[Congressional Record (Bound Edition), Volume 160 (2014), Part 11]
[Extensions of Remarks]
[Pages 16240-16242]
[From the U.S. Government Publishing Office, www.gpo.gov]




   HISTORICAL RECORD OF FALEOMAVAEGA'S OPPOSITION TO CONSTRUCTION OF 
                       McDONALD'S AT UTULEI BEACH

                                  _____
                                 

                      HON. ENI F. H. FALEOMAVAEGA

                           of american samoa

                    in the house of representatives

                      Thursday, November 20, 2014

  Mr. FALEOMAVAEGA. Mr. Speaker, I rise today to include, for 
historical purposes, information about my opposition to the 
construction of a McDonald's at Utulei Beach.

                     [Press Release, May 25, 2005]

 Faleomavaega Calls Upon McDonalds Corporate Officers to Intervene and 
                   Halt Construction at Utulei Beach

       Congressman Faleomavaega announced today that he has 
     written to Mr. Charles Tautolo, President and CEO of 
     McDonalds American Samoa Franchise, and has expressed his 
     opposition to construction of a McDonalds at Utulei Beach. A 
     copy of the Congressmans letter dated May 25, 2005 and copied 
     to the Governor, the Lieutenant Governor, the President of 
     the Senate and Senators, the Speaker and Representatives, the

[[Page 16241]]

     Vice Chairman and CEO of the McDonalds Corporation, and the 
     Managing Director/ CEO of McDonalds Australia, is included 
     below:
       Dear Mr. Tautolo:
       I am writing to express my opposition to your decision to 
     build a McDonalds restaurant at the Utulei Beach Park in 
     American Samoa. I am also requesting a copy of your 
     feasibility study pertaining to this proposed location.
       It is my understanding that as a responsible corporation it 
     has been the practice of McDonalds to conduct a feasibility 
     study and/or an environmental impact assessment of a proposed 
     site before construction of a new facility may proceed. I am 
     hopeful that this is also the case in American Samoa and, for 
     this reason, I would appreciate a copy of your study.
       I also believe McDonalds feasibility study for the Utulei 
     Beach Park should be shared with the people of American Samoa 
     because they deserve to know what impact your proposed 
     restaurant will have on the welfare of our community. While I 
     applaud the many valuable contributions McDonalds has made in 
     American Samoa, I do not believe your current plans are 
     sensitive to the social and environmental concerns of our 
     Territory.
       Since the day McDonalds announced plans to build on the 
     Utulei Beach, which is the only public beach in American 
     Samoa, my office has been inundated with calls from 
     constituents voicing their objections to your proposal. I 
     have read of further complaints in our local papers and the 
     Senate has passed a resolution recommending that the Governor 
     not finalize the McDonalds lease.
       I have also received a petition signed by water sport 
     organizations incorporated in the U.S. Territory of American 
     Samoa which includes Executive Committee Members of the 
     American Samoa National Olympic Committee. Organizations 
     opposed to the construction of a McDonalds at the Utulei 
     Beach include the American Samoa Kayak Canoe Association 
     Inc., the American Samoa Swimming Association Inc., the 
     American Samoa Canoe Racing Association Inc., the Aiga Tautai 
     O Samoa Inc., the American Samoa Yacht Racing Association 
     Inc., the American Samoa Surfing Association Inc., the Pago 
     Pago Game Fishing Association Inc. and Common Cause.
       Aquatic sports such as sailing, canoeing, and yachting are 
     flourishing at Utulei Beach. International sailing and 
     especially outrigger events which celebrate our proud 
     heritage have been hosted at Utulei Beach and, in time, 
     Utulei Beach may become a major tourist attraction. It is 
     also my understanding that Utulei Beach offers the only 
     stretch of shoreline where outrigger canoes and fautausi, or 
     longboats, can enter deep water via the natural channel 
     through the reef.
       More importantly, Utulei Beach has been enjoyed by the 
     people of American Samoa for generations and, in keeping with 
     traditional Samoan culture, families travel for miles to swim 
     or picnic at this public location so as to respect the more 
     restrictive customs set forth by each village council. For 
     many reasons, including the historical and social 
     significance it holds for our families and the economic 
     implications it has for our future, Utulei Beach must be 
     preserved. This is why federal funds have been appropriated 
     to finance the Utulei Beach Project which was included as a 
     priority project for the Community Development Block Grant 
     Program.
       These are facts which I believe must be shared with the 
     McDonalds Corporation and given the importance of this issue 
     I am copying this letter to Mr. Jim Skinner, Vice Chairman 
     and Chief Executive Officer, as well as Mr. Peter Bush, 
     Managing Director/CEO, McDonalds Australia. I am also 
     informing both that there are other sites available for 
     construction of another McDonalds in American Samoa.
       Also, with the popularity McDonalds enjoys in American 
     Samoa, I am confident that the people of American Samoa will 
     appreciate, support and welcome another McDonalds in any 
     location other than Utulei Beach. In turn, McDonalds must be 
     sensitive to the wishes of our people. The McDonalds 
     Corporation has built its reputation on being a responsible 
     corporate partner and invests millions of dollars to promote 
     family values.
       Therefore, I am hopeful that this issue will be immediately 
     resolved at the corporate level. However, if I must go to the 
     House Floor on a daily basis to express my outrage about 
     McDonalds unwillingness to respect the publics concerns 
     regarding your proposed lease agreement with the local 
     government, I will have no choice but to do so.
           Sincerely,
                                            Eni F. H. Faleomavaega
                                               Member of Congress.
       cc: Gov. Togiola Tulafono; Lt. Gov. Ipulasi Aitofele Sunia; 
     President of the Senate and Senator; Speaker of the House and 
     Representatives; Mr. Jim Skinner, Vice Chairman & CEO, 
     McDonalds Corporation; Mr. Peter Bush, Managing Director/CEO, 
     McDonalds Australia
       I am hopeful that this matter will be resolved locally but, 
     if not, I have called upon the McDonalds Corporation to 
     immediately intervene and put an end to construction at 
     Utulei Beach. Constructing a McDonalds at the only public 
     beach in American Samoa goes against the core values of the 
     McDonalds Corporation which promotes an agenda of community 
     involvement, environmental protection, and a promise to earn 
     the trust of its customers and everyone else affected by its 
     business. It is time for McDonalds to live up to its promise 
     and I trust that all involved will do right by the people of 
     American Samoa, the Congressman concluded.
                                 ______
                                 

                     [Press Release, June 29, 2005]

Faleomavaega and McDonalds Meet to Discuss Construction at Utulei Beach

       Congressman Faleomavaega announced today that Mr. Bo 
     Bryant, Director of Federal Government Relations for the 
     McDonalds Corporation, contacted his office on June 17, 2005 
     and requested a meeting to discuss the controversy 
     surrounding the potential construction of a McDonalds at 
     Utulei beach. The meeting was held yesterday in the 
     Congressmans Washington office and Ms. Nicole E. Storey, a 
     Government Relations Specialist for McDonalds, also attended 
     the meeting. The meeting was in response to Congressman 
     Faleomavaegas letter to Mr. Charles Tautolo dated May 25, 
     2005 and copied to the Vice Chairman and CEO of the McDonalds 
     Corporation.
       My meeting with Mr. Bryant was very worthwhile, the 
     Congressman said, and I am pleased that the McDonalds 
     corporation is taking this issue seriously. McDonalds has 
     built its reputation on being a good corporate citizen and 
     upholding the values of the communities which it serves and, 
     today, the McDonalds corporation has demonstrated that the 
     people of American Samoa matter.
       My job is to make sure that your concerns on behalf of the 
     people are heard and addressed, Mr. Bryant told the 
     Congressman, and we are only at the beginning of this 
     process. Mr. Bryant gave the Congressman his personal 
     assurances that he would report back to his leadership about 
     the concerns the Congressman raised in the meeting and that 
     he would also keep Congressman Faleomavaega updated as this 
     matter progresses.
       From the outset, I made it clear that the people of 
     American Samoa will support the establishment of another 
     McDonalds at any location other than our only public beach. 
     However, as I explained to Mr. Bryant, there is no point of 
     compromise when it comes to Utulei beach and I remain hopeful 
     that this situation can be diffused.
       While I appreciate the contributions Mr. Tautolo has made 
     to the local community, I expressed my concerns about the 
     feasibility study that should have been conducted before any 
     kind of contractual agreement was entered into between 
     McDonalds and our local government. In fact, I informed Mr. 
     Bryant that I had requested a copy of the feasibility study 
     but, to date, I have not received a copy or a response to my 
     request, Faleomavaega said.
       Mr. Bryant said that he was not aware of whether or not a 
     feasibility study had been conducted and he thought that at 
     least four or five more permits still needed to be acquired 
     and, without those, construction could not begin. He said it 
     was also his understanding that a public hearing would be 
     scheduled in the near future and he asked if I would like to 
     participate. I told him that if my schedule permits I will 
     definitely participate.
       I also informed Mr. Bryant that our local Senate passed a 
     resolution opposing construction at Utulei beach and that Mr. 
     Roy Hall, the general counsel for the Senate, is questioning 
     the legality of the lease agreement. By law, any lease 
     agreement that extends beyond 10 years must be approved by 
     our Legislature. In this instance, it is my understanding 
     that a lease agreement was signed between McDonalds and ASG 
     for 9 years, 11 months and 29 or so days with an option to 
     renew for 30 years.
       Mr. Bryant said he was not aware of these developments and 
     expressed concern about the questions surrounding the lease 
     agreement. As Mr. Bryant agreed, use of the McDonalds name is 
     not just a local issue. McDonalds is a global corporation 
     worth approximately $36 billion and the corporation is very 
     protective of its name.
       If we were talking about a local fast-food operation not 
     affiliated with a national or international chain, then this 
     would be a local issue. But we are not talking about a 
     village store. We are talking about McDonalds and, therefore, 
     the McDonalds corporation is interested in what is happening 
     in American Samoa, the Congressman said.
       At this time, I am very pleased that the McDonalds 
     corporation is committed to reviewing the legal and social 
     aspects of constructing a McDonalds at Utulei beach. I am 
     also pleased that Mr. Bryant has agreed to keep my office 
     informed about any new developments in this case. In turn, I 
     am reviewing the possibility of introducing federal 
     legislation to include Utulei beach as part of the National 
     Park of American Samoa so as to prevent any company including 
     but not limited to KFC, Burger King, Pizza Hut, or local 
     businesses from building at this site.
       I believe we must not only resolve the immediate crisis 
     facing us but we should also protect ourselves in the future 
     from any other corporation seeking to build at Utulei beach. 
     Utulei beach offers the only stretch of

[[Page 16242]]

     shoreline where outrigger canoes and fautasi, or longboats, 
     can enter deep water via the natural channel through the reef 
     and, out of respect and reverence for our Samoan traditions 
     and customs, I believe we must work together to preserve 
     Utulei beach.
       On a separate matter, I also mentioned to Mr. Bryant that I 
     am concerned that American Samoa is being treated like a 
     foreign country by the McDonalds corporation. It does not 
     make sense to me why we have to get permission from Australia 
     in order to establish a McDonalds in American Samoa. American 
     Samoa is a territory of the United States and our local 
     owners ought to be able to do business with McDonalds in 
     America, not Australia.
       I also expressed my concerns about the previous lease 
     agreement done for McDonalds at the current site in Tafuna. 
     It is my understanding that the previous lease agreement 
     between ASG and McDonalds stipulates that all lawsuits must 
     be filed in Australia and be subjected to Australian law. 
     This is not fair to ASG or to anyone in American Samoa and I 
     suggested that the attorneys in Australia representing 
     McDonalds should be more ethical in the contracts they put 
     forward in this territory.
       While I have not heard from McDonalds Australia regarding 
     construction at Utulei beach, I appreciate Mr. Bryants 
     efforts in meeting with me and I thanked him for the great 
     service McDonalds is currently providing in American Samoa. 
     The people of American Samoa welcome and support McDonalds 
     and we continue to remain hopeful that this situation can be 
     favorably resolved, the Congressman concluded.
                                 ______
                                 

                     [Press Release, Apr. 22, 2006]

   Faleomavaega Responds to Governors Recent Comments About McDonalds

       Congressman Faleomavaega announced today that he is 
     responding to the Governors comments published by Samoa News 
     on April 17, 2006 regarding the McDonalds controversy. 
     Togiola responded directly to Faleomavaegas public support of 
     the National Parks position on the Utulei Beach Park lease 
     saying, the congressman is not the federal judge for American 
     Samoa yet, so he should wait until he knows all the facts.
       He has not even asked us about this matter. He is basing 
     his opinion on one side only. He should really learn to ask 
     people who live here first before he goes off and releases 
     these kinds of statements, said Togiola.
       I am saddened by the Governors comments, Faleomavaega said. 
     As part of a free and democratic society, each of us is 
     entitled to a difference of opinion but it is beneath the 
     office of an elected official to make false claims and stoop 
     to name-calling. I am not nor do I ever desire to be a 
     federal judge and my position regarding McDonalds has been 
     clear from the beginning. I stand with the people of American 
     Samoa in opposition to this deal.
       Unlike the Governor, I have heard what our people have to 
     say and my office has been inundated with calls opposing the 
     construction of a McDonalds at the only public beach in 
     American Samoa. Furthermore, the Governor has known of my 
     opposition since May 25, 2005 almost a year ago at which time 
     I copied him on my letter to Mr. Charles Tautolo of McDonalds 
     in American Samoa. I also copied our Fono as well as the CEO 
     of the McDonalds Corporation headquartered in Illinois.
       Nearly a year ago, on June 28, 2005, I also met with the 
     Director of Federal Government Relations for the McDonalds 
     Corporation and expressed my grave concerns about McDonalds 
     failure to conduct a feasibility study, Faleomavaega said. 
     Based on a press release I issued, our local media published 
     the details of this meeting in which I informed the Director 
     that the people of American Samoa would support the 
     construction of a McDonalds anywhere else in American Samoa 
     but not at Utulei Beach Park.
       Utulei Beach is our only public beach and preserving it now 
     and for future generations is what is best for American 
     Samoa. This is why our people want a public hearing. So let 
     the hearing begin. And when it begins, let us question its 
     purpose since the Governor has already signed the lease and 
     made his decision before listening to the people.
       As we carefully consider this matter, let us also be very 
     clear about ASGs involvement with the National Park Service 
     (NPS). According to the NPS, ASG entered into a contractual 
     agreement with NPS in 1995 placing Utulei Beach Park within 
     the Land and Water Conservation Fund Program (LWCF) as park 
     land dedicated to public outdoor recreational use in 
     perpetuity which means forever. ASG has also accepted over $4 
     million since signing the agreement.
       As I stated previously, if our local government makes a 
     promise to the federal government and accepts grant money and 
     then decides the terms of the agreement are inconvenient and 
     no longer apply, it sends the message that American Samoa 
     does not respect the federal grant process and therefore 
     should not be trusted with any federal money. This is the 
     wrong message to send to Congress and the wrong message to 
     send to the US Department of the Interior.
       For this reason, I am trying to prevent a confrontation or 
     a legal battle between the US Department of the Interior and 
     ASG. While the Governor has suggested that I do not have the 
     facts, the truth is I have copies of every letter exchanged 
     between the NPS and Governor Togiola which began on May 16, 
     2005 and continue to March 28, 2006. I also have copies of 
     survey maps and the Governor has also been provided with 
     these maps on more than one occasion. In other words, the 
     Governor knows that the lease that was signed places the 
     proposed McDonalds within a protected park area and violates 
     ASGs agreement with the NPS. This said, I remain hopeful that 
     we can find a favorable solution to a local issue that should 
     have never escalated to a federal problem, Faleomavaega 
     concluded.

                          ____________________