Supreme Court upholds gross revenue tax - Page 6

The National Union

AN OFFICIAL PUBLICATION FOR THE PEOPLE AND THE STATES OF THE FEDERATED STATES OF ^

Volune 6 Kolonia, , November 30, 1985 Member 22 Samoa seeks Tuna quota In Compact HDIDNIA, Pohnpei - The U.S. House Interior Ccnndttee is con- sidering a change in the resolut- ion to enact the Compact of Free Association to set duty free quo- tas for future processed tuna im- ports from the FSM and Marshall Islands, according to Status Com- mission legal Counsel Greg Swartz. "We are still hopeful that the U.S. Congress will complete its SPEC FUNDS HOSPITAL ENESGY PBDJECT - South Pacific Bureau for Booao- approval of the Compact by mLc Cooperation Bnergy Officer Penni Drodrolagi, right, is preeenL- Christmas," President Tosiwo Nak- ing Nov. 22 a $4,607.50 check to FSM External Affairs Acting Secret- ayama said. ary Asterio Tfefcesy as the first half of $9,215 to be provided by The U.S. Senate approved Nov. SPEC for installation of "occupant sensors" by ENE0CH, inc., of Guara 14 the Compact by unanimous con- in the Pohnpei State Hospital to autcnatically turn on and off elec- sent with a $60 million package trical appliances. The sensors are expected to reduce hospital ener- to compensate for the loss of tax gy use by one-half and cost by $18,000 a year. Rccm left are Alik L. incentives for U.S. citizens wor- Alik of the FSM External Affairs Department, Takesy, Pohnpei Hospit- king and investing in the FSM, al Administrator George Fleener and Drcdrolagi. according to a Nov. 19 dispatch from FSM Washington Representat- ive Epel Ilcn. Pohnpei Census shows undercount In order to avoid sending the Compact to a House-Senate confer- roiONIA, Pohnpei - There were changes and is, therefore, likely ence committee to iron out diff- 28,902 people, including 27,618 an indication of a significant erences in the two versions, ef- Bohnpeians and 1,284 non-Pohnpei- undercount during the 1980 cen- forts were being made to have the ans present in Pohnpei on Sept. sus." House take up the Senate version 15, Census Might, according to a The 1980 undercount is estimat- and adopt additional amendments, preliminary count released Nov. ed to be as much as 10 per cent, then send the resolution back to 18 by State Planning, Program- Neth said. the Senate for final approval, ming, Budgetting and Statistics For the Pohnpeians, the sex Acting Administrator Dicn Neth, ratio was 105 males to every 100 (Continued on Page 3) the office of Gov. Resio Moses females and non-Pohnpeians, 177 reported. males to every 100 females. Kolonia, with 6,313 people pre- Inside Compared with the I960 Trust sent, had the largest de factor Territory Census count for Pohn- or actual location population on pei which was 22,081, the 1985 Census Night, followed by Sokehs, Business Fair planned Pohnpei State Census preliminary MadolenihnK, Nett, Kitti and U. (See story on Page"2) count shows the population inc- The count shows that U, Madol- reased at the rate of 6 per cent enihmw, Sokehs and Pingelap were a year, which Neth said "is too the areas most affected by the Municipal elections held large to be accounted for by nat- suspected undercount in the 1980 ural increase or net-migration census. {(See story on Page 3) M/M4 computer sftowi vessels, fees Bank plans

JOIONIA, Pohnpei - The FSM col- nunter v/hen inspected by approp- Business Fair lected mare than $500,000 from riate BSM officials," McCtoy said. Japanese fishing vessels from the The computer program, Which was HDIONIA, Pohnpei - The FSM Dev- beginning Aug. 9 of the current installed in July by Hnerson, elopment Bank is planning to hold fishing agreement through Oct. shows that 1% Japanese fishing a one-week "Business Ffeir" in 31, according to the Micrcnesian vessels are registered to fish in each of the four states next year Maritime Authority computer re- the EBM 200-^tnile ecoocmic zone to commemorate the fifth year of port for October. and 79 permits have been issued its operations, according to FSM- Ofoe fees are paid into an ac- to them for individual trips as DB President . count in Japanese yen, according of Nov. 7. Ohe government development to M®. Executive Director Mike T5>sre *sere 237 foreign fishing bank, which officially began McGoy who cited the average ex- vessels registered since the beg- functioning on Oct. 15, 1981, change rate of 215 yen per dollar. inning of 1985 to fish in FSM wa- with a president and secretary, With the Japanese fishing ag- ters, including others fron Tai- expanded its staff to 15 persons, reement providing for payment of wan, South Korea, the United including seven in the central fees based on the pervailing States and the Solomon Islands. office here and eight in the price of fish in Japan at the end Information en vessels regist- state offices, and its loan port- of each trip and permits being ered to fish in FSM waters is folio to $3,049,301 through Sept. issued for each trip, the MMA sent by TEifX. to the state gov~ 30, according to Mori. staff is maintaining up-to-date erraesots and FSM surveillance "We expect the staff to grow to information in a "Foreign Fishing beats to assist in surveillance 21 and the loan portfolio to $5 Vessels Licensing System" eorput- for illegal fishing, according to million during (fiscal) 1986," er program developed by Esmae Bn- JWB. Deputy Director Peter Sitan. Mori said. erson of Auckland, New Zealand. WMR is producing monthly rep- He said the bank has been able Miss Bnerson also provided Bor- orts on fees collected, based on to expand its services in the eign Fishing Registration lioanse infcarnation entered into the com- states due to the support which forms to MMA specifications which puter by its two statisticians, it has received from the state were printed in New Zealand to be Shra Alik and Evans Raymond, resources and development depart- filled out as each new vessel re- During the 12 norths beginning ments which are working closely gistration is entered into the in August, 1984, there were more with the bank to utilize its loan WANS PC computer. than 300 Japanese vessels regist- funds for "the economic develop- Hie license form provides space ered to fish in the FSM, accord- ment objectives of our nation." for the vessel name, type, coun- ing to McOoy who said that these The states will determine the try, registration number, call vessels are allowed to fish only exact dates of the business sign and date of first trip, plus outside of 12 miles from any is- fairs, Mori said, stating that blanks to be filled in for land in the FSM. the bank proposed holding them in subsequent trips by the ship The 300 vessels reported taking May. captains who will rec^ eive the mare than 900 trips during the "She bank proposed establishing registration forms by mail. period and revenue from license an executive committee in each of *Vessels must either have this fees for vessels of all national- the states to organize and con- form on board or demonstrate ities licensed here in 1984-85 duct the business fairs, he said. knowledge of the registraticn exceeded $3,8 million, he said. Each executive committee will include the FSMDB board member Fishing talks factor in settlement from that state, the state R&D director and three other msnbersf HQKJNIA, Pohnpei - Olie negotia- about 30 miles southeast of Kap- including the state FSMDB branch tions for a regional fishing ag- ingamarangi Atoll, Pohnpei state? manager or loan officer. reement between the United States according to an affidavit by an The bank is planning to provide and South Pacific Ffesrum Fisheries national" governiresit surveillance cash prizes for the first three Agency nations were a factor in officer. places in each category of the reaching a settlement negotiated ftie agreement was negotiated by fair and certificates for the top between the FSM and Ralston Puri- Bertoncini on behalf of the FSM; 10 places, Mori said, adding that na Go. in the court case involv- Honolulu attorney Dana W. Smith donations may be solicited from ing the Lady Marion, a U.S. purse representing the firm, and sever- the private sector to add to the seiner caught fishing May 8 in al high-level Palston Purina of- cash awards. FSM waters without a license, ac- ficials. The categories for competition cording to Assistant Attorney Ge- in the fair will be agriculture, neral Lawrence Bertcncini. Ttie desire by both sides to av- including vegetable, fruit, root In a settlement agreement sign- oid jeopardizing the regional and cofisnercial crops; fisheries; ed Nov. 15 in Honolulu, the FSM fishing treaty negotiations was aninal husbandry; handicrafts and agreed to drop all criminal and one factor in reaching the set- cottage crafts? small manufactur- civil charges against the Lady tlement, Bertoncird said, noting ing industries, and cultural ev- Marion in exchange for paving a that the FSM is participating in ents, iiicluding arts and talent $35,000 fine and acknowledging the negotiations as a member of contests. its fishing without a license the Ftarum Fisheries Agency. The executive conmittee in each within the 200-mLle economic state will work out the methods zone, according to Bertoncini. Bertoncini said that the lady and criteria for judging the ex- One half of the fine, $17,500, Marion had been licensed to fish hibits and will set the deadlines was paid to Pohnpei state in ac- in the FSM in 1983 and 1984, and for registering participants, cordance with FSM .law, Bertoncini that the Ralston Purina officials according to Mori who said that said. expressed a strong interest in the bank will encourage registra- An FSM surveillance airplane avoiding further incidents and in tion in advance to facilitate spotted the Lady Marion on May 8 having its boats licensed in the planning the fair and organizing with her full mt in the water FSM next year. awards and certificates. A. Samoa seeks Ehmes wins Tuna quota Pingelap raco SHI (Continued from Page 1) HDIDNIA, Pohnpei - In Nov. 12 balloting for Pingelap chief mag- lion indicated. istrate, former Pohnpei State At- In a Nov. 26 dispatch from the torney Delson Ehmes who is in 8 FSM Representative's Office in private law practice here and on SB Washington, D.C., Swartz cited a retainer with the FSM Congress the proposal by American Samoa defeated former State Senator Delegate Fbfo I.F. Sunia to limit Welden Welbert by a vote of 362 the amount of processed tuna to 273, according to James Inek, which could enter the United Pingelap chief representative in States duty free from the FSM and Pohnpei. Marshalls to 10 per cent of the CUES APPRBdATIDN - President Incumbent Chief Magistrate Per- H annual average amount of tuna Ibsiwo Nakayana, left, is presen- ens Solomon who did not seek re- processed in the United States ting Nov. 28 in his office his election and was defeated in his O during the previous three years. personal official photograph as a bid for a seat on the Pingelap The FSM and Marshalls do not token of appreciation to David Municipal Council, according to have tuna packing plants. Nevitt for his two years of ser- Inek. W vice as FSM Attorney General and In Nov. 18 a Sapwuahfik (Ngat- in American Samoa produces about a close personal protege of the ik) runoff election, Mwohti Solo- 25 per cent of tuna consumed and President* mon was the apparent winner over 30-35 per cent of the tuna proc- incumbent Chief Magistrate Elter I essed in the united States, ac- Sehpin, according to State Senat- u> cording to Swartz who said the Nevitt commended or Baker Meninsor who said the U.S. consumed 774 million pounds new chief magistrate and council- of tuna in 1984. K3IONIA, Pohnpei - President men will take office in January. Ote Senate adopted amendments Tbsiwo Nakayama presented Nov. 28 Unofficial election returns introduced by Energy and Natural a special token of appreciation from Sapwuahfik gave Solomon 196 Resources Chairman James McClure to former FSM Attorney General votes to Sehpin's 159. of Idaho to allow continuation of David Nevitt for his service to A runoff election was scheduled Legal Services, Farmers Home Ad- the national government and as a for Nov. 30 for Madolenihmw muni- ministration and public health personal confident. cipal high ccnmissioner (formerly services programs; a three-year The President presented the of- chief magistrate) between incumb- transition period for other fed- ficial presidential photograph ent Alter Mwudong and Welson Ka- eral programs; provisions for which was hanging in his office lio. U.S. agreeing to amendments or with an inscription, dated Nov. Mwudong led the Nov. 12 ballot- termination of the Compact, and 27, 1985, which states: ing in the three-roan race with designation of the Interior Dep- "Please know that I cherished 678 votes to 510 for Kalio and artment as the management agency. your excellent service to me and 304 for Pedrus Silbanuz, but fai- my people. We will all remember led to get the 51 per cent requi- •Hie Senate also adopted a new you and your family always." red by the new Madolehihmw munic- trade provision which would allow Nakayama said, following the ipal constitution. most FSM products to enter the presentation in his office, that Madolenihmw Municipal Council U.S. duty free, excluding but- "Dave was more than a legal advi- tons, wathches, textiles, foot- sor to me, he was a protege," a winners were Pihdelis Helgenber- wear and certain leather goods. close personal advisor in policy ger, Section 1; Dion Neth, Sect- The House had approved July 25 a matters. ion 2? John Adolph, Section 3; Ccnpact resolution which would In a Nov. 15 letter to Nevitt, Ersin Costigan, Section 4; Simon eliminate the liberalized trade the President acknowledged that Ham, Section 5; Masao Silbanuz, and tax incentives negotiated in he resigned from the post which Section 6, and Seisiro Solomon, the Compact. he held since Nov. 7, 1983, due Section 7. The Senate version retains the V.o his "family's needs." In Nov. 12 Net municipal elect- earlier House provision which el- He said, "I find that as I look ions, incumbent Chief Magistrate iminates tax incentives for U.S. back on each fitikoko (crisis) we Reinrich Iriarte received 553 citizens working in Micronesia have faced together, the anxiet- votes to defeat his two oppon- and U.S. investors. ies of my office have been much ents, former Pohnpei State Senat- The Senate version provides for lessened by your competence and or Ignacio Rodriquez, who receiv- an investment development loan character." ed 418 votes, and Mathais Victor, fund to compensate for the loss Nevitt stepped down as Attorney 131, for the first four-year term of the tax incentives with $30 General when Carl "Bud" UUman as "district administrator" under million authorized for the first was sworn in on Nov. 14. He rem- the terms of its municipal const- year and $15 million in the sixth ained with the office as a spec- itution. and llth years to be made avail- ial consultant through Nov. 29 Attends population workshop able to attract U.S. investments and was scheduled to depart Dec. to the FSM. 1 to join a private law firm in HDIONIA, Pohnpei - Education The Senate provisicns also au- Saipan. Division Program Development Co- thorize extension or continuation Nevitt, 40, joined the Attorney ordinator Stuart Arno represented of Federal Deposit Insurance General's Office in August, 1982, the FSM at the Sept. 23-Oct. 1 Corp., Small Business Administra- as chief litigator, after pract- Population Education Regional tion, Economic Development Admin- icing law in his native Seattle. Workshop on Evaluation in Palau istration and Commerce Department He was graduated from the univer- which was attended by officials marine resources development and sity of Washington and received from the Cook Islands, Fiji, Kir- tourisn programs, according to his law degree fron the Universi- ibati, Tonga, the Marshall Isl- lion. ty of California at Berkeley. ands and Palau. I/Marine Matching Funds disbursed illegally, Auditor m 03 K3IONIA, Pohnpei - A total of the report which said that both ter the audit report was issued, $889,000 in Marine Matching Rinds hired accountants and are main- that the vehicle repairs for a was disbursed illegally to three taining adequate recordkeeping. pickup truck used to transport states through fiscal 1984, bec- The auditor also reported that conservation officers to and from ause the FSM Congress had not ap- the Yap authority expenditures the dock, folding chairs for con- M proved their marine resources de- charged to representation and en- servation officers' weekly meet- Ivelopment plans as required by tertainment lacked sufficient do- ings and printing and reproduct- law, according to a June 20 rep- cumentation, such as who was ent- ion were program implementation ort by Acting Public Auditor Jack ertained, the nature of the busi- costs which "cannot be considered I E. Yakana. ness and reason for expenditures. as administrative costs of the Noting that the Congress appro- He said that the Truk Maritime program." ved Nov. 4, 1984, after the audit Authority was purchasing fuel for Mailo also said, "We find no period, the Yap state marine res- a surveillance program on week- instances in our records where ources development plan, the aud- ends f ran a member of its board the board utilized the matching itor recommended "that Congress of directors at a cost 40 per fund to cover its expenses." cease appropriating funds to cent higher than fuel at the gov- m response to Mailo, the audi- states not eligible to receive ernment depot which he said could tor requested a legal interpreta- marine matching funds." be providing fuel for weekend use tion on administrative expenses A Pohnpei marine resources dev- and that the authority was paying and the FSM Attorney General's elopment plan vas approved by its for administrative costs, such as Office issued an undated "Memor- state legislature, the auditor vehicle repairs, office folding andum of law" which cited a 1979 said, but was not introduced to chairs purchase, printing and re- Congress Ways and Means Committee the FSM Congress for review and production and board expenses, report which stated that the approval as required by Public which is prohibited by the match- funds should not be "utilized to law 1-26 which established the ing fund law. defray administrative marine resources matching grant .The Truk State Resources and including salaries, program with the FSM providing $2 Development Department was not benefits, travel, acquisition of for every $1 provided by the receiving monthly reports from supplies, equipment or materials." states up to $250,000 per state. Oneop municipality on the status Therefore, the vehicle repairs, A draft Truk marine resources of the $10,000 provided for its folding chairs, printing and plan was introduced June 7, 1981, ice plant and the condition and board expenses would be deemed in the FSM Congress but was not activities of the plant, as req- administrative expenses in a acted on, according to the au- uired by a memorandum of under- court of law, according to the ditor. standing for the funding, the re- memorandum. The audit was conducted at the port said. request of the Third FSM Congress The Pohnpei EDA records showed in Resolution 3-146 which said more than $1,300 paid to restaur- George signs bills that "despite the states' receipt ants for a dinner, loan ocromttee of such funds, very little such luncheons, seminar luncheons and development has taken place," and other purposes which should have LELU, Kosrae - Gov. Yosiwo Geo- the report was made public by the been segregated into administrat- rge signed Sept. 30 into law five auditor. ive costs which are not authoriz- bills, including one to authorize The matching funds provided by ed for payment by the FSM match- fiscal 1986 first quarter funding the FSM included $150,000 disbur- ing funds, according to the aud- for the merger of the Kosrae sed in fiscal 1981, $560,000 in itor. Transportation Authority into the fiscal 1983 and $179,000 in fis- In a July 8 response, after the Public Works Department, accord- cal 1984 with Pohnpei receiving a audit report was issued, former ing to an Oct. 21 Kosrae State total of $280,000; Truk, $300,- EDA Executive Director Anscn Information Office release. 000, and Yap, $309,000. Chong said that the first $50,000 The bill authorizes the Kosrae The auditor also said goals and lacked detailed written records state government to obligate objectives stated by the states but was used to construct and eq- funds during the first quarter of in their plans are too broad and uip the EDA ice plant; that the fiscal 1986 at the same rate as reccfrmended that the Congress re- lunches were provided to the loan the last quarter of fiscal 1985 quire that these objectives be committee which worked without which ended Sept. 30. definitive enough to effectively pay; that the Pohnpei five-year Other bills appropriate $250,- measure. plan was approved and amended by 000 to drydock the M/V Kaselehlia He said that in order to prov- the legislature, and that the EDA field trip ship, $17,500 for voc- ide direction to the programs followed a strict implementation aticnal education rehabilitation which vary widely in each state agreement with the FSM Budget Of- services and $18,300 for the Mic- the national government should fice for use of the funds. ronesian Legal Services Corp. "implement a coordination effort Chong called contents in the Kosrae office and provide for for the various state matching auditor's report "largely out of continuation of fiscal 1984 En- fund programs" and that the lend- context and....not accurate." hanced Operations and Maintenance ing programs conducted by the Yakana said in a July 18 resp- Funds without reversion. states with the matching funds onse to Chong that he did not ad- should be "analyzed and coordin- dress the issue of congressional Nan Model 1/sfed ated through the FSM Development approval of the plan, that the Bank." restaurant expenses were illegal HDIONIA, Pohnpei - The Nan Mod- The Yap Fishing Authority and administrative expenses and that al ruin in Pohnpei was designated Pohnpei Economic Development Ad- the case should be settled in Sept. 16 a U.S. National Historic ministration were unable to docu- court, if he thought the audit Landmark by the Secretary of Int- ment expenditures made under the report was not accurate. erior, according to a letter from first $50,000 which each received Truk Maritime Authority Manager Interior Chief Historian Edwin from the program, according to Mark Mailo responded July 11, af- Bearss to Gov. Resio Moses. Auditor: Student Loan Fund lacks revolving account

HDIONIA, Pohnpei - The FSM Stu- auditor's recommendation that it our collecting loans throughout dent loan Fund is being administ- obtain a qualified accountant and the FSM states will...depend upon ered without a revolving fund as said that one was being transf er- the availability of travel funds." required by law, fiscal manage- ed from the Finance Department to The auditor commented that for ment of the fund is inadequate that office to update its records the Student Loan Officer to have and in violation of fund statute and loan processing procedures. to meet in person with loan rece- and repayment terms and condit- The auditor said that loan man- pients to collect repayments "is ions are largely ignored by reci- agement practices were in violat- an expensive way of collecting pients capable of repaying the ion of Public Law 2-50 which suc- loans (which) therefore must be loans, according to a Sept. 3 ceeded the old Congress of Micro- discouraged." report by Acting Public Auditor nesia Student loan Fund law and The promissory notes signed by Jack E. Yakana. established interest rates first student loan recipients makes The FSM Student Services Office at 3 per cent per year and later them legally Hahle for and bound responded through Education Chief 4 per cent with a 10-year limit to repay the loans, so the Attor- Daro Weital and Finance Secretary on repayment. ney General's Office could assist Al Tuuth concurred that a Student The auditor said that the "cur- in collecting the payments, he Loan Revolving Fund had been est- rent practice for computing int- said. ablished since 1980 in specific erest rates violates statutory accounts in the Finance Depart- because instead of irent. interest on an annual Accountant named But Yakana commented that "to basis, it is added to the total roiONIA, Pohnpei - Ruth Gilmete simply assign a number to an ac- loan, then divided by the number was transfered in October by Pre- count does not in itself consti- of payments which sometimes go sident Tbsiwo Nakayama from the tute the establishment of a loan beyond 10 years. FSM Finance Department to the UI revolving fund." He cited examples of a $6,000 Student Services Office to assist "We were going to transfer the loan with 3 per cent interest ad- in administering the National funds deposited in account No. ded totalling $6,180 to be repaid Student Loan Revolving Fund Pro- 6090 to Student Loan Revolving at $10 a month for 51 1/2 years gram, according to Education Fund last year, but the amount and a $2,000 loan with 3 per cent Chief Daro Weital. collected was not enough to rev- interest added totalling $2,060 Ms. Gilmete will assist Student olve," the Student Services Of- to be repaid in three and one- Services Officer Daimy Leopold fice reported, adding that "the half years. and his administrative assistant, amount collected ($26,221.93) is Student Services denied this Yasko Mendiola, in setting up and at a point where it can be used, practice, stating that interest organizing loan records, as rec- and therefore, will be transfer- is calculated annually at 4 per ommended by FSM Acting Public Au- red to Student loan Revolving cent of the unpaid principal ditor Jack E. Yakana in a Sept. 3 Fund...(and) loaned out effective that "we negotiate all loans to audit report on the program. this school year, 1985-86," the be fully paid in 10 years. Weital also announced that reg- Student Services Office said in While agreeing on the need to ulations are being completed for the Aug. 30 response. enforce loan collections, Student the National Student Loan Revolv- The auditor reported that with Services said, "The success of ing Fund as required by law. $1,501,000 appropriated through April 30 by the FSM Congress for the Student Loan Fund, its fiscal management is inadequate due to a lack of a control total of loans receivable and individual loan ledgers, resulting in Student Services Offices loan disburse- ments not being reconciled with the Finance Department which sho- wed $35,000 more in loans than Student Services. Student Services responded that the Finance Department records run behind its disbursement rec- ords and should show less money having been disbursed than its records, and that it maintains up-to-date ledgers of students repaying loans by logging their checks and transmitting the in- formation immediately to the Fi- nance Department. The auditor said that 10 checks CBDWN AGEOT OFFICIALS VISIT - Officials of Crown Agents, Ltd., of for loans were, returned unclaim- the United Kingdom, the FSM Postal Service philatelic agent, are in- ed, but were not turned over to king courtesy calls on President during separate vi- Finance and the payees continued sits in November. The President is seated left and VSH Poetnaster to be listed as awardees. General , center, Nov. 19 in left photo with Peter Berry, Student Services responded that Crowi Agent senior director in charge of Asia and the Pacific and most of the payees were later lo- Nov. 28, in right photo, with Crown Agent Stamp Bureau Sales and cated and given their checks, Marketing Director John Smith. Berry visited Pohnpei Nov. 17-20 to while the others were cancelled. offer other services to the FSM governments and Smith visited Nov. Student Services agreed to the 26-30. I Says state lacked fishing proof

lOIDNIA, Pohnpei - FSM Supreme Ngatik early April 28 and was Court Chief Justice Edward C. still 50 miles from the atoll at King held that Pohnpei State Leg- midnight that night. al Affairs officials failed to King also cited testimony by meet statutory requirements for FSM and state marine resources seizing a Japanese squid fishing officials that there are not suf- boat which ran aground April 29 ficient quantities of squid in on the Ngatik Atoll reef. tropical waters to justify fish- In an Aug. 15 opinion, explain- ing here, that the kind and con- ing his May 24 order to release dition of the squid found in the the Meiho Maru No. 17, King said vessel hold supported the testim- that the state officials failed ony of crew and ship log records to show probable cause that the that it had been fishing in New vessel had been fishing or had Zealand waters and that the Jap- POLICE OKFK331 COMBOS) - Qov. intended to fish in the state's anese boat would not fish without Resio Moees, right, is presenting 12-nri.le jurisdiction, or in the the fishing master who had flown a letter of coamandation and mon- ^^ FSM 200-mile economic zone. from New Zealand to Japan before etary award Nov. 8 to Bohnpei * The tape-recorded account by a the incident. State Police Officer Joseph John Ngatik fisherman who reported The court held that state and for saving the life of 22-ncnth- 8 seeing the boat apparently fish- national government officials old Eugene Oscar by applying ing in the area on the night of justifiably boarded and searched first aid and oral resuscitation I April 27, during the day on April the vessel where it ran aground when he found the child Nov. 2 w 28 and that night before its col- under state and national fishing face dowi, apparently drowned, in lision about dawn April 29 proved laws, but the state government the D lagoon, according to the to be "impossible," according to failed to show probable cause for office of the governor. King. seizing the vessel, after the in- He cited testimony that its sa- itial investigation showed no tellite navigation printouts reason to bring charges against Revenue tax upheld "show conclusively" that the Mei- the owners and crew and it was HDIDNIA, Pohnpei - ESM Supreme ho Maru was about 250 milies from towed to Bohnpei on May 10. Court Chief Justice Edward C. King held that the national gross revenue tax "is a tax on income within the constitutional power FSM Supreme Courf Calender of the national government," but TRIAL DIVISSMMQIfflPRI declined to impose a penalty on gate/Time Case Erne Proceeding the firm which withheld payment Dec. 2, IBM v likitiraus Sexual abuse while making a "timely, good FSM vObst Burglary faith" challenge against the tax. FSM v Dakaimo Sexual abuse Pretrial In a Nov. 21 opinion. King said motions that Ponape Federation of Cooper- Dec. 3, 9 a.m. Aisek v Foreign ative Associations, known as PFCA Investment Board tojunetive relief Pretrial and the Federation, must remit Dec. 4, 9 a.nu Msek v Foreign $24,498.22 and $24,910.20 in un- Investment Board Bijunctive relief Trial paid back taxes for the first and 10:30 a.m. IttJa vMaeda Road Damage Bearing second quarters of 1985, plus in- Dec. 6, 9 a.m. FSM v Likitimus Sexual abuse Pretrial terest at the rate of 6 per cent 9 a.m. FSM vObet Burglary Pretrial per annum as provided by the ESM 9 a.m. FSM v Damarlane Burglary Sentencing tax law. Dec. 9, 9 a.m. FSM vObet Burglary Trial He confessed reluctance to im- 9 a.m. FSM v Dakano Sexual abuse pose the penalty sought by the Dec. 10, 9 a.m. Panuelo v Pohnpei Hearing ESM for delinquent tax payment Dec. 11, 9 a.m. FSM v LUdtinus Sexual abuse Trial and reserved judgement, stating Dec. 12, 9 a.nu FSM v EBkanno Sexual abuse Trial that "the government should file TRIAL DIVISJDN-IOSR&E a motion if it still feels entit- Jan. 15 FSM v Melander Misuse, governciesit led to the penalty." property Pretrial King granted the government's motions motion to dismiss the challenge FSM v Mongkeya Assault with by PFCA which said the gross rev- deadly weapon Pretrial enue tax is unconstitutional be- notions cause it is actually a sales tax Jan. 31 FSM vMelander Misuse, govern sit and not an income tax which the property Responses FSM Congress is authorized to im- FSM v Mongkeya Assault with pose by the national Constitution. deadly weapon Responses "A sales tax is triggered only Feb. 24, 9 a.nu FSM v Albert Burglary Pretrial by sales of goods, while the 2 p.m. FSM v Mongkeya Assault with gross revenue tax applied to all deadly weapon Pretrial business income," he said, citing 2 p.au FSM v Melander M]U5t286f ^JQ'W&tSl "nonsale income such as compensa- Pretrial tion for personal services, int- 2 p.nu Alien v Abraham Dsmges Trial erest, rentals, royalties, fees 2 p.m. Tolenoa v Kosrae Damages Trial and returns on capital." Feb. 25, 9 a.m. FSM Development Bank King said that the ESM Constit- v Kosrae Builders Debt Trial ution "income tax clause brings 9 a.m. FSM v Sigrah Tax Trial all income within the sweep of 9 a.m. PFCA v Sigrah Debt Trial the conqressicnal taxing power." Bossy soys 73 skills needed H for capital project * VOW, Truk - ESM Senator Nick Happiness Ichin, Ruffo Bailers, N5LONIA, Pohnpei - Fifteen con- Bossy told national Trades Train- Sinferio Kastor, Kasta Ninger, tractors were qualified by the ing and Testing Program graduates Basiente Herick, Basilo Joy, Ran- FSM Office of Planning and Stati- here Nov. 26 that they "nave val- er D. Chaniel, Francis Lorenzo, stics as bidders on the national uable skills which will be needed MLke Welleison, Akinino Ungeni, capitol construction project with to build our nation." Frank Son, Son M. Son, lowanes the bid opening scheduled for 10 Bossy urged the 28 trainees Kbtaro, Harry Gouland, Joseph a.m. Dec. 2 in the Congress cham- which were certified in electric- Kirion, Joseph Back, Kernes Lud- ber here, according to Construct- al , mechanical and construction wig, Francis Francis, Anander H. ion Chief John Crooks. skills to register with the state year, Mike Hewiny. The 15 qualified bidders were and national labor offices to be determined after the Oct. 28 available for upcoming capital Black hydro bid wins deadline for "Notices of Intent construction projects which will HDLONIA, Pohnpei - Construction to Bid," Crooks said. require large numbers of skilled' as scheduled to begin in April or Nine construction firms were workers. May on the Nanpil River hydroel- represented at the second prebid The Truk senator noted that the ectric project here, according to conference here Oct. 17-18 and 34 ESM Congress provided a total of the office of Gov. Resio Moees. firms were represented at the $218,(XX) for the T3 program dur- The U.S. Army Corps of Engin- 09 first prebid conference held Ap- ing fiscal 1986 to "continue to eers announced Oct. 29 that it in ril 10-11, prior to the May 31 provide excellent training oppor- awarded a $5,622,000 contract to bid opening date when all bids tunities for our citizens to bet- Black Micro Construction Corp. of were rejected unopened because ter themselves." Saipan for the construction which 3 the U.S. Congress had not made The fiscal 1986 funds include is scheduled to be ccn|xLeted by *j funds available to complete the the construction of a national December, 1987. base project. training center in Pohnpei, ac- The hydropower project will in- Congress provided $3,94 million cording to T3 Program Coordinator clude the construction of a 4,- in fiscal 1985 for the base proj- Henry Hickey who said that a cer- 600-foot long penstock and road- ect which is expected to cost $10 emony is scheduled for Dec. 18 way, a powerhouse and switchyard million-$15 million, according to for the first group of trainees near the confluence of the Nanpil the Aug. 14 "Notice to Bidders." to be certified in Yap where the and Kiepw rivers and power trans- The FSM also invited bids on program was implemented in Oct- mission lines, according to Col. alternate projects, including ober. Michael M. Jenks, Honolulu dist- four residences, Ccomunity Col- The program is scheduled to . be rict engineer. lege of Micronesia campus civil implemented early next year in The facility will be located work, a sewage treatment plant, Kosrae where Gov. Yosiwo George near Kolonia in Nett Municipality asphalt paving of the road to the is providing two buildings to be and will be capable of generating Palikir site and on-site roads renovated and used as training 4.02 million kilowatt hours an- and driveways and concrete paving facilities, Hickey said. nually to supply some 20 per cent of en-site roads and parking. Applications are being sought of the island's energy needs, ac- The funding remains pending in in Kosrae for trainees and train- cording to Jenks who said that the U.S. Congress which has not ing officers to be trained by In- Black Micro submitted the lowest completed action on fiscal 1986 ternational Labor Organization of 13 acceptable bids. appropriations and the FSM gov- experts, he said. Design and construction docu- ernment is pursuing alternative During the ceremony in Truk, ments for the Pohnpei Internat- sources of funding, according to Bossy presented trades certific- ional Airport terminal are sched- Construction Division officials ates to Serino Xymcn, Trycan Sim- uled to be conpJjeted in January who said the bids will be opened ina, Estor Erwan, Vick Hernist, by the Hawaii architectural and as scheduled Dec. 2 and the con- Hamlin Rufes, Mickency Raymond, engineering firm, Alfred A. Yee, tract will be awarded within the a division of Leo A. Daly, which 120-day review period. was awarded a $143,406 contract The qualifying bidders are for the design work which began Fletcher/IDC, Inc., Kolonia; As- in April, according to the office anauma Gutni Co., Ltd., Guam of the governor. branch? Rush and Tompkins Inter- The U.S. government provided $1 national, Ltd., Hampshire, Eng- million and the Pohnpei State Le- land; Maeda Construction Co., gislature provided $200,000 for Ltd., Tokyo; Hanil Development the terminal which is scheduled Go., Ltd., Guam; Sate Kogyo Co., to be completed in April, 1987, Ltd., Tokyo, and Capital Const- at the Teketik airport site. ruction Corp., a joint venture with Island Hardware Co. of Pohn- Mofidoys set pei and two Philippine firms. LELU, Kosrae - The Kosrae State Also, Atlantic? Gulf and Pacif- Code which went into effect Oct. ic Co. of Manila, Inc.; JDC Corp. 1 revised the legal holidays for of Guam; Lucky • Development Co., SHNKTOR WT2H T3 - FSM state government employees, ac- Ltd., Seoul, Korea; Hazarra-Gumi, Senator Hick Bossy, right, is cording to an Oct. 16 State In- Ltd., Tokyo; Hawaiian Dredging- shewn with Trades Training and formation Office release. Kumagai Gumi Co., Ltd., Honolulu; Ofesting training officers in Truk The state holidays established Maeda Road Construction Co., during, the Nov. 26 graduation ce- by the code are: New Year's Day, Ltd., Tokyo; Black-Micro Corp., reBony there. Fsxm left are Mich- Jan. 1; Constitution Day, Jan. Guam, and a joint venture between ael Martin, construction training 11; liberation Day, Sept. 8; Josman Corp., Yap, and F.F. Cruz officer; Serino Xyaaonf electric- Thanksgiving Day, last Thursday, and Co., Inc., Quezon City, Phil- al; George Ircns, nechanicel, and of November, and Christmas Day, ippines, Bossy, Dec. 25. 129 compfefe first CMS an/mo/ production workshop

BDIONIA, Pohnpei - Twenty-nine Pohnpei State Agriculture Stat- and Augustine Prime and fanners extension agents and fanners f ran ion, beginning with welcoming re- James Santos, Johnny Rudolph and the ESM and Palau conpleted the marks by state economic advisor Anton Augustine. first animal production improve- Dan Perrln on behalf of Gov. Re- Also, Truk extension agents Ar- ment workshop conducted here Nov. sio Moses and ESM Agriculture thur Ansin, Thomas Sappa, Amanis- 12-21 by the College of Micrones- Chief Sadies Henry on behalf of io Joseph and Julian Sivas and ia College of Tropical Agricult- R&D Secretary Bernard Helgenber- fanners Kiyoshi Phillip and Euse- ure and Science, according to CT- ger. pio Pisek; Yap extension agents AS Director Ishmael Lebehn. The training focused on pig, Peter Tairuwepiy, John Yurow and The workshop is part of the CT- poultry and goat production with Mark. Loochaz; Palau extension ag- AS four-year work plan approved field trips and the use of a new ents Samuel Omengkar, Julio Yama- by the D.S. Agriculture Depart- slaughterhouse at PICS high da and Kalistus Polloi and fanner ment which is providing $574,135 school here to demonstrate pig Brikul Ngirichelbad; Linus Soume- to the fiscal 1986 COM Cooperat- and goat meat processing. taw of the Pohnpei Agriculture ive Extension Service program The workshop was held primarily and Trade School, and CTAS staff under the Smith-Lever Act. to train the extension agents to members Jackson Phillip and Engly The Extension Service is sched- train local livestock growers in Icanis uled to hold three Micronesia- their jurisdictions, Dayrit said. In addition to Lebehn and Day- wide workshops, including the an- The governor presented Certifi- rit, the training was conducted imal production improvement work- cates of Training during the by Pohnpei State Agriculture and five local workshops closing ceremony Nov. 21 in the Chief Morea Veratau, PICS agric- the fiscal year, according COM Land Grant Office to Kosrae ultural science instructor Nenon to OTftS Assistant Director Ruben extension agents Tara Talley and Dayrit, Haresh Patel of the U.N. Dayrit. Murtanel Tolenna and fanner Rob- Development Program livestock A citrus iitpcovement workshop ert Sigrah, and Pohnpei Extension improvement project in Pohnpei will be held in Kbsrae and a pep- Agent Hermis Mendiola, livestock and U.N. volunteers Maxima Baroy per production workshop in Pohn- staff members Martin Eldridge, of Truk, Dr. Thavalingan Mailuva- pei early next year, according to Alpenster Henry, Petring Albert, of Yap and Dr. Miklos Dayrit who said a cattle product- Keener Hadley, Mercelino Martin ye of PASS. ion workshop is being planned for Palau. In addition, home gardening and livestock workshops have been held in Rosrae and Bohnpei and are scheduled for Yap in Decemb- er; Truk, January; Marshall Is- lands, February, and Palau, March, according to Dayrit. The animal production improve- ment workshop was held at the PREP board to meet , Pohnpei - All ESM state education directors are scheduled to attend the Dec. 6-7 Badfic Region Educational Procf- ram Board of Directors meeting in Hilo, Hawaii, according to natio- nal Education Division Chief Daro Weital who will be one of the ANIMAL WODUCTJUN W3RKSBOP HELD - Dr. Thavalingan Mailuvaganampill- participants. ai, second from right, a U.N. volunteer working in Yap, is discuss- Guam, the Marshall Islands, Pa- ing pig reproduction daring the Nov. 13 session of the Nov. 12-21 lau, Northern Marianas, American anin&l production workshop held at the Pohnpei Agricul- Samoa and Hawaii public schools, ture Station by the Micronesia Extension Service. From ocrannity colleges and Kamehameha left clockwise are y Icanis and Jackson Phillip, COM Land Grant schools also are scheduled to be Office; Tfera Talley, Kosrae; Linos Soumetaw, PATS; Robert Sigrah, represented at the meeting to1 Kosrae; John Yurow, Yap; Dr. Ruben Dayrit, College of Tropical Agri- discuss cooperative efforts in culture and Science assistant director; Mailuvaganampillai; Mark technical assistance, curriculum Loochaz, Yap, and Brikul Ngirichelbad, Samuel Omengkar and Kalistus and policy development. Polloi, Palau.

01 BATtOHAl. OMIOII Poblished tovt ran Intonation Office r.O. to* 490, Kolonla. Miap*i Federated States of Micronesia 96941 Telephones 548

KetSOn Johnson, Intonation Officer fMi Bryan, Information Advisor Miki*l Uppv*, Broadcast Division Chief Ulvsrson Johnay, InforastloB Specialist •llsssr Rospsl, Craphlc Artist Anal* MMlia, Ateinistrstivs Assistant Nary Alls* Namwl, Clerk Typist •si Jan**, Clerk Typist