political reviews • micronesia 217 Palau over Palau, from Kayangel in the The administration of President north to Angaur Island in the south. Kuniwo Nakamura and Vice Presi- This was achieved with about $35 dent Tommy Remengesau, nearing the million in funding from the United end of their second and last four-year States government. term, claimed a number of accom- Two high-priority construction plishments during the year under projects are the Koror–Babeldaob review. The national budget was bal- bridge and the 53-mile circle-island anced for the sixth consecutive year, road on Babeldaob. The government and external funding was secured for of Japan has agreed to provide some the new Koror–Babeldaob bridge, $25 million for the bridge (Tia Belau, channel and harbor development at 22 Jan–5 Feb 1999), which will Peleliu Island, and an international replace the structure built by the coral reef research center to be located Trust Territory government in 1977 on Koror’s M Dock. Attractive sports that collapsed in 1996. Further, some facilities were completed in time for $149 million in compact funds have Palau to host the August 1998 Micro- been allocated by the United States nesian Games, in which Palauan ath- for the massive Babeldaob road pro- letes performed exceptionally well. ject. The US Army Corps of Engineers In foreign relations, President will supervise the road building, which Nakamura accepted for the first time will be done by the Daewoo Corpora- the credentials of the ambassador tion of South Korea. Daewoo, the sec- from Greece, Constantin Drakakis, ond largest construction firm in South accepted Australia’s new ambassador, Korea, outbid four other finalists from Timothy Cole, who made a $40,000 South Korea, the People’s Republic of contribution to the Mindzenty High China, Japan, and the United States. School building fund, established The five bid packages ranged from diplomatic ties with Thailand, Daewoo’s $89 million to US Black appointed Masao Salavador as ambas- Construction’s $129 million. Both sador to Japan, and established Palau’s projects are scheduled to begin before embassy in Tokyo. Nakamura also the year 2000. received Japan’s ambassador. This Two other projects completed in exchange of ambassadors is seen as mid-1999 were the impressive Min- enormously important for the repub- istry of Education and Public Library lic’s future relations with Japan, which buildings in the center of Koror, both has provided Palau with a significant constructed by Roman Tmetuchl’s amount of financial support since Pacifica Development Corporation. constitutional government began in Politically, some tension developed 1981. Such support has resulted in between the executive and legislative the recent completion of the electrifi- branches of the government when cation of the entire island of Babel- President Nakamura took time in his daob, which was accomplished with annual state of the republic address a $27 million grant from the Japan to criticize legislators for their inatten- International Cooperation Agency. tion to duty. He expressed alarm over Telephone service is now available all congress’s failure to appropriate funds 218 the contemporary pacific • spring 2000 for important legislatively approved The Senate of the National Con- projects, and bills left languishing, gress has been changed by reappor- such as those for a new airport termi- tionment for the third time since the nal and a national health-care plan. Palau Constitution was implemented Nakamura closed his scolding by in 1981. Instead of electing fourteen advising the lawmakers to resign if senators, the Palauan electorate they could not carry out their respon- will choose just nine in an at-large sibilities. The presidential address was arrangement in November 2000. A aired on television for several days number of the incumbents supported but did not generate any particular the “slimming down” because they reaction, although this form of public believe the best candidates will win. reprimand is unusual in Palau. Senate During the period under review, President Isidoro Rudimch stated that some major foreign investment pro- senators would take all the time nec- jects were rising while others were essary to review proposals that affect falling. The successes include the 165- Palau’s ability to meet future financial room Outrigger Palasia Hotel, oddly obligations. Earlier in the year, House sandwiched into the center of Koror of Delegates Speaker Ignacio Anasta- along the narrow main road. Costing cio urged his colleagues to stress qual- over $40 million, the project is the ity legislation over quantity and to brainchild of congressman and entre- remain “vigilant against the appear- prenurer Alan Seid. He and his family ance of impropriety in our personal, own the land on which the hotel sits. professional, and business dealings” This traditionally high-ranking Koror (Tia Belau, 22 Jan–5 Feb 1999, 11). family has as its partner the Kuo- These exhortations may be a lead mintang, Taiwan’s ruling political up to the 2000 general elections, party, which now has a clear entry which, as many people recognize, will into Palauan political activity. The be “wide open” in that the Nakamura attractive hotel facility, which employs eight-year administration—the consti- 160 mostly locals, has all the expected tutional term limit—will be conclud- amenities. Its lobby features three ing. Palau’s Tia Belau newspaper has huge chambered nautilus shells, sym- already speculated that five presiden- bols of Palau’s rich and diverse marine tial candidates will likely emerge: Vice life, which many tourists come to President Remengesau, Congressmen experience. Tourism for the first quar- Surangel Whipps and Santos Olikong, ter of 1999 was running 15 percent Ibedul Yutaka Gibbons, and Johnson below the figures for 1998, which Toribiong. Although the Palau Consti- saw 73,384 visitors to Palau. One tution mandates that the president and wonders when the new hotel will vice president be separately elected, become economically viable, given candidates have recognized that a that it likely has a fifty-year land team approach is more effective than lease. The first manager, now trans- running solo. There will likely be a ferred, predicted that the new facility scramble by presidential candidates had the potential of bringing 20,000 to find the strongest running mates new arrivals each year (Pacific Sunday possible. News, 19 July 1998, 61). political reviews • micronesia 219 The second new project, grander first phase of the project. The venture than the first and also the brainchild had the cumbersome name, Palau- of Delegate Alan Seid, broke ground ROC (Taiwan) Culture, Social, Eco- in August 1998 in a secluded area of nomic and Trade Exchange Associa- Koror. The Hung Kuo Resort project tion. Chen apparently sold property is being developed by Zhen An Palau and space in the project starting at Corporation/Midcorp, with Eric Lin $75,000 to unsuspecting Taiwanese as the principal Taiwanese owner, investors. No construction or devel- along with other Taiwanese and Seid. opment ever took place in Palau, and It is not known if there is a link to the the Airai land lease was contested and Kuomintang. The resort complex will finally voided by the Palau court in consist of numerous buildings provid- 1999. The association’s offices in ing 150 standard rooms, 240 superior Koror and San Chung City, Taiwan, rooms, 45 deluxe rooms, 8 family are closed, and it appears the effort suites, 4 bungalows, 2 executive was a scam. suites, and a presidential suite located In November, nine people died in on its private island. Obviously, the the crash of a small plane when it majority of occupants for these rooms was attempting to land at the Palau will be from Taiwan. One wonders if National Airport during a rainstorm. this resort complex is another plum Paradise Air had been in the flying Taiwan is offering for Palau’s diplo- business in Palau for twenty years, matic recognition. Reportedly, the and had two minor accidents in the Taiwanese were bothered by Palau’s past that did not involve any serious acceptance of a $500,000 grant from injury or loss of life. The plane, a mainland China for the 1998 Micro- Cessna 207, had picked up passengers nesian Games. On the surface, it on Angaur and Peleliu on a return appears that some operators in Palau flight to the Airai airport. The plane may seek to play one Chinese giant reportedly circled the airport three off against the other. times before attempting to land. A Taiwanese project that recently Palau also lost seven important failed was hatched some time in the people to natural causes. Lucy early 1990s and envisioned taking Orrukem, the first woman legislator over large uninhabited interior sec- and matriarch of the second ranking tions of Babeldaob Island (153 square clan in Koror, was 93 when she died. miles). This was the grandiose version Chief Uchel Imeong Etibek was 95 of the project that divided the entire when he died, and like Orrukem left a mid-section of Babeldaob into four huge family. Also in his nineties, Pas- major areas: commercial, administra- tor Wilhelm Fey, “Herbai” to many tion, culture and education, and recre- people in Palau, died and was buried ation (a golf course). The project was in Ngarchelong State, where he first headed by Mr Gino Chung-Chu Chen began Protestant missionary work in who produced glossy brochures, made 1923. Fey founded the Emmaus Boys trips to Palau, flew Palauans to Tai- High School. Benjamin N Oiterong, wan, and obtained a lease of land (or older brother of former President so he thought) in Airai State for the Alfonso Oiterong, died at the age 220 the contemporary pacific • spring 2000 of 82. As with the others, Oiterong The unifying activities in Palau was well respected for his community were the successful Micronesian service.