[Congressional Record (Bound Edition), Volume 149 (2003), Part 12]
[Extensions of Remarks]
[Page 15668]
[From the U.S. Government Publishing Office, www.gpo.gov]




         INTRODUCTION OF THE COMPACT IMPACT RECONCILIATION ACT

                                 ______
                                 

                       HON. MADELEINE Z. BORDALLO

                                of guam

                    in the house of representatives

                        Thursday, June 19, 2003

  Ms. BORDALLO. Mr. Speaker, today I am introducing a bill to amend the 
Organic Act of Guam to authorize the Secretary of the Interior to 
reduce, release, or waive amounts owed by the Government of Guam to the 
United States Government to offset unreimbursed Compact impact 
expenses. This bill is cosponsored by my colleagues, Mr. Gallegly, the 
Republican Co-Chairman of the newly established House Caucus on Insular 
and International Affairs, Mr. Rahall, the Ranking Democratic Member of 
the House Committee on Resources, Mr. Faleomavaega, the Ranking 
Democratic Member of the House Subcommittee on Asia and the Pacific and 
the Democratic Co-Chairman of the House Caucus on Insular and 
International Affairs, Mr. Rehberg, Mr. Abercrombie, and Mr. Case. I am 
also pleased to have the support of the Governor of Guam, The Honorable 
Felix P. Camacho, for this legislation.
  Guam is the closest neighbor to the Federated States of Micronesia 
and the Republic of Palau, two former trust territories of the United 
States, who as a result of the Compacts of Free Association with the 
United States established independence and became sovereign states.
  One of the major concerns for Guam is the reimbursement of costs 
incurred by Guam due to the Compacts, which were entered into force in 
1986. In enacting the Compact of Free Association Act (Public Law 99-
239), Congress authorized unrestricted migration from the Federated 
States of Micronesia, the Republic of the Marshall Islands, and the 
Republic of Palau to the United States, including its territories. This 
law states that if any adverse consequences to Guam resulted from 
implementation of the Compacts of Free Association, the Congress would 
act sympathetically and expeditiously to redress those adverse 
consequences.
  The Government of Guam has incurred significant costs over the past 
17 years due to this migration and the Government of Guam has been 
inadequately reimbursed by the United States Government. The General 
Accounting Office has reported that such migration permitted under the 
Compacts of Free Association has had a significant impact on Guam. But 
placing demands on local government for health, educational, and other 
social services, migration under the Compacts of Freely Association has 
adversely affected the budgetary resources of the Government of Guam. 
The Government of Guam has provided health, educational, and other 
social services to the citizens of these Freely Associated States in 
good faith with the expectation that such incurred costs would be 
reimbursed by the United States Government.
  Guam has experienced a severe economic crisis in recent years which 
has been exacerbated by Compact impact expenses. During this time, the 
Government of Guam has accrued significant obligations to the United 
States Government, including $9 million to the Department of the Navy 
for water consumption, $3 million to the Department of Education for 
the construction of a student housing facility at the Guam Community 
College, $40 million in local matching funds to the Federal Emergency 
Management Agency for disaster assistance in the aftermath of Typhoon 
Chata'an and Supertyphoon Pongsona, and $105 million to the Department 
of Agriculture for telephone infrastructure improvements. These are 
some of the few obligations that the Government of Guam has been unable 
to meet in part because of budgetary commitments it has fulfilled in 
providing health, educational, and other social services to citizens of 
the Freely Associated States.
  The Compact Impact Reconciliation Act would grant the Secretary of 
the Interior some flexibility to address the unreimbursed Compact 
impact expenses of Guam. The legislation would allow the Secretary of 
the Interior to forgive Guam of some of its debt owed to the United 
States Government in exchange for the United States Government 
reimbursing Guam for expenses incurred as a result of the Compact's 
immigration provisions. Reconciliation of amounts owed by the 
Government of Guam with the Compact impact expenses is in the national 
interest and would promote good will in the future renewal of the 
Compacts of Free Association and the economic recovery of Guam, which 
hosts some of our Nation's most strategically important military bases.
  I am hopeful that as Congress reauthorizes the Compacts of Free 
Association this year that this legislation will be merited serious 
consideration. I look forward to working with Chairman Pombo and 
Ranking Member Rahall of the House Committee on Resources to secure a 
hearing for this bill and to move this legislation to eventual passage.