[Senate Report 106-240]
[From the U.S. Government Publishing Office]
Calendar No. 456
106th Congress Report
SENATE
2d Session 106-240
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BIKINI RESETTLEMENT AND RELOCATION ACT OF 1999
_______
March 9, 2000.--Ordered to be printed
_______
Mr. Murkowski, from the Committee on Energy and Natural Resources,
submitted the following
R E P O R T
[To accompany H.R. 2368]
The Committee on Energy and Natural Resources, to which was
referred the Act (H.R. 2368) to assist in the resettlement and
relocation of the people of Bikini Atoll by amending the terms
of the trust fund establishment during the United States
administration of the Trust Territory of the Pacific Islands,
having considered the same, reports favorably thereon without
amendment and recommends that the Act do pass.
purpose of the measure
The purpose of H.R. 2368 is to approve a one-time three
percent distribution from the Bikini Resettlement Trust Fund to
the people of Bikini.
background and need
Following the close of World War II, the United States
began a nuclear testing program in the northern Marshall
Islands. The area, which had been administered by Japan under a
League of Nations Mandate, eventually was placed under the
United Nations trusteeship system as part of the Trust
Territory of the Pacific Islands, which included the Marshall
Islands, the Carolines, and the Marianas (except for Guam). The
Trust Territory of the Pacific Islands was the only strategic
trusteeship created with oversight by the Security Council,
rather than the General Assembly.
In 1946, the population of 167 at Bikini was relocated,
first to Rongerik and then two years later briefly to Kwajalein
and then to Kili island. Unlike Bikini, which is a large atoll
with a sheltered lagoon, Kili is an island with little reef and
no lagoon. Expectations at the time of relocation were that the
population would be allowed to return to Bakini at the end of
the testing program. Between 1946 and 1958, 23 atomic and
hydrogen bombs were tested at Bikini, vaporizing several
islands. In 1969, a small portion of the population were
permitted to return to Bikini. They were removed in 1978 when
tests disclosed that the population had ingested elevated doses
of radiation. Following the removal, the United States
undertook a program at Bikini to test various methods to reduce
or eliminate the uptake of radiation in the food chain. The
United States has made various ex gratia payments to the Bikini
people as well as a comprehensive settlement of $75 million as
part of the espousal provisions of the Compact of Free
Association (sec. 177). In addition to the settlement contained
in the Compact, the United States also committed to ``provide
funds for the resettlement of Bikini Atoll by the people of
Bikini at a time which cannot now be determined'' (Art. VI,
Sec. 1 of the 177 Subsidiary Agreement). Congress went beyond
that statement when it approved the Compact in 1986 by
including in section 104(l) a pledge of full faith and credit
to fund a settlement agreement that had been entered into with
the Bikini people.
The Bikini Resettlement Trust Fund was originally
established in 1982 by the FY 1982 Supplemental Appropriation
legislation (P.L. 97-257) which appropriated $20.6 million for
the people of Bikini of which $3 million would be distributed
to individuals under a newly devised ``head of household''
formula and the balance placed in a tax-free, interest-bearing
trust with the income and corpus, if necessary, to be expended
for the relocation and resettlement of the Bikini people. At
the time, since rehabilitation of Bikini itself was unresolved,
the bulk of the expenditures were intended to go to improving
conditions for the population residing on Kili and Ejit
islands. The initial 25 year term of the trust was set to
coincide with what was then estimated to be the time at which
Bikini would be safe for human habitation. In 1988, a further
appropriation of $90 million was made to satisfy the
requirements of the Compact legislation and the settlement
agreement. The total contribution to the fund amounted to $110
million and the market value today is approximately $126
million.
Congress provided what it believed would be a sufficient
corpus to provide for resettlement based on the removal of
contaminated soil near residences with potassium treatment to
block the uptake of cesium elsewhere. The decision, however, on
the actual program was left to the Bikini population with the
understanding that they could let the Fund grow until it could
support a more expansive program, if that is what they wanted.
The Bikini people have yet to come to a final agreement on how
to proceed. Resettlement has proved to be a difficult task for
several reasons, not the least of which is the memory of the
failed resettlement effort in 1969. Efforts to settle on a
resettlement program have also been complicated by debates over
what constitutes a safe environment. As resettlement is
delayed, the original population who were relocated has
dwindled to about 90. This legislation would provide a one-time
payment at the request of the Bikini people in recognition of
the fact that most of those alive in 1946 may not survive to
return to a fully restored Bikini.
While the legislation provides for a distribution to the
``People of Bikini,'' the Committee was advised by the counsel
for the people of Bikini that the distribution formula adopted
by the people of Bikini, and used in the 1988 distribution,
will primarily benefit the elders of Bikini in their capacity
as elders and as heads of households. This is the distribution
method that the people of Bikini deem appropriate.
The Committee is concerned with the effect of commingling
the two Bikini funds. The original fund was established in 1982
by the FY 1982 Supplemental Appropriation Act (P.L. 97-257)
which provided $20.6 million for the people of Bikini, of which
$3 million was distributed and the balance placed in a trust
for relocation and resettlement. At the time, the understanding
was that the proceeds would go primarily to the populations
residing in Kili and Edit islands. In 1988, a further
appropriation of $90 million was made to satisfy the
requirements of the Compact legislation and the settlement
agreement. Those funds were intended primarily to provide a
corpus for resettlement of Bikini atolls. By combining the two
funds, the objectives of each have become intertwined.
The decision to reinvest annual interest income, thereby
enlarging the corpus, or to spend the interest to provide for
education and other community needs is one for the people of
Bikini to make. The Committee wants to caution, however, that
should the people of Bikini at some future time seek additional
assistance in resettlement, Congress is likely to consider not
only this distribution, but also all annual distributions in
determining whether further ex gratia contributions are
justified. The Committee will not prejudge what a future
Congress will do, but does believe that a note of caution is
warranted.
At the Committee hearing, the representative of the people
of Bikini testified that, because of prudent investment and
restraint by the Bikini Council, the corpus of the trust fund
remains intact and the fund has earned almost 14 percent
annually. A comparison of the trust fund's value to the
consumer price index offers a somewhat less rosy conclusion. If
the fund's return on investment equaled the rate of inflation
and income was reinvested, the amounts appropriated by Congress
for the trust fund would have a value of $148 million as of
January 1, 1999. The value of the trust fund on January 1,
however, was only $124.5 million. While it is true that, in
actual dollars, the corpus of the fund has not diminished, when
adjusted for inflation, the Resettlement Trust Fund has lost
significant value over the years. Today, the buying power of
the fund is 16 percent less than its value in 1988.
One reason for the diminution in value is the distribution
to the people of Bikini of most or all of the annual interest
income generated by the fund, a distribution authorized by
Congress when the fund was established. These annual
distributions, in part, supplement USDA food assistance and
distributions received by the people of Bikini under section
177 of the Compact of Free Association.
The Bikini people spend some or all of the annual income
generated by the trust fund to support their community. Income
not used for this purpose is added to the corpus of the fund.
For example, the fiscal year 2000 budget for the Resettlement
Trust Fund anticipates revenue of $9.7 million and proposes
expenditures of $9.6 million. Thus, only one percent of the
year 2000 revenue will be added to the fund for resettlement.
While the annual revenue generated by the fund has been
substantial in recent years, the amount set aside by the Bikini
Council for resettlement has been very modest, as the year 2000
example illustrates. With each passing year, inflation
continues to erode the value of the fund whenever, as is often
the case, the people of Bikini spend an amount that is greater
than their return on investment, less inflation.
By requesting a special distribution of up to three percent
of the value of the trust, the people of Bikini only further
reduce the amount available for resettlement. With this 3
percent distribution, the current value of the fund will be 19
percent less than the amount available in 1988. Unless Congress
appropriates additional funds or the Bikini Council decreases
the amount of annual income spent supporting the community,
resettlement will be further delayed, or resettlement options
limited, by the distribution authorized in this bill.
legislative history
H.R. 2368 was introduced by Congressman Don Young and
George Miller on June 29, 1999, and referred to the Committee
on Resources. The bill was ordered reported on July 21, 1999,
and passed the House under suspension of the rules on September
13, 1999. A hearing was held by the full Committee on October
13, 1999.
At the business meeting on February 10, 2000, the Committee
on Energy and Natural Resources ordered H.R. 2368 favorably
reported, without amendment.
committee recommendations and tabulation of votes
The Committee on Energy and Natural Resources, in open
business session on February 10, 2000, by a unanimous voice
vote of a quorum present, recommends that the Senate pass H.R.
2368 without amendment.
section-by-section analysis
Section 1 provides a short title.
Section 2 requires an ex gratia distribution of three
percent of the market value of the Bikini Resettlement Trust
Fund as of June 1, 1999 to the people of Bikini.
cost and budgetary considerations
The following estimate of the cost of this measure has been
provided by the Congressional Budget Office:
H.R. 2368--Bikini Resettlement and Relocation Act of 1999
H.R. 2368 would amend the terms of the Resettlement Trust
Fund for the People of Bikini to authorize a one-time
distribution to the people of Bikini. The amount of the
distribution would be limited to the greater of 3 percent of
the fund's market value or the amount that exceeds the fund's
principal. The federal government established the trust fund in
1982 to assist in relocating and resettling the people of the
Bikini Atoll, who were moved off of their islands by the United
States to facilitate the government's testing of nuclear
weapons during the 1940s and 1950s.
Although the federal government has imposed restrictions on
how monies appropriated into the Resettlement Trust Fund (which
have already been counted as outlays) can be used, the funds
belong to the people of Bikini and thus are nonfederal.
Consequently, enacting the legislation would have no impact on
the federal budget. Because the legislation would not affect
direct spending or receipts, pay-as-you-go procedures would not
apply. H.R. 2368 contains no intergovernmental or private-
sector mandates as defined in the Unfunded Mandates Reform Act
and would have no significant impact on the budgets of state,
local, or tribal governments.
The CBO staff contact is John R. Righter. This estimate was
approved by Peter H. Fontaine, Deputy Assistant Director for
Budget Analysis.
regulatory impact evaluation
In compliance with paragraph 11(b) of rule XXVI of the
Standing Rules of the Senate, the Committee makes the following
evaluation of the regulatory impact which would be incurred in
carrying out H.R. 2368. The bill is not a regulatory measure in
the sense of imposing Government-established standards or
significant economic responsibilities on private individuals
and businesses.
No personal information would be collected in administering
the program. Therefore, there would be no impact on personal
privacy.
Little, if any, additional paperwork would result from the
enactment of H.R. 2368, as ordered reported.
executive communications
The testimony provided by the Department of the Interior at
the Committee hearing follows:
Statement of Ferdinand Aranza, Director of the Office of Insular
Affairs, Department of the Interior
Mr. Chairman. I am pleased to be here this morning to
discuss H.R. 2369, which would allow a distribution from the
Bikini Resettlement Trust Fund.
H.R. 2368--Bikini Ex Gratia Distribution
H.R. 2368 calls for a one-time, three-percent distribution
from the Resettlement Trust Fund for the People of Bikini.
In 1982, the Congress established the Trust Fund pursuant
to the terms of Public Law 97-257 for ``the relocation and
resettlement of the Bikini people * * *, principally on Kili
and Ejit Islands.'' In 1988, the Congress appropriated
additional moneys for the Trust Fund and modified its terms to
provide that funds could be also ``expended for rehabilitation
and resettlement of Bikini Atoll.'' That same public law
provided as well that $3 million of the Trust Fund was to be
made available ex gratia to the people of bikini over several
years.
Much of the interest on the Trust Fund's $110 million
corpus is spent annually in support of the Bikini people.
Averaging a fourteen-percent annual return over its life, the
Trust Fund has paid out, since its inception, million of
dollars for infrastructure, clean-up and resettlement
activities in Bikini Atoll; for housing and electrical power
construction, maintenance and repairs at Kili and Ejit; and for
scholarships, health care, and supplemental food. The
Administration commends the elected leaders of Bikini for
ensuring the fiscal integrity of the Trust Fund. They have
hired reputable banks and well-respected investment advisors to
serve as trustees and money managers. Every dollar of Trust
Fund expenditures is audited, and financial statements and
annual audits are routinely provided to my office, which
oversees the Trust Fund.
One-hundred, sixty-seven persons living in Bikini Atoll in
1946 were removed from their islands. Of that group, those
living today have declined to fewer than 90. The resettlement
of Bikini is not likely to occur any time soon. The Bikinians
cite this prospect of a delayed return as a reason for seeking
the three-percent distribution. I am told that there is concern
that the individuals who were actually removed from Bikini
Atoll in 1946 are not likely to live to see the day of return
to Bikini. The thought is that they should receive some added
benefit before they die.
The Administration supports enactment of H.R. 2368 and
suggests the following clarifying amendments to improve the
bill:
limit the three-percent distribution
contemplated in the bill to Bikini persons who were
alive and removed from Bikini in 1946, and
strike the last sentence of the bill, which
implies that the Congress may make additional ex gratia
payments.
To my knowledge, no such payments are anticipated. This
legislation should not raise expectations where there is no
present intention to appropriate new funds.
If requested by the Committee, we would be glad to provide
a drafting service for these recommended amendments.
Thank you for this opportunity to express our views.
changes in existing law
In compliance with paragraph 12 of rule XXVI of the
Standing Rules of the Senate, the Committee notes that no
changes in existing law are made by the Act H.R. 2368, as
ordered reported.