[Congressional Record Volume 148, Number 121 (Monday, September 23, 2002)]
[House]
[Page H6422]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


[[Page H6422]]
              CONTINUING CHALLENGES FACING GUAM'S ECONOMY

  The SPEAKER pro tempore. Under a previous order of the House, the 
gentleman from Guam (Mr. Underwood) is recognized for 5 minutes.
  Mr. UNDERWOOD. Mr. Speaker, as we consider unfinished legislative 
business for the 107th Congress, I want to take this opportunity to 
talk about the continuing challenges facing Guam's economy as well as 
the economies of other insular areas of the United States.
  Over the past year, the entire country has faced unprecedented 
economic challenges in the aftermath of September 11 as well as 
security challenges, and we have responded here in Congress by the 
consideration of legislation to establish a Department of Homeland 
Security and have taken steps to restore the peace in the Middle East 
and to make our security stronger in the Middle East and around the 
world.
  Against this backdrop, many of the economic relief measures that were 
passed by Congress did not address the economic conditions of Guam and 
the other insular areas for a wide number of reasons regarding the 
exact nature of the relationship.
  Fortunately for Guam, legislation was eventually signed into law by 
President Bush on August 21, the Guam Foreign Investment Equity Act, to 
provide for equitable rates for foreign investors in Guam and level the 
playing field.
  Most recently, the Committee on Resources on September 12 also marked 
up H.R. 2826, legislation to provide relief to U.S. Territories by 
increasing the matching waiver requirements for Federal grants for the 
territorial governments in Guam, the Virgin Islands, American Samoa and 
the Commonwealth of the Northern Marianas. I hope that the House will 
be able to act on this measure in the near future.
  With regard to actions by the executive branch, I am pleased that 
President Bush announced the appointment of David Cohen to be Deputy 
Assistant Secretary for Insular Affairs in late April. This appointment 
was an elevation from the position formerly entitled Director of the 
Office of Insular Affairs; and it was greatly appreciated by people in 
the territories, particularly given Mr. Cohen's qualifications and 
knowledge of insular issues.
  Today I would like to again reiterate my call for the establishment 
of a Federal interagency group headed by the White House and Department 
of the Interior to address issues in the U.S. Territories of Guam, the 
Virgin Islands, the Northern Marianas, and American Samoa; and I am 
hopeful that President Bush will do so by Presidential executive order.
  As a follow-up to my previous concerns on Federal insular affairs, I 
believe it is equally important to ensure that there is greater 
coordination amongst Federal agencies on insular area issues. The 
elevation of the OIA director to the Deputy Assistant Secretary 
position and the establishment of a Federal interagency group on 
insular areas are both necessary to improve Federal territorial 
relations and to have a chance to improve our economies as well.
  Unlike the 50 States, any of the 50 States, the insular areas simply 
do not have the same representation, available resources, or level 
playing field in Congress or the Federal policy-making process. In 
addition, our small populations, geographical distance from Washington, 
D.C., and our varying political and tax structures create even greater 
challenges and complexities.
  While the Interior Department is the lead agency for the territories, 
many of the pressing matters facing our island communities do not fall 
under that Department's jurisdiction. Such things as taxes, economic 
development, health, education, labor, immigration, agriculture, the 
environment, transportation, housing and defense all fall under other 
agencies. As a result, the insular area governments, many of which are 
experiencing budgetary shortfalls and double-digit unemployment rates, 
have a difficult time having issues addressed by the executive branch 
in an effective and timely manner.
  Previously, under the previous Clinton administration, an Interagency 
Group on Insular Areas was established by Presidential memorandum in 
1999 to provide guidance to Federal agencies on policies concerning the 
insular areas. Although a forum was held in the year 2000 and an 
attempt was made to produce a Federal progress report on economic 
development, there has been no continuation in the dialogue between the 
insular areas and the interagency group. Consequently, there has been 
very little coordination of the executive response. During these very 
difficult economic times, it is more important that there be a forum in 
which the insular areas can work with all of the Federal agencies in a 
collaborative matter.
  It is important to understand that in a place like Guam we are 
experiencing double-digit unemployment. In fact, some figures place us 
as high as 21 percent unemployment. We are suffering from the effects 
of September 11. We need the administration to establish via 
Presidential executive order an interagency group to address economic 
issues, homeland security issues, anything that affects the 
territories.

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