THE CONTEMPORARY PACIFIC· SPRING 1996 and, of course, the United States. Dip­ defuses situations before they become lomats from many of these countries major problems. He campaigns every have presented their credentials during day, keeping one eye on the competi­ visits to Belau. The liaison offices in tion and the other on his grass roots Koror and Washington, DC, have been supporters. By mid-1996 the political upgraded to embassies, although Presi­ scene will be heating up as ambitious dent Nakamura has yet to appoint any individuals emerge to make their bids ambassadors to these posts. The presi­ for the presidency. dent made official visits to Japan and DONALD R SHUSTER the Republic of China (Taiwan) in early 1995, and finalized an agreement with Australia that will provide Belau with a 165-ton fast patrol boat for sur­ FEDERATED STATES OF veillance of its two-hundred-mile MICRONESIA exclusive economic zone. The year 1994-95 was one of fishing The surge of national pride and ventures gone rotten. The FSM gov­ strengthening of national identity ernment had invested nearly $120 mil­ accompanying independence did little lion in fishing projects in the past five to mask some troubling issues associ­ years, borrowing heavily against future ated with the growing number of for­ payments of US subsidies under the eign workers in Belau. There are about Compact of Free Association to do so. six thousand workers from foreign Purchases have included purse seiners countries-mainly the Philippines-in for Yap and Pohnpei, and lately for Belau. Local employers often favor Chuuk as part of a $10.3 million joint these individuals over local workers venture with Westpac Corporation, because of a perception that they are but none of the ventures has even come more reliable and productive. The close to turning a profit. In his remarks workers, particularly the women, are to the FSM Congress at the opening of easily exploited. Further, Belau's a new session in August 1994, Speaker numerous "front" businesses, espe­ Jack Fritz lamented that "national cially those catering to tourists, have investments are going down the pushed many exclusively local small drain." He professed to agree with operations out of the market. This sit­ Deputy Secretary of External Affairs uation is generating some social ten­ John Mangefel, who quipped that "all sion and is likely to get worse. this talk about fish may turn out to be The record shows that the Naka­ another fish story." mura administration has realized many Ting Hong Oceanic Enterprises, a significant achievements during the Taiwanese company with interests in first half of its term in office, but it has Belau, Marshall Islands, and Solomon yet to tackle the foreign worker issue. Islands, has been the major player in The president is known as a superb the fishing industry over the past year. local politician who works hard, Ting Hong has been airfreighting fresh values loyalty, adeptly cultivates sup­ tuna to Japan for the sashimi market port from the National Congress, and several times a month. A request by POLITICAL REVIEWS· MICRONESIA 159 Ting Hong for exemption from FSM ing firm. Their final plan for educa­ gross revenue taxes, approved by Presi­ tional improvements and reforms in dent Bailey Olter, was denied by the the use of the labor force was accepted FSM Congress. In June, the Supreme by the government in May 1995. In the Court found Ting Hong guilty of four last year, the Asian Development Bank fishing violations and imposed a fine has sponsored studies on coastal of $2.2 million. Widely viewed as an resource management, agriculture, and opportunistic exploiter and repeatedly the improvement of government plan­ accused of bribing government offi­ ning. It now has a pair of consultants cials, Ting Hong has been a controver­ located in Pohnpei for the next three sial presence from the start. The years to formulate structural policies company is now threatening to cease to help the government cope with the its operations on Pohnpei and move to planned reduction of US funds. less troubled waters. The Chuuk State Government, Meanwhile, the sale of fishing rights which has been limping along fiscally in FSM waters has proven to be the for years, is now at the edge of bank­ most reliable source of national ruptcy. With a debt of about $18 mil­ income. This past year the nation col­ lion and unable to meet its payrolls, lected over $24 million in fees for fish­ Chuuk State hosted officials from the ing licenses from the fleets of several FSM National Government in late Asian nations. Licensing fees have pro­ June to discuss a loan. It is reported duced $87 million in revenue for the that stringent conditions will be placed Federated States of Micronesia in the on the loan, but the details have not last five years. yet been released. Meanwhile, the state In a talk on his home island of Yap, legislature is considering a resolution former governor John Mangefellik­ asking Governor Sasauo Gouland to ened the nation's troubled economy to step down or run the risk of impeach­ a turtle on its back, struggling in vain ment. to turn itself over. With only six years New governors were elected in two remaining of the fifteen-year Compact of the four states of the nation this past of Free Association, and a second step­ year. In elections held 8 November, down in US funds under the terms of Vincent Figir was selected to succeed the compact quickly approaching, Petrus Tun as governor of Yap, while there is widespread alarm over the fail­ Moses Mackwelung won the election ure to establish viable industry in the in Kosrae. Both new governors were nation. The Asian Development Bank inaugurated in separate ceremonies on has taken a strong hand in the Feder­ 9 January 1995· ated States of Micronesia over the year National elections were held in in review, replacing the United Nations March 1995, with all the incumbents Development Program as the major winning their seats. The only new face source of technical assistance. The in the FSM Congress was John Pete­ bank financed a study of human won from Chuuk, who won a tight resource development in the country, race for the seat of deceased congress­ contracted to a London-based consult- man Kalisto Refalopei. In keeping with r60 THE CONTEMPORARY PACIFIC· SPRING r996 the trend to hold onto the status quo, President Bailey Olter and Vice Presi­ GUAM dent Jacob Nena were chosen by the The major events in Guam during FSM Congress to serve a second term. 1994-95 were the fiftieth anniversary They were inaugurated at the capitol of the island's 1944 liberation, the on 9 June. general elections, the new governor's The free press arrived in the Feder­ initiatives, the "ice" problem, base ated States of Micronesia to the sound closures, and the political status issue. of cannonfire. The FSM-JTPA News­ Some seven hundred veterans of the letter, founded in May 1994 under the 21 July 1944 invasion and recapture of fiery editorship of Canadian lawyer Guam from the Japanese Imperial Sherry O'Sullivan, has taken an openly Army returned to a golden salute from combative stance toward certain gov­ the government and people of Guam. ernment officials and gained a reputa­ Three impressive monuments to all tion for unflinching reportage of who suffered the occupation and inva­ controversial political issues. Begun as sion were dedicated on Nimitz Hill an organ of the FSM Job Partnership and at the governor's office grounds. A Training Office, the monthly paper has parade, grander than usual, marched gone private. Subscriptions from down a newly paved, palm-lined within the nation and beyond have Marine Drive. The island had prepared soared as the paper takes on case after well for the veterans' return as five case of alleged corruption. decades of emotion poured from old Preliminary figures were released soldiers and an appreciative island for the national census taken on 15 people. September 1994. The national popula­ The Pacific War veterans were also tion is reported as 105,712, consider­ welcomed by a barrage of colorful ably lower than the 120,000 projected campaign signs placed at many inter­ on the basis of past censuses. The sections and on roadside power poles slower population increase appears to in preparation for the September pri­ be related to a decline in the birth rate mary election. Challengers began and the high rate of emigration since emerging in January and February for the compact went into effect in 1986. the legislative race, and four guberna­ At the time of the enumeration an esti­ torial teams, two from each political mated 6000 FSM citizens were living party, began public debates as early as on Guam and another 2500 on Saipan April; Republican Senators Tommy in the Northern Marianas. Tanaka and Doris Brooks formed one team and Lieutenant Governor Frank FRANCIS X HEZEL, SJ BIas and businessman Simon Sanchez the other. The Democratic teams that emerged were Senators Carl Gutierrez and Madeleine Bordallo as one and Senator Eddie Reyes and Gloria Nel­ son as the other. Six of the eight, excepting Bordallo and Sanchez, were.