204 the contemporary pacific • spring 2000 get cut. In late May Underwood, as a member of the Military Construction The Republic of the Marshall Islands Subcommittee, voted in support of a has built new roads of all kinds during $103 million military construction the period under review. From road package for Guam. construction funded by the govern- For Guam’s governor, legislature, ment of Japan, to new approaches to and congressman the return of excess the Asian Development Bank (adb), federal land and future political status the People’s Republic of China, and are interrelated issues of enormous the Republic of China (Taiwan), to importance. They were succinctly sinuous pathways connecting national addressed by Congressman Under- leaders, the year revealed many novel wood in a May speech to Guam’s detours in policy and unprecedented Chamber of Commerce, “Until we get political directions. the full hearing of our political status The minority party, or “opposi- aspirations, until such matters are tion,” achieved an unprecedented fully resolved, it is our responsibility level of organization and effective- to argue for unique treatment as well ness. Although a vote of no confi- as fair treatment; to receive our due dence failed to remove President Imata measure and to profit from our US Kabua from office in October 1998, citizenship, our God given talents as a the motion marked a turning point in people and our location as an island” the Marshall Islands’ nineteen years (Underwood 1999). of constitutional government. The donald r shuster vote followed the unprecedented Special thanks to Cathy Gault, Leland success of the opposition party in the Bettis, and Robert Rogers for com- previous Nitijela (Parliament) session ments on an earlier draft of this of March, when two bills they had review. proposed were passed into law. The passage of Bills 113 and 114 regard- ing gambling in the Marshalls were References effectively a vote of no confidence, resulting in legal battles and a cabinet PDN, Pacific Daily News. Hagatna. reshuffle. The context of these signifi- PSN, Pacific Sunday News. Hagatna. cant events must be explained. Gutierrez, Carl T C. 1999a. Statement to In the final months of 1997, the United Nations Special Committee on national morale ran low as various Decolonization. 29 June. government projects attracted public ———. 1999b. Statement to the 21st suspicion. The government’s with- Special Session of the General Assembly. holding of reports on the unautho- 29 June. rized use of Social Security Adminis- Underwood, Robert A. 1999. Freedom to tration funds resulted in the Asian Grow: Making Our Case in Washington. Development Bank detaining portions Address to the Guam Chamber of Com- of much-needed loans. Investigations merce, 28 May. were rumored into continued sales of RMI passports to foreign nationals, political reviews • micronesia 205 particularly in China and Taiwan. decided to propose two bills: one to Compact revenue had decreased. repeal the prior bill, and another to An adb-promoted reduction-in-force explicitly prohibit gambling of any (designed to limit the public sector, kind (including popular bingo games), which creates two-thirds of all jobs with the exception of school fund- in the Marshalls) placed critical gov- raising raffles. The history of these ernment paychecks in short supply. two bills is an important frame of Added to these difficulties was the reference for the unforeseen activities increase in foreign competition as new of the following months. car-rental companies, restaurants, and Given the lack of faith in the gov- retail stores were introduced by Tai- ernment in late 1997 and the insecu- wanese and Chinese investors. With rity about national and individual a decrease in copra production, and finances, and even grumblings of dis- import taxes at an all-time high, these content about the newly elected presi- were hard times. In response, citizens dent, anxiety and hard feelings were took their chances at the newly con- at their peak. The nation was embar- structed gambling houses around the rassed by coverage of the president in islands, playing slot machines in international media and by his notori- hopes of hitting the jackpot. ous behavior. In a national broadcast In 1996, President of the Nitijela session, the president had led a campaign to establish casi- presented his yes vote “in the name nos in the islands as an enticement for of Miller Lite,” his beer of choice. tourists and businesspeople staying at Citizens accustomed to the stability the soon-to-be-completed Outrigger of Amata Kabua’s twenty-plus-year Hotel and other proposed resorts. administration judged Imata harshly. Despite church opposition, and defeat The Asian Development Bank was in its first two readings, Bill 8 became publicly pressuring the government Public Law 1996-4 in its final vote for the findings of the passport and and effectively legalized gambling in social security investigative team. the Marshall Islands. Unfortunately, Additionally, the United States and the regulations recommended in the its ambassador were adding pressure bill were not enforced and slot about fiscal accountability. When machines quickly became an unmoni- Gibson’s department store joined tored and untaxed industry for local Hawai‘i-based Wallace theaters to and foreign entrepreneurs. open a cinema in late 1998, the As the impact of gambling was felt well-attended film Titanic became on families already struggling through a popular metaphor for the state of an economic depression, opposition the nation, with frequently quoted extended beyond its previous base at quips about its captain. the Catholic Church. In an ecumeni- The year 1998 was off to a rough cal effort, the churches of the Mar- start. An adb-prompted National shalls met weekly and planned to pro- Economic and Social Summit (ness) pose a repeal of the 1996 gambling brought island leaders in the public law for the January 1998 Nitijela and private sectors together for the session. Organizers strategically first time. Hope was in the air. When 206 the contemporary pacific • spring 2000 the Nitijela session began in late Kabua, withheld their votes. The bill January, it faced an eager listening passed with a vote of 17 to 7. audience on v7ab, the national radio, Bill 113 was viewed as a conces- as curious citizens listened for signs sion to the churches. Because Bill 113 that ness recommendations might be did not specifically outlaw gambling, implemented. Pressure on government it gave discretion to the various atoll officials mounted as citizens struggled governments. In that case the presi- to make ends meet, much less find dent would retain his control of drinking water in the midst of gambling activities on Kwajalein, and drought. The time was ripe for the powerful -elected officials such opposition party to launch its cam- as Tony deBrum and Phillip Muller paign. would have influence on the capital. The gambling issue became the Bill 114, which proposed to pro- focus. While the two bills presented hibit all gambling in the nation, was by Senator Ataji Balos (Kwajalein) hotly contested. In a Nitijela cham- had the support of the churches and ber overflowing with students from the Council of Iroij (Chiefs), the pro- the religiously affiliated schools, as gambling group consisted of three well as community leaders and politi- government officials and their sup- cal commentators, the drama and ten- porters. Public hearings were devoid sion were high. It was March, and the of debate—not a single individual final day of the session. After a long spoke to defend the right to gamble, lunch break the session reconvened as person after person spoke against in the late afternoon. The rest of the the unregulated gambling that left nation tuned in to the radio. A motion children hungry. The pro-gambling was made to postpone the filing of coalition in the Nitijela centered its Bill 114 until the next session. At this concern on replacement revenue for point, the three leaders previously Kwajalein that relied on slot-machine denied a vote left the chamber to income as part of the atoll’s budget. catch the evening flight to Hawai‘i, Yet, on the Nitijela floor, as the bills assuming a final vote would be were presented, inquiry revealed that delayed until the August Nitijela ses- the national government had received sion. The result of the motion to file no revenue from taxation of casinos. was a 13–13 split vote. Speaker Note In the break before the final vote stepped in to break the tie, denying for Bill 113, which would repeal the postponement and forcing a final PL 1996–4, Speaker vote. When the Speaker noted that announced that President Kabua, those with conflicts of interest were Senator Tony deBrum, and Minister not to vote, many of their followers Phillip Muller would not be permitted spoke up angrily. Opposition leaders to vote due to their conflict of interest suggested to the Speaker that out-of- as owners of casinos. Others with order members also be denied a vote, similar conflicts were told to withhold and two senators stormed out of the their votes or be fined if evidence chamber. When the final votes were emerged later. An additional two tallied, the anti-gambling contingency, members, Jurelang Zedekia and Jiba or “opposition” party had passed the political reviews • micronesia 207 bill by a single vote of 12 to 11. This after the events of March, Tony victory marked the first time an oppo- deBrum was named minister of sition party had successfully overcome finance. Wilfred Kendall, former any president-backed initiative. Bill ambassador to the United States, was 114 heralded the political develop- named minister of justice. Both were ments of the following year, the long-time opposition party leaders, period under review. and Senator Kendall had run against The backlash of the government President Kabua in 1997, in the par- party’s defeat was felt personally liamentary election that followed by Kessai Note, the Speaker of the Amata Kabua’s death in December Nitijela, among others. Within two 1996. Former ministers who broke months, Note and the clerk of the ranks in the gambling dispute were Nitijela, Joe Riklon, were sued for removed from office. These were unconstitutionally denying votes to Ministers Lomes McKay (justice), Tony deBrum, Phillip Muller, and Jiba Kabua (resource and develop- . In late July, at the end ment), and Litokwa Tomeing ( of the highly publicized case, Note minister, no portfolio). and Riklon were acquitted. The result In response to these appointments, of that court battle was the enforce- opponents threatened a vote of no ment of the gambling prohibition and confidence, another Nitijela first. In the closing of the gaming rooms in the following days, as meetings were mid-August. held in the usually quiet halls of the With over half of the annual allot- capitol building, tension ran high. ted fifty Nitijela session days used in Senator Litokwa Tomeing, seconded the January session, the August ses- by five other senators, introduced sion promised to be full and quite the motion on 2 September 1998. exciting. Government party leaders According to the Marshall Islands threatened to propose new gambling Constitution, a five-day waiting legislation, opposition leaders chairing period is required before the initial the political accounts committees vote, and the Nitijela is not to recess investigating passport sales and social until the vote, which must occur security funds promised public disclo- before the tenth day after its introduc- sure of their findings. Additionally, tion, is made. President Kabua wel- the national budget had to be debated comed the motion as “democracy in and passed before 30 September, and progress” (MIJ, 4 Sep 1998, 1). Five a proposed 12.5 percent cut on all days later, on the day scheduled for government employees was slated the vote, Senator Tomeing listed four- for introduction—all of this in the teen complaints against the president heat of leftover antagonisms from and called for a vote by secret ballot, the recent court battle and the prior to prevent intimidation. In the course gambling controversy. of his speech, Minister Tony deBrum The president announced that all interrupted on a point of order and ministers were expected to resign. called for a roll-call vote. Tomeing This marked the first cabinet shuffle was allowed to continue his speech of his presidency. Not surprisingly and Speaker Note announced that the 208 the contemporary pacific • spring 2000 vote would occur using secret ballots. minister to voluntarily leave office At that, the president invited his sup- (MIJ, 23 Oct 98, 1). porters to walk out of the chamber, The vote of no confidence even- and without a quorum of seventeen tually took place after High Court members the vote was postponed. Judge Dan Cadra ruled the govern- The government party walk-out ment party boycott unconstitutional. lasted six weeks, during which the The vote was the Nitijela’s first fiscal year ended (with no new budget agenda item when it reconvened. approved), the cabinet composition On 16 October 1998, the motion shifted again, and the deaths of lost by two votes, 16 to 14. two well-known Majuro residents In a special session held the first occurred. Dorothy Kabua, youngest week of November, the national daughter of the late President Amata budget of $80.8 million was reviewed and Emlain Kabua died in an acciden- and passed. The annual audit of the tal collision with a coconut tree while previous year’s finances disclosed that driving home in the early morning three government agencies earned hours of Friday, 18 September. She a profit: the Port Authority, the was the owner of one of Majuro’s National Telecommunications favorite nightspots, The Pub, and Authority, and the Marshalls Electric was forty years old. Less than ten Company. Ten agencies recorded days later, local businessman and losses totaling $4 million, an increase institution Robert Reimers died in of over $1 million from the previous Honolulu at the age of eighty-eight. year. Air Marshall Islands noted the Robert Reimers Enterprises is one of greatest loss. In spite of a government the most successful local businesses subsidy of nearly $785 thousand, the in all of Micronesia, founded in the airline recorded a loss of $1.6 million. 1950s with a small boat-building Minister of Finance Tony deBrum shop on Majuro that assisted in the is credited with many major govern- economic recovery of the islands after ment policy shifts. The adb-recom- World War II. mended reduction in force and value- Three other ministers were added tax were rejected in November. removed and replaced. Christopher The 12.5 percent pay cut was dis- Loeak (Ralik), Ruben Zackras, missed, import taxes were unexpect- (resource and development, formerly edly lowered, and promises were finance), and Brenson Wase (internal made to privatize government-subsi- affairs) were removed from office. dized agencies such as Air Marshall Hemos Jack became minister of Islands and the Marshalls Energy justice, Hiroshi Yamamura took over Corporation as soon as possible. internal affairs, and Johnsay Riklon DeBrum’s proactive stance toward the was named minister in assistance to Asian Development Bank and cooper- the president. Wilfred Kendall added ative attitude toward the Marshall the Ministry of Public Works to Islands Chamber of Commerce has his appointment to the Ministry of boosted morale among local business Resource and Development. He later leaders accustomed to an antagonistic resigned his post, becoming the first relationship. The result of deBrum’s political reviews • micronesia 209 inclusion in the president’s cabinet has Day in the Marshall Islands. This year been a remarkable reversal of what emphasis was placed on declassified many observers had considered the materials documenting the effects last days of Imata’s presidency—and of radiation beyond the four atolls possibly the credibility of the nation, (Bikini, Enewetak, Rongelap, and particularly as compact negotiations Utrik) recognized in the Compact of are to begin in October 1999. Free Association. According to US In a shockingly sudden move, the Center for Disease Control (cdc) Marshall Islands established diplo- documents, Ailuk atoll contains the matic relations with the Republic single largest source of atmospheri- of China (Taiwan) on 20 November cally released iodine 131 in the world 1998. The People’s Republic of China (MIJ, 8 Aug 1998, 1, 5). Additionally closed its diplomatic headquarters the Center for Disease Control recom- immediately and left the capital. mends that Ailuk, Jemo, Likiep, Employees at a Chinese-operated Wotho, and Wotje receive compensa- garment factory in Laura were asked tion for exposure to fallout from the to leave the island by mid-December. Bravo test of 1954. Studies such as In the months since the establishment these will be used to argue a “changed of diplomatic relations with Taiwan, circumstances” case in the upcoming the Marshalls has felt a greater eco- compact negotiations. The changed nomic impact than that of its eight- circumstances clause of the compact year relationship with mainland allows for a reassessment of compen- China, according to one source. sation if new evidence shows the Further, as delegations of national current agreement is inadequate. leaders and local business representa- Rongelap and Utrik are no longer tives are invited to Taiwan, public under the care and study of Brook- opinion of the shift is positive. haven Laboratories. Hawai‘i-based January 1999 saw the appointment Pacific Health Research Institute of Marie Maddison as secretary of (phri) was contracted through the foreign affairs. One of her first tasks United States’ Department of Energy was to create a task force to examine to provide special medical care for the the startling increase in external next five years. The contract allows adoptions of Marshallese children by the institute to monitor and care for Americans. With record numbers of people with illnesses relating to the adoptions, the RMI Ministry of For- Bravo test, as well as to provide on- eign Affairs is exploring ways to mon- site comprehensive health care to itor and regulate adoptions. The spe- those eligible. Unlike Brookhaven cial status of freely associated states’ Laboratories, which sent doctors for citizens, allowing unlimited access to month-long visits twice a year, the the United States, prevents these Pacific Health Research Institute will adoptions from being classified by provide doctor visits four times each the United States as international year and year-round access to medical and thus more strictly observed. care on Majuro and Ebeye. Impor- March 1st marks the annual cele- tantly, doctors with histories in the bration of Nuclear Victim’s Memorial Marshall Islands have been selected 210 the contemporary pacific • spring 2000 for involvement, namely, Dr Neal Samoa to Asia. The Marshall Islands Palafox and Dr Wilfred Alik, the Marine Resources Authority (mimra) nation’s first md. Alik has emphasized says low entry fees allows the ships to that the phri plan will focus not only refuel and restock conveniently on on cancer treatment, but also for the Majuro. With the completion of a first time on preventive health care. new fish loining plant in October April saw the resolution of one 1999, the Marshalls may see a lagoon case related to illegal sales of RMI full of carriers by the summer of passports. Over the summer of 1998 2000. The loining plant will allow the public accounts committee contin- StarKist purse seiners based in Ameri- ued to gather evidence to file charges can Samoa to off-load tuna to pm&o against high-level RMI officials. Due barges in Majuro. The Ting Hong to the shortened Nitijela session fol- corporation, which managed the Mar- lowing the walk-out, evidence was shalls fish base for the past four years, not presented to the national govern- negotiated an early end to its twenty- ing body. When a Taiwanese man was year contract with MIMRA in April. detained by the US Immigration and Other new pathways for the Naturalization Service in Guam for Marshalls included the possibility of carrying twelve unauthorized and Hawai‘i’s Aloha Airlines extending its back-dated RMI passports, along with routes to include Majuro. Discussions residency and naturalization certifi- began in November 1997 and were cates, the outside attention brought recently delayed by bureaucratic dis- the issue to the surface. On extradi- agreements within the US Defense tion to Majuro, Chen Nan Huang Department regarding refueling rights was granted immunity by the attorney on Johnston Atoll. Air Force officials general in return for assisting the refused to allow Aloha Airlines to prosecution. Chief Immigration Offi- refuel on Johnston without a direct cer Una Watak was the only source order from the US secretary of implicated. He was later arraigned defense. In July, Aloha received word and pleaded guilty to 13 of 54 counts. that flights may begin as early as His sentence was a fine of $6,500 August 1999. (MIJ, 7 May 98, 1). At the close of June, the United In May, the possibility was dis- States and the Marshall Islands were cussed of a $5 million Taiwanese preparing for introductory compact grant to private sector businesses negotiations in October. The difficult to improve outer islands shipping battle for renewal of Pell Grant fund- services. Additionally, as the foreign ing in August 1998 raised Marshallese ministries of the two governments awareness of shifts in US attitudes sponsored a series of discussions on toward citizens of the freely associ- various arenas for expanded business ated states (fas). Not only are ties, fisheries became the clear focus Marshallese fighting for educational of interest. Taiwanese purse seiners funding that was previously unques- and large carrier ships are using tioned, but newly required work Majuro as a transshipment base when authorization forms for immigrants transporting tuna from American are believed to be in violation of the political reviews • micronesia 211 spirit of the compact. Relatedly, provider of tax revenues for the Hawai‘i, Guam, and filed suit government, which also had to face against the US federal government mounting social problems. An esti- asking for compensation for funds mated two thousand businesses closed spent on fas citizens who dispropor- down, teachers’ contracts were not tionately migrate to these areas and renewed, and many other public ser- take advantage of social services, vices had to be scaled back. By year’s health care, and welfare programs. end, there was even serious talk of The suit requested a more accurate reducing work hours for government reporting of migrant population pro- employees. Meanwhile, the legislature jections so that they may be reflected passed several measures affecting the in realistic budget appropriations for presence of guest workers, and a these services. Although the suit was seemingly coordinated campaign dismissed in the fall of 1998, the neg- to close the garment industry down ative attitude it reflects toward fas resulted in a spate of negative media citizens is cause for concern. publicity. This resulted in increased julianne m walsh pressure for Congress to adopt legisla- tion to federalize immigration and the Kommol tata to many friends and minimum wage, and even the customs colleagues in the Marshall Islands and territory of the Commonwealth. Hawai‘i who offered suggestions for Governor Teno inherited a severely this review. depleted treasury. The new adminis- tration found that the tax-rebate Reference holding account (holding withheld tax money for eventual rebate to the tax- MIJ, Marshall Islands Journal. Weekly. payers), which was supposed to con- Majuro. tain $34 million, contained only $2 million. The missing $32 million has never been identified. In addition, the public auditor charged that the Mari- anas Visitors Bureau had misspent up Despite a more conciliatory and less to $12 million in illegal contracts, and confrontational administration in that the governor (Lang) had spent Saipan, relations between the Com- unappropriated millions on sole- monwealth of the Northern Mariana source contracts. The governor was Islands (cnmi) and Washington also accused of lending substantial continued to deteriorate. Third-term sums to the Tinian Casino Gaming governor Pedro P Tenorio (“Teno”) Commission to meet their salaries, inherited a major fiscal quagmire and to pay a “consultant” a total of from his predecessor, Froilan C Teno- $730,000 for four years plus benefits. rio (“Lang”), and the Asian financial The “consultant,” a convicted felon, crisis that started in October 1997 has yet to deliver any product. continued to batter the economy. To compound the problem, the The shrinking tourism sector left the Asian financial crisis hit the country garment industry as almost the sole harder than any other jurisdiction in