p olitical reviews • microne sia 205 tions decided to continue to employ Kuartei, Senator Santos Olikong, and Jack Abramoff, lobbyist for the com- newcomer Ben Roberto, the former monwealth, to try to block such legis- governor of Angaur State. lation in Washington dc. In July 2000, Nakamura finally samuel f mcphetres announced that his “anointed one” was none other than Vice President Remengesau. This gave a significant boost to Remengesau’s efforts, in Pa l au addition to his vigorous campaigning, Political events during the period which involved a great deal of travel under review were dominated by the and grassroots contact. With 70 per- change of executive leadership in the cent of the Palau electorate turning Republic of Palau. The eight-year out for the primary, Remengesau tenure of President Kuniwo Naka- came out on top, taking nearly 4,000 mura came to an end. Nakamura’s votes (43 percent) of the 9,221 cast. two-term vice president, Tommy E The second-place finisher, Senator Remengesau Jr, a youthful forty-four, Sugiyama, garnered 2,050 votes, or took on the mantle of leadership, 22 percent of the total. Sugiyama had making it clear that a new dynamism supported Nakamura throughout his would be brought to the office of the tenure in office and was disappointed president. that the outgoing president had not Palau’s sixth national campaign thrown his political weight behind and election 2000 were the most such a longtime, loyal supporter. expensive, gaudy, and interesting in After his defeat in the primary, the young nation’s history. Palau’s Sugiyama redoubled his efforts and local Tia Belau News ( TBN ) claimed gained the support of the other three the event was “excessive” and that losers, who signed a contract pledging some $5 million had been spent in mutual support. Sugiyama recognized campaigning. Not only were the presi- that if he could get a major share of dency and vice presidency contested, their supporters and a reasonable but the full slate of twenty-five seats portion of the electorate who had not (formerly thirty) in the Palau National turned out for the primary election Co n g r ess were open to challenge. Such but would for the general, a Novem- legislative seats are highly valued by ber victory was possible. Sugiyama Palauans because of the prestige and was the underdog and had several business opportunities that seem to disadvantages compared to Remenge- accompany the positions. sau, but he campaigned hard as the Presidential campaigning for a November general loomed. After all September primary contest occupied the ballots were counted, Sugiyama much of the midyear. With Nakamura had done surprising well, with nearly retiring, the presidential race was wide 5,000 votes. His hard work and alli- open, and five qualified candidates ance with the other primary election emerged: Vice President Tommy E losers nearly got him a win. As it Remengesau Jr, Senator Peter Sugi- tu r ned out, Remengesau was able to yama, Minister of Education Billy stay ahead, defeating Sugiyama by 206 the contemporary pacific • spring 2002

674 votes of the 10,718 cast. In the The executive branch got right to primary, Sugiyama had trailed Rem- work on an ambitious agenda; how- engesau by 21 percentage points, but ever, the bicameral Olbiil Era Kelulau in the one-on-one contest the gap (National Congress) had more than was cut to only 6 percentage points. the expected organizational difficul- Some 81 percent of Palau’s voters ties. The House of Delegates took had turned out and elected Remenge- nearly four months to organize itself sau by a relatively small margin. because of a seemingly endless skir- Palau had its sixth president. mish over the House speakership. The vice-presidential race was a In the Senate, the seating of Sena- contest of style and reputation. Dele- tor-elect Elias Camsek Chin evolved gate Alan Seid projected an image of over the months into a bitter fight that the smooth operator, the deal-maker, escalated to include the traditional the jet set. In contrast Senator Sandra chiefs, the Palau Supreme Court, and Pierantozzi came across as committed, the state governors. In question were honest, hardworking, and caring. She Chin’s qualifications—was he a entered the race late but, like Seid, Palauan citizen, and did he meet the campaigned vigorously. She also had residency requirement as required as much in the way of financial by the Palau Constitution? The Palau resources as Seid did. In the end, Supreme Court ruled that Chin was Pierantozzi defeated Seid by over 800 qualified to take his seat, but the votes to give Palau its first woman majority of the Senate—Joshua vice president. Koshiba, Seit Andres, Johnny Reklai, More than sixty candidates had Steven Kanai, and Harry Fritz— entered the race for the twenty-five demanded he sign a consent form congressional seats. Fourteen incum- allowing for a probe of his past citi- bents regained their seats, but there zenship. Chin agreed in December, were some surprises with “green” and soon after that the US Embassy in challengers such as Mlib Tmetuchl, Palau provided information indicating Yukiwo Dengokl, Steven Kanai, and that he was not and had never been environmentalist Noah Idechong gain- a US citizen. Some time later the ing enough votes to be elected. Two majority faction in the Senate again women had entered the congressional requested Chin’s signature on a con- race. Lolita Gibbons finished twenty- sent form. Chin refused, arguing that third in the twenty-five-person Senate such a requirement was not estab- race. In contrast to that poor perfor- lished in the Palau constitution as a mance, Leilani Ngirturong-Reklai lost qualification for legislative office. The by only a small margin to incumbent Senate declared his seat vacant and Steve Umetaro, with 22 5 votes to 259 , called for a new election. In response, in the race for the Aimeliik State dele- Chin filed suit in the Palau Supreme gate seat. Court, arguing, essentially, that five Palau’s new government took office senators had illegally excluded him on 1 January 2001 and was inaugu- from taking his seat in the sixth Con- rated several weeks later, with nearly gress in violation of the Palau consti- thirty foreign delegations present. tution. Chin, a minister of justice in p olitical reviews • microne sia 207 the Nakamura cabinet, asserted that claimed it will provide $5 million as he was constitutionally a senator a low interest loan to the Palau Devel- because senators are “chosen by the opment Bank for small business devel- vote of the citizens of Palau eligible opment loans. The bank claims it is to vote in general elections, and by interested in community service and no other method” (T B N, 23–29 June will make $80 million available to 2001, 2). This tense issue was unre- stalled mega-resort projects that were solved by midyear. planned for Koror years ago. Yet, Palau appears to have two kinds there remains some skepticism about of private, foreign-supported develop- the Allied Boston Bank in Palau. ment projects going on: first, small- Another more public project is scale, practical, appropriate technol- the new national capital construction ogy projects, such as the successful effort going on in Melekeok State in Palau Organic Farm venture in central Babeldaob. The second phase Ngaremlengui State, or the agriculture is valued at $25 million and will res u l t operation in Aimeliik State supported in Washington, dc–style buildings for by a Japan-based nongovernmental Palau’s executive, legislative, and judi- organization; second, Palau seems to cial branches of government. Although have a talent for attracting huge, receiving some criticism for its un- multimillion dollar corporations that Palauan design and unimportance, occasionally have an aura of exclusiv- the project is reportedly financed by ity and even mystery. The Allied a $20 million soft loan from a Taiwan Boston Bank is chartered in Palau, bank and $5 million from the Palau received its Foreign Investment Board National Congress. Black Micro Cor- certificate in 1999, and is now head- poration is the project’s current con- quartered in central Koror’s Palasia tractor and has turned over some Hotel. The bank has an interesting completed structures from phases one pedigree and a huge amount of and two. Former President Nakamura money. The Palau operation is a had suggested the government of subsidiary of Allied Boston Interna- Japan might be approached for fund- tional, which brokers acquisitions, ing for the third phase, consisting of mergers, and joint ventures. roads, and water and sewer treatment In turn, Allied Boston International facilities. Critics of the grandiose pro- is a subsidiary of the Allied Group of ject claim the final cost will escalate Geneva, Switzerland. This group con- to $40 million and is irrelevant to sists of wealthy individuals who pool nation-building. their millions to finance projects all A foreign investment project that over the world, and apparently has got off the ground—at least legally— made some $50 0 million in loan funds during the period under review was available to Palau’s Allied Boston an internet gaming and gambling ven- Bank (T B N, 26 Aug–1 Sept 2000, 9). ture. In August, President Nakamura Recently the Allied Boston Bank has signed r p p l 5-45, which provided been granting unsecured loans in him authority to negotiate and enter Palau of up to $2,500 with proof of into agreements granting exclusive an applicant’s employment and has rights for the operation of virtual 208 the contemporary pacific • spring 2002 gambling games originating in Palau. United States. Funded completely by Soon after, a joint Japan-Palau group, Japan, the graceful new Koror-Babel- Mi c ro n e s i a I n t e rn e tD e v e l o p m e n t Tec h - daob bridge is nearly complete. Repre- nologies Corporation (m i dt e c h), sentatives of Japan and Palau recently applied for the exclusive right to oper- signed an agreement granting Palau ate software and a computer server $14 million for a new airport termi- that would make virtual pachinko nal building and improvements to the available to players in Japan and other aircraft parking apron. The old termi- As i a n co u n t r i e s , but not in P a l a u .F ro m nal, currently being demolished, was this operation, Palau would receive built in the early 1980s by Roman $2.5 million, plus 4 percent of the Tmetuchl with partners from Japan. gross revenue, which would total The huge, 53-mile Babeldaob circle about $7 million yearly. In contrast, road project has been beset by wet m i dt e c h stated in its foreign invest- weather and the unforeseen problem ment application that it expects to of “gummy” soil that is difficult to earn a net profit of $19.5 million per dry. The $149 million project, funded year for the first two years and a by the United States–Palau compact, whopping $42 million its third year of is being built by Daewoo Engineering operation (P H, 1–7 Dec 2000, 5). So and Construction Company, which is far, m i dt e c h is not in operation. rep o r tedly independent of the Daewoo Alan Seid, loser in Palau’s recent Group now experiencing major legal vice-presidential race, is a partner in and union problems in South Korea. the m i dt e c h venture. He is also the The gigantic project is being overseen en e r gy behind the Aimeliik golf course by the US Army Corps of Engineers, project, which underwent rigorous which carries out regular inspections. environmental scrutiny by the Palau The completion date for the road has Conservation Society. This watchdog been extended to 2004. organization found potential prob- Important as these projects are, lems with the project’s environmental both the compact and the former impact statement in the areas of chem- Trust Territory of the Pacific Islands ical and weed control, and the use of funded dozens of smaller infrastruc- fresh water and land, and great uncer- ture projects all over Palau. These tainty reg a r ding when (if ever) the golf were reviewed by a Department of course would “produce a true profit.” Interior audit team in 2000. The final Seid and his partners brought in some report described numerous irregulari- US environmental experts who pro- ties including lack of cost estimates, vided responses to all the criticisms. lack of project inspections, misuse of The Aimeliik State Legislature then funds, and poor procurement proce- gave its stamp of approval to the $33 dures. Perhaps the most serious short- million, 192-acre investment scheme, coming it documented was the govern- as did the Palau government’s Envi- me n t ’ s failure to begin and complete ronmental Quality Protection Board. construction of the Malakal sewage Yet another group of construction treatment plant extension project, a projects is being funded with grants project authorized in 1993 and allo- from the governments of Japan or the cated $5.15 million. Because the cur- p olitical reviews • microne sia 209 rent facility is operating beyond its that it will have its eye more on the capacity, it discharges pollutants into public good than on private gain. the waters near the plant (T B N, 26 Remengesau began his presidency Aug–1 Sept 2000, 4). The Interior with zest, issuing ten executive orders report recommended numerous cor- and presidential directives. These cov- rective measures. ered establishment of important task In a full-page statement, President forces and offices, the most significant Nakamura presented his farewell of which was the Office of National message to the people of Palau (T B N, Bank Commission and a related task 16–22 Dec 2000, 4). After a very suc- force to draft comprehensive banking cessful eight-year presidency, he was legislation. This order also imposed finally bowing out, stating that he had a six-month moratorium on the “the utmost faith and confidence in approval of any new banks in Palau. the newly elected leaders” and that he Other moratoriums were established would aid and support their efforts. with respect to executive branch hir- In just six short months, Palau’s ing and travel. These actions indicated new president—Tommy E Remenge- that the Remengesau style would be sau Jr—has established himself as an a proactive one. executive leader with energy, vision, Remengesau’s emphasis on govern- and commitment. He has a strong ment service can also be seen in his background of government service. choice of cabinet ministers. Vice Presi- His father, Thomas Remengesau Sr, dent Pierantozzi was entrusted with was Palau’s district administrator the Ministry of Health and has done under the former trust territory very good work in just six months. administration for nearly a decade, The other ministers were chosen and later served as vice president and because of their competence and interim president for four months in record of dedication to government 1988, following the tragic death of service. They include former special former president Lazarus Salii. prosecutor Michael Rosenthal as min- Strikingly, the new president did ister of justice, Elbuchel Sadang as not use his position as either a senator minister of administration, Alexander (1986–1992) or vice president Merep as minister of community and (1993–2000) to become wealthy or cultural affairs, Fritz Koshiba as min- begin a business—rather atypical for ister of resources and development, a Palauan politician. The Code of Temmy Shmull as minister of state, Ethics financial disclosure requirement Oitoichi Besebes as minister of com- revealed that Remengesau had about merce and trade, and Mario Katosang $70,000 in assets (T B N, 28 Oct–3 as minister of education. Remengesau Nov 2000, 5), an unimpressive sum adroitly healed a family political compared to those of most other can- wound by appointing former election didates in the 2000 election, four of opponent the Reverend Billy Kuartei whom reported assets ranging from to the important position of chief of $1.7 to $12.5 million. What appears staff to the president. to be both unique and refreshing President Remengesau was fairly about the Remengesau presidency is busy in foreign affairs during his first 210 the contemporary pacific • spring 2002 six months in office. He accepted the a “goodwill mission” and “fleet of credentials of Neil Robertson, New friendship,” several members of Con- Zealand’s ambassador to Palau, and gress stated that such a visit of foreign met with President Leo A Falcam of warships might be a violation of the the Federated States of Micronesia security and defense provisions of the and President Kessai H Note of the Compact of Free Association with the Republic of the Marshall Islands. United States. The fleet of friendship The heads of state agreed to work came and went in early Februa r y with- on issues of common concern, such out incident. Remengesau made a as extradition treaties and standard- clear distinction between legitimate ization of custom and immigration security and defense concerns on the regulations. They also agreed to one side, and the exercise of foreign express their concerns to the United affairs powers on the other. He deter- States regarding its withdrawal of mined that the visit of the Taiwanese support for the Kyoto Protocol on cadets, their superiors, and ships was global warming. an issue of Palau’s autonomy in for- Remengesau made his first overseas eign affairs (T B N, 24 Feb–2 Mar state visit to Japan since taking office, 2001, 6). and was accompanied by former Pres- In what may be one of the longest ident Nakamura. Both men received and most comprehensive state of the honorary degrees from Japan’s Saga republic addresses on rec o r d, Pres i d e n t University and signed an agreement Remengesau outlined his four-year with that institution regarding facili- agenda and challenged the National ties in Palau for research on ocean Congress to work with him in order thermal energy conversion. While in “to have a reasonable opportunity office, Nakamura had acquired over to gain economic and social indepen- $100 million in grant funds from dence by the year 2009”(T B N, 21–27 Japan, and Remengesau hopes to Apr 2001, 18). He stated that Palau continue that success. The president was “entering a non-payday week- had a “shopping list” of projects in end” and “at a crossroads.” In short, need of support: the new air terminal Palau was at a point where wise deci- (which received funding support), sions were mandated. He described the new Melekeok national capitol, seven developmental strategies needed fisheries and aquaculture projects, for moving beyond the crossroads: modernization of Palau’s telecommu- restructuring and right-sizing the gov- nications technology, and rural infra- ernment bureaucracy; balancing the structure projects. nation’s budget; strengthening the pri- A critical foreign affairs issue vate sector, which would include mak- Remengesau had to deal with involved ing Palau’s investment system simple Palau–US compact relations, an issue and transparent; diversifying the of potential political explosiveness. economy; balancing growth and pre- The situation concerned the visit to venting unlimited and unplanned Palau of three Republic of China war- growth; achieving sustainable devel- ships carrying some 850 officers and opment; and protecting the environ- sailors. Although it was designated ment. In concluding, the new presi- p olitical reviews • microne sia 211 dent made a direct call to his fellow loss of 1,178 over the five-year period civil servants: “I therefore ask each (T B N, 19–25 May 2001, 4; Palau and every member of the Senate and 1999, 7, table 2.6). House of Delegates to make a com- A number of important events mitment with me, to the People of during the period under review high- Palau, to put our diffe r ences aside and lighted Palauan identity, crea t i v i t y , and to work together, even on those issues solidarity. For the very first time, five on which we disagree. We are all athletes from Palau participated in the aware of the real dangers that con- world Olympic games, held in Sydney front us all if we do not make the in September 2000. Taking part was changes to our government structures enormously important for the 185th that must be made now” (T B N, 21–27 member of the United Nations, and Apr 2001, 18). It is clear that the generated a sense of national pride. Remengesau presidency will be one Palau excelled not just in sports; its of commitment. artists, dancers, and musicians were Palau’s Office of Planning and Sta- very popular at the Eighth Pacific Arts tistics reported Palau’s population in Festival held in New Caledonia in 2000 as 19,129. Nearly 70 percent November 2000. Because of the posi- (13,300) of these people reside in tive impact made by the Palau delega- Koror. Of this total, some 7,483 are tion, its invitation to host the 2004 fo r eigners, most of whom (4,58 2 ) ha v e arts festival in Palau was accepted. come from the Republic of the Philip- Palau celebrated its Constitution pines. The next largest group is from Day on 9 July this year in Aimeliik th e Pe o p l e ’ s Republic of Ch i n a (1,12 4 ), State. Prior to 1999, celebration of with 253 from Japan, 225 from Tai- this important event was held in wan, 223 from Bangladesh, 215 from Koror. This change is fundamentally the United States, 132 from Europe important in terms of Palauan tradi- and Russia, and 303 from Southeast tion and identity. As legend has it, the Asia. The proportion of non-Palauan people of Palau are descended from to Palauan residents has increased Milad, Palau’s foremother. She had dramatically since 1990, when 20 per- four children, who in ancient times cent of the population was foreign founded the village polities of Ngar- born, increasing to 34 percent by emlengui (the oldest), Melekeok (the 1995, and a surprising 64 percent in second oldest), Aimeliik (the female 2001. In concrete terms, this means of the group), and Koror. In 1999 and that in 2001 for every 10 Palauans, 2000, Constitution Day celebrations there are about 6 non-Palauans. Also were held in Ngaremlengui and then surprising is that the total number in Melekeok; ceremonies in Aimeliik of Palauans residing in Palau has completed the cycle with respect to declined to 11,646. This is a dramatic tradition. change, given that in 1986 the popu- It was also fitting that on Palau’s lation of Palauans was 12,323; in Independence Day, 1 October, Prince 1990 the total had grown to 12,575; Leeboo finally came home. Although and by 1995 it had again increased to it was a symbolic homecoming, the 12,824. The 2000 figure represents a unveiling of the ivory-white statue of 212 the contemporary pacific • spring 2002

Prince Leeboo on the Palau Commu- Special thanks to Yoichi K Ren- nity College campus in Koror was his- giil for comments on an earlier draft toric and another moment of national of this review. pride. Leeboo was the son of the rank- ing Koror high chief, Abba Thulle Re f e re n c e s (today known as Ibedul). The young man courageously left Palau in 1783 T B N,Tia Belau News. Weekly. Koror. with English Captain Henry Wilson P H, Palau Horizon. Weekly. Koror. but never returned. Leeboo is buried in London, and according to a House Palau. 1999. Republic of Palau Statistical of Delegates resolution, is the embodi- Year Book. Koror: Office of Statistics. ment of the Palauan spirit. donald r shuster