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Republic of Palau serious charge of aggravated assault. Justice Ngiraklsong sentenced Gib- Affairs in the Republic of Palau during bons to three years imprisonment, the period under review were domi- with two years suspended and one to nated by two tragic events, one involv- be served in the Koror jail. Gibbons ing a high chief and the second a com- was fined and required to pay all the moner. It was business as usual for medical costs incurred by Johnson. the executive and legislative branches The punishment of one year in jail of government, although the politi- generated a social uproar in Koror cians had one eye on campaign 2004. as legislators, governors, chiefs, and Palau received more loan, grant, and women’s groups called for leniency expert assistance. Tourism experi- and pardon. Only one prominent enced a huge improvement over person—Senator Joshua Koshiba— 2002–2003. A new, homegrown air- publicly stated that the rule of law line took to the skies. A new bank should be applied and the high chief building was opened in central Koror. should be jailed. However, with sup- While Palau’s leadership debated a port for the high chief pouring in grand plan to extract oil from the daily, President Remengesau issued ocean floor, nearly the whole of Palau a conditional pardon in August 2003 was busy preparing for the 9th Festi- and a full pardon in June 2004. val of Pacific Arts, which was held in The interesting dimension of this July 2004. serious incident is the rationale that Palau has two high chiefs, the was provided for the Gibbons pardon Ibedul and the Reklai. In January by both President Remengesau and 2003, Ibedul Yutaka M Gibbons, the press. Some 4,000 people signed chairman of the Koror State Public petitions supporting Gibbons; this Lands Authority, became involved in had an impact on Remengesau. It an argument regarding the presence appears such “voting” can weaken a of Mathew Johnson in the authority’s court decision. Remengesau referred office. Johnson was an expatriate to “constitutional clemency” and the attorney for the Palau Public Land “process of clemency” in his August Authority, which, in theory, oversees statement of pardon, but the Consti- all state land authorities. Because tution of the Republic of Palau does Johnson repeatedly refused to leave not contain these phrases. However, the meeting, which was about to it does grant the President the power begin, Gibbons became angry and hit “to grant pardons, commutations and Johnson with a baseball bat, fractur- reprieves subject to procedures pre- ing one of Johnson’s arms and bruis- scribed by law.” Remengesau also ing his back and other arm. Charges considered tradition in his pardon were filed and the case went to court. decision, appealing to the constitu- Prior to trial, a plea agreement was tion’s preamble and Article V, Tradi- worked out with the Palau attorney tional Rights. He stated that he took general, allowing Gibbons to plead these sections “to heart in the best guilty to a charge of assault and interests of all our people, both today battery with a dangerous weapon and tomorrow.” For its part, the press in exchange for dropping the more labeled Johnson’s actions as confron- 174 the contemporary pacific • 17:1 (2005) tational, arrogant, and improper, and the sda high school campus in Airai appealed to Palauan traditional law: State. News accounts stated that the “Gibbons could have resorted to tra- murderer had been deported to Palau ditional law whose underlying princi- without any records being sent to law ple supersedes written law and dis- enforcement officials there. The 29 regards application of the assault and December public funeral of the battery charge and the authority of Depaiva family members galvanized the police and the court” (TBN, 18–25 most everyone in Palau with emotions June 2004, 15). This argument is of deep sadness and grief. Appropri- flawed because it mischaracterizes ately, President Remengesau declared Palauan traditional law, which is a national day of mourning, and all administered by a council of chiefs of Palau’s social and political leaders (rubekul ordomel) according to a paid their respects at the funeral. systematic and fair process of hear- President Remengesau neared the ings by impartial groups of chiefs. end of his fourth year in office and These hearings are conducted after will stand for election in November the offense is committed, and serious 2004. He and the twenty-five-member punishments, including death, can be National Congress (Olbiil Era Kelu- imposed on a lawbreaker. The Tia lau, or oek) engaged in a number of Belau News also speculated that the skirmishes and disagreements involv- incident could have generated a ing casino and banking legislation, “direct confrontation between tradi- method of amending the constitution, tional and constitutional systems of the congressmen’s official expense governance . . . a national crisis.” allowances, the status of the minister On the face of it, this is not credible. of justice, and the venue for the presi- The rule of law is well established in dent’s annual State of the Republic Palau. Furthermore, chiefly titles address. Remengesau vetoed oek confer great prestige and are highly amendments to the casino and bank- respected, even revered. The title ing laws in late 2003. With the deter- Ibedul and Gibbons’s sincere remorse mined help of some 100 church and are what saved him from going to jail. women protesters who parked them- Palau’s second tragic incident dur- selves at the House of Delegates ing the year involved the murder of chambers, the president’s veto of the three members of a Seventh-day casino bill was sustained by the dele- Adventist (sda) missionary family gates after the Senate had overridden and abuse of a fourth member. The his actions. Given some moral sup- brutal murders of Pastor Ruimar port by the Australian ambassador DePaiva, his wife Margareth, and son in Pohnpei, the oek amendments to Larrison, and the abuse of daughter Palau’s Financial Institutions Act were Melissa, were committed by Justin also turned back. Remengesau main- Hiroshi, who had been in prison on tained that the changes would tarnish both Guam and the US mainland. Palau’s international standing in the Reportedly Hiroshi was on a meth- banking community and jeopardize amphetamine “high” at the time of the safety of deposits held by individ- the attack on 22 December 2003 at ual Palauans. Several years ago over a
political reviews • micronesia 175 billion dollars was laundered through tion shall apply to members of the several dubious banks in Palau, which Olbiil Era Kelulau during the term were later put out of business under of enactment.” the provisions of the act. Early in his administration, Presi- Sometimes it appears as if oek dent Remengesau had spoken about members may be more law-breakers amending the republic’s 1979 consti- than they are law-makers. This char- tution. He invited the congress to join acterization concerns the resurrection the effort. Finally, on Independence by the congress of a statute that was Day (1 Oct) 2003, he announced a declared unconstitutional by the Palau people’s initiative to amend the con- Supreme Court in 1995. That same stitution via petition, one of the three provision provided congressmen an avenues available. Five provisions additional $1,000 for monthly would be offered to the voters for expenses and was written into rppl their consideration on general election 6-37. This increased oek member day 2004. These would change Palau’s annual compensation by $12,000 to National Congress from two houses a total of $56,000, of which $24,000 to one house; limit terms in the con- would be tax-exempt. Special Prose- gress; require a uniform fee for con- cutor Everett Walton filed suit against gressmen’s compensation; allow 24 of the 25 congressmen for unlaw- Palauans to hold dual citizenship ful receipt of $1,000 monthly expense (US and Republic of Palau only); and allowances. He claimed that the funds require the presidential and vice-presi- were used for private rather than offi- dential candidates to run together on cial purposes and therefore consti- one ticket rather than separately. The tuted unlawful compensation. Walton congress responded by calling for a requested the court to order the constitutional convention, urging defendants to pay restitution of tens that the issue be put to the voters in of thousands of dollars and a civil November. The congress passed a res- penalty of $10,000 each. As of 30 olution to place the question: “Shall June 2004, the court had not ruled there be a Convention to revise or on his motion. Earlier in the year the amend the Constitution?” on the minister of finance informed the con- ballot. Remengesau opposed this gressmen that they would no longer method as too expensive, politically receive the monthly allowance, and destabilizing, and radical. As he stated he told them to return what they had in a letter to the Senate, “Our country received to date. One member, Sena- is at a tender age still, and should not tor Yukiwo Dengokl, returned some have the foundations shaken by the $32,000. With the public airing of the turbulence of an unnecessary Consti- entire issue, congressmen were criti- tutional Convention” (TBN, 16–23 cized for acting arrogantly, lacking Jan 2004, 3). By the end of the period moral stature, and abusing their under review, Remengesau’s petitions authority. The Constitution of the had garnered the requisite number of Republic of Palau is crystal clear on signatures. The distinguished women’s the issue of compensation for con- leadership group Mechesil Belau gressmen: “No increase in compensa- offered three other amendments that 176 the contemporary pacific • 17:1 (2005) would make the Palauan-language funds for the 9th Festival of Pacific version of the constitution superior Arts; and made it possible to borrow to the English version in cases of con- $15 million from the Taiwan Inter- flict; create a tradition and customary national Commercial Bank of China court to adjudicate matters relating to (a twenty-year term at 3.5 percent land, chiefly titles, and other key cus- interest) for major repair of the air- toms; and set term limits for all court port’s runway. Finally, Remengesau judges. These provisions have yet to and congressional leaders worked out be placed on the November ballot. an important agreement allowing for For unexplained reasons, the the use of World Bank expertise in an National Congress took a dislike to independent feasibility study of oil Minister of Justice Michael Rosen- exploration in northern Palau, as well thal, who served as the special prose- as analysis of proposed legislation cutor before joining the cabinet. The regarding such exploration. Going congress had earlier tried to get rid into the 2004 campaign season, rela- of him by not budgeting funds for tions between Remengesau and the his position. In June they demanded congress were much improved. Rosenthal’s resignation, claiming that During the year, new ambassadors he was ineffective as a manager and from Sweden, the Netherlands, and was responsible for a rash of prison Japan presented their credentials to escapes. Remengesau came to Rosen- President Remengesau. Spain’s non- thal’s defense, stating that the prob- resident ambassador presented both lem of prison escapes reflected larger his credentials and a grant for issues. Furthermore, according to the $250,000 for energy resources pro- constitution, cabinet appointees jects and to support the 9th Festival “serve at the will of the President.” of Pacific Arts. Stuart Beck of New Despite some sparring and disagree- York City was confirmed as the ment, the congress and Remengesau republic’s ambassador to the United passed some important legislation Nations, presenting his credentials to during 2003–2004, which, among Secretary-General Kofi Annan in April other things, protected copyright; 2004. Beck had served as legal coun- provided tax waivers for sustainable sel to the Palau Political Status Com- agriculture, mariculture, and aquacul- mission, which negotiated a separate ture; established a protected areas political status for Palau and defined network; reorganized land claims; the basic framework of the compact changed the labor law; restored of free association. He was granted “sin taxes” on alcohol and tobacco; honorary citizenship of Palau in 1979. strengthened fishing laws and pro- The Czech Republic became the hibited shark finning; established a thirty-first country to establish diplo- free trade zone with tax incentives; matic relations with the Republic of increased penalties for driving under Palau when Ambassador Stanislav the influence of alcohol or illegal Slaviky and State Minister Temmy drugs; allocated funds for payment Shmull signed a joint communiqué on the Taiwan loan for the Melekeok in September 2003. capital construction, and additional President Remengesau traveled to political reviews • micronesia 177
French Polynesia for the first time to and inviting them to the 9th Festival meet French President Jacques Chirac of Pacific Arts. at the meeting of the Pacific Islands At a grand gathering on 18 June, Forum. Soon after, Remengesau met Remengesau declared his candidacy with the presidents of other freely for a second four-year term by accept- associated states in Majuro. Kessai ing a nominating petition. He stated Note of the Republic of the Marshall that his campaign motto would be Islands, Joseph Urusemal of the identical to 2000: “Preserve the best Federated States of Micronesia, and and improve the rest.” He indicated Remengesau discussed quarantine he would continue attempts to grow standardization, extradition treaties, the economy while protecting the anti-terrorism issues, and other mat- environment: “Our environment is ters. At the Pacific Islands Forum our economic future, and our eco- meeting in New Zealand, delegates nomic future is our environment. were interested in Remengesau’s They are one and the same” (TBN, regional plan for the removal and 25 June–2 July 2004, 5). Remengesau recycling of solid waste, as well as his is an energetic, skilled campaigner ideas about a renewable energy pro- and convincing speaker, but several gram. In May 2004, Remengesau and challengers for the presidency have key political and cultural leaders vis- emerged. Ben Roberto, a Church of ited the Republic of China (Taiwan) the Latter-day Saints pastor, has to attend the inauguration of Presi- begun a campaign, as has former dent Chen Shui-bian. Taiwan has Congress of Micronesia member and been a major benefactor, providing multimillionaire businessman Poly- multimillion-dollar grants and loans carp Basilius. Roberto finished last since Palau’s independence in 1994. in a field of five in the 2000 primary In March Remengesau had visited race with less than 2 percent of the Tokyo, Kyushu, and Hokkaido to vote, but Basilius has a solid core of promote Palau as a destination for support. Like a heavyweight boxer, wealthy senior citizens. In June, the he is coming out of retirement hungry, president returned to Japan to meet ambitious, and with money to spend. with former Prime Minister Yoshiro Although it seemed likely that Vice Mori to discuss economic support President Sandra Pierantozzi will also and cooperation, including a plan challenge Remengesau, she remained for comprehensive repair of Koror’s uncommitted at the end of the review roads. Japan has agreed to repair period. Koror’s three causeways, which were Pierantozzi is both vice president built by the Japanese colonial govern- and minister of health. She is active, ment prior to the Pacific War. While focused, and outspoken, and has in Tokyo, Remengesau spoke to offi- gained considerable self-confidence cials at Japan Airlines, urging them to and sophistication through nearly send more charter flights to Palau. He four years of international activity. also met with 500 members of the Pierantozzi was the key person keep- Palau-Japan Friendship Association, ing Palau free from Severe Acute giving them an update on Palau affairs Respiratory Syndrome (sars) during 178 the contemporary pacific • 17:1 (2005) the outbreak of this disease in 2003. the crisis. That is important to us” She is knowledgeable about health (TBN, 28 May–4 June 2004, 2). Palau issues in many parts of the world and established diplomatic relations with is committed to active participation the Republic of China in 1999 and for Palau in all matters relating to has received about $40 million in health. In April in New Zealand, grants and loans to date. In turn, Pierantozzi represented Palau well at Palau has supported Taiwan’s entry the Pacific Islands Forum meetings, into the United Nations. Shanghai which scrutinized and accepted a new conglomerate Well Reach Ltd is inter- vision and mission for the organiza- ested in investing in Palau and signed tion. In Honolulu, she was elected a general agreement with President president of the Pacific Islands Health Remengesau in June 2003 (TBN, Officers Association. 15–22 August 2003, 2). This repre- United States–Republic of Palau sents the only involvement in Palau compact agreement funding payments of the People’s Republic of China. were $14.07 million for 2003 and Japanese banks forgave $20 mil- $14.21 million for 2004. These com- lion worth of debts, providing Palau pact payments will end after 2009, with a sensational windfall. In the although Palau is banking on a second 1980s, two Japanese companies compact agreement similar to that constructed multimillion-dollar short negotiated by the Federated States roads in Melekeok, Ngiwal, Ngerche- of Micronesia in 2003. Palau reports long, and Ngermlengui states using annually to the United States regard- compact funds as collateral and the ing how these funds are expended. Palau national government as guaran- Beyond this US operational support, tor. Nothing was ever repaid on these the Republic of China and Japan led loans. In 1983 an electrical power in providing grant and loan assistance company in England made a similar to Palau. In addition to a loan of $15 $32 million loan. Palau defaulted on million for airport runway resurfac- that loan, court suits ensued, and ing, the International Commercial finally in the 1990s President Naka- Bank of China (icbc) extended a $5 mura deftly negotiated a payment million loan to the National Devel- settlement with British banks. The opment Bank of Palau. The Taiwan loan forgiveness by the Japanese government granted Palau $470,000 banks was a huge stroke of luck to repair the t-dock facility on Koror, for Palau. and another $330,000 for permanent Japan’s International Cooperation seating at Palau’s national track and Agency has provided Palau with field facility. As in years past, three highly qualified volunteers. At present Taiwanese Navy ships paid a friend- twenty-four regular volunteers and ship visit to Palau without incident. eleven seniors are serving two-year During Remengesau’s visit to Taiwan stints, working in engineering, Japa- for the Chen inauguration, the Palau nese language teaching, elementary president commented on the two- school teaching, and at the national China issue, “President Chen is com- museum and hospital. The agency mitted to a peaceful process of solving also sponsored a summer festival for
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Palau youth, to introduce Japanese tional Airport to train car, helicopter, culture, arts, and sports. To assist and aircraft mechanics in cooperation Palau in developing its human with the Palau Community College. resources, Japan annually provides Japanese specialists are also assisting three full-expense university scholar- Palau with its solid waste manage- ships. This year’s winners will attend ment system needs and problems. Utsunomiya University, Waseda Uni- Delegations from New Zealand versity, and Sundai Travel and Hotel and Australia crossed paths in Palau College. Japanese mathematics volun- in early June 2004. New Zealand teers put on a special three-week Minister for Foreign Affairs and Trade intensive math skills workshop in Philip Bruce led a huge delegation of June 2004 so that Palauan youth forty-five parliamentarians, business- could improve their performance in men, and leaders of nongovernmental placement examinations for Japanese organizations. Their visit was essen- government scholarships. Koror’s tially a get-acquainted one, with three causeways will be rehabilitated exchange dinners and gifts and gen- with a $4 million grant from Japan. eral discussion about trade, tourism, Dating from before the Pacific War, health issues, defense cooperation, the narrow causeways have no guard- and regional security. Also with the rails and can be dangerous. The pro- delegation was John Goodman, New ject was carefully researched by teams Zealand’s ambassador to Palau. The from Japan that examined structural, Palau-Australia Defense Cooperation environmental, and design aspects. talks ran from 31 May to 2 June. A high-level Japanese aid policy Chief of Staff Billy Kuartei sat in for mission visited Palau in June 2004 President Remengesau, who was in to discuss future aid in relation to Japan. The four officials on the Aus- Palau’s national development policy tralian side had agreed on an agenda and plan. The mission reviewed past that centered on joint surveillance development assistance with President issues and systems. Palau officials Remengesau’s staff and defined a expressed appreciation for the Austra- comprehensive framework for future lian-supplied fast patrol boat, which development assistance. Finally, some underwent a complete refitting and 200 Japanese from Saitama Prefecture has an Australian captain, Lt Ian and the Japan Aviation Academy will Tervet. visit Palau in October 2004. The con- The United States and Palau car- nection to Saitama is through its ried out their annual consultations in Koshigaya Kuizu Jinja (Shinto shrine), July. As usual, Palau requested tech- which is related to both the grand Ise nical and financial aid. At the top of shrine and the Palau Nan’yö Shrine the list was funding for an audit of built in 1940. The actual buildings Palau’s financial performance, as a that became the Palau Nan’yö Shrine mechanism for identifying problems were constructed at the Saitama that can be corrected prior to negotia- shrine. tions for a new compact agreement. The aviation academy hopes to Other requests included assistance to open a school near the Palau Interna- improve security and safety at Palau’s 180 the contemporary pacific • 17:1 (2005) airport, technical assistance to estab- Speaker of the 7th Palau Legislature. lish a financial intelligence unit, and Ngiraked, an avid Palauan politician, assistance in working with the Euro- spent the last part of his life in prison pean Union, which will pay for solar for masterminding the assassination lighting and bicycle paths along some of President Haruo Remeliik in 1985. portions of the compact road. A US Some important off-island people delegation, led by an ambassador, visited Palau during 2003–2004. attended a meeting in Palau of the Former Prime Minister of Japan joint telecommunications boards of Ryutaro Hashimoto teamed up with the three freely associated states. former President Kuniwo Nakamura Discussions concerned a range of in leading the second experts meeting technical issues centering on telecom- of the Asia-Pacific Forum for Environ- munications: Spectrum 21 software, ment and Development. Specialists telecom security and protection, inter- from Pakistan, Japan, Australia, and ference of high frequency stations Palau scrutinized the first draft of a within and between the freely associ- final report to define a new model for ated states, master frequency lists, an equitable and environmentally and compact subsidiary agreements sustainable society. The final version concerning telecommunications. of the report will be presented to Finally, the US Navy ship Safeguard policy makers and other persons of sailed from Japan to Palau to show influence throughout the world. US the flag, and so that its 100 crew Senator John McCain had a week’s members could enjoy five days of vacation in Palau. He has been sought rest and recreation in Palau’s warm out for his support for Palau’s mem- weather. bership in the National Carriers Palau lost some important people Exchange Association, which would during the year. Master canoe and considerably reduce long-distance- men’s house builder and chief Kita- calling rates for Palau. Dr Patrick long Dulei died at age 78. The Reche- Scannon and his “Bent Prop” Project bong (the second-ranked chief) Daniel team of Pacific War aircraft research- Miner died at age 81. He had served ers were in Palau to continue search- as a policeman during both the Japa- ing for US aircraft lost over Palau. nese and American colonial periods Miraculously, in January 2004, with in Palau. Carey Dale, a specialist in the help of a Palauan fisherman, the human relations who integrated into team found the American b-24 Palauan society, and Hiromi Rdiall bomber it had been seeking for eight both passed away at age 63. They years. Discovered in the lagoon at a were esteemed people. Tosiwo Naka- depth of seventy feet, the aircraft was mura and John O Ngiraked, leaders in remarkably good shape, and it is of the Progressive political party in likely to contain the remains of as the 1960s and 1970s, died a few days many as eight airmen. President apart at age 73. Nakamura, elder Remengesau termed the bomber a brother of former President Kuniwo sacred gravesite that must be pre- Nakamura, was an educator, framer served and protected. He made a of the Palau Constitution, and scuba dive of the site with Scannon political reviews • micronesia 181 in early February. In late May, con- preceded by an inspection flight of the stitutional scholar and specialist on 126-passenger aircraft to Yap, Pohn- territorial relations Arnold Leibowitz pei, and Chuuk by the New Zealand visited Palau. He had been retained Civil Aviation Authority. New Zea- by the late former president, Lazarus land is involved because Air New Salii, and became deeply interested Zealand will provide flight crews and in the political tensions and machina- aircraft maintenance for Palau Micro- tions in Palau during the 1980s. This nesia Air. Founded by Palauan entre- resulted in Embattled Island (1996), preneur Alan Seid, the initial capital which describes Palau’s struggle for of a half-million dollars was invested independence and is one of the few by founding shareholders Seid, Ibedul books about contemporary Palau. Gibbons, former President Kuniwo Leibowitz noted that the republic Nakamura, former Senator Sam had done well in institutionalizing Masang, and businessman /Senator democratic government, but that Surangel Whipps. The sale of stock self-financing and economic strength has generated some $3 million, remained major challenges (TBN, according to one pma board member 4–11 June 2004, 5). (TBN, 2–9 April 2004, 2). The Pohn- Tourism, a major money earner for pei State Legislature invested Palau, rebounded greatly during the $500,000 and Yap state invested year. For calendar year 2003, Palau $1 million. Palau’s National Develop- had 63,337 tourists, a healthy 8 per- ment Bank termed the new airline an cent increase over 2002. Of the 2003 economic growth engine and invested total, some 27,857 (46 percent) came $1 million, which came from the $5 from Taiwan, and 21,401 (36 percent) million icbc loan. However, initial arrived from Japan. Some 485 Austra- commitments of $1 million from a lians visited, as did 800 Europeans Japanese source, a half-million dollars from Germany, Britain, Italy, and from the Commonwealth of the Switzerland. In January 2004, Palau Northern Mariana Islands, and sup- set a new monthly record for visitors: port from Aloha Airlines were with- 8,136. Again, the largest numbers drawn. Probably to the embarrass- were from Taiwan and Japan. Some ment of Governor Juan Babauta, the of the increase is attributed to Palau’s development authority in the Mariana appearance on cnn’s Sights & Sounds Islands pulled its intended half- in late 2003 and the attractive Palau million-dollar investment because it Visitors Authority website
political reviews • micronesia 183 ment, claiming defective specifications but Remengesau takes a more cau- for the contract estimate of anticipated tious approach. The two sides worked adverse weather delays for scheduling out an agreement and signed a joint the project, and failure to disclose letter to the World Bank requesting vital information to the bidders its support for funding an indepen- regarding the amount of Palau’s rain- dent feasibility study of oil explora- fall and the time required for soil to tion and an independent analysis of dry out after rainfall. Such suits pending oek legislation regarding oil against the US government usually exploration and exploitation. Hope- fail. Nevertheless, the US Army Corps fully with this cautious approach of Engineers will add equipment and Palau will avoid the financial manpower to expedite the roadwork. debacles of the past. Furthermore, the United States will By virtue of Palau’s superb perfor- provide an operation and mainte- mance in the 2000 New Caledonia nance plan for the road. However, 8th Festival of Pacific Arts, the repub- Palau will need to confront the issue lic was granted venueship for the of financing maintenance for the 9th festival. People in Palau began huge road. preparations early and this work hit The Royal Taipei Hotel chain a feverish pitch in 2004 with the fes- leased land on Malakal Island for a tival (sometimes “bestibal”) taking 160-room hotel. Construction on the place 22–31 July. In March, delegates facility began in February 2004; it from twenty-six Pacific nations met in will have the full range of amenities Palau to nail down protocol, logistics, and be known as the Royal Palauan and catering details. Palau’s organiz- Hotel. However, the grandest plan of ing committee selected the theme, all is that of Palau Pacific Energy Inc, “Nurture, Regenerate, Celebrate,” which has apparently persuaded many and the event was expected to cost of Palau’s political leaders that the over $4 million. From the excitement, chances of oil under the sea floor commitment, and energy generated north of Kayangel Atoll are good. ahead of time, the 9th festival prom- A$1.7 billion figure of revenue for ised to be the grandest and greatest Palau has been bandied about, based event Palau has ever hosted. on annual payments of $63 million. donald r shuster This, in turn, is based on the assump- tion that 250 million barrels of crude can be pumped over twenty-seven Special thanks to Yoichi K Rengiil years at $28 per barrel. Such huge for comments on an earlier draft of dollar amounts have brought about this review. “oil fever” and generated an argu- ment between President Remengesau and the congress on how to proceed. Reference The congress claims it has informed TBN, Tia Belau News. Weekly. Koror. itself about the oil exploration and exploitation business and associated environmental issues through consul- tation visits to Singapore and Texas,