[Congressional Record Volume 143, Number 19 (Thursday, February 13, 1997)]
[Extensions of Remarks]
[Pages E284-E285]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                 AMERICAN SAMOA DEVELOPMENT ACT OF 1997

                                 ______
                                 

                       HON. ENI F.H. FALEOMAVAEGA

                           of american samoa

                    in the house of representatives

                      Thursday, February 13, 1997

  Mr. FALEOMAVAEGA. Mr. Speaker, I rise today to introduce the American 
Samoa Development Act of 1997.
  Over the past several months, I have had the opportunity to discuss 
with American Samoa's new Governor, the Honorable Tauese P.F. Sunia, 
the current economic status of American Samoa, and the direction he 
would like to move the territory's economy.
  It is no secret that of all the U.S. insular areas, American Samoa 
has the weakest economy. The growing population coupled with its 
limited industrial base has hastened an economic downward spiral which 
if not checked, could result in the financial collapse of the local 
government. This would not be in the interests of the residents of 
American Samoa, the local government, or the United States.
  American Samoa currently receives annual Federal assistance for both 
the operations of its government and for the construction of capital 
assets. Every elected Governor of American Samoa has attempted to 
develop a larger and broader economy for Samoa, but each has met with 
limited or no success because of Samoa's remote location, its limited 
transportation, and its devastating hurricanes.
  To his credit, former Gov. A.P. Lutali negotiated a mutually 
beneficial agreement with an apparel company during his most recent 
term in office, and that company is now in operation and employing 
hundreds of American Samoans. The addition of this company gives 
American Samoa a total of three major businesses operating in the 
territory. I am concerned that with the termination of section 936 of 
the Internal Revenue Code, the implementation of the North American 
Free Trade Agreement, and the phase out of tariffs under the General 
Agreement on Tariffs and Trade, the few trade incentives the United 
States has given American Samoa and the other insular areas are rapidly 
losing their value.
  As of today, no new businesses in American Samoa, or any other 
insular area for that matter, can obtain the benefits of section 936. 
Should Federal law concerning the importation of canned tuna into the 
United States under the dolphin safe label be amended as proposed, I do 
not believe the two tuna canning plants in American Samoa will remain 
in Samoa beyond the end of this century. Should they leave, and I 
expect them to be forced to do so because of changes in the economics 
of international production of canned tuna,

[[Page E285]]

Samoa will lose fully one-third of its total economy. This will be 
devastating.
  This legislation is a start toward addressing this problem. The 
commission established will be directed to examine, among other things, 
recent changes in trade law and the current and future impact these 
changes will have on American Samoa.

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