The National Union
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Nena's statement at the Conference on Human Rights VIENNA, Austria (FSM INFOR- MATION SERVICE) - The following is the full text of Vice President Jacob Nena's statement at the World Confer- ence on Human Right held at Vienna, Austria on June 21,1993. "MR. PRESIDENT, DISTIN- GUISHED DELEGATES, LADIES AND GENTLEMEN, I am honored to speak to this historic Conference today, particularly because in doing so, I am making for my country its first public statements relating our position in re- gard to the international human rights system and the fundamental rights and freedoms addressed in the Universal Declaration of Human Rights. The Federated States of Micronesia NANCY LEFT FSM - From left to right are Vice President Jacob Nena, Nancy Murray, is a relatively new Nation, but having Secretary of Education Catalino Cantero, and Attorney General Camilo Noket, during had a long association with the United a farewell get together for Murray held at the Department of Education. Murray was Nations as a Trust Territory we made at Asssistant Attorney General for the Division of Law. (See HUMAN RIGHTS, Page 3) THE NATIONAL UNION PEACE' UNITY • LIBERTY AN OFFICIAL PUBLICATION OF THE PEOPLE OF FEDERATED STATES OF MICRONESIA Volume 14 Palikir, Pohnpei, Augustl993 Number 8 Banking Board released information on FSM banking system PALIKIR, Pohnepi (FSM INFOR- million as of June 30, 1993. decreased by $9.8 million and $9.3 mil- MATION SERVICE) - The Banking Although the growth rate for the last lion, respectively. Board releases the following informa- six-month period appears to be very Somehow this development could be tion on the FSM banking system based moderate, individual analysis of each indicative of an increasing patronage on a review conducted on the financial bank's financial condition and perfor- and support for the locally chartered condition and performance of the three mance disclosed a major shift of bank- commercial bank which may have been commercial banks as of June 30, 1993. ing activities in favor of the Bank of the triggered by its improved performance The consolidated resources of com- FSM. To illustrate, Bank of the FSM in 1992 when it experienced its full year mercial banks operating in the Federated (BOFSM) registered a substantial in- of profitability. It may also be recalled States of Micronesia aggregated $ 125.3 crease of $14.2 million in total resources that towards the end of the same year, million as of June 30,1993, an increase and $13.3 million in deposits while the about $5.0 million of fresh equity was of$4.3millionorfourpercentcompared combined resources and deposits of the received from the government sector. to the December 31, 1992 to $115.7 foreign banks operating in the FSM (See BANKING SYSTEM, Page 2) Banking System CORRECTIONS In the story on the Law Day, front as (Continuedfrom Page 1) mulated excess liquidity due to its rela- This improved its capital base to 20 page, 2nd column, the name Emily tively low loan-to-deposit ratios. In the Lawrence should be Emily Flores. percent of total assets which is twice the case of the BOFSM, the increase in On page 2, continuation of the story FDIC-imposed ratio of 10 percent. As volume of lending activities of $3.0 on FSM Law Day, first column, the of June 30, 1993, BOFSM's equity to million was only one/fifth of its deposit third place went to both Yap and Z O total assets ratio was still above the growth of $13.3 million during the last Kosrae and not just Yap. On page FDIC required ratio at 16 percent. 2, "President Olter signed appro- six-month period thereby resulting to priation of $204,500," last para- The consolidated loan-to-deposit ra- lower loan-to-deposit ratio and increased graph, the appropriation for the tio of the three banks was relatively low liquidity. Asof June 30,1993,BOFSM's two cars for Chuuk, one each for Z O at 43 percent. Of the three banks, only liquid assets aggregated $27.3 million Yap and Kosrae are for the FSM BOFSM surpassed the 50 percent-loan- or 61 percent of deposit liabilities and Congress Delegation Offices in the to-deposit requirement at 56 percent states and not for the Congress Z 51 percent of total assets which are members to use during their ses- w although this was 14 percent lower than r considerably high liquidity ratios. sions in Pohnpei. The National last December's ratio of 71 percent. On On the other hand, the combined Due Union regret the errors. the other hand, the combined loan-to- from head office account of BOH and deposit ratio of Bank of Hawaii (BOH) BOG was 64 percent of their combined and Bank of Guam (BOG) was calcu- total deposit liabilities which is a clear Judge Fritz completed lated 34 percent. The foreign banks' indication that bulk of deposits gener- loan portfolio decreased by $721 thou- ated are channeled to their respective Mediation course sand or three percent lower than last head offices. PALIKIR, Pohnpei (FSM INFOR- December level although this is expected All the banks reported net profits dur- MATION SERVICE) - Chief Justice to be reverted w ith the passage of Public ing the six-month period aggregating Soukichi Fritz of Chuuk State Supreme Law 7-135 last March. The law was $870,000 which is only $97,000 or 10 Court, in Weno, Chuuk State, has com- specifically formulated to base com- percent short of the net income of pleted the Mediation course held May mercial lending rates on the prevailing $967,000 for the whole year of 1992. 16-21 at the U.S. National Judicial Col- Based on total asset, the banks operat- lege (TNJC), according to a TNJC re- prime rate such that interest rates would lease. decrease by about three percent to four ing in Kosrae registered the highest rate of return at 1.5 percent followed by The Mediation course helped judges percent to encourage more borrowers. find viable alternatives for reducing Pohnpei at 0.8 percent, Chuuk atv6 On a regional basis, the banks oper- percent and Yap the lowest at 0.1 per- delays in their courts, training to help ating in Kosrae and Chuuk posted higher parties resolve their disputes among cent. Somehow the unsatisfactory per- themselves, and to offer former and ratios at 72 percent and 66 percent re- formance of the banks operating in Yap spectively, while those in Yap and retired judges specialized training in State in terms of lending activity and efforts to assist their colleagues now Pohnpei registered lower ratios of 22 profitability could be indicative of the sitting on the bench. percent and 39 percent, respectively. existence of an overbanked situation in The topics covered during the course The banks were found to have accu- that particular service area. were examining why mediation plays the leading role among dispute resolu- tion devices, analyzing which cases can be mediated, determining what makes a good mediator, and developing better mediation skills. Located on the campus of the Univer- sity of Nevada, Reno, the Judicial Col- lege was featured in 1991onCBS's"60 Minutes" as the leading national train- ing and education center for trial judges. Founded in 1963, more than 30,000 certificates of completion have been issued to graduates, including U.S. Su- preme Court Justices Sandra Day O'Connor and David Souter. Other FSM State Judges including Kosrae Supreme Court Judge Harry Skilling and a number of Pohnpei Su- preme Court Associate Justices have attended various courses at the College MICRONESIANS ABROAD - Above is a group ofYapese in Honolulu before perform- over the past years under similar pro- ing at a wedding. The organization based in Honolulu is lead by a couple, Anita and grams, according to the FSM Supreme JohnTug. Court's official. Human Rights.... Forum Secretariat announced job opportunity (Continuedfrom Page 1) H our outset a firm commitment to pursue W our social and economic development Applications are invited from suitably qualified and experi- in the context of international coopera- enced persons, who must be nationals of a member state of the tion. Thus, United Nations member- I South Pacific Forum*, for the position of Director, Trade and ship was one of our first priorities after i Investment Division, with the Forum Secretariat. self-determination was achieved, and > The Forum Secretariat was established in 1973 by the South we proudly took our seat in this Body in c Pacific Forum to encourage economic and political cooperation October, 1991. We quickly learned, however, that international cooperation o between its member states, and between those states and the for development is not simply a market- more industrialized countries. Under the control of a Secretary place wherein we can easily pick and General, the Secretariat undertakes a number of regional work choose among those issues that bear 90 programmes covering economic development, legal and politi- directly on our immediate goals. We have come to appreciate how almost cal services and the civil aviation, energy, maritime, telecom- vo munications and trade sectors. In pursuing these work every great international issue has an SO programmes, the Secretariat works with a range of aid donor inter-relationship with our development goals - and in t he case of human rights, countries and organizations. the discussions here during this confer- The Trade and Investment Division aims to assist Forum Island ence clearly show that connection. Countries (FICs) through encouraging investment in the FICs We are a country made up of widely- and in the promotion of regional and international trade. The dispersed small islands, above the work programme of the Division covers all aspects of the mar- Equator in the Western Pacific Ocean.