350 



tion and cooperation would be required in accomplishing the objectives 

 of the bill. 



The Smithsonian Institution agrees that (1) the coastal and estu- 

 arine zones are ecologically fragile; (2) there are increasing and com- 

 peting demands made upon the lands and waters of our coastal and 

 estuarine zones; and (3) an integrated management and planning 

 mechanism is necessary for effective development and protection of 

 coastal and estuarine resources. Accordingly, the Smithsonian sup- 

 ports the basic objectives in H.R. 2492 and H.R. 2493. However, it 

 should be noted that the Administration's comprehensive "National 

 Land Use Policy Act of 1971" (introduced as H.R. 4332) also gives 

 concrete recognition to the importance of the Nation's coastal and 

 estuarine areas, by encouraging the coastal States to adopt special 

 protective measures pertaining to these areas. For this reason, al- 

 though the Smithsonian supports the general objectives of H.R. 2492 

 and H.R. 2493, the Institution defers to the views of the Council 

 on Environmental Quality and the Department of the Interior re- 

 garding the specific provisions set forth in those bills. 



The Office of Management and Budget has advised that there is 

 no objection to the presentation of this report from the standpoint of 

 the administration's program. 

 Sincerely yours, 



S. Dillon Rlplet, Secretary. 



The General Counsel of the Treasury, 



Washington^ D.C.^ August 9^ 1971. 

 Hon. Edward A. Garmatz, 



Chairman^ Committee on Merchant Marine and Fisheries^ House of 

 Representatives, Washington. B.C. 

 Dear Mr. Chairman: Reference is made to your request for the 

 views of this Department on H.R. 9229, "To establish a national 

 policy and develop a national program for the management, beneficial 

 use, protection, and development of the land and water resources of 

 the Nation's coastal and estuarine zones, and for other purposes." 



The bill would authorize Federal guarantees of obligations issued 

 by coastal States for land acquisition, water development, and restora- 

 tion projects. It would not alter the tax status of obligations guaran- 

 teed under the bill. Thus, the bill would result in Federal guarantees 

 of tax-exempt obligations. 



The bill raises a number of questions of overall Federal credit 

 program policy, including problems with Federal guarantees of tax- 

 exempt obligations and the need to husband Federal credit resources. 

 The enclosed statement by Assistant Secretary Weidenbaum before 

 the Subcommittee on Oceans and Atmosphere of the Senate Commit- 

 tee on Commerce on S. 582, a similar bill, contains a detailed discussion 

 of the Federal credit program policy questions which are also raised 

 by H.R. 9229. 



The Department has been advised by the Office of Management and 

 Budget that there is no objection from the standpoint of the admin- 

 istration's program to the submission of this report to your committee. 

 Sincerely yours, 



Samuel R. Pierce, 



General Cov/nsel. 



