Micronesia in Review: Issues and Events, 1 July 2004 to 30 June 2005
Reviews of the Federated States of Proposition A, an initiative allowing Micronesia, Kiribati, the Marshall controlled casino gambling. Much Islands, and Nauru are not included time, energy, and money were allo- in this issue. cated to promoting the pros and cons of the proposition. Billboards Guam appeared. Commercials ran. Editorials The many issues and events to discuss emerged. Groups sponsored forums. for the year under review include Web sites thrived. Pamphlets were privatization, the provision of health mailed (though challenged legally as care, and budgeting the island’s feder- incomplete). People debated. In the ally provided compact impact funds. end, by a vote of 17,078 votes to Perhaps the most important under- 10,724, voters in the October 2004 current was preparations for the elections soundly defeated another 2006 senatorial and gubernatorial in a long line of proposals to allow campaigns. gaming on island. Guam’s public auditor and congres- The other contentious issue of sional delegate both ran uncontested the year concerned the health of the and were easily reelected in 2004. island’s only civilian hospital, the Voters also chose to retain two Guam Memorial Hospital. Three Superior Court judges, Alberto Lamo- physicians ran in the 2004 senatorial rena III and Steven S Unpingco, for elections, illustrating how central and another seven years. Republicans problematic the hospital issue had preserved their senatorial majority in become. By early 2005, the island the Guam Legislature, winning 9 of was split into two main camps. One 15 seats. Returning Senator Joanne faction held that the hospital admin- Brown was the fifteenth highest vote istrators were competent but con- getter, retaining her seat after a strained by civil service and pro- recount determined her two-vote lead curement laws as well as insufficient over the next candidate. The election funding by the legislature. Advocates results surprised some, as former of this view saw themselves as victims Speaker of the Legislature Vicente of a witch hunt. The other camp “Ben” Pangelinan was denied his believed that both administration and seventh consecutive term and ousted hospital managerial processes were from the legislature completely. grossly inept if not corrupt. The latter Republicans Mark Forbes and Joanne view prevailed, after months of inves- Brown were selected as Speaker and tigation, public speculation, medical vice speaker respectively. professional opinion, oversight hear- The community focused intently ings, as well as reports by the Guam on two issues this year. The first was Civil Service Commission and the
104 political reviews • micronesia 105 public auditor. They found an envi- some may represent as positive gains ronment of intimidation, improper are considered by others as controver- expenditures, illegal contracts, con- sial, more modest, or even negative. tracts without proper signatures, and Some do not want an increased US more. By the summer of 2005, the military presence on Guam. Employ- hospital’s chief pharmacist had ment is still down from last year (PDN, resigned and its administrator and 6 May 2005). Tourist spending has medical director were removed. “dropped dramatically” in the last Mental health services were fourteen years (PDN, 13 June 2005). embroiled in an ongoing lawsuit filed Incomes are up just “slightly” (PDN, against the Government of Guam 27 July 2004). Gas prices rose to (GovGuam) on behalf of several men- new highs and are still rising, as are tally disabled patients. The federal monthly power bills. Costs for certain court found that GovGuam agencies basic services have increased. The had been violating patients’ civil rights rollback of the Gross Receipts Tax by not providing appropriate treat- from its short-lived high of 6 percent ment. However, minimal progress was to 4 percent did not produce corre- made in developing an appropriate sponding reductions in the price of system of care, despite a June 2004 goods. Dissatisfaction with the state court-issued permanent injunction of the economy spread across broad requiring GovGuam to rectify this sectors of the community and was situation. By spring 2005, island reflected by resurgent interest in government agencies were requesting increasing the island’s minimum a subsidy of $3 million in order to wage. In the final analysis, Guam’s comply with the court order. economy is still below what it was On a more positive note, Guam several years ago. Memorial Hospital opened a cardio- Those who could least afford to do catheter lab, an operating room suite so awaited payment of the federally used for open-heart surgery. This was mandated Earned Income Tax Credit, a first for Guam, representing a major which many stopped receiving in advance in the island’s health care 1996. GovGuam began denying services. Prior to this, such procedures claims, although some 30,000 could had to be administered off-island, file for partial payments (PDN, 10 Aug typically in California or Hawai‘i, 2004). The issue is still in litigation. incurring overwhelming debt for Furthermore, it has become common patients and their families. for one, two, or three years to crawl Many remain skeptical despite by before even regular income tax some apparent improvements in refunds are received. Guam’s economy, including a pre- Pa’a Taotao Tano’, a coalition of dicted doubling of US military spend- Chamorro dance groups that debuted ing, increased numbers of tourists, in 1999, has steadily evolved. Pa’a higher incomes, and rising rates of dancers have entertained in the Guam employment (PDN, 27 May 2005). and Micronesia Island Fair (held each The assessment of the state of Guam’s May) and have helped represent economy is necessarily complex. What Guam at the Festivals of Pacific Arts 106 the contemporary pacific • 18:1 (2006) and Cultures (festpacs). As its latest culture from the misappropriation endeavor, Pa’a invited other Guam- and misrepresentation that other based Micronesian dance groups to indigenous peoples have faced (PDN, join the coalition, working toward 18 Nov 2004). defining themselves as the organiza- Four people qualified to represent tion that would be the mainstay of a Guam in the 2004 Olympics held in Micronesian Cultural Center of some Athens, Greece. Local athletes partici- sort (perhaps attached to a new pated in track and field, swimming, museum or visitor’s center). Individual and wrestling. A dispute between dance groups within this coalition are local organizations had to be sorted reaching notable markers of longevity; out by the international Court of for example, Natibu, Guam’s largest Arbitration. It determined that the performing arts troupe, celebrated ten Guam National Olympic Committee years of existence in June 2005. Under had no authority to override the the aegis of the Pa’a Taotao Tano’ Guam Track and Field Association’s Foundation, a new Chamorro Cul- selection of an athlete, Neil Weare, tural Village was established at one who was reinstated and participated of the island’s major hotels along as planned (PDN, 14 Aug 2004). Tumon Bay. Several other local athletes repre- Years in the works, steady progress sented Guam in international events continued on the online encyclopedia, such as jet skiing and motorcycle which can already be viewed at racing. In another type of competition,
fied number of workers still remain It has exhibits covering the pre- on Saipan looking for new employ- invasion civilian Japanese community, ment, payment of back wages, a the invasion itself, and the achieve- ticket home, or a combination of ment of commonwealth status. It these. The federal Office of Insular salutes both Japanese and American Affairs kicked in $100,000 for tempo- combatants, as well as the indigenous rary relief but not for repatriation of people caught in the cross fire. It has these workers. been very well received by veterans, The lieutenant governor, along with tourists, and locals. In addition to the newly appointed economic develop- exhibit itself, there is a small theater ment special adviser Richard Pearce, where visitors are encouraged to formerly the director of the Saipan watch a twenty-minute video on the Garment Manufacturers Association, invasion, and a well-stocked book- lobbied the US Congress to amend store and souvenir shop. tariff regulations applying to garments samuel f mcphetres manufactured in the Marianas. The proposed amendment would require 30 percent of value added to be sourced in the Marianas, rather than Republic of Palau the current 50 percent. According to Palau experienced an especially busy the proponents of this amendment, year from July 2004 through June this would allow the factories to 2005. Major events included Palau’s remain competitive, since they would magnificent performance as host of be allowed to bring in precut fabrics the Ninth Festival of Pacific Arts; the and only add labor to reach the 30 seventh national elections; a local percent value added. airline that flew and then collapsed; A substantial increase in the num- overseas interest in megaprojects; the ber of people receiving food stamps beginning of a constitutional conven- indicated the declining state of the tion; and an international sports fest. economy. In December 2004, there Magical, memorable, best ever, were 6,058 recipients in 2,038 house- fantastic, overwhelming, and unprece- holds. Of these, 52 percent were dented were some of the adjectives Chamorro, 20 percent Carolinian, used to describe the Ninth Festival and 14 percent Filipino, with all other of Pacific Arts, locally known as groups accounting for the rest. All of “Bestibal,” which was held 22–31 them, of course, had to be US citizens July 2004. Representatives of twenty- or Green Card holders. seven Pacific Island countries and A brand new visitors center opened territories as well as three Asian in the American Memorial Park, just nations engaged in nonstop feasting, across the street from the Garapan dancing, singing, storytelling, art and tourist district. Designed and operated literature demonstrations, musical by the National Park Service, it pro- performances, symposia, films, and vides a highly professional, visitor- concerts. It was an amazing cultural friendly, interactive experience of exchange that enlivened Palau and Saipan during the invasion of 1944. made Palauans proud as hosts. As political reviews • micronesia 115
President Tommy E Remengesau Jr ous, down-to-earth Chin, who took remarked, “The nation has come 71 percent of the vote (6,919 votes) together. This is the true nature of to her 29 percent (2,812 votes). Chin Palauan culture when it comes to began his campaign early, about two national events and national respon- years before the election, while Pieran- sibility.” tozzi was questioning whether she President Remengesau easily won should challenge Remengesau or reelection in November. For second concentrate on reelection to the vice spot in the executive, assertive and presidency. The 2004 race was the ambitious one-term Vice President third time in seven national elections Sandra Sumang Pierantozzi was that the winning vice-presidential defeated by retired US Army officer candidate gained a greater number of Camsek Elias Chin. Both winners votes than the victorious presidential campaigned hard. During the race, it candidate. It was the first time that was rumored that money from both an incumbent vice president failed to Taiwan and the People’s Republic of regain office. China was going to the presidential In the race for the 25 National candidates, Remengesau and Polycarp Congress seats, Palauan voters refused Basilius. Although disavowed by the to put women in either the Senate (9 two candidates, the claims are consis- seats) or the House of Delegates (16 tent with reports about Taiwanese seats). The niece of former President money going to presidential candi- Kuniwo Nakamura, Imelda Naka- dates in the Marshall Islands and mura-Franz, was the top woman Kiribati (Norris 2004, 20). On the finisher with 3,102 votes in the Senate vice-presidential front, Chin did not race, but that was more than 1,100 hold any fundraisers but relied on his votes behind the ninth-place man. personal finances and some donations, However, at thirty-five years of age, as did Pierantozzi. Nakamura-Franz should be a viable The presidential race involved a future contender. Surprisingly, four wealthy, experienced politician com- incumbent senators were replaced by ing out of retirement to challenge a business and social leaders: Alan Seid, youthful incumbent. Basilius used Alfonso Diaz, Santy Asanuma, and the Internet, media, and money, but medical doctor Caleb Otto. The began his campaign late, whereas members of the House of Delegates Remengesau had superb grassroots represent rather small constituencies organizing, a clear message, and raw —oddly called “states”—that range energy. Remengesau won by a sizable from 349 to 4,583 registered voters. margin, taking 66 percent of the vote Generally, competition for office in (6,494 votes) to Basilius’s 34 percent the states is a matter of who has the (3,268 votes). Pierantozzi, despite the larger number of relatives. This means advantage of being the incumbent, there is little turnover in House mem- allowed uncertainty, tardiness, and bership from election to election. In overconfidence to weaken her chances 2004, just one incumbent lost, of regaining office. She was soundly another won by just one vote, a third defeated by the very energetic, seri- by just eight votes, and a fourth by 116 the contemporary pacific • 18:1 (2006) nine. In three states, the incumbent sons who left their ballots blank on ran unopposed, reflecting the villages’ this question. This was also the case desire to avoid divisive competition. with all the initiatives and indicates As in the past six national elections some confusion on the part of a (the first of which was held in 1980), sizable minority of Palau’s voters. voter turnout was high, some 76 per- Both before and after the national cent for 2004. Besides choosing candi- election, the National Congress and dates, voters had six constitutional Remengesau found other issues to dis- issues to tackle. Five issues had been agree on. The first debate concerned strategically maneuvered onto the important details in the oil bill, which ballot by President Remengesau Remengesau argued must attend to through a voter petition drive that the environmental and socioeconomic garnered the required 25 percent, impact of oil-well drilling and include and a sixth was placed there by the a spill mitigation plan, insurance, and National Congress. This had elements limitations on a proposed national of shrewd politicking. The voters gave energy authority. He said he was Remengesau most of what he sought opposed to any “super agency” that by approving four of the five constitu- would take on regulatory functions tional initiatives: dual citizenship, a for which it had no legal basis, capac- three-term limit for members of the ity, or expertise (TBN, 10–17 Sept National Congress, a requirement 2004, 15). On the last day of 2004, that the presidential and vice-presi- the National Congress passed a joint dential candidates run on a joint resolution supporting oil exploration ticket, and a requirement that con- north of Kayangel Atoll in the so- gressional members be given a uni- called Palau North Block. The dead- form fee in compensation for each line to drill an exploratory well is day they attend an official session. 15 May 2006. The only company Remengesau’s initiative calling for a interested in prospecting is Palau one-house legislature failed by a few Pacific Energy Inc, whose real corpo- votes when five of Palau’s sixteen rate identity remains unknown. states turned it down by narrow Second, the constitutional amend- margins (for example, Angaur went ment requiring uniform compensation 150-yes to 152-no and Ngaremlengui for members of the National Con- voted 205-yes to 210-no). In addition, gress passed, but the congress and Palau’s electorate approved a con- Remengesau took months to get stitutional convention (ConCon) to agreement on this issue. The pay issue review the 1979 document. Not to be was highly controversial, and, accord- outmaneuvered by the president, the ing to former House Speaker Antonio National Congress placed the call for Bells, Remengesau was the most a ConCon on the ballot. Remengesau appropriate person to introduce the opposed this effort, claiming it would legislation. In the exchange of propos- be politically and socially destabiliz- als, the president turned down retire- ing. The convention issue was ment pay for congress members, but approved by 53 percent of the voters, in mid-March he finally signed uni- although this count included 844 per- form compensation legislation allow- political reviews • micronesia 117 ing them to be paid a maximum of top bill author with twenty-two of his $50,000, or $500 for each of the one bills becoming law. The best the hundred required sessions during National Congress could do was six 2005. each by delegates Tony Bells and Kerai Third, as this issue was being Mariur, and Senator Yukiwo Dengokl. sorted out, the National Congress Remengesau led the tsunami-relief and president began wrangling over effort, with Palau contributing some the contents of the constitutional $50,000. He also led Palau’s tenth convention (Con-Con) bill. Basically, Independence Day celebration and the the congress wanted 31 to 37 mem- impressive inauguration of the seventh bers and a May starting date, whereas constitutional government in late the president wanted 25 members and January 2005. Remengesau was able an October beginning. A compromise to persuade Taiwan’s president, the resulted in Public Law 7-4, which Honorable Chen Shui-bian, to attend called for a 26 April election of 25 the inaugural ceremonies. Accompa- delegates to begin deliberations on nied by extremely tight security, 17 May. Chen spoke to a joint meeting of Fourth, seven months into fiscal Palau’s leaders—the first such address year 2005, Remengesau and the by a visiting head of state. In April, National Congress were still debating Remengesau made a return visit to the 2005 national budget bill. The Taiwan for talks with President Chen budget began at $56 million, was regarding the two countries’ bilateral cut to $55 million, then further cut relationship and economic projects. to $52 million by Delegate Bells and He also participated in the opening Senator Asanuma, both fiscal conserv- of the new Royal Hotel Chiao Shi atives. In his State of the Republic Resort, the sister of the Palau Royal address, Remengesau attempted to Resort Hotel (TBN, 22–29 April 2005, patch up the differences by calling for 15). Palau’s Royal Resort is a five-star, cooperation and unity, emphasizing $25-million-dollar structure under- Palau’s 2.5 percent economic growth. written by the Hotel Royal Group. In However, the budget battle continued June, Taiwan Vice President Annette and turned mean as each side slashed Lu made a three-day visit to Palau funds from the other’s areas of respon- for the grand opening of the Royal sibility. All this was going on amid Resort, receiving state visit treatment. factional skirmishes in both the Besides opening the new six-story House and Senate. Finally, on 18 hotel and planting a tree of friend- May, President Remengesau signed a ship, Madame Lu announced an $52.6 million budget for 2005, using increase of direct flights from Taiwan his veto authority to reduce funding to Palau and additional scholarship for various state projects and grants. opportunities in Taiwan for young President Remengesau achieved a Palauans. She, too, moved about only number of other significant accom- under heavy security protection. plishments. The Palau Constitution In other promotional activities, allows the chief executive to introduce Remengesau visited Darwin, Aus- legislation, and the president was the tralia, and Japan, to drum up business 118 the contemporary pacific • 18:1 (2006) for Palau. In Darwin, the push was center, jointly negotiating for medical for passengers to fill up Palau’s home- referral rates with Philippine hospi- grown airline, which would make tals, and joint tourism marketing. weekly roundtrip flights there, and to Palau’s new vice president, Elias begin reciprocal trade. In a short time, Camsek Chin, 55, holds the minister however, these initiatives flopped. In of justice portfolio, a position he also Nagoya, Japan, Remengesau spoke held during the administration of about opportunities for investment, former President Kuniwo Nakamura. tourism, and retirement. The short- Early in his term Chin attended an term prospects for a retirement environmental conference in Mauri- “town” in Palau are uncertain, tius, an island nation in the Indian though, now that Japanese retirees Ocean. After that, Chin met with have attractive, low-cost options in high-ranking US officials to review Thailand and Malaysia. implementation of compact provi- During the period under review, sions. Topics of special concern were President Remengesau received three a saltwater desalination unit, mainte- new ambassadors: Stanislav Slavicky nance of the Compact Road, security of the Czech Republic, Damien at Palau’s airport and seaport, and Gamiandu of Papua New Guinea, terrorism response and preparedness. and Axel Weishaupt from the Federal Chin also traveled to Japan to deliver Republic of Germany. Palau also a guest address at the opening of the expanded its ties with four additional Global Linkage Forum on disaster foreign countries—Greece, Argentina, management. The forum was held Iceland, and Austria. Palau now has immediately after a ceremony Chin diplomatic relations with 37 of the attended for the tenth anniversary of United Nations’ 191 countries. In Japan’s Hanshin-Awaji earthquake. other international business, Remen- Palau’s home airline, Palau gesau met for two days of consulta- Micronesia Airline (pma), went out tion with Secretary General Greg of business (diplomatically called “a Urwin of the Pacific Island Forum, suspension of flight operations”) in who sought Palau’s input on the December 2004 after five months Pacific Plan designed to strengthen of financial struggle. The founding regional cooperation and integration. investors had not realized the high That matched up well with the presi- operating costs of jet airliners (espe- dent’s call for a united Pacific. Soon cially when they are nearly empty), after, Remengesau visited the US Ter- the fierce competition for passengers, ritory of Guam for the fourth meeting and the unprecedented acceleration in of the Western Micronesian Chief fuel costs. After a company restruc- Executives, which included Palau, turing, there were hints of service Yap, Guam, and the Commonwealth resuming in May 2005, but that did of the Northern Marianas. These not happen. However, one of the talks centered on issues of recycling original pma investors, Senator and disposing of solid waste, protect- Alan Seid and his company Midcorp, ing coral reefs, increasing jet airline reportedly bought the domestic airline service, building a regional medical Palau TransPacific Airline Inc, also political reviews • micronesia 119 known as PAir, which had been flying tions, and freshwater availability. the Taiwan-Palau route since 2002. President Remengesau advised the Seid announced that with the Palau- chief executive of UK Investment that Taiwan bilateral air agreement, PAir he should obtain additional assur- will resume four flights per week to ances regarding the abilities and iden- Taiwan in July 2005. Hopefully, PAir tities of some the principal investors under Seid will have a longer life than and stop claiming that the Palau Palau Micronesia had. In the mean- government and Remengesau have time, it is not known who will bear endorsed the project. In spite of the the financial losses of the pma demise. obstacles, Palau’s sixteen state gover- As reported last year (Shuster 2004, nors have unanimously endorsed the 181), the founding five individuals grandiose Nautilus proposal. provided the start-up capital of half a Another megaproject, valued at million dollars, stock sales brought in $400 million, is being proposed for $3 million, the Pohnpei State Legisla- Melekeok State (earlier to Ngiwal ture invested $500,000, and Yap State State) by the Shimao Group of the invested $1 million dollars. Further- People’s Republic of China. This pro- more, the National Development ject would be constructed over the Bank of Palau provided a $1 million period 2006–2010 and would consist loan from a $5 million loan obtained of 300 hotel rooms, casino, golf from the International Commercial course, aquarium, yacht club, and Bank of China. It appears that the shopping center, as well as seaside bank provided a second $1 million and hillside villas. The Shimao Group based on collateral in the form of project has been presented to Mele- land put up by each of the airline’s keok’s leaders, and some members of founding members. the National Congress were wined Golf-course proposals for Airai and and dined in Hong Kong and Shang- Aimeliik (states near Palau’s airport) hai during May trips sponsored by remained stalled during the year. the investors. In a semi-official May However, other megaprojects have visit to Hong Kong, Remengesau met emerged. The most outlandish is the with the Shimao Group for a briefing $2.1 billion Nautilus City being pro- about the Melekeok proposal. He also posed for southern Peleliu. The so- met with Hong Kong Air and tourist called city would include an airport officials and obtained assurances for (built on the World War II fighter direct flights between Hong Kong and strip), 3,000 hotel rooms, villas, Palau beginning in mid to late 2005. recreation facilities, a golf course, a Such flights would take only four and casino, and a marina. Being advo- a half hours. Taiwan’s new Palau cated by Peleliu Governor Jackson Royal Resort and the older Palau Ngiraingas and foreign investors from Pacific Resort (built with Japanese Malaysia who call themselves UK backing) would be ready to receive Investment Holdings Limited, the the visitors. project faces obstacles in terms of The Shimao Group is calling its land availability, antigambling legisla- Melekeok project “Blue Dream” and tion, environmental protection regula- has been quite explicit about what 120 the contemporary pacific • 18:1 (2006)
Palau needs to do to land it: extend served as vice president of Palau’s first land leasing from 50 to 99 years; pro- ConCon in 1979 and delegate to the vide exemptions to some environmen- Micronesian Constitutional Conven- tal requirements; allow a fifty-year tion in 1975. Six other delegates to exclusive casino license; grant a for- Palau’s first ConCon won seats, bring- eign investment permit; and provide ing considerable continuity and expe- adequate water, power, wastewater, rience to this convention. Further, the and telecommunication services. The delegates chose the recording secre- Shimao Group is reportedly a Shang- tary of ConCon 1, Jonathan Koshiba, hai-based real estate company that to serve again in this position for specializes in developing high-end ConCon 2—another move toward properties. Its leader is Hui Wing continuity. In an effort to share Mau (also known as Xu Rongmao), prestige, the delegates elected other supposedly China’s third richest man. officers: Dr Stevenson Kuartei and In addition to the resort, Shimao Sinton Soalablai as vice presidents; wants to build 1,000 housing units attorney Raynold Oilouch as parlia- for foreigners, also in Melekeok (TBN, mentarian; Bonifacio Basilius as 3–10 June, 1–15 July, 1–8 July 2005). spokesperson; Laurentino Ulechong The Chinese Communist Party-State as floor leader; Palau Community under Deng Xiaoping, Jiang Zemin, College President Patrick Tellei as and now Hu Jintao has relaxed its secretary; and former Palau Vice Pres- direct control of the economy except ident Sandra Pierantozzi as treasurer. when a business becomes large and The convention was visited by many powerful. One must wonder if the community groups, some with specific Shimao Group in league with the proposals for the delegates to consider Chinese Communist Party-State has and others simply to show support the covert goal of displacing Taiwan for the important work the conven- in Palau. An astute local businessman tion was doing. The delegates also even speculated that Palau’s local held public hearings in Koror and in politics might stimulate an inter- all the rural states. The convention national incident involving Taiwan ended its deliberations in mid-June, and the People’s Republic. concluding its work with 251 pro- The second constitutional conven- posals. The delegates decided by tion (ConCon 2) began with an elec- majority vote that just twenty-two tion of delegates in April 2005. Legis- of these proposals will be presented lation called for 16 state delegates as amendments to the republic’s elec- (one per state) and 9 at-large dele- torate during the 2008 national elec- gates. Competition within the states tions, as required by the constitution. was not as keen as for the at-large A highly symbolic and emotional race, which had 34 candidates vying amendment-signing ceremony was for just 9 seats. Attorney Johnson held in the National Congress build- Toribiong was the top vote getter and ing on 15 July 2005, bringing Con- became the convention president. This Con 2 to a close (PH, 22–25 July was an indication of the high esteem 2005, 4). the delegates had for Toribiong, who Transparency International, a non- political reviews • micronesia 121 governmental organization active in curement procedures. Peleliu Gover- some ninety countries with the key nor Jackson Ngiraingas was being mission of supporting good gover- hauled to court to answer the special nance and transparency, gave Palau a prosecutor’s charges of misconduct in generally positive report in 2004 (tia office and violations of the Code of 2004). The report noted that Palau’s Ethics and Foreign Investment Acts. Office of Special Prosecutor and These charges concern Ngiraingas’s Office of Public Auditor were essen- allegedly illegal support of the Nau- tial and important pillars of good tilus City mega-resort project. Ngiwal governance. These offices, especially Governor Elmis Mesubed appeared that of the special prosecutor, stayed before the Palau Supreme Court in busy during 2004–2005. Five former June to answer 175 charges of crimi- and current members of the National nal activity concerning the alleged Congress either settled, were charged, misuse of nearly $23,000 of public or had court judgments rendered funds. against them for misuse of travel Potentially the most serious prob- funds, misconduct in public office, or lem for Palau is money laundering both. Each of these cases was aired and its connection to terrorism. In publicly, with a positive impact on September, both President Remenge- legislative conduct generally. The sau and Palau’s Financial Institutions national treasury has received over Commission urged the National $300,000 in settlement payments or Congress to strengthen the republic’s court fines resulting from successful financial institutions and anti–money- suits against members of the National laundering legislation. This was in Congress. Prior to the China travel response to the Hong Kong and sponsored by the Shimao Group Shanghai Bank’s decision to stop mentioned earlier, the House legal honoring wire transfers out of Palau, counsel reminded delegates that off- and the International Monetary island junkets paid for by foreigners Fund’s deep concern that Palau was who have business interests in Palau not strengthening its regulatory and might be problematic in terms of supervisory mechanisms. While foot- Palau’s Code of Ethics law. Other dragging by congress members con- legal action concerned the extradition tinued, Palau and Taiwan signed an of a Palauan who formerly worked at agreement to cooperate in the fight the US Embassy in Palau, and a group against money laundering and the of people who were charged with related financing of terrorism. The operating Koror-town businesses— agreement calls for the sharing of known locally as fronts—without information on the identity and move- foreign investment certificates. Fur- ment of bad money, and the provision thermore, three state governors were of technical assistance to improve under scrutiny by the special prosecu- Palau’s investigative capacity. tor and public auditor. The public At the United Nations, Stuart Beck auditor told Governor Tadashi has served as Palau’s ambassador for Sakuma of Ngaraard State that he nearly two years and Palau’s profile was not following the mandated pro- has increased, although that has not 122 the contemporary pacific • 18:1 (2006) been easy. On behalf of the Palau tion projects, and grant aid. Presently, government, Beck received a sizable Palau has three jica resident experts, monetary contribution from the eleven senior volunteers, jica staffers, Greek UN ambassador, but in Febru- and twenty-four Japan Overseas ary 2005 Beck commented on the Cooperation Volunteers. The volun- difficulties of delivering UN assistance teers serve two-year terms and are to Palau and other Pacific Island involved in teaching, research, states. He urged that the United museum, and hospital work. Ongoing Nations station a representative in infrastructure projects include major Palau and other small island states as improvements to the three causeways the best way for the governments to leading from Koror to Airai, Meyuns, access developmental opportunities and Malakal. This work will signifi- and resources. Regarding the issue of cantly improve the safety of these expanding the Security Council, Beck roadways. Future work will include stated that Palau supported Japan’s construction of an interisland access bid for permanent membership. This road, and resurfacing and reconstruct- subject was earlier broached by then ing Koror’s twenty miles of road, now Vice President Sandra Pierantozzi in nearly twenty-five years old. Further- an address to the fifty-ninth session of more, officials from both Palau and the General Assembly in September Japan signed papers agreeing to com- 2004. As a signatory, Palau was plete a solid-waste management pleased to see the Kyoto Protocol project. Apparently this effort will come into force in February 2005. As include the development of a national a nation just meters above sea level, plan to reduce the amount of solid Palau will be drastically impacted if waste, improve waste disposal, global climate change is not slowed improve Koror’s landfill at m-Dock, and reversed. In other UN business, and provide training in waste man- Palau gave notice of its withdrawal agement. from the Group of 77 and China. The The Taiwanese have been inter- decision to withdraw from the Group ested in Palau ever since 1981, when, of 77 was based on the realization for the inauguration of the first gov- that Palau was spreading its resources ernment, the visiting delegation from too thinly, and that its positions on Taiwan went through the airport environmental issues could be more receiving line twice to assure they effectively expressed through the were noticed by the local vips. When Alliance of Small Island States. in Palau for the January 2005 inaugu- Foreign nations continue to assist ration of the seventh government, Palau, especially Japan, the United President Chen Shui-bian addressed States, and Taiwan. Japanese assis- the National Congress, and his tance is broadly based and mainly message to the people of Palau was channeled through the Japan Interna- printed in the local newspaper. He tional Cooperation Agency (jica), mentioned basic infrastructure, agri- which has an active office in Koror. culture, fisheries, education, and jica assistance consists of volunteers, medicine as cooperative programs. youth invitations, technical coopera- He stated that tourism and investment political reviews • micronesia 123 were mutually beneficial and “can 2005 without comment from the only grow stronger and more endur- United States. Tia Belau News carried ing with the passing years.” Also, he a full double-page description of complimented Palau on its beauty resident Chen— his life, career, and and keen political leadership, and vision— and outlined the Palau- thanked Palau for its voice of support Taiwan political relationship. The for Taiwan at international organiza- early May 2005 issue had two full tions such as the United Nations and pages celebrating twenty years of the World Health Organization. In agricultural cooperation. In October his message, President Chen did not 2004, leaders from both republics had mention the “one-China” versus celebrated “Double Ten”—the ninety- “two-China” issue except indirectly: third anniversary of the founding of “With unwavering courage and the Republic of China—with much determination, Taiwan will absolutely feasting and toasting. On 29 Decem- continue to fulfill its rights and duties ber 2004, on the fifth anniversary of within the international community, the establishment of diplomatic rela- and contribute to the common good tions, President Remengesau and with vigor.” Also, he claimed that the Ambassador Clark Chen unveiled “universal value of self-determination four postage stamps commemorating is a common conviction of both this event. The stamps recognize the nations, and serves as the foundation Taiwan Technical Mission, the grand for our cooperation in the interna- Ngarachamayong Cultural Center, a tional arena” (TBN, 28 Jan–4 Feb goodwill visit of the “Fleet of Friend- 2005, 14). ship,” and the Belau National Besides the $20 million loan a few Museum. The center and museum years ago from Taiwan’s International were built with large grants from Commercial Bank of China for phase Taiwan. two of Palau’s national capital proj- In a meeting of the Palau Rotary ect in Melekeok, Taiwan this year Club, Deborah Kingsland, chargé provided grants for short roads— d’affaires at the US Embassy in Koror, $640,000 to Aimeliik for a 500-yard- outlined US objectives in the Pacific, long road, $130,000 to Ngchesar for including creating stability, ridding a road/causeway project, and $1.1 the region of terrorism, positively million for a connecting road—as integrating China into global and well as another $409,000 for a water regional institutions, and irreversibly system in Melekeok. The capital’s dismantling North Korea’s nuclear need for a wastewater system was program. She also noted that the also met by a $2.4 million grant from freely associated states are key allies Taiwan. This system will recycle the for the United States, as are Australia, treated wastewater instead of dis- Japan, South Korea, Thailand, and charging it into the ocean. the Philippines. Kingsland did not The Taiwanese “Fleet of Friend- mention the tension in the Taiwan ship,” consisting of a frigate, a supply Straits or the US refusal to sign the ship, and 530 navy officers and gradu- Kyoto Protocol, but she did state that ating cadets, visited Palau in June climate change was a high priority 124 the contemporary pacific • 18:1 (2006) issue for the United States. US total (palaris), which gives Palau the direct payments under the compact capacity to inventory, support, and for Palau government operations for manage its cultural, economic, human, fiscal year 2005 declined by about and natural resources. The develop- $2 million to $12.7 million. The ment of palaris has been ongoing fifty-three-mile compact road around for twenty years with several million Babeldaob is nearly 50 percent paved, dollars of support from the US Inte- and Daewoo, the main contractor, rior Department. The US Federal stated that the project will be com- Aviation Administration made a huge pleted by December 2005—weather grant of $26 million over three years permitting. to upgrade the Palau International US Interior Department Deputy Airport in Airai. Some $19 million Secretary Lynn Scarlett and Assistant will go to resurfacing the runway and Secretary David Cohen led a fifteen- repair the apron and taxiway; $2.5 person trade mission to Palau in May. million will be used for aircraft rescue The objective of the mission was to and firefighting (arff) equipment as explore business opportunities in well as a building; the remainder of Palau, and the group was made up of the funding will be used for arff business executives, college adminis- trucks, loading bridges, perimeter trators, and hoteliers such as Manfred security fencing, and an airport Pieper of the Guam Hilton Resort master plan. The US Department of Hotel. No doubt the visitors noted Agriculture will make $1.4 million of that, with just 20,000 people, Palau grant funds available to Palau for a represents a small market in a very wide variety of needs at the Ministry distant location, but one that is just of Education, Bureau of Public Safety, three hours from most of the major and Environmental Quality Protection capital cities of Asia. Board. vips cut ribbons for the $3.6 mil- Australia also continued its assis- lion Malakal Natural Wastewater tance to Palau in important ways. Treatment Park, built with grants The first was “Operation Island from the United States. The new Chief,” consisting of joint sea patrols facility doubles the capacity of the to catch fish poachers. This was a old one and combines mechanical combined effort on the part of Aus- and natural methods of treating tralia, Palau, the Federated States of wastewater. However, the resultant Micronesia, and the Republic of the fluid is discharged into the ocean, Marshall Islands, using fast patrol and no one knows what it will do boats donated by Australia. It to the ecology of Malakal Harbor. resulted in twenty-seven boardings A three-year technical assistant grant and over $310,000 in fines meted for $640,000 was provided to Palau’s out to four illegal vessels. Other Ministry of Resources and Develop- assistance included several days of ment. The grant will complete the basic police training, equipment and Palau Automated Lands and training for environmental monitor- Resources Information System ing, computer software for the political reviews • micronesia 125
Ministry of Health for supplies at the relatively young age of 65. inventory, and help to the community Another important Palau business- centers at Peleliu and Ngarchelong. man, Tmilchol Bechesrrak, passed Palau has yet to establish diplo- away at 88. Like Asanuma, Bechesr- matic relations with Indonesia, its rak exemplified the values of hard huge neighbor to the south. Minister work, discipline, and determination. of State Temmy Shmull stated that He held the chiefly title of Remeliik. there are boundary issues that need Lastly, a unique and Socratic-like per- to be resolved. During its brief period son, Jonathan Olsingch Emul, died at operating to and from Darwin, Palau age 78. Well known, outspoken, and Micronesian Air apparently had quick-witted, Emul had a long career approval to fly through Indonesia’s in public service that included politi- airspace, but that was later ques- cal and educational leadership. He tioned in terms of bureaucratic pro- was often sought out by both local cedures. Fortunately, the overflights and visiting researchers for his clear ended before problems escalated. memory of events spanning the Japa- Palau lost some important people nese and American periods in Palau. during the year. Particularly tragic Leading women of Palau assembled was the death of twenty-four-year-old in their fourteenth annual Mechesil US Marine Jay Gee Ngirmidol Belau Conference. As at past meetings, Meluat. He was Palau’s first casualty the women were deeply concerned in the Iraq war. Currently Palau has with social problems and changes in other young men and women in the customs. The social problems included US military in both Iraq and Afghan- sexually transmitted diseases, prosti- istan. Expert carpenter and teacher, tution, suicide, domestic abuse, and Isidoro Polloi, 63, drowned in a freak disobedience among the youth. The boating accident while fishing. Tkede- women were also concerned that sau (chief) Asao Rengiil passed away proper customs regarding funerals in September 2004. He was a ranking were not being followed. In addition chief in two states and worked for they complained about foreign work- the Palau government for over thirty ers and lobbied for changes in the years. Masami Asanuma, who was a laws and regulations covering such contemporary of Roman Tmetuchl, workers. The women addressed many Indelecio Rudimch, and Ngiratkel of their concerns to government lead- Etpison, passed away at nearly 90 ers and requested their support. years of age. Asanuma held the distin- The Supreme Court lost Justice guished chiefly title of Sechalrraimul. Barrie Michelsen to resignation after He began a small store in 1947 and eight years of service. President built it into the fifth largest retailer in Remengesau appointed Judge Mary Palau, which his son, Senator Santy Lourdes Materne as Michelsen’s Asanuma, carries on. Former Con- replacement. She joins Associate Jus- gressman Mengiraro Ngiratechekii, tices Larry Miller and Kathleen Salii, a longtime teacher at Palau’s Seventh- and Chief Justice Arthur Ngiraklsong, Day Adventist High School, died balancing the court with two women 126 the contemporary pacific • 18:1 (2006) and two men. Palau Community Col- ity, where they will be identified. lege was accredited for six more years David Major of Post Star Productions after being evaluated by the Junior filmed the entire event. The recovery Commission of the Western Associa- and transportation teams received the tion of Schools and Colleges. The col- full cooperation of President Remen- lege received $20,000 from unesco gesau and his staff, High Chief Reklai, to assist in implementing a new asso- and Senator Surangel Whipps and his ciate degree in library and informa- son, Mason. tion services; it also began free classes Almost exactly a year after the in Mandarin language in January. Festival of Pacific Arts, Palau Palau’s connection to Japan is both welcomed more than 2,100 Pacific contemporary and historic and the Islander athletes and officials for the sixtieth anniversary ceremony of the Seventh South Pacific Mini Games, Battle of Peleliu reinforced that truth, 25 July–4 August 2005. Twenty as has the impressive work over the Pacific Island nations and territories years of the BentProp Project, led by were represented. It is anticipated that Dr Patrick Scannon of San Francisco. the games will be as successful as the Scannon brought Mr Tommy Doyle “Bestibal.” to Palau in 2005. With President donald r shuster Remengesau, they used scuba gear to visit the crash site of the US b-24 bomber that carried Doyle’s father, Special thanks to Yoichi K Rengiil Sergeant Jimmie Doyle, to his death for comments on an earlier draft of after a 1 September 1944 bombing this review. run on Japanese facilities and forces in Palau. The aircraft is in about seventy feet of lagoon water and was References miraculously found in January 2004 Norris, Graham. 2004. Pawns in the by Scannon and his team, aided by Game: Pacific Becoming Key Battleground an elderly Palauan fisherman. A few Between Taiwan and China. Pacific Maga- years earlier, BentProp found a US zine May:12–20.
Navy Avenger aircraft on Peleliu. PH, Palau Horizon. Biweekly. Koror. This plane had carried three airmen. Based on BentProp’s search work, Shuster, Donald R. 2004. Political Review of Palau. The Contemporary Pacific both crash sites were excavated in 17:173–183. early 2005 and remains were recov- ered at the sites by navy specialists TBN, Tia Belau News. Weekly. Koror. working closely with specialists from tia, Transparency International Australia. the Joint pow/mia Accounting Com- 2004. National Integrity Systems: Trans- mand (jpac) located at Hickam Air parency International County Study Force Base, Hawai‘i. Scannon had the Report—Republic of Palau 2004. honor of being invited by the military