CONGRESS APPROVES $4,000,000 TT BUDGET

An Interior Department appropriations bill 
containing $4000,000 for the Trust Territory 
of the Pacific Islands passed both houses 
of Congress this week and is now awaiting 
President Eisenhower's signature, Headquarters 
was informed on July 29.

The bill also makes provision for extending 
the life of the Island Trading Co.to Dec. 31, 
1954, according to a dispatch from Emil J. 
Sady, chief of the Pacific Division, Office 
of Territories.

Senate Joint Resolution 6, which provides 
for the continuance of civil government 
in the Trust Territory in the
absence of organic legislation passed
the House and was returned to the
Senate with amendments, including one
to extend the life of ITC.

Meanwhile, the Senate Appropriations
Committee has approved a request for
a $424, 000 supplemental budget for
Trust Territory.

The $4,000,000 budget is about
$1,000,000 less than was appropriated
for the administration last year. It
will mean that the TT has to practice
stringent*economy in operation and 
reduce somewhat the services it has
made available to the islanders.

Although there probably will be no
nwholesale layoffs, M some positions
will have to be eliminated and a 
reduction in force carried out. This 
already has been done to some extent
with the elimination of 25 positions,
both at Headquarters and in the field.

Personnel Director Nat Logan-Smith
said his department is making every
effort to find other jobs in the Trust
Territory for employees who have 
received RIF notices. "We've had some
success although it is not expected
that all can be situated."

|f In the interests of economy, Headquarters 
recently underwent a reorganization. The 
public works department and the economic 
and political affairs departments were 
abolished as such and the liaison officer 
position eliminated.

It is planned to have an engineer
stationed in the field with a small staff
while the director of political affairs
will become an advisor to the High
Commissioner on island governments
and the director of economic affairs
becomes advisor to the HiCom on
commerce, agriculture and taxation.

MIDKIFF, McCONNELL
EXPECTED BACK

High Commissioner Frank E. Midkiff
and Deputy High Commissioner James
A. McConnell are expected to return
from Washington about August 1.

The two top Trust Territory offi-
cials have been on the Mainland since
mid-June in connection with budget
hearings and the presentation of the
annual report before the United Nations
Trusteeship Council.

The High Commissioner testified
before a Senate Appropriations subcommittee 
July 20 on a supplemental budget for 
fiscal 1954.   The $424,000
supplemental would cover the operation
of the Frela, administration of Rota
and special maintenance work.

As of this date, July 27, Congress
has yet to approve a budget for the
operation of the Trust Territory during
the present fiscal year.   The Senate
approved a $4, 000, 000 budget but the
House failed to act in the absence of
the passage of organic legislation,

It is probable that conference committees 
from both houses soon will meet

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