:u_._,_:.':_ AEC-_') I}_,:','. ,%4.U,"14, '_9_ e .'_[C._] 0240 ] ) ;._,'; a.".:f _'."",'". _'" _*_';_."'_"r. fotl_l,ar,-r:U_,',.

:;g_:i'7_L--_.-%:-T_'__.'_'_ _ _'_:'_ ._-,:_,._subjec_; _\u_oc;_zo:; '._;_o_o_' $2,ooo,00o e:'JD _0GOVEF,I.2"LE;_TOF jAPA__ AS CO.-_,E.Se.T_O:-_FO?, D,:,_b%GES

R. A. Conard, M.D. " :" SUFFE?.ED BY JAI'A_ESF NATIO',ALS AS RESULT OF 1054A_so¢ia_e& Universiti _- "-_. ,,• _;AT£ " r L_ a DNUC_L..... TESTS IN ,,,-,.,Sh_.LL ISLANDS'_ILC,

Broo!-:ha,:en"'ational......... [above,o:..... '.... Attached you _,'i!!•find a trnnsla_on of _.no_e ¢o

_o _,,¢,,_.a_.;:> _m_ _,_,a_our embassy in Japan fro._athe Japanese Hi_'_istry

• of Forei.e_nAffairs informing us as to ho:.."the

• $2,000,000 x.;asdistributed by :he Government of•, _*_ Japan.. The not.::sho::s a brea_devm as to the- , ..

-. various alloca_ions made .of.this money, "'

•:. ;.:.: _o_:;_=,,_._u _-_-_ _-_sSince the no_e shovgs the amounts only in Japanese

" yen, I a_a also attachinz .r.gr__:our ....<-._ --- eo.q_ ..... ,.,I,C - a! - , • .

_, . ", ' copy _f a S_a_ Department repor_ sur_ma,_iz.ing .a • I),• • • -.--..:'_:.,...-... _ar_ newspaper article "_:hich also had a breakdo,,..'n of I

__], . the distribution, buc expressed both iu yet_ and_-, U,S, dollars, """ .."-.

"" _'.L. Hymes . ....... _. :" "" • "" Office of the general , , •

•,| Counsel A-241 " ' " " " ": ',:'". "

" Atomic Energy Co_niss: on._. - .:,(.'-...--..._ ,. .. ::i _,..i..... :.. . -: :.,,_:!_ ,-_,,.-.:i....! : .o

• _565 "] 10/14/71 " . .. ,. ..

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• ._._ -',f: *;. ;-..,_ .. ;,,,'.._,.:,. _.. . -" . .... •.... . -, ,, . .

_29_0C0 " to '- "....... o,h,cr boabs

.".'._.,- _:" ;;_- 7.::;.h'._.":.: ";:':_'"_"'!_':}-¢ .... (fish 0£ M_ich were thro;m m-_'Oy.,. "::;.- _ ;:'.-': _1-;-_:-.:-','-h_._ _.:L,=._::.--_-_',:;-.:,,,.-.......Up to the. cr.d of ocp_emoe_),•. "., " .-" " " ",#" • -..* "; "- ':. r -- . . . . - ,. ."-'..,; "

" " D) _h_r_ ".::;_.."' " ....,.:_,..1_6_8 _66_000 _ ,'.L_scellancous expenses_""' _" " 1; _ . .:" _ _" for 4 bo-atss fish of t " "

... :._ ....... : .. thro,m a;._;y i_mediately a.fte_ th_

"" ...... ._. ;'-'-- :--- :.":::-": to. _hipt_ fitting_ etCo-: .. : "-_ .._ .-- ...... .... :

-....-,o:_'_g t_ the ost_.blis,_menb -- " ...... £ish catch per day) X 3 days .--

-: -of the danga_ zone ....v- .-(reduction ._ o_ _._zcn claysowang•: ...." .- to L.hc-d-cLo'ar)X .Y.,_2_(averaga

" ": "- _.... fish price) Z ,:o_D4_O001":'"'"'_:":_ -'-"_' ;' .... --..': ...... :"'-.--: ;":'.;="::-%:-k_:.-_ :-:.-,.:-._.:.:_.;..- ".';.L._ -,'.'" : ""

-- .-... ,. ..

;: _, ]bosses to persons in tu.na .45!_.,20___ ..... - .... _ -::.:':-. :: -_ . .g./:_'_-i"- "@-:-_-< '- industry: o_nng to faL_ of .:_._::_._.,-.-;<_,,=_,,_._._._:__:_:<._..._:_.,:.,-" " "

" fish prico .- . . .._ ..... . . • .: • :L-. __"=_'_;;--1...... " " " " " " - _ -" :""': _"-:_--:- -.:,- ;"--'-_c:-::,,.-.-_.-.,_;..':-:--._

.;_ A) Losses erising f;'_.._ i_13_5_Z> 6_6,.:0,_0_.9 .t_'a:.! fish was caught --: diffcrence of quota- -- 1"-- _ ""{ _ " " ""- du__no .50 days ,_erch16 " 1

. :_ %ions o--ringto the _nd l.;_r4a __d an c.vo.z-azefish

.-t_: _-'':. p_--icof&ll prlot_ durin this pc:riod Yas -w.....- .: ,. = v_o_

" 7" "- """"_"_" :_1"' "''" "' " -- " z..... '-'_-,: ., ,;_- " Co_c..=.ved "-'"' of the sz,mc p;r_c.:

. _1" "" "" . ._" " ............. L.I_.._._:!_.:..:, ,..!.;. _ -,. i,_7 .of %ho'prc'¢ious year, the loss rate

-- :_ -.......... ,...,'-" ".-... 80,_ o£ this _nount .is: " :- _.- . .. . o

.. • . .:-............ ....:.:... :.... ;

:_ .... ,. ... --: ....-" ... :-" -":" ":- " :";;:---: ".... :v:_:"::" "-?::" ".: "'" £ro_ go._nL..'_'c, un_ the

.... : .... " " " : " " " " " ; " " " " I " ' . . ' " " : ": ! " ' : ' ;: ; .... dang_.r zone: _.LI,512_ 000

" ": .......... ":"- :" _'" "" :_:": -<-"_ Increased issues arising

. , "" --. - fro:,: the-t!n,o:-n2ag p.my of

[ "1 : _ . " i } " '' :'' -- ..... " ' _ : _ 8 _ cx_ O

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• _ ',f _.' - .-. :P,L, 85-485 LAWS OF 88TII CONG.=-2ND SF..SS, . • Aug, 2Z,.-

"" !iiiill ii ' . ..

'._ • ,_; . ... -.•: ,L ,,}_., " . .... ' , ..... _.... "

--, ,_:_q_:, "_,.i... PAcIFIcISLANDSTRUSTT_nRXTO,XY-=CLAIMS"::" ::L • • -

• PUBLIC LAW 88---485; 78 STAT..598 ,, n.,..- :,,-._ -. ,: 5t

- " " "'" " " " ' Art At-t; to p¢ovldo fo¢'_h(_ sottlcment of _htbns of tort&Its rosldentm of the . -- - " ,, ,

" '": i _:!i Statcs ofAm_rlc¢_in Congressassembled,That: . - (•." " 'i_',i': _I _.. ;_;.;'.". The Congress hereby assumes compassionate responsibilityto corn- -

' _ '";_iI " < ' "....pensatcinhabitantsinthe RongelapAtoll,intheTrustTerritoryof]i . .:":*i:. }!!_[;:I . : the PacificIslands,for radiationexposures sustained bythem as a .., ..[._

?] i_?,.,,I .i'_.... -:rest_Itof a thermonuclear detonationag Bikini Atollin the Marshall :-" " " _i ";-";.l""' ...-.....

I :. • .- !.; : _.._! - _ IslandsonMarch I,1954.1 _ _ _ ] " .'- _;" : .... _i_': - • . . • See. 2.- There is, • ." ." '. .... " -. ; .. be

• .... - ._ * .

, _ . . _ :. -- out of the Treasury of the United States the sum of $950,000 to

'' " " ' "_'_ : i- :_ .' -:;"'.,::l , .'i'.:.-' expended by the Secretary of the Interior (hereinafter referred t° as i

.,.... _ :.':,, _} - .: .. hereinafter provided. After.deduct- • :. -.... ,,[

'" • . ing the amount provided for in section 5 hereof, the Secretary Shall : _pay the remainder in equal amounts to each of the affected inhabit- " " • "l " _ _-':-"'_,-* _,.",---- --.. " ""

....... ,- .i _ -. ..- ants of Rongelap, except that (a) with respect to each such inhabit- . : :.

.... :1 ":'" : !: -[1:[ t'] " ." :" ' . ant who has died before receipt df such p_yment,.the Secretary ,. :.;-} - • .;:.. , .... ,, . ,., .

• " ': i." :" |"] " • " " . shall pay Such sum to the heirs or legatees of such inhabitant,• _ ' ':. : .... I','i " " ' ';

!. ... ._. : : ..(_!,._[ .. . and (b) with respcct to any such inhabitant who is less than twenty-,_,.:., . :.' on_ years of age or who has been adjudged incompetent or innere, .i:.:.

•" _'} .. "'.' ,: ';!:?_"I:}l i..t' - ' • . payment slmll be made, in the discretion of the Secretary, to a . !__ : " :; "...._.:i.l .. - -

" _ ' : " i_ " /":"i :! ] .,.. parent, _elative, other person, or institution for his benefit. . ..... .i - . -_! .,i.'.!,-_! .': -. ' See. 3. The Secretary,shall give advice concerning prudent finns- ........_, .

; - : :11:,_, , '- ., ....... ..- , - clal management to each person receiving a payment pursuant ta -this Act,ta the end that each such person will have information as " ;;_:" ,'i'::.l:"

-_ " " ::_:: "'l" ,_"._ . . .,. - . . , to methods of conserving his funds and as to suitable objects for,.

....- , '. ,. .,_-,_: which such funds may be expended, . . :_- _." ." " ' _ "'" :_ "_ c'_

i . ;'. .iI_.:}.;: Sec. 4, A pnymen_ made under the provlslon.s of this Act shall be,, . . ': i.-_.,_ in full settlement anddischarge of all claims against, the United .. _'• " ',; "I

:'! ' " !; if:,'!" "_;1 States arising out of the thermonuclear detonation on March 1, 19_4. ,. ."Sec. 5. The Secretary is authorized to pay reasonable attorney _, .

fees for legal services rendered on behalf Of the people of Rongelap • ...

• - . .. , :.,. prior to the date of enactment of this Act, Such fees Shall be pald...... _i:_ --=_--._.._--,.-.-;=:_-- out-el_the.funds authorized, to be appropriated in section 2 of this " ' "

• .! : .,! .!._/- Act, but the total of such fees paid shall not exceed 5.pe_:.centu.m. _ " " ."..

" ! !!l ." of.the.see,appropriatedfunds.6.The ' - -

• :l ." .... -- . . decisions of the Secre_ry in,carrying out the pro- "i ':_

"]., ' " " ': : - visions of this Act shall be final and not subject to revieW, ._. - .. . -':." _ ' - - " .-i Approved August 22, 1964. ..,, -...:....::..,.:,, .. ,..:n..- _ -. : ......

: " ....: '.....'.:.".'i. '" ' .'.."..:__ .:;_::-_,:::.... ....'.-_

; : _' "': " " .' " :" ..'_: " " .': ".:.,_-,- it" :;:':'"-;,_,":,: '.':-.::.: " '" • .'"] i,lli .... " "" . " " ""!:.....'": ":::-"'-: ".;

• '"_i: I " _:.-,.... ., :' ::,..n._!,i".:"]7" :.L. _ .. _ . .',"......... •"--|o :. -

- "; ; Ii . , . ._ . .,: .... .,:- . . .":,_;_ "- _ ..-. =........ / ...., .,.. , . .. . : ..

:_ . "; _l:. ,:_ . - " ' : - " ' " ........

.,.: ,! ,,I_ " ' " ": :. "_, ".':,:.:'"i' '-":". " :: ':" ; ':": !": "_" "." ' _ '. ",". ',..','"'...- " "; " " ""

.i ';:;"__ i';I "2 .: , :: .... ,. ,.. ,'.. -_. - ,":.• ,L " < "" " .,,;. '_:',. - :. .-.i " _ ' " _ ........t . : • .'C [_| _ " " "" "'" " "" " "", "':_'''" "'" "

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...:._ • _ _ j . '" _---- / , ... • - :

• " " " : " ,....: i_- _ ".:__-:_'_'.=-:=_'_'"'......--_""_'"_""......

....

PROVIDING I:Ot_ TIIE SETTI,EMENT OF CLAIMS OF CER-TA1N I_ESIDI,'XTfi OF TIIE TRUST 'FEI_R1TOi_Y OF TilEPACIFIC ISLAN I)S ...... -

.,|. .'-". .- i - _ . , ." . . _

. . _ ".. - . ,.'f .

-:. JuLy 30, 1962.--Committed to the Comnffttee of the Whole lIou_¢ on the State" : of the Union and ordered to be printed --_

: . _. - . : ... . -. ..

. .:. . . : .--.: . . Mr. O'Bmzx of New York, from the Committee on Interior and-. °. "."." -. • : .... .-: - " Insular Affairs, submitted the following

-:=.-:..:.: • :. .. ..... .- - -:. -,..-:<=: : .. ... - . --:..:-...:.:.:?:- .(.)..:L " ;. -- :. :: " --: - ) :_- -- :-:".: : " ?-: :.-'--.:i: IToacco-,p_y H.a. X207Sl " - " ' ......... '

_. "'..: " : . _- . The Committee on Interior and Insular Affairs, to whom was:"" ' . " -_. i_ ' _(,. ) ' referred the bill (H.R. 12078) to providefor lihe settlement, of claims

- __'--:-..-:- ":= _":: .".-:."-.of certain residents of the Trust Territory of the Pacific Islands,.'....!;:[.'_.;-..." ") :2.2::-)_ :_.'!:_ ._ :::2 having considered the same, report favorably thereon with an amend-

< . : _ : - -: -. :. :.._ .: ment and recommend that the bill do pass.-.......-....... - -. ..... The amendment is as follows:

_-.:= = --i_- ) ::;:i " " -::.'Page 1, line 11, strike out the figure "$1,000,000" and insert in" " .... " - ": "" " '" * [_[] r _ - ,7

. .- • ..... = . • -. - :- lieu t e eof 8900,000 . ,. ....: ...: , .• -.-; -":.." " "=..;::_ ..i. 2:-__.._..: " ---:.... -: . -..--P_r_Pos_- - . .... -.--:

" .:.- The purpose of H.R, 12078, as amended, introduced by t_epresent- !" '....-- . ::::_:_...-_i =- ..:" ..ative 0 Brien of New York as the result of an executive coammnica-

. ' ": " -.. : _ "-.-:. tion from the Secretary of the Ihterior, i_ to provide compassionate- ,-_..-. : : - -. -:. _- " - relief for certain residents Of Rongelap Island in the Trust Territory. -_._." ! .: :": :. - of the Pacific Islands who W_re, or may have been, affected by the

-':- . - .-- .- . • fallout which followed the explosion of an atomic bomb at ]_ikiui. . " ". - - .:-.. Atoll on March 1, 1954 Comp,miorr bills, 1_R 1904S, H 1_ 1"9051

.- - ...... ..- . : : " and H.R. 12052 wereintroduced by Representatives Kyl,. Aspiuall,- " " . •- " • : " : and Savlor, respectively, and were considered' concurrently with the

-: .- ' " - reporte}l bill, . - . " . , :

.... .iv ... " " ' ...... . . - m_Ev " " :: " " " " " " -.]-'.,..: -.:i _.-- Eighty-two persons were residing on 1Ronzclao at the time an un-

expected wind shift immediately following thcdetonation of an atomic .m

- bomb produced a falIout of si=_mificaatproportions. Although the- :. - _exposed i_crsoas were immediately removed from the contaminated --

: ._ .,. .: - ._. -.: :- ._ .. • .. :_. --. : --:'- _-_.,- --_,.%.<,.-...... -_- -

.." . . . _.:. --......-_.. ., - _,_.__ "" - :' ............... :>-'T :- _-..... . ...... r - : " . "

• -. . . •

" " ' . -" -. - " " - -.." - .- r-" .-:.':,. -- " --

. - :. . -

,. : :" . ._ -• °

o 43o2

024303

0_430¢

(

13. What percentage of the Trust Territory population still lies

out of easy reach of medical treatment: hospital dispensary?

Answer: Virtually all Micronesians lie within easy reachof medical treatment in either a hospital or a

dispensary. However, approximately 50% of all

Mieronesians are not within easy reach of the

district center hospitals or sub-hospitals.

lb. Number of hospital beds by 1975.

Answer: Approximately 600 hospital beds are predicted for 1975.

15. Total spent on health in fiscal year 1972 and as percentage of

the Trust Territory budget and projected figures for 1975.

Answer: $6,000,000 were spent on health in FY 1972, which isi0_ of the entire Trust Territory budget. The 1975

total Trust Territory budget is not kno_ but it is _

expected that 15% of that budget will be spent onhealth.

16. May the Mission receive a short detailed description of the ....

events which occurred in Rongelap in 1972:

On January 26, 1972, during the Second Regular Session of the

Fourth Congress of Micronesia, in whose district live the

Rongelapese, made a speech on the House _loor in which he

charged that the Rongelapese were being used as "guinea pigs".

The Administration rebutted the statements made by Congressman

Balos as "irresponsible. At this .time, Congressman Balosintroduced House Bill No. 199 which became Public Law No.

hC-33, creating the Special Joint Committee on Rongelap and

Utirik. Also as a result of the speech, members of the

Administration and Congressman Balos discussed what steps

might be taken to satisfy his constituents. The agreement

resulting from this meeting was that three Japanese doctors

would be included among the members of the regular survey

team scheduled t_ examine the people in March, 1972.

02430S

In vie_ of thee fact that the regular survey of the Rongelapese

was long overdue, the Administration made every effort to ensure

that the survey to be conducted in March of 1972 would commence

as sched_led. Just a few days prior to the commencement of the

survey, on March 9, 1972, the following dispatch was receivedfrom Tokyo :

I "Dr. Ezaki succumbed to continuous pressure b___,_cisco

_o_g and Hiroshima leftist associates and has cancelled

_ p±_m--_=o participate in subject survey."

By March 9, 1972, Dr. Conard who has been the head of the

regular survey team for the last 18 years and his crew had

already arrived in Majuro and were awaiting the three Japanese

doctors to go to Rongelap and Utirik. Only one Japanese doctorcame to Majuro.

Dr. Conard and his team and the Marshall Islands District

Personne:__ concerned with the medical welfare of the people of

Rongel_ D and Utirik, attempted to persuade the leaders of

said a_Q]:isto submit for medical examinations_ but without

success. The leaders told Dr. Conard that they had received

instructions from Congressman Balos and Congressman Charles

] Domnick that they should not submit to any form of medical

examinations. Consequently, the team left without examiningthe people.

On April ii, ]972_ Congressman Balos again met the High Commis- ........

sioner and his medical staff members to work out possible

arrangements to have the survey reinstituted. The High

Commissioner expressed his concern about the fate of the survey

and and asked all concerned that the "political" aspects of

the prob].em should not be brought up" again. He urged

everyone to be concerned only in the medical aspects. The

Special Joint Co_unittee Concerning Rongelap and Utirik further

endorsed this by statement in an inter:in -.report that "the

sense that the health of the people of Rongelap and Utirikwas of the utmost importance".

In July, 1972, the Special Joint Committee selected these

four consultants to accompany the Brookhaven team: Dr. William

S. Cole of the Bureau of Radiological Health U.S. Public

Health Services. Dr. Haruo Ezaki of Hiroshima University,

Dr. Toshiyuk_ Kumatori of the Japanese National Institute

for Radiological Sciences, and Dr. E. Eric Pochin of the

University College Hospital Medical School, London, England.

In September, 1972, Dr. Conard's team accompanied by the four

consultants and the Special Joint Committee successfully com- "

pleted the .1972 survey of the people of Rongelap and Utirik.

•0Z4306

The aborted survey in March cost almost as much as if the

survey had been completed. Becahse of this reason, the

funds available from AEC for the supplemental survey in

September _as partly funded by the Trust Territory in the

order of $8,500.

Two nodular thyroid patients and a terminal case of leukemia

were diagnosed during the supplemental survey in September,1972.

0Z4397

O

Q. "The Mission has been told that a project will be worked out• for the installation of four thousand five hundred inhabitants of

Carlson Island (K_ajalein Atoll) in order to lighten the burden ofthe overpopulation in Ebeye. Might the Mission receive some in,-

formation about this project."

A. Information raceived from the District Administrator s Marshalls,indicates that Carlson Island could accommodate four to five hundre=_

(400-500) people when it is developed. The figure four thousandfive hundred (4,500) therefore is not correct.

The District: Administrator further advises that development of this

island is underway, A pig farm has been established on the island

and a poultry farm is in the process of being built. The Carlson

landowners are now master-planning the island for community living.

For further information the mission is being provided one copy of the

master plan which was formulated for Carlson Island.

\\

024398

Q° Is the Administration seeking from the Administering Authority

any changes in the methods presently followed in the appropriation

of funds for the Territory _y the U.S. Congress?

e.g., (a) Lump sum appropriation for budget support;

(b) Multi-year appropriation for development aid.

A. No. Appropriation of funds by the U.S. Congress is one step in

the annual budget process followed in the U. S. Although it is not

a part of the annual budget process, the process of securing U.S.

Congressional authorizing legislation for Trust Territory programs

is an important one which affects appropriations for the Trust Territory.

Such appropriations can only be made as authorized by separate legis-

lation, which has always included specific dollar limitations on the

amounts authorized to be appropriated• The current ceiling on

authorized appropriations was set at $60 million and covers Fiscal

Years 1971-73. Legislation has not yet been proposed to the U.S.

Congress to authorize appropriations to the Trust Territory subsequent

to June 30, 1973. While we do not yet know what such legislation will

include in the way of appropriation ceilings or for what period of

time, there is some indication that increases will be difficult to

achieve and that only a one-_ear authorization might be proposed.

Any change in Congressional appropriation procedures or methods will

probably have to await settlement of political status and have to be

a part of the status negotiations.

o

0Z4309

¢.

0Q. At the 39t}_ session of the TC, the Special Adviser Senator

Amaraich recalling the opinion of the 1970 Visiting Mission on

the financial powers of £he Congress of Micronesia_ stated that

no action had yet been taken to grant the Congress decisive financialpower, eve_% though the U.S. Congress had been urged in the last t_1o

years to enact the necessary Legislation. Are there any new

developments in this question?

A. No. It should be noted that the urging mentioned in the question

has been directed to the Chairman of the House and Senate Sub-

committees on Interior Department Appropriations during annual

hearings on the Trust Territory budget request. It has been

initiated by the Chairman and Co-Chairman of the Congress of

Micronesia's Joint Committee on Program and Budget Planning who

have appeared at the hearings to help support the Trust Territory

budget request. When asked for his views the High Conmissioner

has indicated that he supports the concept.

\,\

i " _?.

•' 024310

i

A.16, _eronesians have no equity in the Van Camp operation inasmuch as it is

a cold storage plant, Van Camp has sold three of its fishing vessels

to Micronesians and approximately 60% of their fishermen are p_esently

Hicronesian. In addition, they have publicly stated that it is theirintention to get all of their fishing vessels taken, over by Micronesian

businessmen and fishermen. They appear to be making a slncere effort: in this direction.

Q.IT;, Will they have such •participation in the proposed Del Honte operation

i in Haj uro?

A.17o Del Monte has offered 45% of the total operation to Micronesian owner-

ship. They have also indicated that they wish to finance fishing

_essels to be owned and operated by Hicronesians.

. . Q.18, Any co_ents, on the various recommendations in the marine resourcesseeZion of the House of Representatives report on economic development

in the Trust Territory of the Pacific Islands_

'' A.18. In general, the Department Of Resources and Development and the Marine

, Resources Division feel that this report has real merit.. However,

there are some statements which the Administration cannot agree with.: These are minor in nature and do not warrant discussion;

J,. : .

Does the Administration support the position of the Congress that ifthe U.S_, because of differing views of the effects of the law of the

sea, is not able to properly present Hicronesian views on the matter

:' to international conferences, then Hicronesian spokesmen should be

: - included in the U.S. delegations to"present Hicronesian views?

A.19. See attachment. This material explains fully the Administration'sstand on this issue. _

I

024311

¢ "<, D

0Z43_?

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i

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Iestablished by this ,Ace _:'ill co_sult c.'.os_.y with _'_ as the Cor_;cittee.

dcvclo-'s" i_s pcsiti¢::_ nnd that the Co:.::_uL.ttea_.r'_i2avail itself, of ,U°S.

.... ..,s._s_aRee in _ram:_n Z its opinions° The U.S. Goverr:u'.ent wou]_[] thel_.

],:,.>kfo_,;;ard ;'0 a'ege:ix,lr.S tl'e Cor.'.r._itzee'sviews, i='_this maT,_,;er,• " i.:_c'_'ones'_a ;,_ost approp=i-•"'_.,_<._.,._{;_.,-.... _ "-"" . the vie_Ts _.•,,a concerns of "" " may U"

ai:_/iy :'.:.:_!ectadin i'ae U.S. nagotiat-ng,posit&on a_ the Law of the

$,:c'. C,: ;-i_<::;ezce,

• S;h',ccl'aly yo'c-rs_ . . .. ... j ..... ) . ,

2. ,' "" ' " ' ' "; "*" " "-_ "',;."G_e.r

Dcpu _y .... o.'_cz

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rOPi_i@$ i]qVESl_qf!/qI'

Qol° Has the _'bra.n__ L_at!on appro_d_ed the Ad_ainistering t_thority_o seek "-anend to the enbargo on non-U,So foreign investntenl J_.the Terrifory?

A.I. Y_:so

Q.2. If so, vihen was the m_st recent approach _nd ho'e¢did the A&minis otering Authority respond?

A.2. In November 1971, the High ComnissionerrequestedthatPrivate InvesLT_ntCompany for Asia (PICA),a multinationalPanmnsniancompany with m_my U.S. blue chip_stockholders,be exe_ted from thecurrent interpretationof the present policy relating to the'_os'cfavorednation" clausm in order that it might provide investmentcapital to aMicronesian c_rporation.

The Departn'_ntof the Interioranswered in January, 1972, that"althoughmuch of the capital _ PICA is held by American shareholders,it is Zecbzaicallya Panamanian corporation...and.doesnot co_ wi_Jlinthe present scope of permissibleinvest_rent°"

In September1972, a Philippinecorporationsubmitted a businesspe_uit application. The Departmentof .Resourcesand Developmentwasadvised by the Dopartmentof the Interior that "a legal opinion is beingrequested on the possible effect of the War ClaimsAgreement with Japanon this applicationm_der the bbst Favored Nation Clause of the TrusteeshipAgreement."

In Noveimber1972, a request was received from a Japanese firm todo business :_sa venture under the.agreementbetween the United Statesand Japan. ]Legalguidelineswere requestedby the Departmentof Resources,

- but so far have not been received.

.... _:-:-....... :Q. 3.- Regarding-th-e-_iteri-a:applied to foreign im, estment proposals(Page 1S of the Guidelines for Doing Business), _,_at would be considereda "satisfactory local participation" _¢aat a"reasonable time" and what a

" "substantialpercentage"?

A.3. "Satisfactorylocal participation"has Been set by DistrictF_onomic Develol_r_ntBoards and has varied from 10-51% depending on typeof business. "Reasonabletime" is usually set by the Boards as required

; . by the type of business. A "subs-tm_tial percentage" is also set by the .local Boards and varies from 10-51%.

Foreign i.nves_ent conrad.

Q.4. May _'_ Trust Territoi7 Governme._ntitself acquir_ sha_'es in

foreign invesi_'_entproposals?

A°4° It has not to date. Enabling legislat_-.on_,_ou].dbe necessa_/.

Q.5. %;q]atis the Administration's view of the proposals on forei_linves_nt made in the Congn'essReport on Econo_dc Development (Pages,86-92)?

A.5° Statements made on pages 86-92 are an accurate account ofthe situation existing in 1971 when _e report was made.

Since then the Congress has introduced and passed legislati(m whichcorrects many of the problems raised by the report. The administration

has supported these measures.

Still to be resolfed are:

a. Revision of most-favored nation policy.t

b. Improving efficiency and effeciiveness of-District EconomicBoards by encouraging District Administrators to assign qualified_usiness Advisors to staff tJlem_

c. MicYonesi_m lack of capital for purchase of stock and active

participation in management of foreign conganies.

d. Tax incentives and subsidies.

Q.6. Is the District Board system working satisfactorily? ...... ,

A.6. _e District Board syst_n is working extremely well J/ltheNarianas and Yap where rile_mbers and staff of _he Economic Development

Offices have an excellent working relationship. It varies in the otherdistricts in proportion to the interest of the Board members and the

public feeling about allowing foreign investment.

OZ4815

INTI-2tLNATIONAL•ECONOMIC RELATIONS & DEVELOPMENTFINANCE

Q I. Will the application for Associate Member of ECAFE be submitted toECAFE at its 1973 session?

A I. _is is presently under advisement and we do not know if _he _natterwill be referred to ECAFE at its 1973 session.

Q 2. Will this follow by applying for membership of Asian Development Bank?

A 2. It is not known at this time.

Q 3. If so will the latter applic_on be submitted this year also?

A 3. Do not know.• r

Q 4. Has the administration considered enlisting the assistance of inter-

national economic institutions such as the ADB or the IBRD in preparing

economic surveys -- either overall or in regard to particular sectors?

A 4. Most of the economic studies conducted in the Territory are performed by

the Industrial Economist' of the Department of Resources and DEvelopment.Since the Trust Territory is eligible to obtain UNDP assistance through

the UNDP Regional Representative in Apia, Western Samoa, it is hoped

that the expert services of the UNDP'w_II be expanded in the Territoryin the future.

Q 5. Has the aJministration obtained or considered obtaining assistance

(other than fellowship) from the various relevant UN agencies such asFAO, ILO, UNESCO, ETC. (As an example ......)

A 5. Yes the administration will continue to obtain these services in the

future. 2_e extent of such assistance will depend largely on theavailability of funds that can be encumbered by the administration

for this purpose.

-2-

02431G-

:" ANSWERS BY CHIEF, L_NDS AND SURVEYSTO QUESTIONS ASKED BY

UNITED NATIONS VISITING MISSION

2 _RCH 1973

.... Q. Are there so-called military retention lands outside the Mariana

Islands District; if so, where?'

A. Yes. Attached as Exhibit A is a complete listing of all lands

utilized by the United States Department of Defense in the Trust

Territory.

Q. Are these retention lands under the control of the Army, Navy orAir Force?

A. The using activity of the United States Department of Defense is

indicated under the second heading on Exhibit A. Although the

..... United States Coast Guard is under the Department of Commerce, .....

lands utilized by the Coast Guard are included in the list as

most Micronesians consider it a military activity which in the

__.Trust Territory it is not.

Q. Does TTPI consider that all public lands in the Trust Territory

can be used freely by the military? If not, what are the procedures _ ........

.....o- that U.S. military must follow to get public land designated as ..............

• military retention land?

A..--The-Trust Territory Government certainly does not. feel that the ...............

United States Department of Defense.may utilize any public lands . .:

in the Territcry without first carefully negotiating a Use

_:,_: or_.z_&greement. The United States and the Trust Territor$ presently .... ' _:_s% i9:r!to:_

operate under a "Land Agreement" dated December 23, 1955, of which

. ..a.copy is attached as Exhibit B.

The terms of this land agreement are not presently satisfactory

to the Trust Territory in so far as private land acquisition _-.for

the United States is concerned. The Trust Territory is placed

in the conflicting role of having to acquire the land for the

United States while also serving in the role of "trustee" for the

I people of the Trust Territory. Attempts to have the agreement

_.'_._ _,_mepded since 1970 have failed. Ifis the Unit ed_States posit£on_ "_._ ti_._ '"

that there is no present need to amend the agreement'in that the

| political status question will be decided shortly; and accordingly

I the effort expended to amen_ the agreement would be futile.L

0Z4317

.-

- . [

0Z4323 i

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" "-- _ • thereof, as the case may be, on the one hand, and by the Department of ::.-.....-:.:.• . . °.

""_!:_ Interior on the other, of the using agencies' need for the lard _.":. _._i ::: .."-'..-..I "-'" " " arcel concerned and for right of appeal to the President if there should _ "

-:!-t.....be disazr_ement regarding such need. -" ..... _.: ..-'_ [_'".:.:_)_

', • [%' ".'[... .... .--:"- _ h- _here_ by reason of a determination by the using Deoart._ent or agency, "....""..i.. :,_t

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-.... _. or where, by reason of a decision by the President, in the event o£ non- _: i

/.._].& , agree...nentbetween such Department or agency and. the .Deoartment..o£ the ...........,...._: ,.--.-:......-..Interior, -that the requirement referred to in the first sentence of para .... -..". ..:-_ ".:-- graph 2 no longer exists in respect.of a particular land parcel, the "__' ":_! ,:i

i]} : -..-i.agreement pertinent to such parcel shall be terminated, and uoon such /:"-i"__-, _

-- " termination_ the land and all. interests therein shall revert to._e Govern ....

'_.z_ ment of the Trust _erritory. -. _ - ..' - ..... _..... _-_

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-:/ : - _. A I_ st_ pa_nnent shall be made as may be required by the using agency .. -._.-. - -to the Hifh Commissioner of the Trust Territory for each land parcel covered ._.

.":." .. by agreement. This l_p s_m shall be in satisfaction of any and all claims i--.

" . arisin_ o_it of the use or occupan'cv of such parcel. The initial date of:.% • :. . - ° . o_ .]_ - _.

:!: o ou.o n y to on ....'.:-..'[':i_.-land on _nich the particular parcel is situated was declared "secure," .....-;_" !/..

: "'"_.-/..:"_nless such use or occupancy in fact occurred subse£uent.thereto, in ,,_.%ich .. !-.."-i.]7:;._":i.latter case the initial date shall be determined by occupancy. The l,c_mpsum ..-

•'/.:"" ..payment _hall consist either (a) of the negotiated fair use value of the '- - t...-land from the date .of occupation through t_le period of the agreement or (5) ....

': ""... of such _m established by the courts of t.he Trust Te.rritory as a result Of . ...... such judicial proceedings as may be appronria£e. ".... •_."_" ._'

-. , -.[ ....... .,

'.,= " " 6. .All agreements_ pertaininF to the land described in paragraph 2 hereol, . . -, ;,,:...-.-" -'..: shall be between %he Department of Interior.as the a&ministering Depart_.ent i.: . _.... :. of the Tr-_st T6rritory acting either on its own behalf or for the o_mer of . - :;;.

..... " such land_ on the one hand_ and the usin_ agency or the Dep_2tment of the ._ .'. ':. . "" Eavy as t_e representative thereof, as the case may be, on the" other. _ _

; _'_ 7. it is understo3d and agreed that the lands described in paragraph _ here- _

: ' of_ shall= when not actively used by cognizanZ using agencies, be made avail-_-:,-...•able to the Government of the Trust Territory on a revocable permit basis, for

_., the-use and benefit of the pe'ople of the Trust Territory. Such permit shall- be on a nonreimbursable basis when it does not result in any expe_nse to the

coghizant agency. Unless other,.riseprovided, if such'lands encompass existing

" ° facilitien and imzrovements, all such permits shall orovide (a) that the

- i_-._" ..."permitte_:'_hall adequately, mainf_in or safeguard such. facilities or _mprove- °

" .. ments a_adr.st destruction, impai_ment_ and loss, other than that caused by-.. " ' " reasonable wear and tear or damage by elementsj (b) that no such faci/ities _.

-- " "- or improvements shall be removed or physically altered with.out prior approval

• : of the cognizant agency; (c) that the issuance o£ such permit shall entail no

7- .- :. obliEation on the cognizant agency to maintain existing facilities in an oper-

able condition_ (d) that the cosnizant a_ency shall not be responsible for any

-- " damage or injury arising out of any use made by the o_mer, by the C_ver_ent--• -.. of the Trust Territory, or by the oeople of the Trust Territory of such lands,

--..."-- facilities or _mprovements_ (e) that no permanent native dwellings or native•-'- settlements shall be established on such lands _ithout. prior approval of the "

• . _. .. . _" •., '_. .

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