# Appendix — Saipan ex rel. Guerrero v. United States Department of the Interior

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## Record

- **Collection:** Supreme Court brief
- **Document type:** Appendix
- **Published:** January 1, 1975
- **Citation:** 420 U.S. 1003

## Text

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APPENDIX A

UNITED STATES DISTRICT COURT
D. HAWAII

Civ. No, 72-3720.

The Peorpie or Saran, By and Through Herman Q,
Guerrero et al., Plaintiffs,

V.

Unirep States Department or Interior et al.,
Governmental Defendants,

and

ConTINENTAL Airings, Ixc., a Nevada Corporation,
Corporate Defendant.

mma “March 26, —

* * * . * * * . * e
Order Granting Motions To Dismiss
Samvet P. Kiya, District Judge.

This ease involves the application of the National En-
vironmental Policy Act (hereinafter ‘‘NEPA’’), 42 U.S.C.
§ 4321 et seq. (Supp. 1973), to the official actions of the
High Commissioner of the Trust Territory of the Pacific
Islands (hereinafter ‘‘Trust Territory’’).". Defendants
have moved to dismiss the Complaint on a variety of pro-
cedural and substantive grounds. These grounds raise the
issues now before the court.

1 The islands of the Trust Territory are located in the Western
Pacifie Ocean north of the Equator. There are approximately 96
island units, various small islands or atolls, which are scattered
over an oveanic area larger than the continent of Australia or con-
tinental United States. The islands total land area, however, is
only 687 square miles, and only 64 are regularly inhabited. See
Trust Territory of the Pacifie Islands 1960, 13th Annual Report
to the United Nations (Dept. of State publication 7183, 1961).

The High Commissioner is the highest official in the executive
branch of the Trust Territory Government. See infra at 655.

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2a

Plaintiffs, citizens of the Trust Territory who are resi-
dents of Saipan, Mariana Islands, allege that the action of
the High Commissioner in approving and later executing
a lease agreement with Continental Airlines, Ine. (herein-
after ‘‘Continental’’) to construct and operate a hotel on
public land adjacent to Micro Beach, Saipan, unlawfully
bypasses NEPA because no environmental impact state-
ment was prepared or considered prior to approval of the
lease, and is ‘‘an abuse of discretion’’ within the meaning
of the judicial review provisions of the Administrative
Procedure Act (hereinafter ‘‘APA’’), 5 U.S.C. $§ 701-706,
because the environmental implications of the project were
not given bona fide consideration. It is further alleged
that the High Commissioner has an affirmative fiduciary
duty to comply with NEPA under the provisions of the
Trusteeship Agreement for the Former Japanese Man-
dated Islands.?, An injunction is sought prohibiting the
implementation of the lease agreement until the environ-
mental impact of the hotel has been studied and evaluated.

In addition to the immediate parties to the lease (Con-
tinental and the High Commissioner), plaintiffs have joined
as defendants the Department of the Interior, Secretary of
the Interior Rogers C. B. Morton and Deputy Assistant
Secretary of the Interior for Territorial Affairs Stanley S.
Carpenter. As discussed infra at 653, plaintiffs assert that
the Department of the Interior has responsibility for the
civil administration of the Trust Territory and that the
High Commissioner acts as an agent of the Department in
his role as chief executive of the Trust Territory Govern-
ment. 7

On January 10, 1973, this court denied a temporary re-
straining order after a hearing and requested further brief-

261 Stat. 3301 (hereinafter ‘‘Trusteeship Agreement’’). The
Trusteeship Agreement was approved by the Security Council of
the United Nations on April 2, 1947, and by the President of the 4
United States on July 18, 1947, pursuant to a Joint Resolution 3
of Congress of that date.

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ing on the complex questions of law that had been raised.
Thereafter defendants moved to dismiss and argument was
heard on February 13, 1973. The hearing on the prelimi-
nary injunction was postponed pending decision on the
motions to dismiss.

After extensive consideration, it is my reluctant conclu-
sion that: (1) the Trust Territory Government is not a
federal agency subject to judicial review under the APA
or NEPA, and (2) the Trusteeship Agreement does not
vest plaintiffs with individual legal rights which they may
assert in this court. For these reasons, jurisdiction is lack-
ing and the motions to dismiss are granted. The other
grounds urged in support of dismissal] are without merit,
and are rejected.

Facts

On the basis of the well pleaded allegations of fact in the
Complaint, which are taken as admitted for the purpose of
these motions, it appears that sometime prior to October
20, 1970, Continental applied to the Trust Territory Gov-
ernment for permission to lease and build a hotel on public
land at a site adjacent to Micro Beach, Saipan.

Micro Beach is a pleasant shaded beach which for many
years has been the favorite beach of the people of Saipan.
It is an important historical and cultural site and even
during the previous German and Japanese administrations,
it was set aside as an area to be preserved for use by the

- people of the island.

Although the hotel site is not directly on the beach, its
proximity makes ‘‘it inevitable that construction of a hotel
there will greatly reduce the desirability of Micro Beach
to the people of Saipan and will, as a practical matter, de-
prive them of use of their most popular beach. In any
society, a large increase in the number of persons using a
beach or similar recreation area can greatly reduce the
desirability of the area as a place to visit and relax. This
is particularly true in Saipan, where many of the people,

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whether it be because of diffidence, courtesy, general cul-
tural values or a long history of exposure to highhanded
outsiders, do not feel free to use a beach oceupied by tour-
ists.’? Complaint {| 21.

In addition, it is alleged that construction of the hotel
will triple the number of hotel rooms presently on Saipan
resulting in further strain on the already overburdened
power and water supplies, and damage to the ocean and
reef by increased amounts of sewage discharge.

Pursuant to the requirements of the Trust Territory
Code (hereinafter ‘‘T.T.C.’’), the Continental application
was submitted to the Mariana Islands District Land Ad-
visory Board® for its consideration. The Board unani-
mously recommended against the application suggesting
that the area be reserved for public park purposes, This
decision was communicated to the District Administrator
of the Marianas District * and the High Commissioner by

3 All members of the Land Advisory Board are Trust Territory
citizens and are appointed by the Mariana Islands District Ad-
ministrator with the advice and consent of the Mariana Islands
District Legislature. 67 T.T.C. § 53. See footnote 4, infra.

‘Saipan is part of the Mariana Islands District. For the pur-
pose of administration, the islands of the Trust Territory are
grouped into six districts, each with its own administrator and
legislature. Subject to all territory-wide laws, the district gov-
ernments are primarily responsible for support of public education
and health, imposition and collection of sales taxes, construction
and maintenance of secondary roads, domestie relations, inheri-
tanee law, land law, issuance of licenses for wholesale business
and liquor control. 3 T.T.C. § 2.

Each district administrator is appointed by and serves at the
pleasure of the High Commissioner. 3 T.T.C. $51. In addition
to his duties as representative for the High Commissioner, the
district administrator is the chief executive officer of the district
government. 3 T.T.C. §52. (The court is informed that the
Code has been amended to require the advice and consent of the
Congress of Micronesia for all future appointments of district
administrators}.

3
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letter dated October 20, 1970. See Exhibit B of the Com-
plaint.

For approximately one year no apparent action on the
hotel project was taken. Then on October 15, 1971, a Mi-
cronesian News Service® release announced that the Trust
Territory Government had tentatively approved a lease of
the site to Continental ‘‘with final approval awaiting re-
ceipt of the completed papers.”’ Complaint § 25. There-
after, protests against the proposal by various elected and
community leaders, the Saipan Municipal Council * and tie
Mariana Islands District Legislature were communicated
to the Interior Department and the High Commissioner.’
Nevertheless, the lease was executed by Continental and
High Commissioner Johnston on behalf of the Trust Terri-
tory Government on January 1, 1972.

The lease is for an initial period of 30 years with options
to extend for two additional periods of 10 years each. Lease
Agreement, arts. 1 and 2. Continental is granted the right
to construct 200 rooms on the premises,* id. art. 27, and

5 The Micronesian News Service is part of the Trust Territory
Government’s Department of Public Information.

6 The Saipan Municipal Council represents a third layer of gov-
ernment subordinate to the Trust Territory Government and the
Mariana Islands Distriet Government. Such councils are char-
tered by the High Commissioner when in his opinion such action
is warranted by tie cireumstances and by the stage of develop-
ment of the com:nunity. 4 T.T.C. §1. They are subject to all
territory-wide laws and all distriet laws of their respective dis-
tricts. 4 T.T.C. § 51.

7 Defendants have submitted a petition signed by various people
in the Mariana Islands District supporting construction of the
hotel. Defendants Exhibit 6. Plaintiffs admit that the project
‘‘ig not without support’? among the people of Saipan.

8 Plaintiffs allege that the hotel is to be eventually expanded to
500 rooms.

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with the prior written permission of the Trust Territory
Government to erect on the ‘‘publie beach and in the waters
of the lagoon adjacent thereto, facilities and structures,
including docks and ramps related to and connected with
marine and beach activities’? of Continental’s hotel. Jd.
art. 6.

It is undisputed that defendants have not complied with
the requirements of NEPA, specifically section 4332(2)(C)
which requires that ‘‘all agencies of the Federal Govern-
ment’’ prepare a detailed environmental impact statement
for ‘‘major Federal actions significantly affecting the qual-
ity of the human environment.’’

NEPA Is AppLlicaBLeE IN THE TRUST TERRITORY

Defendants first ground in support of their motions to
dismiss is that NEPA is not applicable to federal agencies
operating in the Trust Territory. They urge this court to
reconsider its recent decision in Enewetak v. Laird, 353
F.Supp. 811 (D. Hawaii decided January 19, 1973) holding
that NEPA does apply to such agencies. It is argued that
because there is no specific language in NEPA extending
the statute’s coverage to the Trust Territory, this court
must restrict its application to the territorial jurisdiction
of the United States. Foley Brothers, Inc. v. Filardo, 336
U.S. 281, 69 S.Ct. 575, 93 L.Ed. 680 (1949), is cited for this
proposition, particularly language at page 285 of the opin-
ion, 69 S.Ct. at page 576 which states that ‘‘the canon of
construction which teaches that legislation of Congress,
unless a contrary intent appears, is meant to apply only
within the territorial jurisdiction of the United States...
is a valid approach whereby unexpressed congressional in-
tent may be ascertained.’’

T am not persuaded, In my opinion, defendants miscon-
strue the thrust of the canon by ignoring the qualifying
phrase ‘‘unless a contrary intent appears.”’

7a

The question before the Court in Foley Brothers was
whether the Eight Hour Law® applied to a contract be-
tween the United States and a private American contractor
for work performed on a construction project in Iraq and
Iran. As noted by Justice Frankfurter, a literal reading
of the statute would have resulted in its application since
by its terms it covered ‘‘every contract made to which the
United States ... is a party.’’ 336 U.S. at 291-292, 69
S.Ct. at 581 (coneurring opinion). Instead, the Court
looked to the Act as a whole, id. at 285-286, 69 S.Ct. 575,
its legislative history, id. at 286-288, 69 S.Ct. 575, and ad-
ministrative interpretations of it. Id. at 288-291, 69 S.Ct.
575. Finding nothing in any of this material that indicated
a congressional purpose to extend the Act’s coverage be-
yond the territorial jurisdiction of the United States, the
Court concluded that the law was ‘‘inapplicable ... in a
foreign country over which the United States has no direct
legislative control... .’?' Id. at 290, 69 S.Ct. at 580.

Thus the Court did not adopt the mechanical rule pro-
posed by defendants. Rather it looked to all available evi-
dence of legislative intent before it arrived at a decision.

® The Eight Hour Law was repealed August 13, 1962. 76 Stat.
360. It had provided that ‘‘|e]very contract hereafter made to
which the United States ... is a party... shall contain a pro-
vision that no laborer or mechanic doing any part of the work
contemplated by the contract, in the employ of the contractor or
any subcontractor . . . shall be required or permitted to work
more than eight hours in any one calendar day upon such work;

”?

10 Jt is interesting to note that while the United States does
not have sovereignty in the Trust Territory, it very definitely has
legislative control. As noted infra at 655, Department of the
Interior Order No. 2918, pt. IIT $2 provides that the Congress
of Micronesia may not enact legislation inconsistent with the
‘“treaties or international agreements’’ of the United States, *‘laws
of the United States applicable to the Trust Territory,’’ ‘‘Exee-
utive Orders of the President’? and ‘Orders of the Secretary of
the Department of Interior.’’ See also, 2 T.T.C. § 102.

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Though a differ nt result was reached, this is exactly the
procedure followed in Enewetak.™ Because this court con-
eluded that both the language and legislative history of
NEPA evidenced a congressional intent to apply the stat-
ute to all areas under United States control, the canon of
construction cited by defendants ‘‘whereby unexpressed
congressional intent may be ascertained’’ never became an
issue.

No other reasons appearing for a reconsideration of this
court’s decision in Enewetak, it is reaffirmed and defend-
ants’ arguments rejected.

VENUE Is Property Lamp 1n THE District or Hawa

Defendants Continental and High Commissioner John-
ston contend that venue is improperly laid in this district
because the Department of the Interior and its officials
have not legally or adequately been served with process.

Plaintiffs rely on 28 U.S.C. $1391(e) (Supp.1973) as
authorization for effective extra-territorial service:

A civil action in which each defendant is an officer
or employee of the United States or any agency thereof
acting in his official capacity or under color of legal
authority, or an agency of the United States, may...
be brought in any judicial district in which: (1) a de-
fendant in the action resides, or (2) the cause of action
arose, or (3) any real property involved in the action
is situated, or (4) the plaintiff resides if no real prop-
erty is involved in the action.

1 Indeed, in every reported case requiring judicial interpreta-
tion of the applicability of ambiguous legislation to the Trust
Territory, the courts have looked to all available evidence to dis-
cover the intent of Congress. See Aradanas v. Hogan, 155 F.Supp.
546 (D.Hawaii 1957) (Immigration and Nationality Act); Ap-
plication of Reyes, 140 F.Supp. 130 (D.Hawaii 1956) (Immigra-
tion and Nationality Act); Callas v. United States, 253 F.2d 838

2d Cir. 1958) (Tort Claims Act); Brunell v. United States, 77
F.Supp. 68 (S.D.N.Y.1948) (Tort Claims Act).

ae We oe Ee

9a

It is first argued that the section is not applicable here
because the requirement that ‘‘each defendant’’ be an offi-
cer or employee of the United States is violated by the
joinder of Continental, a private corporation. Though this
argument is supported by the literal language of section
1391(e), it is obviously inconsistent with the spirit and
intent of the provision. See Judge Body’s discussion in
Powelton Civic Home Owners Ass’n v. Department of
Housing & Urban Development, 284 F.Supp. 809, 832-834
(E.D.Pa. 1968). The better rule, supported by virtually all
courts which have considered this problem,” is that the
requirement refers only to defendants who are beyond the
forum’s territorial limits. Thus the presence of Conti-
nental is simply not relevant to the extra territorial opera-
tion of section 1391(e).”

12 Powelton Civie Howe Owners Ass‘n. v. Department of Housing
& Urban Development. supra at 832-834; Liberation News Service
v. Eastland, 426 F.2d 1379, 1382 n. 5 (2d Cir. 1970); Kletschka
v. Driver, 411 F.2d 436, 442 (2d Cir. 1969) ; Brotherhood of Loco-
motive Engineers v. Denver & R.G.W. R.R., 290 F.Supp. 612, 615-
616 (D.Colo.1968), aff'd. on other grounds, 411 F.2d 1115 (10th
Cir. 1969); Coalition for United Community Action v. Romney,
316 F.Supp. 742, 746-747 (N.D.1IL1970) ; MeKenna v. Udall, 135
U.S.App.D.C. 335, 418 F.2d 1171, 1176 (1969); Heath v. Aspen
Skiing Corp., 325 F.Supp. 223, 229 (D.Colo.1971); Engiish v.
Town of Huntington, 335 F.Supp. 1369, 1373 (E.D.N.Y.1970),
aff'd. on other grounds, 448 F.2d 319 (2d Cir. 1971); Macias v.
Finch, 324 F.Supp. 1252, 1254-1255 (N.D.Cal.1970). Contra,
Chase Savings & Loan Ass’n. v. Federal Home Loan Bank Board,
269 F.Supp. 965, 967 (E.D.Pa.1967).

13 Defendant Continental resides in this district because it does
business here, see 28 U.S.C. § 1391(e) (Supp.1973), and was per-
sonally served pursuant to Rules 4(d)(3) and 4(b) of the Fed-
eral Rules of Civil Procedure. Defendant High Commissioner
Johnston wu: personally served in this district on January 15,
1973. He i425 not raised any specific venue objections although
he hzs moved this court to quash a subpoena issued to require
the ‘aking of his deposition. In view of my conclusion that the
Hig): Commissioner is an official of the Department of the Interior,

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10a

Secondly, it is asserted that with respect to the Interior
Department and its officials venue is improperly laid in this
district because none of the requirements set out in sub-
sections (1) through (4) of section 1391(e) have been met.
It is suggested that proper venue would be in Washington,
D. C., the official residence of these defendants.

It is not necessary to decide this question because the
Interior Department, Secretary Morton and Deputy Assist-
ant Secretary Carpenter have all waived their objections
to venue.* Because venue is a privilege personal to each
defendant, Continental and Johnson are precluded from
objecting that venue is improper as to the other defend-
ants. Camp v. Gress, 250 U.S. 308, 39 S.Ct. 478, 63 L.Ed.
997 (1919); McKenna v. Udall, 135 U.S.App.D.C. 335, 418
F.2d 1171, 1176-1177 (1969).

PuatntiFrrs Have STANDING

Defendants move on two separate grounds to dismiss the
Complaint because plaintiffs lack standing: (1) plaintiffs
have failed to allege the requisite interest in the contro-

infra, at 657-658, he would be subject to extra-territorial service
to the same extent as any other official in the Department. While
the APA exclusion precludes judicial review in most instances,
there is no reason to believe that it provides an exemption from
the venue statutes.

4The reason for their waiver is found in Exhibit B of the
Governmental Defendants Memorandum in Support of Motion
to Dismiss which is a letter from the Department of Interior to
the Department of Justice dated January 24, 1973. On page 7
it is stated:

5. We believe your Department is better qualified to eval-
uate the venue question. We might note, however, that since
General Constructors is a valuable precedent for the Hawaii
District, it might be better to stay there, particularly since
review would be in the Ninth Circuit which we think would
be more knowledgeable about and sympathetic to our position
than would the D.C. Circuit.

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versy as defined by Sierra Club v. Morton, 405 U.S. 727,
92 S.Ct. 1361, 31 L.Ed.2d 36 (1972); and (2) as nonresi-
dent aliens, plaintiffs have no standing to sue, relying on
Pauling v. McElroy, 107 U.S.App.D.C. 372, 278 F.2d 252
(1960). Both arguments are without merit.

In Sierra Club v. Morton, supra, the Sierra Club sought
a declaratory judgment and an injunction to restrain fed-
eral officials from approving an extensive skiing develop-
ment in the Mineral King Valley in the Sequoia National
Forest. The Supreme Court held that the Club lacked
standing because it had asserted no individualized harm to
itself or its members: ‘‘Nowhere in the pleadings or affi-
davits did the Club state that its members use Mineral
King for any purpose, much less that they use it in any
way that would be significantly affected by the proposed
actions of the respondents.’’ 405 U.S. at 735, 92 S.Ct. at
1366.

In the instant case plaintiffs clearly have alleged facts in
the Complaint which satisfy the Sierra Club test. Para-
graph 3 of the Complaint states that:

Most of the plaintiffs regularly use Micro Beach in
Saipan for swimming, fishing and pienicking, and re-
gard it as one of their favorite beach areas in Saipan.
They would be effectively deprived of their use of
Micro Beach if construction of the Continental hotel
takes place as presently contemplated.

In addition, paragraph 35 alleges that the hotel will create
a sewage problem, paragraphs 36 and 37 that it will dele-
teriously affect the power and water supply, and paragraph
39 that its height will have ‘‘a significant aesthetic effect
upon the people of Saipan.’’ By such allegations, plain-
tiffs have shown that they will be ‘‘adversely affected” by
the construction of the hotel and that they have more than
merely general ‘‘interest in the problem.’’ See Sierra Club
v. Morton, supra, 405 U.S. at 739-740, 92 S.Ct. 1361.

12a

Moreover, in view of this court’s conclusion that NEPA
is applicable in the Trust Territory, plaintiffs’ status as
nonresident aliens does not detract from their standing to
sue. Enewetak v. Laird, supra 353 F.Supp. at 820 n. 14.
Nor do they lack standing under the APA. Constructores
Civiles de Centroamerica, S. A. v. Hannah, 148 U.S.App.
D.C. 159, 459 F.2d 1183, 1189-1191 (1972). The footnote
in Pauling v. McElroy, supra 278 F.2d at 254 n. 3, to the
effect that ‘‘non-resident aliens ... plainly cannot appeal
to the protection of the Constitution or laws of the United
States’’ is an incomplete statement of the law.% There
are many instances where nonresident aliens have been
allowed to sue in United States courts to protect their
property or personal rights.”* Indeed, the Supreme Court
has said that ‘‘[a]lien citizens, by the policy and practice
of the courts of this country, are ordinarily permitted to

15 The District of Columbia Circuit has subsequently ‘‘clarified’’
its holding in Pauling v. McElroy. In Constructores Civiles de
Centroamerica, S.A. v. Hannah, supra 459 F.2d at 1190 n. 13, it
stated:

Citing Johnson v. Eisentrager, supra [339 U.S. 763, 70 S.Ct.
936, 94 L.Ed. 1255], we have denied standing to nonresident
aliens who have not alleged specific threatened injury in chal-
lenging the detonation of a nuclear device. Pauling v. Mec- .
Elroy, 107 U.S.App.D.C. 372, 278 F.2d 252 (1960). (Emphasis
added).

16 See, e.g., Wilderness Society v. Morton, 463 F.2d 1261 (D.C.
Cir.1972) (Canadian environmental group allowed to intervene
in federal district court suit testing Interior Secretary’s compli-
ance with NEPA prior to granting Alaska pipeline permits) ;
Constructores Civiles de Centroamerica, S.A. v. Hannah, supra
(Honduran corporation had standing to sue Agency for Inter-
national Development in connection with disqualification of the
corporation as a bidder on road construction contract) ; Puente
de Reynosa, S.A. v. City of McAllen, 357 F.2d 43 (5th Cir. 1966)
(Mexican corporation owning Mexican end of a Rio Grande River
bridge had standing to sue for injunction restraining construction
of new bridge by city on grounds that city had failed to secure
congressional consent for the new structure).

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resort to the courts for the redress of wrongs and the pro-
tection of their rights.’’ The Disconto Gesellschaft v. Um-
breit, 208 U.S. 570, 578, 28 S.Ct. 337, 339, 52 L.Ed. 625
(1908).

Accordingly, this court will not deny plaintiffs standing
in this suit because of their status as nonresident aliens
where no such congressional intent is manifested in either
NEPA or the APA.

ABSTENTION Not RequrrepD

Defendants note that an identical suit is pending in the
High Court of the Trust Territory and request that this
court abstain from further proceeding until such time as
that suit is concluded.

Without getting into the difficult question of what defer-
ence is required as a general rule with respect to cases
pending in the High Court, it does not appear that absten-
tion is required in this case. Although the case in the High
Court arose from the same transaction as did this one, it
does not include all the defendants named herein and it
appears that the primary issue remaining before that court
involves the construction of a Trust Territory statute not
at issue here. Moreover, the Chief Justice of the High
Court has entered an order denying a motion by Continen-
tal and the High Commissioner which sought to enjoin the
plaintiffs from pursuing their remedies in this court. He
also, on his own motion, stayed further proceedings in the
High Court during the pendency of the action in this court.

Under the circumstances, abstention would serve little
purpose and might well lead to unnecessary expense and
duplication of effort.

Tue Trust Territory GovernMent Is Nor a FEDERAL
Acency Svussect to Review Unper NEPA or toe APA

By its terms NEPA is applicable only to major actions
of ‘‘agencies of the Federal Government.’’ See 42 U.S.C.

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$4332 (Supp.1973). Defendants assert that the Trust
Territory Government is not such an agency because (1)
the Trust Territory is a foreign country and its govern-
ment immune to suits in United'States courts, or alterna-
tively (2) that the Trust Territory Government is a gov-
ernment of a United States territory or possession within
the meaning of 5 U.S.C. § 701(b)(1)(C) and exeluded from
judicial review.”

Unter international law the Trust Territory occupies a
unique position. By virtue of Article 3 of the Trusteeship
Agreement the United States has ‘‘full powers of adminis-
tration, legislation, and jurisdiction’’ over the territory,
allowing in practical effect the exercise of full sovereign
power although technically sovereignty resides elsewhere."*
Beyond these full administrative powers normally granted
to administering authorities in United Nations trusteeship

7 The APA, which provides for judicial review of ‘‘ageney
action,”’ see 5 U.S.C. § 702, defines an agency as ‘‘each authority
of the Government of the United States, whether or not it is within
or subject to review by another ageney.”’ 5 U.S.C. §701(b)(1).
However, it is further provided that this definition does not in-
clude, inter alia, ‘‘the governments of the territories or possessions
of the United States.’’ 5 U.S.C. § 701(b)(1)(C).

18 As noted by Francis D. Sayre, United States Representative
in the Trusteeship Council and President of the Council, in his
learned article on ‘* Legal Problems Arising from the United Na-
tions Trusteeship System,’’ 42 Am.J.Int’l.L. 263, 271 (April, 1948) :

In the first place, there seems to be general concurrence with
respect to the present trust territories, as there was with re-
spect to the mandated territories, that wherever sovereignty
does rest it is not in the administering power. This view has
been re-enforced by statements of the United States, the
United Kingdom and Australia as administering authorities of
trust territories. Each of these has stated on separate occa-
sions that it does not regard its administration of the trust
territory as implying any claim of sovereignty.

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agreements,” the Trust Territory is the only area desig-
nated as a ‘‘strategic’’ trust. Trusteeship Agreement,
art. 1. This designation results in the United States being
responsible to the Security Council for administration of
the Trust Territory—where the United States possesses
veto power *’ —rather than the General Assembly. It also
permits preferential treatment of the United States in eco-
nomic and commercial matters,” and allows this country
unilaterally to declare all or any part of the islands a closed
area within which the United States may determine the
extent to which trustee functions shall be exercised and
from which it may bar anyone, including the United Na-

% After World War II. eleven trusteeships were set up pur-
suant to agreements between the United Nations and various na-
tions. The United States’ administration of the Trust Territory
and Australia’s administration of New Guinea are the only trust-
eeships still in effect.

2° See Article 27 of the Charter of the United Nations.

*1See Article 8(1) of the Trusteeship Agreement which pro-
vides:

In discharging its obligations under Article 76(d) of the
[United Nations] Charter . . . the administering authority

. Shall aceord to nationals of each Member of the United
Nations and to companies and associations organized in con-
formity with the laws of such Member, treatment in the trust
territory no less favourable than that accorded therein to
nationals, companies and associations of any other United
Nation except the administering authority. (Emphasis
added).

This article is the same as that contained in the draft trusteeship
agreement submitted by the United States. The comment ac-
companying the United States proposal made it clear that the
basis for preferential treatment of the United States was the
‘*strategic’’ status of the Trust Territory. See Draft Trustee-
ship Agreement for the Japanese Mandated Islands, With Arti-
cle by Article Explanatory Comments, (Department of State Pub-
lication, February 26, 1947) at 5-6, in 1 Whiteman, Digest of
Int'l Law 810-811 (Released June, 1963).

terms PALL COLE NS LLG ED LLM CLIENT SN A AOE” Bi se patee

16a

tions. See the dissent of Judge Lumbard in Callas v.
United States, 253 F.2d 838, 842-844 (2d Cir. 1958).

Finally, in common with all trusteeship agreements ne-
gotiated with the United Nations, the Trusteeship Agree-
ment may not be altered, amended or terminated without
the consent of the United States. Trusteeship Agreement,
art. 15.

The Congress authorized the President to vest the ad-
ministrative power conferred on the United States by the
Trusteeship Agreement ‘‘in such person or persons’’ to be
exercised ‘‘in such manner and through such agency or
agencies as the President .. . may direct or authorize.’’
48 U.S.C. §$1681(a) (Supp.1973). In Executive Order
11021, 3 C.F.R. 600 (1959-63 Compilation), 48 U.S.C. § 1681
(Supp.1973), the President delegated authority to the Sec-
retary of the Interior as follows:

oe ath Se ee + “> eR OMI

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St pebeiceda et: tg

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5 te IVE

Section 1. Responsibility of Secretary of the Inte-
rior. The responsibility for the administration of civil
government in all of the trust territory, and all execu-
tive, legislative, and judicial authority necessary for
that administration, are hereby vested in the Secretary
of the Interior. ... [T]he Secretary . .. shall take
such actions as may be necessary and appropriate to
carry out the obligations assumed by the United States
as the administering authority of the trust territory
under the terms of the trusteeship agreement and un-
der the Charter of the United Nations. ...

i
3
:

i
ie

as Ie

22See Article 13 of the Trusteeship Agreement which provides:
The provisions of Article 87 and 88 of the [United Nations]
Charter [relating to reports, petitions, visits and question-
naires concerning non-strategic areas] shall be applicable to
the trust territory, provided that the administering authority
may determine the extent of their applicability to any areas
which may from time to time be specified by it as closed for
security reasons. (Emphasis added).

See also discussion in 1 Whiteman, supra at 824-830.

ESE IES CISC INLAY LT NEL ELIS TELE N SLI LY BING AEN MOR et oe SoH 4. SPIES BTN ACRN

17a

See. [sic] 2. Redelegation of authority. The execu-
tive, legislative, and judicial authority provided for in
section 1 of this order may be exercised through such
officers or employees of the Department of the Inte-
rior, or through such other persons under the jurisdic-
tion of the Secretary of the Interior, as the Secretary
may designate, and shall be exercised in such manner
as the Secretary, or any person or persons acting un-
der the authority of the Secretary, may direct or au-
thorize.

Pursuant to this authority, the Secretary issued a series of
Secretarial Orders dealing with the civil administration of
the Trust Territory which have been superseded and con-
solidated in Department of the Interior Order No. 2918
(December 27, 1968) (hereinafter ‘‘Order No. 2918’).
This Order, as amended, creates a basically republican
form of government in the Trust Territory with executive,
legislative and judicial branches.

Executive authority is vested in the High Commissioner
to ‘‘be exercised and discharged under the supervision and
direction of the Secretary.’’ Order No. 2918, pt. II § 1.
The High Commissioner is appointed by the President of
the United States with the advice and consent of the Sen-
ate. 48 U.S.C. §1681(a) (Supp.1973). Thus his authority
does not come from the people of the Trust Territory, nor
do they have any method of removing him when dissatisfied
with his actions or policies.

Legislative a.thority has been delegated to the Congress
ot Micronesia, consisting of a Senate and House of Repre-
sentatives, whose members are elected by the citizens of the
Trust Territory. Order No. 2918, pt. III §§ 1, 2, 5, 7 and 8.
The power of the Congress is circumscribed, however, by
the provisiox that it may not enact legislation inconsistent
with the laws of the United States applicable to the Trust
Territory, treaties or international agreements of the
United States, Executive Orders of the President or orders

terrrenasrmenennenneenenemnmemmsemenmen f

18a

of the Secretary of the Interior. Id. § 2. Moreover, every
bill passed by the Congress is subject to veto by the High
Commissioner. His veto may be overridden by a two thirds
majority of the entire membership of both Houses, but the
re-enacted bill is still subject to veto by the Secretary of
the Interior. The Secretary’s action is final and may not
be overridden. Id. § 13.

Judicial authority is vested in High Court which is inde-
pendent of the executive and legislative powers. Order
No. 2918, pt. IV. The Secretary appoints the’ Chief Jus-
tice and all Associate Justices free from any control by the
Congress of Micronesia.

In addition, Order No. 2918 specifies that the relations
of the Trust Territory Government with the Congress of
the United States on all legislative matters, including ap-
propriations, shall be conducted through the Department
of the Interior. Pt. II § 2. Likewise, contact with other
Federal agencies and communications with foreign govern-
ments and international bodies must go through and bé
cleared by the Department. Pt. II §§ 4 and 5.

Upon consideration of all of the above, it is my opinion
that the United States exercises a maximum degree of con-
trol which is inconsistent with the assertion that the Trust
Territory is a foreign country. My decision is reinforced
by the fact that there does not appear to have been any
significant delegation of authority to the citizens of the
Trust Territory.“ The United States, acting through the
Secretary of the Interior, controls the High Commissioner
and retains an absolute veto over all legislation enacted by

23 The court is informed that this situation will probably change
as a result of the Micronesian Future Political Status Talks now
under way between Ambassador Franklin Williams of the United
States and representatives of the Congress of Micronesia. See Of-
ficial Record of the Fourth Round of Micronesian Future Political
Status Talks (Released by the Office of Micronesian Status Nego-
tiations, Washington, D. C. 1972). However, at the time of the
filing of this action, Order No. 2918 was still in full effect.

OM Leah ETO EL $F VIS ae eS ieee

wed Slant BA ee Lat a et k

19a

the Congress of Micronesia. Accordingly, without deter-
mining exactly what status the Trust Territory occupies,
I hold that it is not a foreign country entitled to immunity
from suits in United States courts.

The cases cited by defendants for the proposition that
the Trust Territory is a foreign country are not to the con-
trary. Brunell v. United States, 77 F.Supp. 68 (S.D.N.Y.
1948) and Callas v. United States, 253 F.2d 838 (2d Cir.
1958) turn on a construction of the term ‘‘foreign country”’
as used in the Tort Claims Act. See 28 U.S.C. § 2680(k).
Similarly, Application of Reyes, 140 F.Supp. 130 (D. Ha-
waii 1956) and Aradanas v. Hogan, 155 F.Supp. 546 (D.
Hawaii 1957) construe the term ‘‘foreign state’’ as used in
the Immigration and Nationality Act. See 8 U.S.C. § 1101
(a)(14). None of these cases go outside the scope of the
particular act under consideration * and the legal status of
the Trust Territory Government was never an issue.

While avoiding the Trust Territory Government’s claim
of sovereign immunity as the government of a foreign
country, plaintiffs cannot also avoid the APA’s exclusion
of ‘‘the governments of the territories or possessions of
the United States’’ from judicial review. 5 U.S.C. § 701
(b)(1)(C). Admittedly, the Trust Territory is technically
not a territory or possession because the United States
does not have sovereignty. This distinction is immaterial,
however, because the legislative history of the APA makes
it clear that Congress intended to exclude from judicial
review all governments created pursuant to the authority
of Congress.

Senator McCarran, Chairman of the Senate Judiciary
Committee, made these remarks in reporting on the Sen-

24See Brunell v. United States, supra 77 F.Supp. at 69, 72;
Callas v. United States, supra 253 F.2d at 840; Application of
Reyes, supra 140 F.Supp. at 131-132; Aradanas v. Hogan, supra
155 F.Supp. at 547.

PROSENSE EE APR lt IEE D SoS LLIN PRD Pt PEL MG

ate Bill that, with only minor clarifications and corrections,
was enacted as the APA:

As it has been reported to the Senate, the committee
feels that it has avoided the mistake of attempting to
over-simplify this measure. It has not hesitated, there-
fore, to state functional classifications and exceptions
where those could be rested upon firm grounds. In so
doing, the committee has followed the undeviating
policy of dealing with types of functions as such and
in no case dealing with administrative agencies by
name. That point is important, and I will repeat it
if I may. The committee has not deviated from the
policy of dealing with types of functions as such, and
the bill in no case deals with administrative agencies
by name. (Emphasis added). 92 Cong.Ree. 2150

(1946).

This theme is reiterated in the House Judiciary Committee
Report:

Functional classifications and exemptions have been
made, but in no part of the bill is any agency exempted
by name. The bill is meant to be operative ‘across the
board’ in accordance with its terms, or not at all.
Where one agency has been able to demonstrate that
it should be exempted, all like agencies have been ex-
empted in general terms. (See sec. 2(a)). Where one
agency has shown that some particular operation
should be exempted from any particular requirement,
the same function in all agencies has been exempted.
No agency has been favored by special treatment.
(Emphasis added). H.Rep.No.1980, in 1946 U.S. Code
Cong. & Ad.News 1195, 1205.

In view of this clearly expressed congressional intent to
operate ‘‘across the board’’ and exempt ‘‘all like agencies
... in general terms,’’ this court concludes that the Trust
Territory Government is excluded from review under sec-

pSRSORL EORTC Y LARC TAG IIR GE POG g LTT YMA EGP OTL RITES MOY 3 ti 88 LAIST BME ES GEE. AE IB CEE TAB

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21a

tions 701 to 706 of the APA. The fact that the United
States is technically without sovereignty in the Trust Ter-
ritory is, under the cireumstances, a distinction without a
difference.

This conclusion is supported by reference to United
States administration of American Samoa. Its govern-
ment is virtually identical to that of the Trust Territory
insofar as the power of the Secretary of the Interior or the
important Samoan governmental bodies are concerned.”
Judge Tavares of this district held that the APA exclusion
is applicable to the civil government in Samoa. General
Constructors Company of Nevada v. Morton, Civ. No. 71-
3409 (D. Hawaii decided September 16, 1971) (Unpublished
Opinion). Thus under the rule that all like agencies should
be exempted from the operation of the APA, the Trust
Territory Government should likewise be excluded.”

Plaintiffs argue that a distinction must be drawn between
the High Commissioner and the other branches of the Trust
Territory Government, and that in order to prevail they
need only establish that the High Commissioner is a ‘‘fed-
eral agent.’’? See Plaintiffs’ Memorandum in Response to
Defendants’ Motions to Dismiss at 3-18. While I accept
plaintiffs’ argument that under general principles of agency
law and court decisions defining the term ‘‘federal

23 Compare 48 U.S.C. §1661(¢) (Supp. 1973) with 48 U.S.C.
$1681(a) (Supp. 1973); Exeeutive Order No. 10264, 16 FR.
6419, with Executive Order No. 11021, 3 C.F.R. 1959; Department
of the Interior Order No. 2657, as amended, with Department of
the Interior Order 2918, as amended.

26 See Harris v. Boreham, 233 F.2d 110 (3rd Cir. 1956), where
it was held that the government of the Virgin Islands, including
two municipalities into which it was divided, was not a ‘‘federal
agency’’ within the meaning of the Tort Claims Act, nor was the
Superintendent of Publie Works of one of these divisions an offi-
cer or employee of a federal agency while he was supervising the
maintenance of streets even though his salary was paid from fed-
eral funds, and he was appointed by the Secretary of the Interior.

‘ PR Oe cyag ros Pew ad +9 " a OO A PPLE EE REISS =
- NELLIS GS ALLIS

Tar Se

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22a

agency’’,*’ the High Commissioner and his immediate sub-
ordinates in the executive branch of the Trust Territory
Government are federal oflicials operating as a component
of the Department of the Interior, it does not alter my
conclusion that the APA exclusion is applicable in this
ease. To exempt federal officials serving as officers of the
governments of the territories and possessions from United
States laws governing federal agency action was obviously
the reason for the exclusion. Whether the Trust Territory
Government is considered as a whole, or the High Commis-
siouer by himself, the result is the same.**

Having concluded that the Trust Territory Govern-
ment is exempt from judicial review wider the APA it
follows that it is also immune under the provisions of
NEPA. No reason is apparent—and plaintiffs cite none—
why the same rules on the scope of review should not be
applied. Accordingly, the action of High Commissioner
Johnston approving and executing the lease agreement is
not ‘‘federal’’ action within the meaning of NEPA.

27 See,-e.g., Domenech vy. National City Bank, 294 U.S. 199, 55
S.Ct. 366, 79 L.Ed. 857 (1935): Standard Oil Co. of California
v. Johnson, 316 U.S. 481, 62 S.Ct. 1168, 86 L.Ed. 1611 (1942);
Korman v. Federal Housing Administrator, 72 App. D.C. 245,
113 F.2d 743 (1940); Lassiter v. Guy F. Atkinson Co., 176 F.2d
984 (9th Cir. 1949).

28 On the basis of affidavits submitted by the parties and testi-
mony at the hearing on the Motion for a Temporary Restraining
Order and again at the hearing on the Motions to Dismiss, it is
clear that plaintiffs’ allegations that the decision to approve the
lease agreement was made or dictated by officials in the Department
of the Interivr are without foundation. The lease approval was
a “‘local’’ deeision of the High Commissioner acting within the
scope of his duties as chief executive of the Trust Territory Gov-
ernment. The officials of the Interior Department did not nego-
tiate, counsel, advise or participate in the decision. Nor was the
lease ever sent to the Department for approval or coneurrence
in any form. Because unwarranted inferences of fact may not
preclude dismissal, see 2A Moore’s Federal Practice § 12.08, this
allegation has not been admitted for the purposes of these motions.

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23a

APPROVAL OF THE LEASE AGREEMENT Is Mazor AcTION
Wiruty THe Meaninc or NEPA

Though their argument is not entirely clear, it appears
that defendants assert not only that the High Commis-
sioner’s approval of the lease agreement is not federal
agency action but that it is not ‘‘major’’ action within the
meaning of NEPA.

This contention has been settled adversely to defendants
by Davis v. Morton, 469 F.2d 593 (10th Cir. decided
November 24, 1972). The issue in that case was whether
approval by the Secretary of the Interior of a 99-year lease
of Indian 'ands executed by an Indian tribe and a develop-
ment company constituted major federal action. The
United Stetes did not initiate the lease, was not a party,
possessed ro interest in either the lease or the develop-
ment, and did not participate financially or benefit from
the lease in any way. Nonetheless, the Court held that
‘‘approving leases on federal lands constitutes major fed-
eral action and thus must be approved according to NEPA
mandates.”’ 4 E.R.C. at 1738. See also, Greene County
Planning Board v. Federal Power Commission, 455 F.2d
412 (2d Cir. 1972) (License to construct a high voltage
power line coneeded by all parties to be a major action) ;
Izaak Walton League of America v. Schlesinger, 337 F.
Supp. 287 (D.D.C.1971) (Issuance of an interim operating
license for a nuclear power plant held to be major action) ;
City of New York v. United States, 337 F.Supp. 150 (E.D.
N.Y.1972) (Interstate Commerce Commission order author-
izing abandonment of a railroad line held to be major
action).

Thus it is clear that the approval and execution of the
lease of public lands in the instant ease is ‘‘major”’ action
within the meaning of NEPA.

Trust Territory Government Does Not Have Sovereicn
Immunity Wuen Svep For Vioiations or an Act OF
ConGREss

Defendants claim that action against High Commissioner

Johnston is actually directed against the Trust Territory

OT a SELLE OLLIE SOLE LLL SE LYREL EM lB ALE SLEEP LF ADEE LEE NE EES ECAR

ine Ls

and is therefore barred by sovereign immunity.” To the
extent that this claim is based on their previous argument |
that the Trust Territory is a foreign country, it has already
been rejected. However, defendants also argue that the
Trust Territory possesses attributes of sovereignty equiva-
lent to a state government, relying principally on Kawan-
anakoa v. Pollybank, 205 U.S. 349, 27 S.Ct. 526, 51 L.Ed.
834 (1907).

It appears to be clear that there are degrees or attributes
of sovereignty, and that a government may be entitled to
and enjoy some of these attributes without necessarily
having all of them.

In the Kawananakoa case, Justice Holmes held that the
Territory of Hawaii was immune from suit without its con-
sent on the following basis:

A sovereign is exempt from suit, not because of any
formal conception or obsolete theory, but on the logical
and practical ground that there can be no legal right
as against the authority that makes the law on which
the right depends....

As the ground is thus logical and practical, the doc-
trine is not confined to powers that are sovereign in
the full sense of juridical theory, but naturally is
extended to those that, in actual administration, orig-
inate and change at their will the law of contract and
properiy, from which persons within the jurisdiction
derive their rights. A suit presupposes that the de-
fendants are subject to the law invoked. Of course it
cannot be maintained unless they are so. But that is
not the case with a territory of the United States,
because the territory itself is the fountain from which
rights ordinarily flow. It is true that Congress might

2° Of course, sovereign immunity would be no defense if the
Trust Territory Government had been construed to be a federal
agency subject to judicial review under NEPA and the APA. See
Kalur v. Reser, 355 F.Supp. 1, 8-9 (D.D.C.1971).

MALI oh IM SE ELE LE TEED SAEED ALIE LDAP EGOS LE EIGN G PEIIL EBERT EL Sf PRE SILL! YALA ALO BIEL Ne OR Mette ionetet

25a

intervene, just as in the case of a state the Constitution
does, and the power that can alter the Constitution
might. But the rights that exist are not created by
Congress or the Constitution, except to the extent of
certain limitations of power. 205 U.S. at 353-354, 27
S.Ct. at 527. (Emphasis added).

In the instant case, the same principles apply.

As previously discussed, the Trusteeship Agreement
gives the United States full powers of legislation in the
Trust Territory. With respect to local matters, this power
has been delegated to the Congress of Micronesia along
the lines followed in organizing the territories and posses-
sions of the United States. On the basis of the principles
outlined in Kawananakoa, I believe that this delegation of
local legislative power gave the Trust Territory what has
(been referred to as ‘‘quasi-sovereignty’’ or ‘‘qualified
sovereignty,’’ carrying with it the attribute of immunity
from suit without its own consent. See Porto Rico v.
Rosaly y Castillo, 227 U.S. 270, 33 S.Ct. 352, 57 L.Ed. 507
(1913) ; People of Puerto Rico v. Shell Co., 302 U.S. 253, 58
S.Ct. 167, 82 L.Ed. 235 (1952); Harris v. Boreham, 233
F.2d 110 (3rd Cir. 1956); Harris v. Municipality of St.
Thomas and St. John, 212 F.2d 323 (3rd Cir. 1954).

This immunity, however, cannot be extended to include
suits under a statute of the United States applicable in the
Trust Territory. Such statutes confer rights which are not
dependent on local authority—indeed, they supersede local
law *—and thus are not within the rule set out in Kawan-
anakoa. Near the end of the opinion Justice Holmes

3° Order No. 2918, pt. III §2(b) provides:

Legislative Power. The legislative power of the Congress
of Micronesia shall extend to all rightful subjects of legisla-
tion, except that no legislation may be inconsistent with
. * * . * * 2 * 2 .

(b) laws of the United States applicable to the Trust Ter-
, Ae

26a

specifically notes that ‘‘the rights [under consideration]
... are not created by Congress or the Constitution, except
to the extent of certain limitations of power. 205 U.S. at
354-355, 27 S.Ct. at 527.

In my opinion, then, the delegation of legislative power
to the Congress of Micronesia which created a qualified
sovereignty in the Trust Territory as respects its own laws
did not create any immunity from suits under an act of
Congress such as NEPA. If there is immunity, it must be
found elsewhere.

Tue Trusteesuip Acreement Doers Not Vest PLAINTIFFS
Wira Inprvinvat Lecat Riecnts Wuicu May Be
Assertep Ix Tuts Covert

Plaintiffs allege that under the Trusteeship Agreement,
particularly Article 6(2) which states that the adminis-
tering authority shall ‘‘ protect the inhabitants against the
loss of their lands and resources,’’ the United States under-
took a ‘‘sacred trust’’*' which requires compliance with
NEPA in all major actions affecting the environment. In
support of their position, they cite Pyramid Lake Paiute
Tribe v. Morton, 354 F.Supp. 252 (D.D.C. decided Novem-
ber 9, 1972) and Davis v. Morton, 469 F.2d 593 (10th Cir.
decided November 24, 1972) which held that exacting fidu-
ciary standards governed the Secretary of the Interior’s
actions that affected respectively water and land rights of
American Indian tribes.

While the analogy to American Indians may be apt in
some respects, I do not believe that the principles of Pyra-

*! Article 73 of the Charter of the United Nations states that:

Members of the United Nations which have or assume re-
sponsibilities for the administration of territories whose peoples
have not yet attained a full measure of self-government rec-
ognize the principle that the interests of the inhabitants of
these territories are paramount, and accept as a sacred trust
the obligation to promote to the utmost ... the well-being of
the inhabitants of these territories. .. .’’ (Emphasis added).

27a

mid Lake Paiute Tribe and Davis can be relied upon in
this case. The ‘‘trust responsibility’’ of the United States
as administering authority of the Trust Territory arises
out of the Trusteeship Agreement. As discussed above,
this document designates the islands as a ‘‘strategic’’ area
and thus accords the United States unique and virtually
unfettered rights of administration. Under these cireum-
stances, it appears to be entirely inappropriate to apply
the usual rules of interpretation for trust agreements and
fiduciary obligations.

I conclude with Judge Keech in Pauling v. McElroy, 164
F.Supp. 390, 393 (D.D.C.1958) that:

The provisions of the .. . Trusteeship Agreement for
the Trust Territory of the Pacific Islands . . . are not
self-executing and do not vest any of the plaintiffs with
individual legal: rights which they may assert in this
Court. The claimed violations of such international
obligations and principles may be asserted only by dip-
lomatie negotiations between the sovereignties con-
cerned.

OrHER ALLEGATIONS

Finally, the pro forma allegations that the Complaint
does not ‘‘contain a short and plain statement of the claim’’
as required by Rule 8(a)(2) of the Federal Rules of Civil
Procedure, and that plaintiffs have been guilty of laches,
are without merit.

Therefore, based on my conclusion that neither the APA
nor NEPA provide for jndicial review of the actions com-
plained of and that the Trusteeship Agreement does not
vest plaintiffs with legal rights enforceable in this court,
the Motions to Dismiss are granted.

It is so ordered.

28a
APPENDIX B

UNITED STATES COURT OF APPEALS
FOR THE NINTH CIRCUIT

_ No. 73-1769

Tue Peorie or Saipan, by and through Herman Q. Guer-
RERO, Lixo M. Ovoprat, Davin T. Aupan, Jesus A. Sasa-
moto, Justin §. Manetona, Nick Santos, Ben A. Guen-
RERO, JoHN Rosario, Ricu R. Marciano, Joaquin P.
VuLacomez, Plaintiffs and Appellants,

Vv.

Unirep States Department or Interior, Rocers C. B.
Morton, Secretary of Interior, Staxtey S. Carpenter,
Deputy Assistant Secretary of the Interior for Terri-
torial Affairs, Epwaro E. Jonnston, High Commis-

‘sioner of the Trust Territory of the Pacific Islands, all
individually and in their official capacities.
Governmental Defendants and Appellees.
' and .
ConTINENTAL Arrives, Ixc., a Nevada Corporation,
Corporate Defendant and Appellee.

[July 16, 1974]

Appeal from the United States District Court
for the District of Hawaii.

Before: Trasx and Goopwiy, Circuit Judges, and East,*
District Judge.
Goopwin, Circuit Judge:

Plaintiffs, citizens of the Trust Territory of the Pacific
Islands (known also as Micronesia), sued in the district
court to challenge the execution by the High Commissioner
of the Trust Territory of a lease permitting Continental

* The Honorable William G. East, Senior United States District
_ Judge for the Distrigt of Oregon, sitting by designation.

- —_
? Pe ITS LN LT eS tad "JER"

29a

Airlines to construct and operate a hotel on public land
adjacent to Micro Beach, Saipan. Plaintiffs appeal a judg-
ment of dismissal.

Phe district court heid that tie Trust Territory govern-
ment is not a federal agency subject to judicial review
under the Administrative Procedure Act (APA), 5 U.S.C.
§$ 701-706, or the National Environmental Policy Act
(NEPA) 42 U.S.C. §§ 4321 et seq., and that the Trusteeship
Agreement does not vest plaintiffs with individual legal
rights which they can assert in a federal court. The court’s
opinion is published at 356 F.Supp. 645 (D. Hawaii 1973).
We affirm the judgment, but, for the reasons set out below,
we do so without prejudice to the right of the plaintiffs to
refile in the district court should the High Court of the
Trust Territory deny that it has jurisdiction to review the
legality of the actions of the High Commissioner.

The facts are set out in detail in the district court opinion.
In brief, Continental applied in 1970 to the Trust Territory
government for permission to build a hotel on public land
adjacent to Micro Beach, Sr‘pan, an important historical,
cultural, and recreational site for the people of the islands.
Pursuant to the requirements of the Trust Territory Code,
67 T.T.C. § 53, Continental’s application was submitted to
the Mariana Islands District Land Advisory Board for its
consideration. In spite of the Board’s unanimous recom-
mendation. that the area be reserved for public park pur-
poses, the !*ic:rict Administrator of the Marianas District
recommended approval of a lease. The High Commis-
sioner himself executed the lease on behalf of the Trust
Territory government. An officer appointed by the Presi-
dent of the United States with the advice and consent of the
Senate (48 U.S.C. § 1681a), the High Commissioner is the
highest official in the executive branch of the Trust Terri-
tory government.

Following its execution in 1972, the lease was opposed
by virtually every official body elected by the people of

30a

Saipan. Indeed, the record in this case shows that the
High Commissioner’s decision was officially supported only
by the United States Department of the Interior, the Trust
Territory Attorney General (a United States citizen), and
the District Administrator of the Marianas District
(appointed by the High Commissioner, serving directly
under him, and subject to removal by him).

Later in 1972, an action against some of the parties here
was commenced before the High Court of the Trust Terri-
tory to enjoin construction of the hotel. The High Court,
while denying defendants’ motions to dismiss on certain
nonfederal causes of action, held that NEPA did not apply
to actions of the Trust Territory government, as plaintiffs
had contended.’ Soon afterward, the plaintiffs filed this
action in the United States District Court for the District
of Hawaii, and the High Court thereupon stayed proceed-
ings before it pending the outcome of this action.

I. Jupicrau Review Unpver toe APA on NEPA

The district court, relying upon its earlier decision in
People of Enewetak v. Laird, 353 F.Supp. 811 (D. Hawaii
1973), again held that NEPA applies to federal agencies
operating in the Trust Territory. It also held that approval
of the lease agreement was ‘‘major’’ action, within the
meaning of NEPA. However, although the district court
rejected the defendants’ contention that the Trust Terri-
tory government is a foreign government immune to suits

1The High Court concluded that the Trust Territory govern-
ment was not a ‘‘federal agency’’ and that the High Commissioner,
acting as its chief executive officer, was not subject to NEPA. The
court relied primarily upon the prior determination of the Secre-
tary of the Interior that ‘‘territorial governments, under the ju-
risdiction of the Secretary of the Interior, are not agencies or in-
strumentalities of the executive branch of the Federal Government
* * * [and] that the territorial governments are not organized
entities of the Department of the Interior.’’ Dept. Manual of
Dept. of Interior 150.1.4.

3la

in United States courts, it accepted the defendants’ alter-
nate contention that the local government is a government
of a United States territory or possession, within the mean--
ing of the exclusionary clause in the Administrative Pro-
cedure Act, 5 U.S.C. § 701(b)(1)(C).2 Having concluded
that the Trust Territory government was exempt from
review under the APA, the district court reasened that the
same standards on the scope of review should be applied to
NEPA, and concluded that the action of the High Commis-
sioner in approving and executing the lease agreement was
not ‘‘federal’’ action covered by the National Environ-
mental Policy Act, 42 U.S.C. § 4332.3

* For the purpose of this chapter—

“*(1) ‘agency’ means each authority of the Government of
the United States, whether or not it is within or subject to
review by another agency, but does not include—

‘‘e* @

**(C) the governments of the territories or possessions of
the United States * * *.’? 5 U.S.C. § 701(b).

’““The Congress authorizes and directs that, to the fullest ex-
tent possible: * * * all agencies of the Federal Government shall—

‘‘* @ &

“*(C) inelude in every recommendation or report on pro-
posals for legislation and other major Federal actions sig-
nificantly affecting the quality of the human environment, a
detailed statement by the responsible official on—

(i) the environmental impact of the proposed action,

(ii) any adverse environmental effects which cannot
be avoided should the proposal be implemented,

(iii) alternatives to the proposed action,

(iv) the relationship between local short-term uses of
man’s environment and the maintenance and enhance-
ment of long-term productivity, and

(v) any irreversible and irretrievable commitments of
resources which would be involved in the proposed action
should it be implemented * * *,’’ 42 U.S.C. § 4322.

— PONE OMI CRN

32a

We affirm these conclusions of the district court. See
356 F.Supp. at 649-61.*

We recognize, as did the district court, that several deci-
sions have held governments of United States territories to
be agencies of the federal government. However, these
cases all involved a determination of agency for such pur-
poses as income taxation, Bell v. Commissioner, 278 F.2d
100 (4th Cir. 1960), or the applicability of the Portal-to-
Portal Act of 1947, Kam Koon Wan vy. E. E. Black, Ltd.,
188 F.2d 558 (9th Cir.), cert. denied, 342 U.S. 826 (1951).°
Plaintiffs have not cited and we have not found a case
applying APA judicial review provisions to the Trust Ter-
ritory or applying even similar review standards to the
civil government of any territory or possession.

We also recognize, again as did the district court, that
the APA exclusionary clause excludes only ‘‘the govern-
ments of the territories or possessions of the United
States,’’ 5 U.S.C. § 701(b)(1)(C), and that the Trust Terri-
tory is not a territory or possession, because technically the
United States is a trustee rather than a sovereign. We
agree with the district court that this distinction is imma-
terial, however, because the intent of Congress was to
exclude from APA review all governments of this general
type created pursuant to the authority of Congress.

Plaintiffs have cited several judicial decisions, a regula-
tion, and one Tax Court decision stating that the Trust
Territory is not a territory or possession of the United
States. However, the holding of the judicial decisions is

4 See also Vermilya-Brown Co. v. Connell, 335 U.S. 377 (1948),
in support of the conclusion that NEPA applies to federal agencies
operating in the Trust Territory.

5 But see Porter v. United States, 496 F.2d 583 (Ct.Cl. May
15, 1974), holding that the Trust Territory government was not an
agency of the United States for the purpose of asserting jurisdic-
tion against the United States for an alleged breach of a contract
negotiated by officials of the Trust Territory government.

33a

limited to the applicability of the Federal Tort Claims Act
(see, e.g., Callas vy. United States, 253 F.2d 838 (2d Cir.),
cert. denied, 357 U.S. 936 (1958); Brunell v. United States,
77 F.Supp. 68 (S.D.N.Y. 1948)), and the regulation and the
Tax Court decision both involve federal income taxation.
See Treas. Reg. §1.931-1(a)(1); Richard W. Benfer, 45
T.C. 277 (1965). We do not read these decisions and the
regulation to be inconsistent with our conclusion that Con-
gress intended the government of the Trust Territory, like
that of territories and possessions, to be immune from
judicial review under the APA.

Finally, we note that the Trusteeship Agreement, in
which the United Nations designated the United States
to be the administering authority of the Trust Territory,
states that the United States shall ‘‘promote the develop-
ment of the inhabitants of the trust territory toward self-
government * * *.’’ Trusteeship Agreement for the Former
Japanese Mandated Islands, July 18, 1947, art. 6(1), 61
Stat. 3301, 3302, T.I.A.S. No. 1665. This clear statement
of intent on the part of the United Nations to foster self-
government in the Trust Territory constrains us not to
hold that the actions of the local government are review-
able in the same manner as the actions of domestic federal
administrative agencies, in a federal district court several
thousand miles from the islands.

For these reasons and for those expressed in the opinion
of the district court, we affirm the conclusion of that court
that neither the Trust Territory government nor the High
Commissioner alone is a ‘‘federal agency”’ as that term is
used in making actions reviewable under the APA or
NEPA.

II. TrustersHip AGREEMENT

Plaintiffs also asserted below and assert here that the
action of the governmental defendants in leasing public
land to an American corporation against the expressed
opposition of the elected representatives of the people of

34a

Saipan and without compliance with NEPA is a violation
of their duties under the Trusteeship Agreement. The
district court rejected this argument, holding that the
Trusteeship Agreement did not vest the citizens of the
Trust Territory with rights which they can assert in a dis-
trict court.

We cannot accept the full implications of this holding.
We do not dispute the district court’s conclusion that com-
pliance with NEPA was not required by the Trusteeship
Agreement. We do, however, disagree with the holding
insofar as it can be read to say that the Trusteeship Agree-
ment does not create for the islanders substantive rights
that are judicially enforceable.

The district court relied for its conclusion on language in
Pauling v. McElroy, 164 F.Supp. 390, 393 (D.D.C. 1958),
aff’d on other grounds, 278 F.2d 252 (D.C. Cir.), cert.
denied, 364 U.S. 835 (1960). Pauling concerned an attempt
to enjoin United States officials from proceeding with
nuclear tests in the Marshall Islands, an area within the
trusteeship. The controversy there, unlike the one here,
involved the Trusteeship Agreement’s grant of broad dis-
cretion to use the area for military purposes. See Trustee-
ship Agreement arts. 1, 5, 13, 61 Stat. 3301, 3302, 3304. We
do not find Pauling to support the defendants’ contention
here that the plaintiffs cannot invoke the provisions of the
Trusteeship Agreement to challenge the High Commis-
sioner’s power to lease local public !and for commercial
exploitation by private developers.

® Article 12 of the Trusteeship Agreement empowers the United
States ‘‘to enact such legislation as may be necessary to place the
provisions of this agreement in effect in the trust territory.’’ Our
conclusion that the actions of the Trust Territory government are
not subject to NEPA is an equivalent way of saying that Con-
gress has not, pursuant to Article 12, legislated to make NEPA
applicable to the Trust Territory government. Hence, in ap-
proving the lease agreement, the High Commissioner was under
no obligation to comply with NEPA. This is the same conclusion
as that reached by the High Court. See note 1, supra.

aS WAG, PRS See te ee, PO OD LS TNE RS Se FF | TN TT

1 ne Te Se ae ee

_

35a

The right of Rhodesian and American citizens to main-
tain an action in the courts of the United States seeking
enforcement of the United Nations embargo against Rho-
desia was recently recognized in Diggs v. Schultz, 470 F.2d
461 (D.C. Cir. 1972), cert. denied, 411 U.S. 931 (1973). On
the merits, the court denied specific relief because of Con-
gressional action which was held to have abrogated the
United Nations Security Council Resolution, but the right
to seek enforcement in federal court was firmly established.
That decision, if correct, suggests that the islanders here
can enforce their treaty rights, if need be in federal court.’

Article 73 of the United Nations Charter, 59 Stat. 1031,
1048, T.S. No. 993 (1945), which discusses non-self-govern-
ing territories generally, provides:

‘‘Members of the United Nations which have or
assume responsibilities for the administration of terri-
tories whose peoples have not yet attained a full mea-
sure of self-government recognize the principle that the
interests of the inhabitants of these territories are
paramount, and accept as sacred trust the obligation
to promote to the utmost, within the system of inter-
national peace and security established by the present
Charter, the well-being of the inhabitants of these ter-
ritories, and, to this end:

‘‘a. To ensure, with due respect for the culture of the
peoples concerned, their political, economic, social, and
educational advancement, their just treatment, and
their protections against abuses * * *.’’

See also United Nations Charter art. 76, describing the
basic objectives of the trusteeship system. Although the
plaintiffs have argued that these articles of the United
Nations Charter, standing alone, create affirmative and

T See Note, 14 Va. J. Int’1 L. 185 (1973), which comments upon
Diggs v. Schultz.

36a

judicially enforceable obligations, we assume without
deciding that they do not.

However, pursuant to Article 79 of the Charter,* the gen-
eral principles governing the administration of trust terri-
tories were covered in more detail in a specific trusteeship
agreement for the Trust Territory of the Pacific Islands.
See generally L. Goodrich, E. Hambro & A. Simons,
Charter of the United Nations: Commentary & Documents
502 (3rd ed. 1969). Specifically, Article 6 of the Trustee-
ship Agreement requires the United States to ‘‘promote the
economic advancement and self-sufficiency of the inhabi-
tants, and to this end * * * regulate the use of natural
resources’’ and to ‘‘protect the inhabitants against the loss
of their lands and resources * * *.’’

Defendants contend, though, that provisions of the Trust-
eeship Agreement, including Article 6, can be enforced only
before the Security Council of the United Nations. We
disagree, concluding that the Trusteeship Agreement can be
a source of rights enforceable by an individual litigant in
a domestic court of law.

® The terms of trusteeship for each territory to be placed un-
der the trusteeship system, including any alteration or amend-
ment, shall be agreed upon by the states directly concerned, in-
cluding the mandatory power in the case of territories held under
mandate by a Member of the United Nations, and shall be approved
as provided for in Articles 83 and 85.’’ Jnited Nations Charter
art. 79, 59 Stat. 1031, 1049.

® Unlike the other ten trusteeships set up after World War II,
pursuant to agreements between the United Nations and various
nations, the Trust Territory was designated as a ‘‘strategic’’ trust.
Trusteeship Agreement art. 1, 61 Stat. 3301. See 1 M. Whiteman,
Digest of International Law 766. This designation results in the
United States being responsible to the Security Council for the
administration of the Trust Territory—where the United States
possesses veto power (United Nations Charter art. 27, 59 Stat.
1041)—rather than to the General Assembly. United Nations
Charter art. 83(1), 59 Stat. 1050.

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37a

The extent to which an international agreement estab-
lishes affirmative and judicially enforceable obligations
without implementing legislation must be determined in
each case by reference to many contextual factors: the pur-
poses of the treaty and the objectives of its creators, the
existence of domestic procedures and institutions appropri-
ate for direct implementation, the availability and feasi-
bility of alternative enforcement methods, and the immedi-
ate and long-range social consequences of self- or non-self-
execution. See generally M. McDougal, H. Lasswell, & J.
Miller, The Interpretation of Agreements and World Public
Order; Principles of Content and Procedure passim (1967).

The preponderance of features in this Trusteeship Agree-
ment suggests the intention to establish direct, affirmative,
and judicially enforceable rights. The issue involves the
local economy and environment, not security; the concern
with natural resources and the coneern with political devel-
opment are explicit in the agreement and are general inter-
national concerns as well; th enforcement of these rights
requires little legal or administrative innovation in the
domestic fora; and the alternative forum, the Security
Council, would present to the plaintiffs obstacles so great
as to make their rights virtually unenforceable.

Moreover, the Trusteeship Agreement constitutes the
plaintiffs’ basie constitutional document (see Parry, The
Legal Nature of Trusteeship Agreements, 27 Brit. Year
Book Int’1 L. 164, 182-84 (1950), excerpted in 1 M. White-
man, Digest of International Law 893 (1963), and is codi-
fied into the law of the Trust Territory. 1 T.T.C. § 101(1).
For all these reasons, we believe that the rights asserted by
the plaintiffs are judicially enforceable. However, we see
no reason why they could not and should not have been
enforced in the High Court of the Trust Territory. The
district court found that:

‘¢* * * The lease approval was a ‘local’ decision of
the High Commissioner acting within the scope of his
duties as chief executive of the Trust Territory gov-

“rm
ta es

38a

ernment. The officials of the Interior Department
did not negotiate, counsel, advise or participate in the
decision. Nor was the lease ever sent to the Depart-
ment for approval or concurrence in any form * * *.’’
356 F. Supp. at 657 n.28.

Surely, the judicial branch of the Trust Territory govern-
ment has the authority to determine whether or not the
action of its chief executive complies with a provision in its
own constitutional document.

We recognize that the Trusteeship Agreement purports
to obligate the United States, not the individual who hap-
pens to be High Commissioner. Nonetheless, because of
the process of his appointment,’® the High Commissioner

1 Article 12 of the Trusteeship Agreement of 1947 authorized
the United States to enact such legislation as may be necessary to
implement the agreement. 61 Stat. 3304. At first, President Tru-
man gave the Navy administrative responsibility for the islands.
Exec. Order No. 9875, 12 Fed. Reg. 4837 (1947), 3 C.F.R. 658
(1943-48 Comp.). In i951 administration of the islands was
transferred to the Department of the Interior. Exee. Order No.
10265, 16 Fed. Reg. 6419 (1951), 3 C.F.R. 766 (1943-53 Comp.).
During the next two years, responsibility for administration of
parts of the Trust Territory was redelegated back to the Secre-
tary of the Navy. Exec. Order No. 10408, 17 Fed. Reg. 10277
(1952), 3 C.F.R. 906 (1949-53 Comp.); Exee. Order No. 10470,
18 Fed. Reg. 4231 (1953), 3 C.F.R. 951 (1949-53 Comp.). Not
until 1954 did Congress begin to legislate to implement the Trust-
eeship Agreement, and then it merely stated that, until it provided
further for its government, all governmental authority in the Trust
Territory rested with the President. Act of June 30, 1954, ch. 423,
$1, 68 Stat. 330, as amended, 48 U.S.C. §1681(a). Finally, in
1962 President Kennedy redelegated his authority for civil ad-
ministration of the entire Trust Territory to the Secretary of the
Interior. Exec. Order No. 11021, 27 Fed. Reg. 4409 (1962), 3
C.F.R. 600 (1959-63 Comp.). The Secretary of the Interior, in
turn, delegated executive authority for the Trust Territory to the
High Commissioner :

‘*The executive authority of the Government of the Trust
Territory, and the responsibility for carrying out the interna-
tional obligations undertaken by the United Nations with re-

——

39a

has the responsibility to act in a manner consistent with
the duties assumed by the United States itself in the
Trusteeship Agreement.

Thus, although we hold that the Trusteeship Agreement
is « source of individual legal rights, we also hold that, in
a case involving actions by the High Commissioner within
the scope of his duties as chief executive, these rights are
not initially enforceable in United States courts. Rather,
upon principles of comity, they should be asserted before
the High Court of the Trust Territory.

Admittedly, the substantive rights guaranteed through
the Trusteeship Agreement are not precisely defined. How-
ever, we do not believe that the agreement is too vague for
judicial enforcement. Its language is no more general than
such terms as ‘‘due process of law,’’ ‘‘seaworthiness,’’
‘‘equal protection of the law,’’ ‘‘good faith,’’ or ‘‘restraint
of trade,’? which courts interpret every day. Moreover,
the High Court can look for guidance to its own recently

spect to the Trust Territory, shall be vested in a High Com-
missioner of the Trust Territory and shall be exercised and
discharged under the supervision and direction of the Secre-
tary.’’ Dept. of Interior Order No. 2918, pt. IT, § 1, 34 Fed.
Reg. 157 (1969).

Meanwhile, the 1967 Congress provided that this High Commis-
sioner shall be appointed by the President and confirmed by the
Senate. Act of May 10, 1967, Pub. L. No. 90-16 § 2, 81 Stat. 15,
codified, 48 U.S.C. §1681a. See generally Note, A Macrostudy of
Micronesia: The Ending of a Trusteeship, 18 N.Y.L.F. 139 (1972).

Thus, as the district court here observed, the High Commis-
sioner’s authority ‘‘does not come from the people of the Trust
Territory, nor do they have any method of removing him when
dissatisfied with his actions or policies.’’ 356 F. Supp. at 655.
See also Societa A.B.C. v. Fontana & Della Rocca, [1955] 1.L.R.
76 (Court of Cassation, United Chambers, Italy 1954), quoted at
1 M. Whiteman, Digest of International Law 870-71, which held
that the Italian Trusteeship Administrator for Somaliland derived
his authority from the Italian state and, hence, was an organ of
that state.

40a

enacted environmental quality and protection act, T. T.
Pub. L. No. 4C-78 of Apr. 14, 1972, codified at 63 T.T.C.
$§ 501-509, to the relevant principles of international law
and resource use which have achieved a substantial degree
of codification and consensus (see Banco Nacional de Cuba
v. Sabbatino, 376 U.S. 398, 428 (1964)), and to the general
direction, aithough not necessarily the specific provisions,
of NEVA. Cf. Pyramid Lake Paiute Tribe of Indians v.
Morton, 354 F. Supp. 252 (D.D.C. 1972). These sources
shovld provide a sufficiently definite standard against which
to test the High Commissioner’s approval of a 50-year
lease of unique public lands to an American corporation,
allegedly in disregard of the protests of the islands’ elected
officials and without a showing of consideration of cultural
and environmental factors.

Since the High Commissioner claims to have been acting
pursuant *:- local statutes when he approved the lease to
Continental, if the High Court finds that his action violated
provisions of the Trusteeship Agreement, that court may
have to declare these statutes void either on their face or
void as applied by the High Commissioner. The order of
the United States Department of the Interior which estab-
lished the structure of the Trust Territory government for-
bids the legislative branch of the Trust Territory govern-
ment from enacting any legislation inconsistent with
‘*treaties or international agreements of the United States
***.? Dept. of Interior Order No. 2918, pt. ITI, § 2(a)
(1968). Because the Trusteeship Agreement is an inter-
national agreement of the United States, local legislation
inconsistent with it must fall.

Although the High Court has held that it lacks jurisdic-
tion over an agency of the United States or its officers in
the Trust Territory (see Schulz v. Peace Corps, 4 T.T.R.
428 (1969)), the Secretary of the Interior assures us that
his department did not participate in any way in the deci-
sion to grant a lease to Continental, and, hence, that Schulz
will not bar the High Court from hearing and deciding this

4la

case. If, in the proceedings before the High Court, it
should appear that the actions of the High Commissioner
cannot be effectively reviewed and tested against the duties
assumed by the United States in the Trusteeship Agree-
ment, either because his actions were controlled by a direc-
tive or regulation of the Secretary of the Interior which
the High Court considers nonreviewable or because the
High Court does not agree that it has the power to review
the High Commissioner’s actions against the standards
established in the Trusteeship Agreement, then the plain-
tiffs may refile this action in the United States District
Court for the District of Hawaii.

We recognize that the High Court has said earlier that
the Trusteeship Agreement does not create a trust capable
of enforcement through the courts. See Alig v. Trust Ter-
ritory of the Pacific Islands, 3 T.T.R. 603, 615-16 (1967).
We also recognize that, unless the High Commissioner
acted unconstitutionally or in violation of the law, the suit
against him might not be cognizable in the Trial Division
of the High Court because of the doctrine of sovereign
immunity. See also 6 T.T.C. § 252(2). Nonetheless, the
High Court is free to re-evaluate its position with regard
to the enforceability of the provisions of the Trusteeship
Agreement under Diggs y. Schultz, supra.’ It may con-

1 ** Appellees suggest that the prospects of significant relief by
means of the embargo are so slight that this relationship of in-
tended benefit is too tenuous to support standing. But this strikes
us as tantamount te saying that because the performance of the
United Nations is not always equal to its promise, the commitments
of a member may be disregarded without having to respond in
court to a charge of treaty violation. It may be that the particu-
lar economic sanctions invoked against Southern Rhodesia in this
instance will fall far short of their goal, and that appellants will
ultimately reap no benefits from them. But, to persons situated
as are appellants, the United Nations action constitutes the only
hope; and they are personally aggrieved and injured by the dere-
liction of any member state which weakens the capacity of the
world organization to make its policies meaningful.’’ Diggs v.
Schultz, 470 F.2d at 465.

CT Ry OD pe
PIE PTE: FP TES EG as

42a

clude, as we did, that as the judicial branch of a political
entity possessing many of the attributes of an independent
nation, that court has‘the power te hear a clainr that the
islands’ chief executive officer has violated terms of the
Trusteeship Agreement. If the High Court reaches this
conclusion, the doctrine of sovereign immunity would pro-
vide no basis for refusing to hear the action. See Malone
v. Bowdoin, 369 U.S. 643, 647 (1962); Larson v. Domestic
& Foreign Commerce Corp., 337 U.S: 682, 689-90, 701-02
(1949).

We hold, then, that the plaintiffs must initially pursue
their remedies in the local court. If our assumption that
the High Court has the power to review the decision of the ©
High Commissioner proves to be invalid, then the federal
district court mast assume jurisdiction of this case. We
refuse to leave the plaintiffs without a forum which can
hear their claim that the High Commissioner has violated
the duties assumed by the United States in the Trusteeship
Agreement.

Because it is possible that we may see this case again,
we comment briefly on one issue raised by the defendants.
Continental contends that it has acquired some equities by
proceeding with the construction of its hotel while its right
to do so is being litigated. Unless we misread the argu-
ment, Continental seems to be asserting that the damage
has been done, and that it is too late for courts to remedy
it. We note that Continental initiated bulldozing activities
at the Micro Beach without notice and while the High
Commissioner supposedly was giving further consideration
to the project. The plaintiffs’ action was commenced in the
High Court almost immediately afterward, and in federal
court within one and one-half months. We caution Con-
tinental that:

s<* * * TAlfter a defendant bas been notified of the
pendency of a suit seeking an injunction against him,
even though a temporary injunction be not granted, he

4?a

acts at his peril and subject to the power of the court
to restore the status, wholly irrespective of the merits
as they may be ultimately decided * * *.’’ Jones v.
S.E.C., 298 U.S. 1, 17 (1936), quoted in Nat’l Forest
Preservation Group v. Butz, 485 F.2d 408, 411 (9th
Cir. 1973).

The judgment of dismissal is affirmed as modified.
Trask, Circuit Judge, Concurring:

I join in the decision of the majority but follow a differ-
ent course to the common conclusion.

First of all, it appears clear to me that the Charter of
the United Nations is not self-executing and does not in
and of itself create rights which are justiciable between
individual litigants. Although under Article VI of the
Constitution’ treaties are cart of the supreme law of the
land, it was early held that to be immediately binding upon
our courts a treaty must be self-executing. Chief Justice
Marshall enunciated this principle in Foster v. Neilson, 27
U.S. (2 Pet.) 253, 314 (1829) :?

‘‘Our constitution declares a treaty to t the law of
the land. It is, consequently, to be regarded in courts
of justice as equivalent to an act of the legislature,

1“*This Constitution, and the Laws of the United States which
shall be made in Pursuance thereof; and all Treaties made, or which
shall be made, under the Authority of the United States, shall be
the supreme Law of the Land; and the Judges in every State shall
be bound thereby, any Thing in the Constitution or Laws of any
State to the Contrary notwithstanding.’’ U.S. Const. art. VI.

RS UU OS Rm PN

?The decision in Foster was overruled by United States v.
Percheman, 32 U.S. (7 Pet.) 51 (1883), in an opinion also written
by Chief Justice Marshall when new facts were brought to bear
upon the controversy, but the legal principle announced in Foster
was not undermined. See Valentine v. United States ex rel.
ase meal 299 U.S. 5, 10 (1936); Head Money Cases, 112 U.S.

580, 598-99 (1884); L. Henkin, Foreign Affairs and the Constitu-
tion 156-58 (1972) ; Comment, Criteria for Self-Executing Treaties,
1968 U. Ill. L.F. 238, 239.

TEE py Sg Pr POEL GEIS P SPE UE PRY aaa oer ed Pe LAER OLN IIS Ba PERE BOREL ILO Peers: r4 C

44a

whenever it operates of itself, without the aid of any
legislative provision. But when the terms of the stip-
ulation import a contract—when either of the parties
engages to perform a particular act, the treaty ad-
dresses itself to the political, not the judicial depart-
ment; and the legislature must execute the contract,
before it can become a rule for the court.’’

Unless a treaty is self-executing, in order to be cognizable
before the courts it must be implemented by legislation.
Otherwise it constitutes a compact between sovereign and
independent nations dependent for its recognition and en-
forcement upon the honor and the continuing self-interest
of the parties to it. If, however, the treaty contains lan-
guage which confers rights or obligations on the citizenry
of the compacting nations then, upon ratification, it be-
comes a part of the law of the land under Article VI. In
Head Money Cases, 112 U.S. 580 (1884), the Court said:

‘*A treaty, then, is the law of the land as an act of
Congress is, whenever its provisions prescribe a rule
by which the rights of the private citizen or subject
may be determined. And when such rights are of a
nature to be enforced in a court of justice, that court
resorts to the treaty for a rule of decision for the
ease before it as it would to a statute.’’ 112 US. at

398-99.

I find nothing in a reading of the Charter and nothing
has been called to my attention which would persuade me
to believe that the Charter itself creates individual rights
which may be enforced in the courts. There is little defini-
tive case law elucidating the issue of self-implementation

*The fact that a treaty was ratified by the President of the
United States upon the advice and consent of two-thirds of the
Senate, as was the United Nations Charter (Charter of the United
Nations, June 26, 1945, 59 Stat. 1031, 1213, T.S. No. 993 (effective
Oct. 24, 1945)), makes it a commitment of the nation but does not
necessarily impart rights and obligations to individual citizens.

EMM ee

45a

vel non. The appellants have referred to some of the cases
in which reference to the Charter has been made.*

Those cases are of questionable precedential value.
Looking in the opposite direction we find cases that are
subject to much the same criticism. The only case which
straightforwardly holds in broad terms that the Charter is
not self-executing is Pauling v. McElroy, 164 F. Supp. 390
(D.D.C. 1958), aff’d per curiam on other grounds, 278 F.2d
252 (D.C. Cir.), cert. denied, 364 U.S. 835 (1960). The Dis-
trict Court in Pauling stated:

‘‘The provisions of the Charter of the United Na-
tions, the Trusteeship Agreement for the Trust Terri-

*In concurring opinions in Oyama v. California, 332 U.S. 633,
649-50, 673 (1948), Justices Black, Douglas, and Murphy intimate
that Articles 55 and 56 of the Charter support a position pro-
seribing racial discrimination; a dissenting opinion in Hard v.
Hodge, 162 F.2d 233, 245 (D.C. Cir. 1947), rev’d 334 U.S. 24
(1948), is much the same. In an appeal from a contempt-of-
Congress conviction for the refusal of a United Nations’ employee
to answer whether anyone had aided her in obtaining employment,
Article 105 was discussed but the actual decision was based upon
other grounds. Keeney v. United States, 218 F.2d 843, 845 (D.C.
Cir. 1954). Diggs v. Schultz, 470 F.2d 461 (D.C. Cir. 1972), cert.
denied, 411 U.S. 931 (1973), was a case in which the plaintiffs
sought relief against the Secretary of the Treasury because of an
official authorization of importation of metals contrary to the
terms of a United Nations’ embargo in which the United States
had joined. Relief was denied because of the nonjusticiability
of the claim under the separation-of-powers doctrine, although the
court did hold that the plaintiffs had standing to litigate the issue
of the failure of the defendants to adhere to the Government’s
treaty obligations. In Diggs, however, the relevant provision of
the Charter, Article 41, had been implemented by Congress through
the enactment of 22 U.S.C. § 287c, which authorizes the President
to effectuate Article 41 sanctions and prescribes criminal penalties
for those individuals disobeying such Presidential orders. Indeed,
pursuant to this statutory authority, the President had issued
Executive orders banning the importation of the items in question.
Exec. Order No. 11,419, 3 C.F.R. 737 (1966-70 Comp.), 22 U.S.C.
§ 287¢ ; see Exec. Order No. 11,322, 3 C.F.R. 606 (1966-70 Comp.),
22 U.S.C. § 287c; see Diggs v. Schultz, 470 F.2d at 463.

ee Se tenes

46a

tory of the Pacific Islands, and the international law
principle of freedom of the seas relied on by plaintiffs
are not self-executing and do not vest any of the plain-
tiffs with individual legal rights which they may assert
in this Court. The claimed violations of such interna-
tional obligations and principles may be asserted only
by diplomatic negotiations between the sovereignties
concerned.’’ 164 F. Supp. at 393.

In Hitai v. Immigration & Naturalization Service, 343 F.2d
466, 468 (2d Cir. 1965), the court held that Article 55 of
the Charter was not self-executing. Both from the stand-
point of the inherent nature of treaty obligations and what
appears to me to be a plain reading of the language of the
Charter, I would hold it to be a compact between sovereign
nations neither intending to impart justiciable rights to
individuals nor implicitly doing so,

This position is fortified, it would seem, by the very fact
that the Charter provided for a system of trusteeship.
Chapter XI, which contains Article 73, is a mutual declara-
tion of the members of their responsibilities for the admin-
istration of territories whose peoples have not yet attained
a complete competence of self-government. Chapter XII
and Chapter XIII then provide for the International Trust-
eeship System for the administration and supervision of
those territories. Under those Articles a Trusteeship
Agreement was executed between the Security Council of
the United Nations and the United States, as administering
authority effective July 18, 1947, for the Territory of the
Pacific Islands. It provided the United States with the

5 Trusteeship Agreement for the Former Japanese Mandated
Islands, July 18, 1947, 61 Stat. 3301, T.L.A.S. No. 1665. The
Agreement was approved by the President on July 18, 1947, pur-
suant to the authority of a joint resolution ‘Of Congress of the
same date. 61 Stat. 397 (1947).

ILL II FE ILLIA LRN NOD VIE Be ee

EO PENAL LE LOI ALG CLS SE YBILY BIGEI IEE Pe ART AA IE:

47a

authority to enact a comprehensive system of government
under Article 6.°

Congress has empowered the President with authority
for the civil administration of the Territory until Congress
itself should further establish a system of government. 48
U.S.C. § 1681. Urder this statutory basis, a series of Exec-
utive orders delegated responsibility for government to the
Department of the Interior, see Exee. Order No. 11,021, 3
C.F.R. 600 (1959-63 Comp.), 48 U.S.C. $1681, and that
Department eventually promulgated a single document
combining previous orders into one basic order for the
Government of the Trust Territory of the Pacific Islands.
Dept. of Interior Order No. 2918, Dec. 27, 1968, 34 Fed.
Reg. 157 (1969). This consolidated order constituted a
mini-organie act creating legislative, executive, and judi-
cial branches of the Government with a Congress, a High
Commissioner as the Chief executive, and a High Court of
the Trust Territory with a Chief Justice and Associate
Justices appointed by the Secretary of the Interior.

I agree with the federal appellees and with the court in
Pauling v. McElroy, supra, that the Trusteeship Agreement
is not self-executing.’ Yet, a series of actions all ultimately

* Trusteeship Agreement, art. 12. Article 6 provides in perti-
nent part that the administering authority {the United States]
shall :

“*1. foster the development of such political institutions as
are suited to the trust territory and shall promote the devel-
opment of the inhabitants of the trust territory toward self-
government or independence . . .;

**2. promote the economic advancement and self-sufficiency
of the inhabitants . . .;

“3. promote the social advancement of the inhabitants . . o$
and

“*4. promote the educational advancement of the inhabi-
tants....’’ 61 Stat. at 3302-03.

7 The language of the Agreement, and in particular that of Ar-
‘ticle 6, the specific provision at issue in this suit, evinces a series
of general commitments undertaken by the United States in fur-
therance of particular social objectives. See note 6 supra. That
these phrases may become workable throngh judicial construction,

—— tN TNO REAP

~~

48a

founded upon congressional authority have so executed the
Agreement that its provisions may now properly be re-
garded as judicially enforceable. Thus, the Agreement was
approved by the President pursuant to a joint resolution
of Congress, see note 5 supra, and implemented by Execu-
tive orders promulgated pursuant to congressional au-
thority, 48 U.S.C. § 1681. Finally, the Trust Territory
Government, created by the Department of the Interior, has
declared the Agreement ‘‘to be in full force and to have
the effect of law in the Trust Territory.’’ 1 T.T.C. § 101(1).

The Trust Territory Code provides:

“The Trial Division of the High Court shall have
original jurisdiction to try all causes, civil and crimi-
nal, including probate, admiralty, and maritime matters
and the adjudication of title to land or any interest
therein.”’ 5 T.T.C. § 53.

All decisions rendered in such matters are subject to review
by the Appellate Division under 55 T.T.C. §54(1)(a). It
thus appears to me as it does to the majority that juris-
diction does lie with the High Court to determine the
validity of the lease in accordance with its own law and
any other law affecting the lease or the lands to which the
lease is applicable. Based upon considerations of comity,
I agree that this cause should initially be addressed to the
High Court.

as the majority opines, does not detract from the probability that,
had the drafters of the instrument intended the document to have
the effect of a statute, more precise language delimiting the rights
of Micronesians would have been employed. Compare Head Money
Cases, 12 U.S. 580, 598-99 (1884); Hauenstein v. Lynham, 100
U.S. 483 (1879). Moreover, the Agreement, in Article 12, states:

‘“‘The administering authority shall enact such legislation
as may be necessary to place the provisions of this agreement
in effect in the trust territory.’’

Since, under the Constitution of the ‘‘adminstering authority’’
(the United States), self-executing treaties are effective upon
ratification, this provision, as drafted, would not have been nec-
essary had the drafters intended the Agreement to be self-exec-

uting.

49a

UNITED STATES COURT OF APPEALS
FOR THE NINTH CIRCUIT

No. 73-1769

Tue Peopuez or Sarpy, etce., et al., Appellants,
v.

Unirep States DeparTMENT or INTERIOR, et al.,
Governmental Appellees,

and
ConTINENTAL ArR.iNEs, Inc., a Nevada Corporation,

Corporate Appellee.
Order

Appeal from the United States District Court
for the District of Hawaii.

Before: Trask and Goopwin, Circuit Judges, and Easrt,*
District Judge.

Appellants’ petition for rehearing, filed August 16, 1974,
is hereby

DeEnrep.

_-—S-

* The Honorable William G. East, Senior United States District
Judge for the District of Oregon, sitting by designation.

50a
APPENDIX C *
NATIONAL ENVIRONMENTAL POLICY ACT
(42 U.S.C. §§ 4321-4335; subchapter II omitted) :

§ 4321. Congressional declaration of purpose

The purposes of this chapter are: To declare a national
policy which will encourage productive and enjoyable har-~
mony between man and his environment; to promote ef-
forts which will prevent or eliminate damage to the en-
vironment and biosphere and stimulate the health and wel-
fare of man; to enrich the understanding of the ecological
systems and natural resources important to the Nation;
and to establish a Council on Environmental Quality.

Suscuapter L.—Po.icies anv Goats

§ 4331. Congressional declaration of national environmental
policy

(a) The Congress, recognizing the profound impact of
man’s activity on the interrelations of all components of
the natural environment, particularly the profound influ-
ences of population growth, high-density urbanization, in-
dustrial expansion, resource exploitation, and new and
expanding technological advances and recognizing further
the critical importance of restoring and maintaining en-
vironmental quality to the overall welfare and development
of man, declares that it is the continuing policy of the Fed-
eral Government, in cooperation with State and local gov-
ernments, and other concerned public and private organiza-
tions, to use all practicable means and measures, including
financial and technical assistance, in a manner calculated
to foster and promote the general welfare, to create and
maintain conditions under which man and nature can exist
in productive harmony, and fulfill the social, economic, and
other requirements of present and future generations of
Americans.

ee ee et ns PE eet = POD LOLI EPRI OIE I I EO LOPE Fn

5la

(b) In order to carry out the policy set forth in this
chapter, it is the continuing responsibility of the Federal
Government to use all practicable means, consistent with
other essential considerations of national policy, to im-
prove and coordinate Federal plans, functions, programs,
and resources to the end that the Nation may—

(1) fulfill the responsibilities of each generation as
trustee of the environment for succeeding generations;

(2) assure for all Americans safe, healthful, pro-
ductive, and esthetically and culturally pleasing sur-
roundings ;

(3) attain the widest range of beneficial uses of the
environment without degradation, risk to health or
safety, or other undesirable and unintended conse-
quences ;

(4) preserve important historic, cultural, and natu-
ral aspects of our national heritage, and maintain,
wherever possible, an environment which supports
diversity and variety of individual choice;

(5) achieve a balance between population and re-
source use which will permit high standards of living
and a wide sharing of life’s amenities; and

(6) enhance the quality of renewable resources and
approach the maximum attainable recycling of deplet-
able resources.

(c) The Congress recognizes that each person should
enjoy a healthful environment and that each person has a
responsibility to contribute to the preservation and en-
hancement of the environment.

§ 4332. Cooperation of agencies; reports; availability of in-
formation; recommendations; international and na-
tional coordination of efforts

The Congress authorizes and directs that, tc the fullest
extent possible: (1) the policies, regulations, and public

i ema FeO ee a a aE ee ae ee ee ee Aen Tone =
PLE: a ae

lh as

52a

laws of the United States shall be interpreted and admin-
istered in accordance with the policies set forth in this
chapter, and (2) all agencies of the Federal Government
shail—

(A) utilize a systematic, interdisciplinary approach
which will insure the integrated use of the natural and
social sciences and the environmental design arts in
planning and in decisionmaking which may have an
impact on man’s environment;

(B) identify and develop methods and procedures,
in consultation with the Council on Environmental
Quality established by subchapter II of this chapter,
which will insure that presently unquantified environ-
mental amenities and values may be given appropriate
consideration in decisionmaking along with economic
and technical considerations;

(C) include in every recommendation or report on
proposals for legislation and other major Federal ac-
tions significantly affecting the quality of the human
environment, a detailed statement by the responsible
official on—

(i) the environmental impact of the proposed
action,

(ii) any adverse environmental effects which
cannot be avoided should the proposal be imple-

mented,
(iii) alternatives to the proposed action,

(iv) the relationship between local short-term
uses of man’s environment and the maintenance
and enhancement of long-term productivity, and

(v) any irreversible and irretrievable commit-
ments of resources which would be involved in the
proposed action should it be implemented.

SLEEP FOIE EL PEE EE ILD. OT, PL GIL INE AO

53a

Prior to making any detailed statement, the respon-
sible Federal official shall consult with and obtain the
comments of any Federal agency which has jurisdic-
tion by law or special expertise with respect to any
environmental impact involved. Copies of such state-
ment and the comments and views of the appropriate
Federal, State, and local agencies, which are author-
ized to develop and enforce environmental standards,
shall be made available to the President, the Council
on Environmental Quality and to the public as pro-
vided by section 552 of Title 5, and shall accompany
the proposal through the existing agency review proc-
esses;

(D) study, develop, and describe appropriate alter-
natives to recommended courses of action in any pro-
posal which involves unresolved conflicts concerning
alternative uses of available resources;

(E) recognize the worldwide and long-range char-
acter of environmental problems and, where consistent
with the foreign policy of the United States, lend ap-
propriate support to initiatives, resolutions, and pro-
grams designed to maximize international cooperation
in anticipating and preventing a decline in the quality
of mankind’s world environment;

(F) make available to States, counties, municipali-
ties, institutions, and individuals, advice and informa-
tion useful in restoring, maintaining, and enhancing
the quality of the environment;

(G) initiate and utilize ecological information in the
planning and development of resource-oriented proj-
ects; and

(H) assist the Council on Environmental Quality
established by subchapter II of this chapter.

d4a

§ 4333. Conformity of administrative procedures to national
environmental policy

All agencies of the Federal Government shall review
their present statutory authority, administrative regula-
tions, and current policies and procedures for the purpose
of determining whether there are any deficiencies or in-
consistencies therein which prohibit full compliance with
the purposes and provisions of this chapter and shall
propose to the President not later than July 1, 1971, such
measures as may be necessary to bring their authority and
policies into conformity with the intent, purposes, and
procedures set forth in this chapter.

§ 4334. Other statutory obligations of agencies

Nothing in section 4332 or 4333 of this title shall in any
way affect the specific statutory obligations of any Federal
agency (1) to comply with criteria or standards of
environmental quality, (2) to coordinate or consult with
any other Federal or State agency, or (3) to act, or refrain
from acting contingent upon the recommendations or
certification of any other Federal or State agency.

§ 4335. Efforts supplemental to existing authorizations

The policies and goals set forth in this chapter are
supplementary to those set forth in existing authorizations
of Federal agencies.

55a

APPENDIX D

TRUSTEESHIP AGREEMEN’? FOR THE
FORMER JAPANESE MANDATED ISLANDS

(61 Stat. 3301)
PREAMBLE

Wuereas Article 75 of the Charter of the United Nations
provides for the establishment of an _ international
trusteeship system for the administration and supervision
of such territories as may be plazed thereunder by subse-
quent agreement; and

Wuereas under Article 77 of the said Charter the
trusteeship system may be applied to territories now held
under mandate; and

Wueneas on 17 December 1920 the Council of the League
of Nations confirmed a mandate for the former German
Islands north of the equator to Japan, to be administered
in accordance with Article 22 of the Covenant of the League
of Nations; and

Wuereas Japan, as a result of the Second World War,
has ceased to exercise any authority in these islands;

Now Tuererore, the Security Council of the United
Nations, having satisfied itself that the relevant articles of
the Charter have been complied with, hereby resolves to
approve the following terms of trusteeship for the
Pecific Islands formerly under mandate to Japan.

ArtTicte 1

The Territory of the Pacific Islands, consisting of the
islands formerly held by Japan under mandate in accord-
ance with Article 22 of the Covenant of the League of
Nations, is hereby designated as a strategic area and
placed under the trusteeship system established in the
Charter of the United Nations. The Territory of the

vere nrer were ys meacprraneermrnreae, GLP DELO Te AS LAF

56a

Pacific Islands is hereinafter referred to as the trust
territory.

ARTICLE 2

The United States of America is designated as the
administering authority of the trust territory.

Articitz 3

The administering authority shall have full powers of
administration, legislation, and jurisdiction over the ter-
ritory subject to the provisions of this agreement, and may
apply to the trust territory, subject to any modifications
which the administering authority may ‘consider desirable
such of the laws of the United States as it may deem
appropriate to local conditions and requirements.

_ Articte 4

The administering authority, in discharging the obliga-
tions of trusteeship in the trust territory, shall act in
accordance with the Charter of the United Nations, and
the provisions of this agreement, and shall, as specified
in Article 83(2) of the Charter, apply the objectives of

' the international trusteeship system, as set forth in

Article 76 of the Charter, to the people of the trust
territory.

ArtTIcLe 5

In discharging its obligatious under Article 76(a) and -

Article 84, of the Charter, the administering authority shall
ensure that the trust territory shall play its part, in
accordance with the Charter of the United Nations, in the
maintenance of international peace and security. To this
end the administering authority shall be entitled:

1. to establish naval, military and air bases and to
erect fortifications in the trust territory;

57a

2. to station and employ armed forces in the territory;
and

3. to make use of volunteer forces, facilities and
assistance from the trust territory in carrying out the
obligations towards the Security Council underiaken in
this regard by the administering authority, as well as for
the local defense and the maintenance of law and order
within the trust territory.

Articite 6

In discharging its obligations under Article 76(b) of the
Charter, the administering authority shall:

1. foster the development of such political institu-
tions as are suited to the trust territory and shall promote
the development of the inhabitants of the trust territory
toward self-government or independence as may be appro-
priate to the particular circumstances of the trust territory
and its peoples and the freely expressed wishes of the
peoples concerned; and to this end shall give to the in-
habitants of the trust territory a progressively increasing
share in the administrative services in the territory; shall
develop their participation in government; and give due
recognition to the customs of the inhabitants in providing
a system of law for the territory; and shall take other
appropriate measures toward these ends;

2. promote the economic advancement and self-sufficiency
of the inhabitants, and to this end shall regulate the use of
natural resources; encourage the development of fisheries,
agriculture, and industries; protect the inhabitants against
the loss of their lands and resources; and improve the
means of transportation and communication;

3. promote the social advancement of the inhabitants
and to this end shall protect the rights and fundamental
freedoms of all elements of the population without dis-
crimination; protect the health of the inhabitants; control

PRLS IOL EE ARIES IOLA ABB CBRE DG LEE PEEL AAA LPI

58a

the traffic in arms and ammunition, opium and other
dangerous drugs, and alcoholic and other spiritous
beverages; and institute such other regulations as may be
necessary to protect the inhabitants against social abuses;
and

4. promote the educational advancement of the in-
habitants, and to this end shall take steps toward the
establishment of a general system of elementary education ;
facilitate the vocational and cultural advancement of the
population; and shall encourage qualified students to
pursue higher education, including training on the pro-
fessional level.

ArticLe 7

In discharging its obligations under Article 76(c), of
the Charter, the administering authority shall guarantee
to the inhabitants of the trust territory freedom of con-
science, and, subject only to the requirements of public
order and security, freedom of speech, of the press, and of
assembly ; freedom of worship, and of religious teaching;
and freedom of migration and movement.

ARTICLE 8

1. In discharging its obligations under Article 76(d) of
the Charter, as defined by Article 83(2) of the Charter,
the administering authority, subject to the requirements of
security, and the obligation to promote the advancement of
the inhabitants, shall accord ‘o nationals of each Member
of the United Nations and to companies and associations
organized in conformity with the laws of such Member,
treatment in the trust territory no less favourable than
that accorded therein to nationals, companies and
associations of any other United Nation except the
administering authority.

2. The administering authority shall ensure equal treat-
ment to the Members of the United Nations and their
nationals in the administration of justice.

ay
Pa od
4 ettes 18

59a

3. Nothing in this Article shall be so contrued as to
accord traffic rights to aircraft flying into and out of the
trust territory. Such rights shall be subject to agreement
between the administering authority and the state whose
nationality such aircraft possesses.

4, The administering authority may negotiate and
conclude commercial and other treaties and agreements
with Members of the United Nations and other states,
designed to attain for the inhabitants of the trust territory
treatment by the Members of the United Nations and other
states no less favourable than that granted by them to the
nationals of other states. The Security Council may
recommend, or invite other organs of the United Nations
to consider and recommend what rights the inhabitants of
the trust territory should acquire in consideration of the
rights obtained by Members of the United Nations in the
trust territory.

ARTICLE 9

The administering authority shall be entitled to constitute
the trust territory into a customs, fiscal, or administrative
union or federation with other territories under United
States jurisdiction and to establish common services
between such territories and the trust territory where such
measures are not inconsistent with the basic objectives of
the International Trusteeship System and with the terms
of this agreement.

ArticLte 10

The administering authority, acting under the provisions
of Article 3 of this agreement, may accept membership in
any regional advisory commission, regional authority, or
technical organization, or other voluntary association of
states, may cooperate with specialized international bodies,
public or private, and may engage in other forms of inter-
national cooperation.

AO SOE 7 PEE EPO REE LONI Y, eee)

60a

Articiz 11

1. The administering authority shall take the necesssary
steps to provide the status of citizenship of the trust
territory for the inhabitants of the trust territory.

2. The administering authority shall afford diplomatic
and consular protection to inhabitants of the trust territory
when outside the territorial limits of the trust territory or
of the territory of the administering authority.

Articie 12

The administering authority shall enact such legislation
as may be necessary to place the provisions of this agree-
ment in effect in the trust territory.

ARTICLE 13

The provisions of Articles 87 and 88 of the Charier
shall be applicable to the trust territory, provided that the
administering authority may determine the extent of their
applicability to any areas which may from time to time be
specified by it as closed for security reasons.

Articte 14

The administering authority undertakes to apply in the
trust territcry the provisions of any international con-
ventions and recommendations which may be appropriate
to the particular circumstances of the trust territory and
which would be conducive to the achievement of the basic
objectives of Article 6 of this agreement.

Articte 15

The terms of the present agreement shall not be altered,
amended or terminated without the consent of the ad-
ministering authority.

LONE RS FEO LE ER NAB TT Tp PLR nai AL PE iy ee

6la
Agticiz 16

The present agreement shall come into force when
approved by the Security Council of the United Nations
and by the Government of the United States after due
constitutional process.

42 U.S.C. § 1681(a)

Until Congress shall further provide for the govern-
ment of the Trust Territory of the Pacific Islands, all
executive, legislative, and judicial authority necessary for
the civil administration of the Trust Territory shall
continue to be vested in such person or persons and shall be
exercised in such manner and through such agency or
agencies as the President of the United States may direct
or authorize.

EXECUTIVE ORDER NO. 11021
(3 C.F.R. 1959-63 Comp. at 600)

Wuereas the Trust Territory of the Pacific Islands was
placed under the trusteeship system established in the
Charter of the United Nations by means of a trusteeship
agreement approved by the Security Council of the United
Nations on April 2, 1947, and by the United States Govern-
ment on July 18, 1947, after due constitutional process
(hereinafter referred to as the trusteeship agreement) ;
and

Wuereas the United States of America was designated
under the terms of the trusteeship agreement as the
administering authority of the Trust Territory referred
to above (hereinafter referred to as the trust territory) ;
and

Wueress the United States has heretofore assumed

obliga‘ions for the civil administration of the trust
territory and has carried out such civil administration

DOLE LL IE NE LION NOIR mee aT ee

62a

under the provisions of Executive Orders Nos. 9875 of
July 18, 1947, 10265 of June 29, 1951, 10408 of November
10, 1952, and 10470 of July 17, 1953; and

Wuereas thereunder the Secretary of the Navy is now
responsible for the civil administration of the Northern
Mariana Islands except the Island of Rota and the Seecre-
tary of tke Interior is responsible for the civil administra-
tion of all of the remainder of the trust territory; and

Wuereas it appears that the purposes of the trusteeship
agreement can best be effectuated at this time by placing in
the Secretary of the Interior responsibility for the civil
administration of all of the trust territory:

Now, TuereroreE, by virtue of the authority vested in
me by the Act of June 30, 1954 (68 Stat. 330: 48 U.S.C.
1681) and as President of the United States, it is ordered
as foilows:

Section 1. Responsibility of Secretary of the Interior.
The responsibility for the administration of civil gov-
ernment in all of the trust territory, and all e

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40385608_0519%3A2. Public record. Not legal advice.
