Ambassador of China to the FSM presents his credentials to Olter PALIKIR, Pohnpei (FSM INFOR- MATION SERVICE) - The first resi- dent Chinese Ambassador to FSM Li Qinping arrived June 26 in Pohnpei and presented his credentials to President Bailey Olter, June 27, in the presence of the cabinet members, diplomatic craps, other officials and friends. Li served as the 2nd Secretary of the Ministry of Foreign Affaks in Beijing, was the Department of Western Euro- pean Affairs Ministry of Foreign Af- fairs Deputy Division Chief, the Chi- nese Counsellor at the Embassy in Ice- land, Netherlands and of the Depart- CHINA ENVOY PRESENTS CREDENCE - Ambassador of China to the FSM Mr. Li ment of Western European Affairs in Qinping presented his credentials to President Bailey Olter, June 27 in a brief ceremony the Minister of Foreign Affairs. held at the Cabinet Room in the presence of the cabinet members, diplomatic corps, In another related activity, David friends, and other officials. From left to rightare: Vice President , President Nethery is the present Charge d'Affairs Olter, Mr. Li, and Mrs. Li. of Australia to the FSM who succeeded July 22 to August 2, this year. ^ing posted to Australian High Com- Raewyn Henelius in June, is expected Nethery joined the Australian De- mission in Port Vila, Vanuatu, com- to return to Canberra shortly after the partment of Foreign Affairs and Trade, pleted his duty in Vanuatu in September conclusion of the South Pacific Forum spent three years working in the 1990, and was working in the Foreign meeting which is to be held on Pohnpei Department's Legal Division before (See CHINA, Page 2)

THE NATIONAL UNION

PEACE • UNITY • LIBERTY

^AN OFFICIAL PUBLICATION OF THE PEOPLE OF FEDERATED STATES OF MICRONESIA „ Volume 12 Palikir, Pohnpei, June 15,1991 Number 11 WHO General Assembly grants FSM full membership PALIKIR, Pohnpei (FSM INFOR- General. and other related medical and health MATION SERVICE) - The FSM De- FSM wanted the full fledge member- fields few years in the past. A number partment of Human Resources Secre- ship since the Trusteeship Agreement of FSM students are now attending tary Dr. Eliuel K. Pretrick attended the terminated in December last year and medical schools in Fiji and Papua New 44th United Nations World Health Or- the application had been submitted to Guinea through fundings from the ganiazation (WHO) General Assembly, WHO Central Office, March this year. WHO. This year the funding support granting the FSM full fledge member- Being a member of WHO, financial from the WHO has gone up from ship, May 8, in Geneva, Switzerland. support venues from other world lend- $400,000 to $600,000 and this year is On May 8, the Assembly supported ing institutions will be opened up to the also the first time that funds have been and unanimously approved the applica- FSM. The government received an made available to support FSM stu- tion for FSM membership to WHO but annual budget of about $400,000 from dents attending the Medical Officer requires a Letter of Instruments from WHO to support training and manpower Training Program (MOTP). the FSM National Government to be improvements in medicine, administra- As a first step in obtaining intema- sent to the United Nations Secretary tion, nursing, dental, laboratory, x-ray, (See WHO, Page 2) 2WHO. (Continuedfrom Page 1) tional collaboration, the WHO will be FSJVTs stepping stone for eligibility to any organization in the form of interna- tional support. This support will give us the eligibility to make applications with the World Bank and International Banks and other lending institutions for im- 1proved health care and services for the people of the FSM. As an independent country, but not a member of the United Nations, it is O required that the FSM meet several ob- ligations to be considered eligible to enter the International market for im- W portation of narcotic and Psychotropic PERKINS PAYS COURTESY ON THE PRESIDENT - A mission comprising of medications. Command Naval for Marianas, RearAdmiralJamesB.Perkins, III, and US Ambassador H The External Affairs and the Office to the FSM Aurelia E. Brazeal paid courtesy call on President Bailey Olter June 13, of the Attorney General are looking into Accompaning them from the Department of External Affairs was Acting Secretary ratifying the WHO constitutional as AsterioTakesy. Clockwisefromleftto rightare Takesy,Perkins,Brazeal, and Olter. Rear Admiral Perkins visited the President on behalf of Commander in Chief ofClNCPAC adopted by the International Confer- Charles Larson who was in the Philippines due to the volcanic eruption there. ence in New York in 1946. Those requirements consist of ratifi- cation of two United Nation Conven- tions, on the Single Convention on China Narcotic Drugs (from 1961), and the (Continuedfrom Page 1) Damascus, Stockholm, Jakarta, Hanoi, second on the Convention on Psy- Affairs Department's South Pacific New Delhi, Bonn, and Kingston (Ja- chotropic substances signed at Vienna Section prior to his posting here to FSM. maica). on February 1971, plus joining one "I am particularly enjoying my tour specialized health agency, such as the Henelius arrived in Pohnpei in April. She will be in Pohnpei until the later in the beautiful island of Pohnpei, and WHO. getting to know the very friendly peoples The FSM Congress have adopted partof August 1991. Henelius has served in many of Australia's overseas mis- of this partof the Pacific. I hope too that resolution 7-27 ratifying the WHO sions, including Kathmandu, Bangkok, I will have the opportunity to visit Constitution. , Yap and Chuuk while I am in the Federated States of Micronesia." "Coming from the rigors of a cold Canberra winter, I am enjoying the warm climate and being near the ocean. In fact a highlight of my stay so far has been catching a Skip Jack (albeit a small one) during a fishing expedition to beautiful Ant Atoll." Evon Coghill, Third Secretary, also joined the Australian Embassy here, arrived in Pohnpei in May and will be at the Australian Embassy until after die South Pacific Forum. Coghill is an officer of the Australian DepL of For- eign Affairs and Trade since 1970 and has served in Kuala Lumpur, Singapore, Phnom Penh, and Saigon. She had NETHERY VISITED PRESIDENT - Charge d' Affairs of A ustralia to the FSM David accompanied her spouse, who is also an Nethery ( left) paid courtesy call on President Bailey Olter (right) in his office. officer of Foreign Affairs and Trade, on Accompaning Nethery from the Department of External Affairs is Foreign Service posting to Kuala Lumpur and Rangoon. Officer KandhiA. Elieisar (center). ANNOUNCEMENT Official memorandum to I

PALIKIR, Pohnpei (FSM INFORMATION Department and Offices 1 SERVICE) - The FSM Government is accepting bids for production of Tourism promotional and PALIKIR, Pohnpei (FSM INFORMATION SERV- Educational video proposals, according to FSM ICE) "Oneofourmostimportantresponsibilitiesis that Registrar of Corporation. of keeping the public and citizens of the Federated I The first phase of the proposal should cover a States informed of the activities and undertakings of variety of footage that will be shot from both their government" says FSM President Bailey Olter in underwater and top side locations in the state of an official memorandum issued in eaiiy June to all i Pohnpei which will be used for promotion of tour- Cabinet Members in the FSM Government. ism, investments and also educational video pro- 'To this end, I would like to ask that each of your gramming. Copies of which will be supplied to departments and offices designate an official to be CNN Travel Guide Network and Water Sports responsible for gathering and compiling information on Networks. The second phase will involve completed vide* activities and undertakings of your respective depart- otape with narration and soundtrack that will ments and offices and transmit the same to Public present Pohnpei as a tourist destination, educating Information Office for their timely and appropriate the viewers about the beauty of Pohnpei, richness dissemination to the general public. of culture, fascinating historical landmarks and "I can not over emphasize the importance of this task the abundant marine life, as a world class diving and would ask that you make this an immediate require- area. ment of your departments and offices, concludes Presi- Bid proposals will be evaluated on the merit of dent Olter's memo. its approach to the project, experience of staff, In compliance with this stated policy, various depart- familiarity with Pohnpei State and the cost of the ments and offices have designated staff to be respon- project All bid proposals shall be submitted to the De- sible for releasing news information about their depart- partment of Resources and Development, FSM mental activities through the President's Public Infor- National Government, P.O. Box PS 12, Palikir, mation Office. Pohnpei FSM 96941. Inquiries can be directed to In this connection, the general public is also invited to Mr. Yasuo I. Yamada, Registrar of Corporations, share their views on the programs and policies of the Investment and Trade Promotion, Department of government. Resources and Development, Phone No. 691-320- Olter urged improvement in the performance of the 2642 or Fax No. 691-320-5854. Deadline for sub- National Union, that it is published on a timely basis. mission of bid proposal is July 31,1991. The National Union is an official newsletter of the FSM Government. Diplomatic Corps pays courtesy calls on Olter and Nena

PALIKIR, Pohnpei (FSM INFORMATION SERVICE) - also promised to lend the FSM Government any assistance The members of the Diplomatic Corps whose Embassies are possible for a successful Forum meeting slated for late July established in Pohnpei paid their first courtesy call on 22nd through August 2, this year. President Bailey Olter and Vice President Jacob Nena, June In response, President Olter and Vice President Nena said 10 and 11, respectively, since they took office on May 11,1991. they were honored to receive the foreign diplomats and The diplomats included Dean of the Diplomatic Corps looked forward to a continued cordial and friendly working Purisimo A. de Peralta, Philippine Ambassador to the FSM, relationship with them and the governments they represent Amelia Erskine Brazeal, the United States Ambassador to the "The administration looks forward to the Forum meeting FSM, the Charge d'Affaires, a.i. of the Embassy of Australia with great anticipation when leaders of different Govern- to the FSM, Mrs. Raewyn Henelius and the Charge d'Affaires ments sit and talk together about issues of mutual interests." of China to the FSM Mr. Lu Folding. says Vice President Nena. The visiting diplomats during the brief meetings with the Although there may be some slight misunderstandings FSM Chief Executives, extended their Countries' well- regarding the "diplomatic immunity" accorded to foreign wishes to both President Olter and Vice President Nena for a diplomats and their staffs and dependents on the part of some successful administration, reaffirming their governments' FSM officials, Vice President Nena expressed his confi- policies of cooperation with the new administration. They dence that better understanding is the solution. FSM Embassy participates in Asian Ladies Friendship Association Festival PALIKIR, Pohnpei (FSM INFOR- MATION SERVICE) The FSM Em- bassy in Tokyo participated for the first time in the Asian Ladies Friendship Association Bazaar which was held in the Hotel New Otani, in Tokyo, May 27, according to a release from the FSM Embassy in Japan. The Bazaar is an annual event of the prestigious association whose present President is Madam Miki, wife of the late Prime Minister Takeo Miki of Ja- pan. The Association's membership consists of wives of diplomats and la- dies from Japan. The association con- w ducts several activities each year. This FSM PARTICIPATES IN BAZAAR-The FSM was represented by Miss ArUneTaktsy H year (1991) one of its special projects is (right), an FSM student studying in Japan under Japanese Government scholarship the compilation of a cook book entitled award. FromIefttorightare:YumiWadaandTakueKasayanagifromtheFSMEmbassy "The Treasure of the Spice Trade" in Tokyo, and Takesy. containing various recipes from mem- ber countries. All the embassies of the South East CFSM adjoumes passing 32 bills and resolutions and East Asian countries, including those of the Pacific countries of Fiji, PALIKIR, Pohnpei (FSM INFOR- costs of typhoon relief goods" to "Lien Papua New Guinea and the FSM par- MATION SERVICE) The first Regu- Piserach operation and Maintenance". ticipated in the bazaar by selling their lar Session of the Seventh FSM Con- C.B. 7-19, GDI, to amend the FSM countries' wares such as crafts, gress adjourned June 9 introducing 71 Code to provide for the creation of clothings, food, jewelries, etc. billsof which 16 were passed, and intro- preferred ship mortgages, maritime The FSM booth had handicrafts, duced 27 resolutions of which also 16 liens. If it become law, it will enable peppers, soaps, coconut oils, shampoos were adopted. Yap Fishing Corporation (YFC) to ob- and other items produced in the FSM. Bills passed include C.B. 7-10, CD7, tain a loan from private commercial The highlight of the bazaar was the appropriating $793,956 supplemental bank(s) to repay its loan from the Yap drawing of raffle tickets, with numer- for the Congress, the President's Office State Government. ous prices, including airfare tickets and External Affairs, public education C.B. 7-22, CD1, to further amend donated by international airlines of the on the constitutional amendments, the Public Law No. 5-89, to change the Asian Pacific region. Continental/Air South Pacific Forum, special election description of a $50,000 for "legal fees Micronesia generously donated two and making technical corrections to the (retainer and expenses) for Fono War round trip tickets to Pohnpei. Door operating subsidy for the FSM Devel- Claims" to "Fono Public Projects" in Prizes from each participating country opment Bank, and funding for fuel un- Northern Namoneas Region in Chuuk were given away by a girl representa- der Office of Administrative Services. State. tive of each country. Resolutions adopted include, C.R. 7- C.B. 7-25, CD7, appropriating The FSM was represented by Miss 27, ratifing the Constitution of the World $660,301 as supplemental funding for Arlene Takesy, an FSM student study- Health Organization (WHO) as adopted operating expenses of the Executive ing in Japan under Japanese Govern- by the International Health Conference Branch, agencies of the National Gov- ment scholarship award. in New York in 1956, and C.R. 7-21, ernment, other National Grants. The proceeds from the bazaar were confirming the nomination of Hilary C.B. 7-33, CD7, to further amend the donated to designated charitable or- Tacheliol to the Board of Dkectors of FSM Code for redefining full-time ganizations or similar activities in the the FSM Development Bank. employees under the National Govern- participating countries. Other bills passed include: ment Employees' Health Insurance Plan. The FSM earned from the proceeds C.B. 7-17, to further amend Public Under the new definition, employees in 800,000 yen (over $5000) and donated Law No. 6-49, to modify the use of Kosrae State who work a 32-hour work- to PATS Trust Fund. Fr. Cavanah ac- certain funds for public projects in Pat- week will be eligible to participate in cepted the donation at the FSM Em- tiw, Weito and Halls. By changing the the plan. bassy presented by FSM Ambassador description of a $13,124 from "Piserach C.B. 7-34, to further amend Public to Japan Masao Nakayama. medicine, food and clothingvand freight (See CFSM, Page 5) CFSM (Continued from Page 4) funds for extension of Tafeyat secon- tion. Law No. 4-28, public proj- dary road project from the President of C .R. 7-12, GDI, respectfully request- ects for changing the allottee of funds the FSM to the Chairman of the Kosrae ing the President to direct the Depart- appropriated from local development State Commisison on Improvement ment of External Affairs to investigate authority to the . Projects. reports that services provided to citi- C.B. 7-35, to further amend Public Other resolutions adopted: zens of the FSM have had an adverse I Laws Nos. 3-17,4-15, 5-26, and 6-106, C.R. 7-1, appointing Dennis Yamase financial impact on Guam, the Com- for changing the allottee of funds for as Legislative Counsel of the FSM monwealth of the Northern Marianas Northern Namoneas from local devel- Congress. and the city of Honolulu, Hawaii. i opment authority to the Governor of C.R. 7-2, extending sincere and spe- C.R. 7-13, approving the FY'92 Pre- Chuuk State. cial thanks and gratitude of the FSM ventive Health and Health services block Congress and the people of the FSM to grant application. A C.B. 7-36, to further amend Public H* Law No. 3-56, public projects forChuuk the Honorable John R. Haglelgam for C.R. 7-14, approving the FY'91 Ul State, for changing the allottee of funds his many years of dedicated and valu- Community Youth Activity program appropriated from local development able service to the nation. Grant application. authority to the Governor of Chuuk C A. 7-3, extending the mostheartfelt C.R. 7-17, expressing the grateful State. thanks and gratitude of the Congress appreciation of the Congress and the C.B. 7-40, appropriating $3,979,040 and people of the FSM to the Honorable people of the FSM for the service per- from the Program Funds of the FSM for Hirosi H. Ismael for his many years of formed by our fellow citizens in Opera- Fiscal Year ending September 30,1991, dedicated service to the Nation. tions Desert Shield and Desert Storm which was earlier appropriated by the C.R. 7-4, extending the sincerest during the recent war in the Persian U.S. Congress under Public Law 101- thanks and gratitude of the Congress to Gulf. 512, for the funding the construction of the Honorable Tony Otto, former C.R. 7-18, expressing appreciation to the new Palikir campus of the Commu- member of the Congress of the FSM, for the Australian National Group of the nity College of Micronesia. his many years of meritorious service to Inter-Parliamentary Union for provid- C.B. 7-42, appropriating $21,120 for the people of the FSM. ing a scholarship for training with the reappropriating certain lapsed funds for C.R. 7-5, extending the sincere thanks Parliament of Australia in Canberra to Kapingamarangi public projects, and gratitude of the Congress to the the Chief Clerk of the FSM Congress. changing the allottee from Chief Mag- Honorable Nick Bossy, former member C.R. 7-24, CD1, expressing serious istrate of Kapingamarangi to Pohnpei of the FSM Congress, for his many concern over the threat to the FSM Community Action Agency. years of dedicated service to the FSM posed by the effects of global wanning C.B. 7-44, further amend Public Law Congress. and respectfully requesting the Presi- No. 4-92, Kosrae State public projects, C.R. 7-7, thanking the Hawaii State dent to assure that the special concerns to reprogram certain funds allocated to Legislature for providing invaluable in- of the FSM are advanced and dealt with Utwe Municipality. service training opportunities to staff effectively. C.B. 7-52, amending Public Law No. from the FSM Congress. C .R. 7-26, to ratify the Charter of the 67-89, Kosrae State public projects, to C.R. 7-11, approving the FY'92 United Nations as adopted and entered reprogram certain funds allocated to Family Planning Title X Grant Applica- into force in 1945. Malem Office building to Malem Com- munications project and to specify the allottee of the funds appropriated. FSM Embassy in Fiji-New phone numbers C.B. 7-54, CD1, to further amend the FSM Code, to exempt an ambassador PALIKIR, Pohnpei (FSM INFORMATION from submitting his resignation after the President takes the oath of office. C.B. 7-60, to further amend Public SERVICE - The Department of External Affairs Law No. 5-80, Kosrae State public projects for changing the allottee of wishes to inform all concerned that effective certain project appropriations from the President of the FSM to Chairman of Kosrae Small Improvement Projects June 20,1991, the new telephone numbers for Commission. C.B. 7-61, to farther amend Public the FSM Embassy in Fiji are 304180 and 304566. Law No. 5-118, Kosrae State public projects, for changing the allottee of Former Governor participates in Presidential Fellow Program PALHOR, Pohnpei (FSM INFOR- discuss tuna fishing industry and appli- consultation, travel and lecturing. » MATION SERVICE) - Fomer Gover- cations of solar power, according to In Honolulu, Hawaii, George also fj mi of the State of Kosrae Yosiwo information obtained from U.S. Em- met with EWC researchers, members of wf George is the first Presidential Fellow bassy in Kolonia. the business community and Pacific selected in a program announced by George, who served two tarns as island contacts. In Honolulu and on ihe U.S. President George Bush last Octo- State, plans to ex- mainland, George looked into voca- ber at the East-West Center. George plore ways in which government and tional education development and fi- anived May 27, in Washington D.C., o private business cooperate in promot- nancing and establishment of labor-in- E engaged in the program activities ing tourism and light industry. George tensive light industry that would be planned for the visit, according to a met in Hawaii with officials and re- suitable for remote, resource-poor is- release from the East-West Center searchers and also inspect geothermal lands. i(EWQ. and ocean thermal energy conversion George, SO, was a participant at the In Baltimore, George had discussions operations and diversified agriculture East-West Center in the 1960sandeamed on economic development & entrepre- projects. a B.S. degree from the University of neurship in Annapolis, and had time in The Presidential Fellowship Program, Hawaii He has dare graduate work in S Crisfield, Maryland for observation of H under the auspices of the U.S. Informa- education. He was a member of the shellfish industry. tion Agency and the East-West Center, FSM Development Bank Board of Di- He traveled to Louisiana where he was launched by President Bush at the rectors, the FSM Development Author- had time for observation and discussion October 27,1990 Summit designed to ity, Trust Territory Personnel Appeal of aquaculture and shrimp industry and bring officials of Pacific island govern- Board and the Trust Territory Social went to San Diego on to observe and ments to the United States for research, Security Board. President Olter's first visit to Chunk after taking office PALIKIRHAT TVTY1 , TV—I__*Pohnpe_ *i /v*o-(FS»M r •w^.INFOR i•' - confeie*• d_ wit. _h _Chuu _k _Stat. e Governo. r histrip. ThePreadentwasthenescorteu*r d MATION SERVICE) -FSMPresident Sasao Gouland and other state leaders into the VIP lounge in the terminal by Bailey Olter accepted an invitation and on matters of mutual interests to the officials of the Department of External addressed the Chuuk High School state and the FSM as a whole. Affairs before leaving fen* his residence graduates in a Graduation Ceremony in Olter flew to Guam following his inDokmier. June in Weno, Chuuk. Chuuk State stopover for a brief visit In another related activity, FSM Vice Olter made his first official visit to with officials in Guam. President Jacob Nena was invited as that State since he took office upon his Olter was officially welcomed with guest of Continental Air Micronesia, to election as President, May 11 this year. honor guards upon arrival at the Pohnpei represent the FSM Government, on the While in Chuuk, President Olter International Airport in Dekehtik from Continental Air Micronesia's inaugural flight on its newly established air serv- ice toCebu city in the Philippines. Nena and his wife Lerina joined other offi- cials and dignitaries on the inaugural flight Prior to departure from AJ>.Won Pat International Airport, Guam, a ribbon cutting ceremony was held in the depar turc lounge. Upon arrival in Cebu.Phfl- ippines, guests attended lunch, hosted by Continental Air Micronesia, Guam and an Inaugural cocktails hosted by Continental, Philippines. On June 1, the guests had choices of either sightseeing or golfing. A dinner was hostedby Cebu Governor Osmena. Vice President and Mrs. Nena re- turned from Cebu to Guam and to OHWAHIGHSCHOOLGKADVATION.ThevaledictorianDawenderNarruhmoftlu Pohnpei, Sunday, Jane 2, according to graduating class i, speaking during the Ohwa High School graduation commencement the flight itinerary accompanying the held at the Koknia Protestant Church, June 6. invitation. Olter respondes to first State Legislature Leadership Conference

WENO, Chuuk (FSM INFORMATION appropriate government agency which can relevant regional and international organi- = SERVICE) - The following resolutions were provide simultaneous technical assistance. zations to assist FSM in the formulation of B adopted by the First State Legislature Lead- Furthermore, all loan applications should be it's tender/strategy. ership Conference (SLLC) held, April 22-26, submitted directly to the FSM Development B. Meanwhile, each of the four states 1 1991 in Weno, Chuuk, and after careful Bank. currently maintains, purchase, operates, i review, President Bailey Olter responded to B. The FSM Bank (commercial) be desig- negotiate contracts and subsidize it's own r the resolutions, according to a release from nated to handle the private sector reserves utility system. FSM External Affairs. sub-account and require that loan applica- The present practice is not only costly but The resolutions include: SLLC Resolu- tions be submitted directly to the bank for it is unreliable and inefficient in the use of tion No. 1-91-007, requesting the National processing and for PDA's approval. monies, expertise, and manpower and not Government, the Federated Development C. The whole amount of the additional compatible with economic development ef- Authority, the IDF Board of Advisors, and $40 million is earmarked for private sector forts. the FSM Development Bank to undertake a reserve sub-account be placed in the FSM President Olter recommended that the joint effort to simplify the application and Bank. (Government agencies can provide four states join together with the private review processes with respect to IDF loans technical assistance with PDA approval or sector to establish a Nation-wide FSM utili- and to eliminate other unnecessary and disapproval.) ties corporation. burdensome conditions and application re- President Olter said he strongly believe His response to securing oil supply and quirements with respect thereto. that since IDF funds are being used and encouraging economic development, he said SLLC resolution No. 1-91-008, request- treated as "low interest" loans, it should be an oil tax should be established that will ing the FSM National Government to initiate managed by a commercial bank with the have all or partial features of the following negotiation with the United States Govern- IDF Advisory Board providing only recom- measures: removal of government fuel rate, ment for the appropriation of the $40 million mendations and the PDA carrying out the earmarked tax for construction of fuel stor- authorized in Section 111 (d) of Title I of the approval/disapproval authority. ages, establishment of a FSM Oil Co., im- Compact of Free Association Act for the He pointed out in his letter to conference plementation of renewable energy technol- FSM. Chairman Speaker Sos that he has reviewed SLLC resolution No. 1-91-002, request- the resolution regarding alternative energy ogy and conservation programs, discour- ing the FSM National Government to assist source and fuel supply and offer the follow- age uses of certain equipment (use of fuel), the States to come with ways and means of ing recommendations: protection of private retail and users, enact- obtaining cheaper alternative energy sources A. Currently each of the four slates has ment of solar tax incentives legislations, and or means of obtaining and distributing lower- ifs separate fuel oil supply contract with sliding tax rates to accommodate volatile cost fuel for all the islands of the FSM. Mobil Oil Micronesia, Inc., and has been in fuel prices. President Olter in his letters to Speaker a weak negotiating position on the pricing President Olter requested Speaker Sos Kisande Sos of Chuuk State Legislature and supply security of its fuel needs. for his prompt comments/response to his said in respect to SLLC Resolutions Nos. 1 - His recommendation to remedied the recommendations so that appropriate gov- 91-007 and 1-91-008, that the National situation is that the four states jointly nego- ernment departments may initiate appropri- Government has earlier raised if s serious tiate and/or tender one oil supply contract, ate proposed legislations when necessary, concerns regarding the established proce- the President said, adding that the FSM can and/or initiate requests, where appropriate, dures and use of the $20 million allocated for seek and secure technical assistance from for external assistance. lending under the IDF Lending Program, as we (FSM) need to ascertain the need for the remaining $40 million balance. Based on the experiences and reviews by the Depart- ment of Resources and Development, IDF Board, the PDA and applicants complain that the following are the main problems that need to be remedied: bank branch offices, application forms, review sequence, and division of the $20 million into the five sub- accounts (four state subaccounts and the private sector reserve subaccount). The President has recommended that: A. If two sub-accounts are to be main- KOSRAEANS IN POHNPEI CELEBRATE COMMEMORATION DAY FOR UALEM- Kotrae Community In tained (State and private sector reserve), /Co/on/a Observed June 6th Commemoration Day for Malem Municipality, Kotrae State, on June S, thi» the retained state sub-account should be year at Msko Beach. The celebration comprising of mini sportt and a luncheon. Standing on the Starting Line In the opening game from right are: Nlpastu Uelina C. Edwin, Deaconett (Intatlang) Kenyt L Tatty, reviewed by FSM Development Bank and Deaconets (Lasa) Kenye L Tally and WCA Member (Setun) Kenye T. Mart/nut. 8 ADB approves $153,000 technical assistance for FSM PALIKIR, Pohnpei, (FSM INFOR- base and professional competence, and Specialist and one Management Infor- i—i MATION SERVICE) - The Asian De- improve its operational capabilities to mation Systems Specialist. S velopment Bank (ADB) has approved a enable it to perform more effectively as The FSM Finance Department will «/f $153,000 technical assistance grant for a self-perpetuating organization. be the Executing Agency and the FSM the FSM to be used for strengthening The technical assistance will require Development Bank will be the Imple- the operation of the FSM Development the services of one Development Bank menting Agency. Bank (FSMDB), according to a release from the ADB Office in Manila. The technical assistance consists of two components. The first component is to assist FSMDB in preparing a cor- porate plan consistent with the FSM Government's Second National Devel- z opment Plan for Fiscal Years 1991 - H 1995. The technical assistance will re- H view the Development Bank's policies and objectives for lending operations, priority sectors, areas of business di- versification, organizational structure and branch network; upgrade manuals to make them consistent with the pro- posed corporate plan and to strengthen FSMDB's project processing capabili- ties; recommend personnel policies; and design a staff training development program which emphasizes basic bank- ing knowledge and specialized skills. The second component will examine ways to improve the existing computer- FSMANDJICS SIGN CONSULTANT AGREEMENT - A Deputy Chief for based management information system Asian Affairs Lorin Robert and the Grant In Aid Cooperation Division of Japan to generate operational data, informa- International Cooperation Systems (JICS) Deputy Director Michimasa Numata, tion and reports reqtured by FSMDB signed the consultant agreement for the Small Scale Long line Fisheries management and staff. Development Project in a brief ceremony held at the FSM Department of With the increasing funds received External Affairs in April, according to a release from the FSM Department of from national and state governments, External Affairs. the FSMDB needs to expand its loan The Note Of Exchange between the Republic of Japan and FSM Governments portfolio. However, it must strengthen gives a $1.73 million package consisting of a 10-ton Tuna long line boatequiped its institutional and operational capa- with fishing gears from the Government of Japan, and a Small Scale Grant In bilities to enable it to channel these Aid Scheme to the FSM National Fisheries Corporation for the Long Line funds more effectively to bankable Fisheries Development Project. private sector projects. The JICS as the consultant to establish tuna project in FSM, will provide The technical assistance will reassess professional services including the designing and drawing of documents, speci- FSMDB's role as a development fi- fying and supervising of the tuna project, and other technical assistance as nance institution, strengthen its staff necessary.

THE NATIONAL UNION Published by: The Office of the President/Information FEDERATED STATES OF MICRONESIA P.O. Box 34, PALIKIR STATION PALIKIR, POHNPEI FM 96M1 Tel.: (691) 320-2548; Fax: (691) 320-2785; TELEX 729-6807