THE CONTEMPORARY PACIFIC. SPRING 1990 munity organization (Basta) led the ment-owned shipyards was proposed, fight to eliminate the machines. Provid­ and it seemed likely that other govern­ ing an inkling ofGuam's true ability to ment enterprises would follow suit in resolve even this purely "local" issue, the future. However, the policy prom­ the US Attorney General preempted all ised to engender some opposition action by having the FBI confiscate all because of its implications for egalitar­ poker machines in June 1988. A law ian social values. that required federal registration of The major economic constraints in gaming devices was suddenly enforced. 1988 were the depressed world market In anticlimactic fashion, the prices for tuna and , which typi­ Legislature repealed statutes allowing cally account for between 80 and 90 poker machines on the island in Octo­ percent of 's export earnings. ber 1988. Copra earnings continued to be ROBERT A. UNDERWOOD affected by low yields resulting from aging trees, poor soil, and adverse climatic conditions. Government KIRIBATI attempts to interest the in Continuity ofeconomic policy, reflect­ renewing the 1985-1986 fisheries agree­ ing a decade ofgovernment under the ment, for the same A$2.4 million fee, leadership ofPresident Ieremia Tabai, seemed unlikely to succeed. was the central feature of1988-1989 in already operates a satellite Kiribati. The Christian Democratic tracking station on Christmas Island, Party led by continued and the Kiribati government was opti­ to be largely ineffective in opposing the mistic that Japan's space agency, government. An emerging view among NASDA, could be persuaded to establish policymakers was that a government a launch facility there rather than in without Tabai was difficult to imagine. Hawai'i, despite the lack ofeconomic The continuation ofpast economic infrastructure. policy meant an emphasis on subsis­ Kiribati's external relations in 1988­ tence development, a reluctance to 1989 were dominated by a deteriora­ become too dependent on external tion in relations with . The dis­ sources of aid, and a preference for pute started when Kiribati revoked Air investments in traditional industries Nauru's landing rights after a pilot such as copra, fishing, and handicrafts. recruited to break a strike against the The emphasis on reducing economic airline failed a certification test in New dependence has led to a policy of Zealand. The result was a tussle over encouraging more privately owned Nauruans and I-Kiribati stranded in enterprise. In 1988, the Overseas Tele­ each other's countries. The govern­ communications Corporation Interna­ ment was particularly disturbed by tional ofAustralia entered into an Nauru's reluctance to allow I-Kiribati agreement with the government to vessels to pick up a group ofschool­ manage Kiribati's telecommunications children marooned in Nauru since Jan­ facilities. Privatization ofthe govern- uary 1989. The impasse was finally POLITICAL REVIEW. MICRONESIA 157 resolved in late April with the help of date for president, but noted that the the secretariat ofthe South Pacific increasing involvement ofthe Catholic Forum. Church in politics at the grass-roots International communications were level might prove to be a significant a significant problem for Kiribati after factor in the elections. the curtailment ofAir Nauru services MARY ANNE THOMPSON in early 1988, because of a pilots' strike. For most of the year under review, Kiribati was served twice­ weekly by the airline ofthe Marshall Two and a half years into its Compact Islands. The national airline, Air ofFree Association relationship with Tungaru, was scheduled to commence the , the Republic ofthe services to , the Phoenix Marshall Islands has embarked on Group, and Christmas Island in August high-profile economic ventures. The 1989 using a leased 737 aircraft. relatively recent proliferation ofmulti­ There was increasing concern in million-dollar economic initiatives is in 1988-1989 about the implications for dramatic contrast to forty years ofvir­ Kiribati ofthe greenhouse effect. Offi­ tual economic standstill under the cials attended an international confer­ American Trust Territory administra­ ence on the subject in London in tion. The government wants to achieve March 1989 and drew attention to the the goal ofeconomic self-reliance by plight oflow-lying-atolls should sea the year 2001-, when compact funding levels rise even marginally. Any land ends. loss would be a major problem for The primary focus ofthe push to Kiribati, given existing pressures on foster income-generating developments resources. With a growth rate of2.4 has been the attraction of foreign inves­ percent a year, the population is tors to the islands. Speaking to an expected to double approximately American business convention, every three decades. In 1988-1989, the Marshalls representative in Washing­ government took steps to ease popula­ ton DC, Ambassador Wilfred Kendall, tion pressure in Tarawa by encourag­ described the Marshalls as a "model for ing the repopulation ofthe Phoenix investment and development in the and Line islands. But officials remained Western Pacific." To successfully very concerned about the future impact attract foreign investment the govern­ of population growth on the domestic ment was not imposing "conditions economy. which unnecessarily increase risks and Although the next general elections costs or unreasonably reduce profits" are not scheduled until early 1991, (MIl, 14 April 1989, 8). speculation was already rife regarding The Compact ofFree Association is a successor for Ieremia Tabai, who is the foundation for the government's prevented by the constitution from development program. It will provide serving another term. Observers were approximately US$750 million for gov­ unwilling to identify a favorite candi- ernment operations and development