[Extensions of Remarks]
[Pages E1651-E1652]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

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

_____

HON. ENI F.H. FALEOMAVAEGA

of american samoa

in the house of representatives

Thursday, November 20, 2014

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

[Press Release, May 25, 2005]

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

Congressman Faleomavaega announced today that he has
written to Mr. Charles Tautolo, President and CEO of
McDonalds American Samoa Franchise, and has expressed his
opposition to construction of a McDonalds at Utulei Beach. A
copy of the Congressmans letter dated May 25, 2005 and copied
to the Governor, the Lieutenant Governor, the President of
the Senate and Senators, the Speaker and Representatives, the
Vice Chairman and CEO of the McDonalds Corporation, and the
Managing Director/ CEO of McDonalds Australia, is included
below:
Dear Mr. Tautolo:
I am writing to express my opposition to your decision to
build a McDonalds restaurant at the Utulei Beach Park in
American Samoa. I am also requesting a copy of your
feasibility study pertaining to this proposed location.
It is my understanding that as a responsible corporation it
has been the practice of McDonalds to conduct a feasibility
study and/or an environmental impact assessment of a proposed
site before construction of a new facility may proceed. I am
hopeful that this is also the case in American Samoa and, for
this reason, I would appreciate a copy of your study.
I also believe McDonalds feasibility study for the Utulei
Beach Park should be shared with the people of American Samoa
because they deserve to know what impact your proposed
restaurant will have on the welfare of our community. While I
applaud the many valuable contributions McDonalds has made in
American Samoa, I do not believe your current plans are
sensitive to the social and environmental concerns of our
Territory.
Since the day McDonalds announced plans to build on the
Utulei Beach, which is the only public beach in American
Samoa, my office has been inundated with calls from
constituents voicing their objections to your proposal. I
have read of further complaints in our local papers and the
Senate has passed a resolution recommending that the Governor
not finalize the McDonalds lease.
I have also received a petition signed by water sport
organizations incorporated in the U.S. Territory of American
Samoa which includes Executive Committee Members of the
American Samoa National Olympic Committee. Organizations
opposed to the construction of a McDonalds at the Utulei
Beach include the American Samoa Kayak Canoe Association
Inc., the American Samoa Swimming Association Inc., the
American Samoa Canoe Racing Association Inc., the Aiga Tautai
O Samoa Inc., the American Samoa Yacht Racing Association
Inc., the American Samoa Surfing Association Inc., the Pago
Pago Game Fishing Association Inc. and Common Cause.
Aquatic sports such as sailing, canoeing, and yachting are
flourishing at Utulei Beach. International sailing and
especially outrigger events which celebrate our proud
heritage have been hosted at Utulei Beach and, in time,
Utulei Beach may become a major tourist attraction. It is
also my understanding that Utulei Beach offers the only
stretch of shoreline where outrigger canoes and fautausi, or
longboats, can enter deep water via the natural channel
through the reef.
More importantly, Utulei Beach has been enjoyed by the
people of American Samoa for generations and, in keeping with
traditional Samoan culture, families travel for miles to swim
or picnic at this public location so as to respect the more
restrictive customs set forth by each village council. For
many reasons, including the historical and social
significance it holds for our families and the economic
implications it has for our future, Utulei Beach must be
preserved. This is why federal funds have been appropriated
to finance the Utulei Beach Project which was included as a
priority project for the Community Development Block Grant
Program.
These are facts which I believe must be shared with the
McDonalds Corporation and given the importance of this issue
I am copying this letter to Mr. Jim Skinner, Vice Chairman
and Chief Executive Officer, as well as Mr. Peter Bush,
Managing Director/CEO, McDonalds Australia. I am also
informing both that there are other sites available for
construction of another McDonalds in American Samoa.
Also, with the popularity McDonalds enjoys in American
Samoa, I am confident that the people of American Samoa will
appreciate, support and welcome another McDonalds in any
location other than Utulei Beach. In turn, McDonalds must be
sensitive to the wishes of our people. The McDonalds
Corporation has built its reputation on being a responsible
corporate partner and invests millions of dollars to promote
family values.
Therefore, I am hopeful that this issue will be immediately
resolved at the corporate level. However, if I must go to the
House Floor on a daily basis to express my outrage about
McDonalds unwillingness to respect the publics concerns
regarding your proposed lease agreement with the local
government, I will have no choice but to do so.
Sincerely,
Eni F.H. Faleomavaega
Member of Congress.
cc: Gov. Togiola Tulafono; Lt. Gov. Ipulasi Aitofele Sunia;
President of the Senate and Senator; Speaker of the House and
Representatives; Mr. Jim Skinner, Vice Chairman & CEO,
McDonalds Corporation; Mr. Peter Bush, Managing Director/CEO,
McDonalds Australia
I am hopeful that this matter will be resolved locally but,
if not, I have called upon the McDonalds Corporation to
immediately intervene and put an end to construction at
Utulei Beach. Constructing a McDonalds at the only public
beach in American Samoa goes against the core values of the
McDonalds Corporation which promotes an agenda of community
involvement, environmental protection, and a promise to earn
the trust of its customers and everyone else affected by its
business. It is time for McDonalds to live up to its promise
and I trust that all involved will do right by the people of
American Samoa, the Congressman concluded.
______

[Press Release, June 29, 2005]

Faleomavaega and McDonalds Meet to Discuss Construction at Utulei Beach

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

[[Page E1652]]

At this time, I am very pleased that the McDonalds
corporation is committed to reviewing the legal and social
aspects of constructing a McDonalds at Utulei beach. I am
also pleased that Mr. Bryant has agreed to keep my office
informed about any new developments in this case. In turn, I
am reviewing the possibility of introducing federal
legislation to include Utulei beach as part of the National
Park of American Samoa so as to prevent any company including
but not limited to KFC, Burger King, Pizza Hut, or local
businesses from building at this site.
I believe we must not only resolve the immediate crisis
facing us but we should also protect ourselves in the future
from any other corporation seeking to build at Utulei beach.
Utulei beach offers the only stretch of shoreline where
outrigger canoes and fautasi, or longboats, can enter deep
water via the natural channel through the reef and, out of
respect and reverence for our Samoan traditions and customs,
I believe we must work together to preserve Utulei beach.
On a separate matter, I also mentioned to Mr. Bryant that I
am concerned that American Samoa is being treated like a
foreign country by the McDonalds corporation. It does not
make sense to me why we have to get permission from Australia
in order to establish a McDonalds in American Samoa. American
Samoa is a territory of the United States and our local
owners ought to be able to do business with McDonalds in
America, not Australia.
I also expressed my concerns about the previous lease
agreement done for McDonalds at the current site in Tafuna.
It is my understanding that the previous lease agreement
between ASG and McDonalds stipulates that all lawsuits must
be filed in Australia and be subjected to Australian law.
This is not fair to ASG or to anyone in American Samoa and I
suggested that the attorneys in Australia representing
McDonalds should be more ethical in the contracts they put
forward in this territory.
While I have not heard from McDonalds Australia regarding
construction at Utulei beach, I appreciate Mr. Bryants
efforts in meeting with me and I thanked him for the great
service McDonalds is currently providing in American Samoa.
The people of American Samoa welcome and support McDonalds
and we continue to remain hopeful that this situation can be
favorably resolved, the Congressman concluded.
______

[Press Release, Apr. 22, 2006]

Faleomavaega Responds to Governors Recent Comments About McDonalds

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

____________________