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Melanesia in Review: Issues and Events, I993

FIJI minister and deputy prime minister, Prime Minister Sitiveni Ligamada Fiji's second governor general, and, Rabuka made a startling, if after the 1987 coups, the republic's first refreshingly accurate, observation president. The Great Council of Chiefs about the situation in Fiji during a state swiftly elevated first vice president (and visit to New Zealand in April 1993. longtime Alliance prime minister) Ratu "Some of us have been going around Sir Kamisese Mara to the presidency. the world saying that everything is nice Mara's unsurprising ascendancy in Fiji. It is not," he said. "We have to caused much disquiet in Rabuka's accept that" (FT, 2 Apr 1993): The year camp. Mara has a well-known and 1993 was not a very nice one for highly developed disregard for Rabuka and his government. Dogged Rabuka. His own preferred successor by one scandal after another, its back­ as prime minister was Josefata Kami­ benchers threatening rebellion, its poli­ kamica, Rabuka's arch political rival. cies for effective national government The relationship between the two men marred by resurgent provincialism, the will be watched with great interest in Soqosoqo ni Vakavulewa ni Taukei 1994· government finally met its end in For all its problems, 1993 began on a November when the budget was hopeful note, with talks continuing on defeated in Parliament. It was forced to a possible government ofnational resign after only eighteen months in unity. Rabuka, who had sprung the office. The country began to prepare idea in Parliament late in 1992 without for the next general elections, due to be consulting his own party or the Great held in mid-February 1994. The year Council of Chiefs, was vague about ended on a note of confusion and dis­ what exactly he meant. His proposal array. was littered with unexceptionable There was other unhappy news dur­ statements, including the perceived ing the year as well. Siddiq Moiddin need to "develop a social and political Koya, a founding member ofthe partnership that transcends suspicion National Federation Party, its longtime and distrust, that elevates us as a controversial leader, a leading criminal nation and gives us a combined sense lawyer, and a chest-thumping orator of common destiny and purpose" (Fiji who had played a conciliatory role in 1993). However, a few months earlier, Fiji's transition to independence in he had stated categorically that accept­ 1970, died of a heart attack in April. ance of the principle ofthe para­ Ratu Sir Penaia Ganilau died in mountcy ofFijian interests was a pre­ December from leukemia. He was the condition for national unity. Initially, Tui Cakau, paramount chief ofthe Rabuka's critics were skeptical, seeing Tovata confederacy, longtime Alliance his unity proposal as a tactic to divert POLITICAL REVIEWS 439 attention away from his manifold try to reach a broad consensus on, a set political problems. Indo-Fijian leaders of fundamental principles which is to Jai Ram Reddy ofthe National Federa­ be the basis of mutual co-existence in tion Party and Mahendra Chaudhary Fiji as a unitary but multi-racial and of the Fiji Labour Party were skeptical. multi-religious state." Second, it was to They wanted the government's com­ devise the draft terms of reference for mitment to certain principles of power­ the proposed parliamentary select com­ sharing that were just and fair to all mittee on the constitution. The final communities in Fiji. Nonetheless, they task was to look at other models of agreed to join Rabuka in informal dis­ government "considered appropriate cussion ofhis proposal. for Fiji in terms ofpromoting unity and The talks faltered because of the harmony among all its communities, vagueness ofthe concept, as well as and their equitable representation and opposition from powerful Fijian participation in the political leadership groups. Ratu Mara, whose blessing ofthe country, both in Parliament and was clearly critical, said publicly that in government" (Reddy 1993). The rec­ a government ofnational unity would ommendations ofthe committee were not work under the terms ofthe 1990 to be submitted to an independent con­ constitution. Mara's caution was stitutional commission. The talks were echoed by his proteges, including Jose­ followed quietly in the media, raising fata Kamikamica and Finau Taba­ hopes for a peaceful resolution of vari­ kaucoro (FT, 15 Feb 1993). Rabuka's ous issues surrounding the review of own cabinet was unenthusiastic and the constitution. As it happened, all relegated the proposal to a long-term this work was put in abeyance with the objective. The Great Council of Chiefs defeat ofthe Rabuka government. listened politely to the proposals in The Fiji Labour Party did not partic­ May, but avoided taking a stand by ipate in the discussions on the constitu­ asking the government to ascertain the tion. It had withdrawn its support for feelings of ordinary Fijians through the Rabuka and walked out ofParliament machinery of provincial administra­ in June to protest his failure to act on tion. promises to them a year earlier (Lal With the unity proposal languishing 1993). These included an immediate in the provinces, Rabuka shifted gear review of the constitution, repeal ofthe and began preparing the ground for his 10 percent value-added tax on most promised review ofthe constitution. consumer items and ofthe labor He set up a cabinet subcommittee reforms, and consultations on the Agri­ chaired by Deputy Prime Minister and cultural Landlord and Tenants Act. Minister for Foreign Affairs and Trade Rabuka's rebuffplaced the Fiji Labour Filipe Bole. The committee was subse­ Party in a precarious position, since quently expanded to include four mem­ they had nothing to show for support­ bers of the Opposition headed by Jai ing his bid to become prime minister. Ram Reddy, and met twice during the The results of a by-election in the middle ofthe year. The first of its three Indian constituency of Rewa-Naitasiri tasks was "to develop further, and to underscored Labour's predicament. In @"W9&f.i ,4@peMUfMEFt¥¢&ijf@Slma:pWl#"'."MIMliiQi.'P.f§8' @iiHfil?n .....

44° THE CONTEMPORARY PACIFIC· FALL 1994

a fiercely contested battle, the National wanted further restructuring ofpower Federation Party's Aptar Singh won within Fijian society. In May, a group handily over Labour's Ramesh Chand ofwestern Fijians led by Ratu Osea (though this is a strong NFP constitu­ Gavidi, the founding leader ofthe now ency). Defeated and disillusioned, defunct Western United Front, and Labour returned to Parliament in Sakiasi Butadroka, leader ofthe Fijian August and began to repair its relation­ Nationalist Party, launched the Viti ship with Rabuka's known opponents. Levu Council of Chiefs to promote the Meanwhile, Rabuka was consoli­ interests and aspirations ofFijians of dating his own base in the Fijian com­ the main island of Fiji. One ofthe munity, presenting himself as the council's resolutions was that the presi­ uncompromising champion oftheir dency of the republic should be rotated interests. He announced a number of among the four confederacies measures including increasing the (Kubuna, Tovata, Burebasaga, and the Fijian scholarship fund; establishing a as yet not formally recognized, Yasay­ small-business agency to advise Fijians asa Vaka Ra) instead ofonly the first on how to run small ventures; promis­ three; that all state, and eventually fee ing financial assistance to the provin­ simple, land be converted to native ten­ cial councils and Rotuma to buy shares ure; that Fijians be handed back all in the exclusively Fijian investment ownership offisheries and mineral company, Fijian Holdings; providing rights; that the government, rather funds to Fijian mataqali 'land owning than landowners, pay the administra­ units' to purchase fee simple land; tive costs ofrunning the Native Lands floating the idea ofexempting Fijian Trust Board; and that Fijians be given businesses from income tax for up to preferential treatment in the exploita­ twenty years; and transferring the tion ofnatural resources (such as for­ management of73,841 hectares of state estry and fisheries). Only when these land to the Native Lands Trust Board. concerns had been addressed, hinted Not all ofthese promises were carried the council, should the question of out, as Rabuka's nationalist Fijian crit­ reviewing the constitution be consid­ ics often pointed out, but the message ered. was clear. Rabuka was moving in the Clearly, Rabuka was riding a tiger right direction for Fijians, and it was he could not dismount at will. But all only a matter oftime before the gov­ his other problems paled into insignifi­ ernment's pro-Fijian policies bore fruit. cance beside the revelations in the Indo-Fijian leaders complained ofthe report ofthe commission of inquiry discrimination against their people in into the so-called Stephen Affair, pre­ the public sector, in statutory bodies, sented by retired judge and politician and in government aid programs. But Sir Ronald Kermode. Anthony their voice mattered little in a political Stephens, a local part-European busi­ system where the Indo-Fijian commu­ nessman with previous brushes with nity itself was marginalized. the law and a close association with Many Fijians applauded the general extremist Fijian politics, had been thrust ofRabuka's policies, but others charged in mid-1988 with illegally POLITICAL REVIEWS 44I importing arms into the country. After integrity and reputation were attacked being cleared, he sued the government in Parliament and in the media, and for F$30 million in damages, but dissidents within his own party pre­ agreed to settle for nearly $IO million pared to move a motion ofno confi­ in cash and other benefits. The terms dence in him. The report gave Rabu­ ofthe deed of settlement were leaked to ka's opponents the excuse and the the press and exposed in Parliament by weapon they needed to "do Ra- Opposition Leader Jai Ram Reddy, buka in." leading to the resignation ofAttorney Several Fijian backbenchers wanted General Aptaia Seru. Under considera­ Rabuka out. One was Josefata Kami­ ble public and parliamentary pressure, kamica, Mara protege, the interim Rabuka appointed Kermode to inquire government's finance minister, and into the sequence ofevents leading to Rabuka's rival for the top job, who had the deed of settlement, the legality of declined all invitations to join the gov­ the procedures followed, and the ernment. Ratu Mara's son, Finau, was involvement ofministers and civil ser­ a key player behind the scenes. In the vants in the affair. Senate, Tailevu politician Adi Finau Kermode's report, issued in July, Tabakaucoro, led the anti-Rabuka was a damning indictment of all the campaign. Another vocal opponent principal players (I993). Stephens was was sacked Minister for Information described as being "dishonest in seek­ Ilai Kuli who, like the others, sought to ing to obtain money from the National disguise personal revenge as principled Bank of Fiji in an illegal manner and in opposition. Methodist Church General doing so, the evidence prima facie Secretary Manasa Lasaro persuaded appears to disclose that he may have Kuli to postpone his no-confidence committed more than one criminal motion in the interest ofFijian unity, offence." Attorney General Seru was while the Taukei Movement, or what accused oflying and gross negligence. remained ofit, staged protest marches Said Kermode: "Seru's explanation in support of Rabuka. The division in indicates how unsuited he was to hold the Fijian camp erupted into the open. the position ofAttorney General." Rabuka's hold on power was con­ Most important, Rabuka's conduct tested, and his days numbered. was found to be "quite irregular and Personal animosities apart, Rabu­ improper" in several respects. His ka's problems were compounded by action "as regards the events leading up allegations of mismanagement, or lack to the execution ofthe Deed were not ofmanagement, in statutory organiza­ only improper but prima facie illegal." tions. A strike at Fiji International Predictably, Rabuka denied the report's Telecommunications Limited had left charges and proclaimed his innocence, its scars, including the transfer and refusing to stand aside to allow a judi­ eventual sacking of Communications cial review ofthe report's principal Minister Kuli. The appointment of findings regarding his role. Eventually, controversial businessman Jim Ah Koy, he agreed somewhat reluctantly, but by Rabuka's close friend, to statutory then the damage had been done. His bodies, including the chairmanship of ~.4IMT·;;mM!MM@4 ..

442 THE CONTEMPORARY PACIFIC· FALL 1994

the Fiji Trade and Investment Board, increase Fiji's international competi­ was questioned in the press. So, too, tiveness. were allegations regarding the tangled Opposition LeaderJai Ram Reddy affairs ofthe Fiji Ports Authority, led the attack on the budget. He which led to the departure of Chief described it as a fiscally irresponsible Executive Isimeli Bose and Chairman document that proposed an unsustain­ Navitlai Naisoro. Fijian Holdings Lim­ able level ofexpenditure and fiscal def­ ited was rocked by accusations of icit, as well as an escalation ofpublic insider trading by its senior Fijian debt and debt service. The budget, he directors. And questions were asked said, was long on rhetoric but short on about the propriety of awarding the specific proposals to remedy the eco­ tender to upgrade the Nadi Interna­ nomic ills; it had an inappropriate set tional Airport to a company (Minsons ofexpenditure priorities (too much on Limited) in which Rabuka, his wife, the military and too little on health, and Civil Aviation Minister Jonetani education, and social welfare); and it Kauakamoce owned shares. Whatever was inflationary and socially regressive their merits, the allegations served to because of higher fiscal duties on basic tarnish the image ofthe government consumer items. Labour leader and its leaders. As head of that govern­ Chaudhary echoed Reddy's criticism, ment, Rabuka became the main target. adding that unless the "instability, fear, The long-simmering tensions came insecurities, and uncertainties" caused to a head in the November budget ses­ by the racially lopsided constitution, sion ofParliament. Finance Minister the acute law and order situation, and Paul Manueli presented his F$707 mil­ corruption were not remedied, Fiji lion (us$847 million) budget as a sensi­ would not prosper (FT, 23 Nov 1993). ble document to combat the ills of the Although the opposition's criticism economy following the devastating was predictable, the government had effects ofcyclone Kina, which had vis­ not anticipated the rebellion of six of ited Fiji in late 1992 (Manueli 1993). its own backbenchers and one cabinet Proposed measures included further minister. Josefata Kamikamica led the deregulation of trade and the labor attack. Interestingly enough, and market. Import licensing protection unlike the opposition, Kamikamica did was to be partly removed from rice, not disagree with the underlying eco­ powdered milk, canned fish, and cof­ nomic philosophy ofthe budget, nor fee, and replaced by a 50 percent tariff with its general direction. Rather, the for powdered milk, 40 percent for thrust ofhis criticism concerned the milled rice, and 10 percent for brown micromanagement ofthe economy, not rice. The budget also anticipated an in itself sufficient justification for vot­ increase in the national deficit from ing against the budget and bringing F$I35 million (us$88 million), or 2.5 down the government. But with percent of the gross national product, twenty-seven opposition members to F$I85 million (us$I2o.8 million), or against the budget, the anti-Rabuka 4.8 percent ofthe gross national prod­ faction ofthe Soqosoqo ni Vakavulewa uct. The budget was designed to ni Taukei saw the perfect opportunity .. .~n..,

POLITICAL REVIEWS 443 to realize their plan to derail Rabuka. ficulties. He admitted to thinking with When the budget came up for vote at his heart rather than with his head. the second sitting ofthe House of Rep­ These problems were compounded by resentatives, they voted with the oppo­ disloyalty from within his own ranks, sition. and from others who refused to recog­ The Fijian dissidents had refused to nize him as a legitimate successor to abide by the Soqosoqo ni Vakavulewa Ratu Mara's political throne. Fijian ni Taukei parliamentary caucus deci­ politics faces a rocky future. Provin­ sion to support the budget. However, cialism is on the rise, and parliamentar­ they had briefed Mara, the acting pres­ ians proclaim their loyalty to province ident, oftheir intention to vote against rather than political party. The year's it. That led to speculation about events showed again that the certain­ Mara's role in the downfall ofthe ties ofthe past had disappeared. A Rabuka government, but at this writ­ new, uncertain era was on the horizon. ing the details are not clear. What is BRIJ V. LAL known is that the dissidents and the Fiji Labour Party had asked Mara not to dissolve Parliament but to sack Rabuka References and appoint another (Fijian) prime FT, Fiji Times. Daily. Suva. minister. They told Mara that their vote against the budget was not a vote Fiji, Government of. 1993. Press Release. against the government as such, but Ministry ofInformation, 20 May. against Rabuka as its head. Knowing Kermode, Sir Ronald. 1993. Commission of ofhis antipathy toward Rabuka, they Inquiry into the Deed ofSettlement dated expected Mara to view their proposal I7.09.92 between Anthony Frederick sympathetically. Whatever his private Stephens and Attorney General ofFiji. Par­ feelings, Mara accepted Rabuka's con­ liamentary Paper 45 of 1993. Government of Fiji. stitutionally correct advice to prorogue the Parliament and call for fresh elec­ Lal, Brij V. 1993. Chiefs and Indians: Elec­ tions. In this, Rabuka was supported tions and Politics in Contemporary Fiji. by Reddy, who argued that the defeat The Contemporary Pacific 5 (2): 275-301. ofthe budget was tantamount to the Manueli, Paul. 1993. Budget1994. Suva: defeat ofthe government, not just the Government Printer, 5November. prime minister. Parliament was dis­ Reddy,]ai Ram. 1993. Address to the NFP solved on 19 January 1994, and general Convention 1993. Typescript. elections scheduled for mid-February 1994· The year 1993 was a tumultuous one for Sitiveni Rabuka. His hold on power proved unsteady, and his political map was disfigured by many false starts and scarred memories. His own inconsis­ tencies, failure to deliver on promises, and inexperience contributed to his dif- 444 THE CONTEMPORARY PACIFIC· FALL 1994

round ofvoting would be needed, the NEW CALEDONIA two incumbents, both members ofthe At the beginning of1993, it was becom­ RPCR, were reelected after the first ing increasingly apparent that the round. Jacques Lafleur obtained 53.27 March elections would give the Right a percent ofthe vote in the first electoral comfortable majority in the National district, and Maurice Nenou 54.15 per­ Assembly in Paris. In New Caledonia, cent in the second. Voter turnout was the position the new majority would relatively low, with only 57.8 percent of take on the Matignon Accords was the the registered voters casting ballots. subject ofmuch speculation. Signed in Within the FLNKS there was much 1988 by the Front de liberation natio­ debate about whether the long-stand­ nale kanak et socialiste (FLNKS, repre­ ing policy of boycotting national elec­ senting various pro-independence fac­ tions should be continued or aban­ tions), the Rassemblement pour la doned. For several months Union Caledonie dans la Republique (RPCR, caledonienne, the largest party within the major loyalist group), and the the FLNKS, had been advocating a French national government, the resumption ofparticipation in national accords had been soundly denounced elections, and it managed to win the by a large portion ofthe Right. support of two ofthe smaller parties, As it turned out, however, new Union progressiste metanesienne and Minister for Overseas Territories Parti socialiste kanak. Meanwhile, Dominique Perben was quick to con­ Parti de liberation kanak (PALIKA) firm that the process begun with the maintained its earlier position and con­ accords would continue. He said New tinued to encourage its members to Caledonia was the only overseas terri­ abstain from voting. However, it did tory ofFrance where things seemed to consent to the use of the FLNKS label by be going well and, in spite ofthe diffi­ the two pro-independence candidates cult economic situation in France, who entered the race. there was no reason to reduce metro­ FLNKs Vice-President Rock Wamy­ politan support for the ongoing effort. tan obtained 14.32 percent ofthe vote During his June visit to the territory, in the first electoral district, and Presi­ the minister reaffirmed his govern­ dent ofNorth Province Leopold ment's commitment to continuing in Joredie won 29.81 percent in the sec­ the direction set by the accords. ond district. The FLNKS had counted on In the March legislative elections, a better showing, and PALIKA leaders nine candidates were listed for the first argued that the poor results reflected electoral district (Noumea, the three voters' opinions regarding the running municipalities of the Loyalty Islands, ofthe North and Loyalty Islands prov­ and the Isle ofPines), and six for the inces by pro-independence factions. second (the other twenty-seven munici­ Mouvement des caledoniens libres, palities ofthe main island). While the a splinter group ofthe RPCR founded in sheer number of candidates had led early January 1993 by former Senator most observers to expect that a second Dick Ukeiwe, and a political party in POLITICAL REVIEWS 445 its own right since its members were when elections were called following expelled from the RPCR, presented two the resignation of several municipal candidates: Dick Ukeiwe and Justin councillors. Cono Hamu ran anyway, Guillemard. In earlier provincial elec­ and his faction took the lead after the tions, Guillemard had represented a first round of voting, with 23 percent of small anti-independence party called the vote. However, they were defeated Caledonie demain (Caledonia Tomor­ during the second round by an unlikely row), which fielded two candidates of alliance between members of the RPCR its own in the 1993 national elections. and several small pro-independence For the territory as a whole, Mouve­ factions running under the banner of ment des Caledoniens Libres obtained "custom" and support for the tradi­ 12.46 percent of the votes. In the first tional chiefly structure. The alliance electoral district, its candidate won 16 picked up 39 percent ofthe vote, and percent of the votes, placing second, 20 of the 29 seats contested. ahead ofthe pro-independence candi­ Nevertheless, Hamu's supporters date. continued their campaign. Some of The elections also offered an oppor­ them targeted the provincial authori­ tunity to reassess Union Oceanienne, ties, particularly the president ofthe which largely represents migrants from Islands Province, whose Noumea home Wallis and Futuna, following its split was attacked. In April, following his into two factions in 1992. The factions decision to extend the movement he presented one candidate each in both had started in Lifou to the other islands electoral districts, although all ran of the Loyalty Group, Cono Hamu was under the Union Oceanienne banner. expelled from the membership of Overall, Union Oceanienne appears to Union Caledonienne. have maintained its position, gathering On 25 December 1993, Catholics 4.2 percent ofthe vote compared with observed the one-hundred-fiftieth anni­ the 3.9 percent achieved in the 1989 versary of the celebration of the first provincial elections held shortly after mass in New Caledonia. During the the party was founded. The dissident ceremonies, and on behalf ofthe entire faction, led by Aloisio Sako and lean­ church, Archbishop ofNoumea Mon­ ing toward a pro-independence posi­ signor Calvet formally asked the for­ tion, collected 1255 votes. The more giveness ofMelanesians for "the suffer­ centrist faction led by Michel Hema, ings and acts ofinjustice inflicted on president of the party before the their ancestors, who were forced to schism, won only 943. relinquish a part oftheir culture." This The dispute between Mayor of request for forgiveness was received Lifou Cono Hamu and the traditional and accepted by representatives of the chiefly authorities, which has been eight "cultural areas" ofthe territory. ongoing for several years, appears to Generally, social tensions were more have been resolved during 1993. The pronounced than in preceding years, incumbent mayor failed to get the sup­ particularly near the end ofthe year. port of hi~ party, Union Caledonienne, The number of person-days lost to --

THE CONTEMPORARY PACIFIC· FALL 1994 labor strikes rose to 25,010 in 1993, Parliament, and had successfully intro­ compared to 19,368 in 1992. This num­ duced several significant reform mea­ ber reflected not only the usual work­ sures during its first six months in place friction, but growing sentiments office. More important, its eighteen­ that political peace has received more month grace period of immunity from attention than social progress in recent parliamentary votes of no confidence years, and that the economic benefits still had twelve months to run. In Sep­ generated in part by the Matignon tember 1993 Wingti engineered a stun­ Accords have not been fairly distrib­ ning parliamentary coup that extended uted. this immunity to early 1995. Neverthe­ On the regional level, New Caledo­ less, and with some notable excep­ nia continued to cultivate and improve tions, the government had difficulty its relationships with other Pacific implementing its policies in 1993. By countries, particularly Vanuatu. In year's end, with several major initia­ April, Vanuatu's prime minister came tives in disarray, it appeared unlikely to Noumea to open a new consulate. In that Wingti could deliver the sort of November, New Caledonia and Vanu­ comprehensive and fundamental atu signed a cooperation agreement reform he had promised. complementing the one signed in July The Wingti government did have between Vanuatu and the French some remarkable successes during the Republic. Vanuatu's new attitude year, particularly in its dealings with toward the New Caledonian indepen­ the transnational companies operating dence movement was also apparent. in Papua New Guinea's rich mineral While the former government in Port and petroleum sectors. The extremely Vila was vocal in its support of the high rates ofeconomic growth in struggle for independence, current recent years (II.8 percent in 1992 and Prime Minister Maxime Carlot Kor­ an expected 14.4 percent in 1993) are man has declined to get involved in mainly attributable to developments in New Caledonia's internal affairs. At these sectors, and Wingti came to the end ofhis official visit to the terri­ power determined to capture a larger tory, Carlot Korman stated that his share ofthe benefits for Papua New position was purely one of support for Guineans. In January 1993 the Interna­ the Matignon Accords. tional Monetary Fund was commis­

FRAN90IS SODTER sioned to review the fiscal regime for mining, petroleum, and gas. By that time, however, Wingti's high-stakes struggle with the mining companies PAPUA NEW GUINEA was well under way. At the beginning of1993, the govern­ At the beginning of the year, negoti­ ment ofPaias Wingti appeared well ations with the partners in the Porgera placed to implement some ofthe ambi­ Joint Venture over an increased equity tious reforms announced after it came share for the state were deadlocked. In to power in mid-1992. The coalition 1992, the government had demanded to commanded a comfortable majority in increase its share in the giant gold mine tN, ,171' ",,

POLITICAL REVIEWS 447 from 10 percent to 30 percent, claiming cease production before that time, the that the mine's operator, Placer Pacific, transaction would be interest free. Rev­ had deliberately downplayed the pro­ enues from taxation were unaffected ject's financial potential when the min­ by the arrangement, and the state ing agreement was signed. Although would get a share of dividend income. the government claimed the negotia­ Furthermore, the partners agreed to tions were purely commercial in finance and implement a 50-million­ nature, the international financial com­ kina infrastructure development pro­ munity reacted with suspicion. One gram in Enga, Southern Highlands, analyst described the impact of and Western Highlands provinces over Wingti's aggressive actions at Porgera the next decade, in return for tax cred­ and elsewhere in the mining sector as its (Iangalio 1993). "nothing short of devastating." He esti­ As Mark Davis pointed out, the mated that the market value ofPapua costs ofthe deal to the three private New Guinea-related mining and oil partners, Placer Pacific, Renison Gold­ stocks had declined by 22 percent since fields Consolidated, and Highlands the Wingti government came to power Gold were significant, but "not as high (Davis 1993, 24)· as they might have been." The agree­ Fearing that a false step could put ment protects the companies' cash their billion-dollar investment at risk, flows until the state's debt is paid off, the joint venture partners were obliged and offers intrinsic tax concessions to negotiate the sale of equity. As Man­ worth an estimated 40 million kina. aging Director Vic Botts ofPlacer Most important, the joint venturers Pacific put it, "We did not think it was believed that they had "made a crucial good business to confront the Govern­ gain in predictability and stability" ment" (pc, 18 Aug 1993,2). By early (Davis 1993, 24-25). 1993, their main concern was the extent The ownership structure of the pro­ ofthe concessions necessary to restore posed Lihir gold mine in New Ireland a more favorable political environ­ province was also a major source of ment. contention during the year. The gov­ The deal finalized in March repre­ ernment was concerned that the devel­ sented a major victory for the govern­ opment of this major resource was ment. It allowed the state to purchase being delayed unnecessarily by Kenne­ an additional 15 percent equity in the cott, a subsidiary ofthe London-based joint venture (5 percent from each of mining giant Rio Tinto Zinc. Kenne­ the three corporate partners) for cott argued that the project was eco­ 138,750,000 kina, significantly lower nomically marginal, and indicated its than the estimated market value ofthe reluctance to proceed unless a third shares. More important, payment party could be persuaded to join the would come from the state's new share Kennecott-Niugini Mining joint ven­ ofthe cash flow, making the invest­ ture. The company suggested that the ment virtually risk free. No interest prevailing investment climate made it was payable until the principal had difficult to find such a partner, and that been fully paid off. Ifthe mine were to the Wingti government must accept M§t!!JIM41IMM#!iMGGi.Wi62MiW'MMP diM

THE CONTEMPORARY PACIFIC. FALL 1994

some responsibility for that situation bly (pc, 29 Oct 1993, 9; Needham (Togarewa 1993a; 1993b; 1993C). 1993,53)· The government used two tactics to By late September, with the govern­ push Kennecott toward an agreement ment and its corporate partners in gen­ to develop the Lihir project. The first eral agreement regarding project involved calling Kennecott's bluff on financing, it seemed likely that a spe­ the equity issue. After Kennecott had cial mining license would be issued in failed to meet a deadline to find a third December, and that construction party, the government announced that would begin early in 1994. The part­ it would take up 20 percent ofthe ners had agreed that the state and equity itself, in addition to the 30 per­ Niugini Mining would each take 30 cent it had opted for previously. In a percent ofthe project, with Kennecott June letter to the chairman of Rio holding 40 percent. They also agreed Tinto Zinc, Sir Derek Birkin, Prime to float up to 40 percent of the shares Minister Wingti stated, "This lessens in Lihir Gold, the project vehicle. Kennecott's exposure to a project in Venezuelan Gold and Malaysian Min­ which it dearly lacks confidence, and ing Corporation were expected to pur­ will, I trust, facilitate immediate chase a significant proportion ofthose progress on the project" (Togarewa shares (pc, 27 Sept 1993, I). Then, at 1993b). In August, Mining Minister the mining forum in November, where langalio angrily rejected a belated pro­ final details ofthe agreement were to posal by Kennecott to sell a 20 percent be negotiated, local representatives share to a Canadian mining company, demanded 20 percent ofthe equity for Venezuelan Goldfields. He confirmed the landowners, and a further 10 per­ that the government still planned to cent for the provincial government take 50 percent, and would find its own (TPNG, 4 Nov 1993, 4). After their buyer for the extra 20 percent (PC, 13 walkout, which brought talks to a halt, Aug 1993, I). The Malaysian govern­ the government agreed to help the ment had already expressed interest in landowner company, Pangpang Devel­ investing in Lihir through its company opment Corporation, borrow money Malaysian Mining Corporation to purchase shares in Lihir Gold (pc, 8 (Togarewa 1993a). Nov 1993, I). The special mining lease The second tactic used by the gov­ had not been issued by year's end, but ernment to speed up the development was expected early in 1994. ofthe Lihir resource was active Meanwhile, the International Mon­ involvement in the planning and design etary Fund's report, presented in April, ofthe project. With Bob Needham, noted that the state's ability to capture head ofthe state-owned Mineral revenues from the exploitation ofits Resources Development Corporation, mineral resources had been disappoint­ in the lead, government officials and ing. It recommended a new fiscal consultants subjected Kennecott's regime that relied more heavily on roy­ development plan to intense scrutiny. alties, and a lowering ofthe existing By September, estimated capital costs threshold for additional profits tax, a had been cut by 20 percent, improving device used to capture a large portion the economics ofthe project considera- ofexceptionally high profits for the POLITICAL REVIEWS 449 state. It also recommended an immedi­ Malaysia. Wingti visited Kuala Lum­ ate strengthening of the state's capacity pur in January, and Malaysia's Interna­ to monitor the fiscal aspects of tional Trade Minister Dato Seri Rafi­ resource projects and to enforce its tax dah Aziz led a large trade and regulations. Significantly, the report investment delegation to Papua New argued strongly that purchasing large Guinea in May. Malaysian companies amounts ofequity in resource projects are best known in Papua New Guinea was risky, a poor use of scarce govern­ for their heavy and controversial ment resources, weakened the state's involvement in the logging industry, ability to borrow overseas, and con­ described in a recent report as "out of flicted with its regulatory duties (TPNG, control" (Nadarajah 1993). In welcom­ IS April 1993, I). The events of1993 ing the Malaysian delegation in May, demonstrate that at least some key Minister for Trade and Industry David members of the Wingti government Mai warned that foreign logging com­ and their advisers were not impressed panies "either comply with the local by this advice, and in September the rules or they are out" (1993, 58). Never­ government agreed to increase its stake theless, the government has welcomed in the Ok Tedi copper and gold mine new Malaysian investment in the coun­ from 20 percent to 30 percent after try, offering Kimpulani Fima an attrac­ Amoco Minerals withdrew (pc, 30 Sept tive package ofincentives to establish 1993, I). For them, it seems, equity par­ in Lae a mackerel-canning plant (which ticipation is a useful instrument to relies heavily on imported materials, at exercise more control over large-scale least initially), and inviting Malaysian resource developments in Papua New Mining to purchase a share ofthe Lihir Guinea (Needham 1993). gold mine (TPNG, I4Jan 1993, 26). Wingti's determination to "look In June, despite strong opposition north" to the dynamic countries ofAsia from a wide range of senior officials, for trade and investment opportunities cabinet approved a 50-million-kina also bore some fruit in 1993. His three­ plan to provide housing for the disci­ day visit to Indonesia in February, plined forces to be funded by the accompanied by some two hundred Malaysian government and a consor­ officials, politicians, and business exec­ tium ofMalaysian banks (TPNG, 10 utives, yielded a proposal for coopera­ June 1993, I). Officials noted that the tion on oil and gas exploration, and deal had been arranged without regard one to establish a coffee processing fac­ to normal tendering, planning, and tory in Papua New Guinea (TPNG, II budgetary procedures, and was not a Feb 1993, I; 18 Feb 1993, 4, 21). The good one for Papua New Guinea. They visit symbolized the beginning of a argued that the costs were excessive, new, more broad-based, era in Papua local content low, and that the Malay­ New Guinea-Indonesia relations, long. sian contractor, which the funding dominated by a narrow concern with institutions had been allowed to select, the spillover effects ofthe guerrilla would pay no taxes, fees, or import struggle in Irian Jaya. duties (TPNG, 24 June 1993, I; pc, 25 Equally significant was the govern­ June 1993, I). Equally controversial ment's newfound enthusiasm for was the government's decision to allow 45° THE CONTEMPORARY PACIFIC. FALL 1994

Rimbunan Hijau, a company that con­ respect and dignity" (1993b, 64). In an trols more than 70 percent of Papua outspoken address in Canberra in New Guinea's logging leases, to estab­ November, he argued that "attitudes, lish a new daily newspaper (pc, 12 July both official and private," were a major 1993, I). Critics feared that the Nation, impediment to improved relations which started publishing in November, between Australia and Papua New would become a vehicle to promote the Guinea (Kaputin 1993c, 16). Aspects of company's commercial interests. The Kaputin's speech were reiterated by associate editor is Mr Wingti's former Deputy Prime Minister Chan in Bris­ press secretary, and the publisher one bane in November (Chan 1993). Yet ofhis close political associates. Early in Papua New Guinea leaders also recog­ the year, Rimbunan Hijau adopted the nize that the relationship with Austra­ slogan We care for Papua New Guinea lia is, and will remain, a key one. In his to help counter its negative corporate Canberra speech, for example, the for­ image (TPNG, 15 July 1993, 27). eign minister seemed to want Australia The Wingti government's increasing to pay more attention to Papua New enthusiasm for Asia has been matched Guinea, not less. by a growing ambivalence toward Aus­ A major point of tension in the rela­ tralia. Part ofthe motivation for the tionship in 1993 was the ongoing shift "look north" policy is clearly to lessen from untied to tied forms ofAustralian the country's heavy dependence on the aid. Until recently, Australia has pro­ former colonial power, especially for vided the bulk of its substantial aid to trade and investment, but also for tech­ Papua New Guinea, set at 219 million nical assistance and advice. Papua New kina for 1993-94, in the form of direct Guinea leaders are very sensitive about budgetary support, which leaders were questions of sovereignty, and periodi­ free to spend as they saw fit. Then in cally complain that Australians are 1989 Prime Ministers Bob Hawke and paternalistic in their dealings with Rabbie Namaliu signed the Develop­ Papua New Guineans. In 1993 Minister ment Cooperation Treaty, providing for Foreign Affairs John Kaputin was for a progressive reduction in the level the most prominent proponent ofthis ofAustralian aid, as well as a rapid View. shift from budget support to program Kaputin dem"anded early in the year and project funding. By 1993, tied aid that Australia apologize for its disre­ represented 16 percent ofthe total. The spectful and arrogant behavior while plan is to increase this to 52 percent by attempting to return two African refu­ 1997, and phase out budget support gees who had entered Australia ille­ completely by the year 2000 (Aopi gally from Papua New Guinea (pc, 19 1993,3). Early in 1993, a major joint Feb 1993, I; I March, I). Later, when study was initiated to investigate how two prominent naturalized citizens the increasing amounts ofprogram and reclaimed their Australian citizenship, project aid might best be spent (pc, 9 Kaputin stated that he would not toler­ Feb 1993, 2). ate "foreigners who think they can The shift to tied aid was motivated treat Papua New Guinea without primarily by a feeling in Australia that POLITICAL REVIEWS 451 the 3.7 billion kina of support provided Shortly after coming to power, to Papua New Guinea between 1975 Prime Minister Wingti stated that the and 1993 had not been well spent. In a provincial government system was speech on the aid relationship in wasteful and inefficient and had to go. December, Australia's Minister for In reports tabled in March and August Pacific Island Affairs Gordon Bilney 1993, a parliamentary select committee argued that Australian aid should be chaired by Ben Micah recommended used to meet Papua New Guinea's "real replacing the existing nineteen provin­ needs," implying that it had not been cial governments with provincial used in that way to date (1993, II). authorities (TPNG, II March 1993, II; Officials in Papua New Guinea argue 19 Aug 1993, 4). Unlike provincial gov­ that the shift to tied aid is also moti­ ernments, these would have few legis­ vated by commercial considerations, lative powers, no autonomous bureau­ and estimate that up to 85 percent of cracies, and no full-time, salaried project aid will flow back into the Aus­ provincial politicians. The membership tralian economy (Aopi 1993, 7). would consist of all the national mem­ Understandably, leaders in Papua bers ofParliament from the province, New Guinea are less than enthusiastic local government council presidents, about the change, not least because it mayors, and representatives ofnon­ means an increase in Australia's direct governmental organizations. Each involvement in Papua New Guinea's authority would be headed by the domestic affairs. Officials are also con­ regional (province-wide) representative cerned that the real value ofAustralian to the national Parliament. This part of aid to Papua New Guinea will decline, the "bipartisan model" would recentra­ because ofexcessive administrative and lize political power, and give national consultancy costs as well as increased members ofParliament considerably purchasing in Australia. Nevertheless, more control over the distribution of leaders had little option but to adjust to resources in their electorates (Saffu the new reality. After making his reser­ 1993,7)· vations clear in a major speech in The Micah committee also recom­ November, Deputy Prime Minister and mended "the single most important Minister for Finance and Planning Sir change since independence"-the res­ Julius Chan went on to say, "I am a urrection ofhundreds of local-level realist and pragmatic enough to accept governments. These village-level insti­ that a new system is desired by the tutions would be constitutionally guar­ donor and so long as PNG needs that anteed sufficient financial and adminis­ money, we must now all do our best to trative support to operate effectively make it work" (1993, 8). "Making it (TPNG, 19 Aug 1993, 4). However, work" will not be easy for either side, local-level government has been under and Australian officials may well live the jurisdiction of provincial govern­ to regret their decision to get more ments since 1976 and has been almost directly involved in some ofPapua universally neglected. It is not clear New Guinea's more intractable prob­ that national parliamentarians would lenis. be any more prepared than their pro- WiI!6W§lfIf",m·,ijAIft8iWMM¥9MMijij.tiQ M

452 THE CONTEMPORARY PACIFIC· FALL 1994

vincial counterparts to fund potential Wingti publicly reconfirm his support political rivals, or to ensure that this for the constitutional commission was a genuine decentralization of (TPNG, 14 Oct 1993, 3). Although power. Wingti managed to persuade Micah Predictably, the Micah reports were not to resign early in November, the well received by all but a few members future ofthe whole review exercise of Parliament. In August, Parliament remained uncertain at the end ofthe quickly endorsed a proposal to estab­ year (TPNG, 4 Nov 1993, 9). lish an eighteen-member Constitu­ Wingti's sudden change ofheart on tional Commission, headed by Micah, the provincial government issue was to implement the reports' recommen­ undoubtedly related to the barrage of dations. Armed with extremely broad criticism created by his resignation and terms ofreference, the commission set immediate reelection as prime minister about reviewing the Organic Law on in September. However, even without Provincial Government, and other rele­ that political firestorm (discussed vant parts of the constitution (Saffu later), the threat of secession had to be 1993,6). However, the assault on the taken seriously. Furthermore, it was provincial government system ran into unclear how the architects ofthe pro­ some major obstacles later in the year. posal to abolish provincial government The provincial premiers organized planned to deal with the Bougainville quickly to resist the Micah initiative. issue. In April, with large parts of the In September, a special meeting ofthe island back under government control, National Premiers Council totally leaders from all parts ofBougainville rejected the committee's findings. The met to discuss ways ofresolving the premiers ofthe New Guinea Islands five-year-old crisis. The idea of seces­ region announced that they would sion was described as "an impediment secede if the recommendations ofthe to peace," and "rejected outright now report were implemented, and began and in the future." However, the lead­ organizing a referendum on the issue. ers demanded that the North Solomons Manus Premier Stephen Pokawin said Provincial Government be reinstated he would arrange a public burning of immediately, and argued that failure to the report when he got home (TPNG, 9 do so could "regerminate and legiti­ Sept 1993, I). The provincial resistance mize" secessionist sentiments in the was not unexpected. What was a sur­ province (pc, 27 April 1993, II). prise was Prime Minister Wingti's Although Prime Minister Wingti response to the premiers' demands came to power committed to an early when he met them in Goroka in Octo­ end to the Bougainville crisis, his first ber. Instead oflaunching the expected major policy statement on the issue did attack on provincial government, he not come until March 1993. He chose took a very conciliatory line, even to take a hard line with the rebels, inviting the premiers to join some describing them as "murderers" who members ofhis government on a new must surrender or face death. Those review committee (TPNG, 7 Oct 1993, who have committed atrocities, he I). In turn, Micah demanded that said, must pay for their crimes because POLITICAL REVIEWS 453

"History teaches us that a bully must groups" to counter the activities of the be beaten at his own game" (TPNG, 18 Bougainville Revolutionary Army. In March 1993, 2). What was missing was February, with some fanfare, troops any sense ofhow the social and politi­ moved into the devastated provincial cal fabric ofthe war-torn province capital ofArawa (pc, 16 Feb 1993, I). would be restored, if and when a mili­ But this part of Operation Dynamo did tary victory was achieved. not go as smoothly as planned. Ten Wingti's March statement appeared days later, rebels ambushed and killed to confirm the conventional wisdom eight soldiers outside the town, the that the military, rather than the gov­ greatest number of casualties suffered ernment, had the upper hand in the by the security forces in a single inci­ Bougainville operation. In recent years dent since the crisis began (pc, 26 Feb numerous aid workers and journalists 1993, I). In a series of offensives over have been refused entry to Bougainville the next two weeks, soldiers killed an despite clear authorization from Port estimated thirty-five rebels in various Moresby. In November, a prominent parts ofcentral and southern Bougain­ international medical aid group with­ ville (pc, 10 March 1993, 5). drew from the country altogether, cit­ Criticism of the Wingti govern­ ing such frustrations. A spokesperson ment's handling ofthe Bougainville cri­ for Medecin Sans Frontihes expressed sis came from many different directions the opinion that Bougainville was during 1993. The London-based being run by a "dictatorship of the human rights organization Amnesty defence force" (pc, 22 Nov 1993, I). International issued its second major Minister for Bougainville Michael report on the crisis in November, Ogio had done little to dispel this claiming that at least sixty people had notion earlier in the year. Responding been extrajudicially killed by govern­ to reports that the security forces had ment forces since 1991, and citing crossed the border with the Solomon numerous cases of torture, rape, beat­ Islands and taken control of Oema ings, and harassment ofsuspected Island, Ogio acknowledged that the Bougainville Revolutionary Army government had difficulty monitoring members or sympathizers. Similar and controlling the actions ofthe abuses were attributed by Amnesty security forces (TPNG, IS April 1993, 3). to the rebel forces. Despite numerous This was one of several confrontations, statements of intent by government some involving exchanges of fire, officials, the report noted that very lit­ between Papua New Guinea and Solo­ tle had actually been done to investi­ mon Islands security forces during the gate allegations ofhuman rights abuses year (TPNG, 7 Jan 1993, 2; PC, 27 April and take steps to ensure that they did 1993, I). not recur (Amnesty International The security forces continued to 1993)· expand their presence on Bougainville Solomon Islands Prime Minister during 1993, establishing more bases in Solomon Mamaloni was equally out­ central and southern parts ofthe spoken in his condemnation ofthe island, and arming civilian "resistance Wingti government's Bougainville pol- 454 THE CONTEMPORARY PACIFIC. FALL 1994 icy. In an extraordinary departure from announced to increase the strength of normal diplomatic protocols, Mama­ the police force by fifteen hundred over loni wrote a fourteen-page letter to three years (TPNG, 23 Dec 1992, 2). By Papua New Guinea Deputy Prime Min­ August 1993, boom gates were under ister Sir Julius Chan, in which he construction on three roads into Port accused the government ofindifference Morseby, presumably to help police to "the total annihilation of Bougain­ control the movement ofcriminals villeans," among other things (pc, 24 (TPNG, 26 Aug 1993, 9). Meanwhile, March 1993, II; 25 March, II; 26 the National Law, Order and Justice March, II). Another letter leaked to Council had been formed to replace a the press during the year, this one seven plethora ofexisting law and order pages long, indicated some dissent committees (pc, 15 March 1993, I). within the government itself. Minister Much more significant was a series of for Foreign Affairs John Kaputin wrote legislative measures introduced or to the prime minister to express his dis­ announced during 1993 that were may at the aggressive tone ofWingti's designed to combat civil disorder. Bougainville statement and the cabi­ In July, arguing that "The crime net's decision to delay inviting an inter­ problem facing us warrants drastic national fact-finding mission to visit action," Wingti announced a system of (pc, 15 April 1993, I). In a subsequent national registration and associated statement to Parliament, Kaputin identification cards. He also warned that failure to allow such visits announced the introduction of a con­ "could have far reaching-and adverse stitutional amendment that would -implications for Papua New Guinea" allow the burden ofproofto be shifted (I993a,3)· from the state to the accused in serious Perhaps the most hopeful develop­ criminal cases (pc, 27 July 1993, I). Pre­ ment during the year was the pan­ dictably, this measure raised the ire of Bougainville dialogue inaugurated by civil libertarians, with former Attorney the leaders at Buka in April (pc, 27 General Bernard Narokobi describing April 1993, II). There were strong indi­ presumption ofinnocence as "the cor­ cations that powerful factions within nerstone ofcivilized democratic the rebel movement were ready to par­ societies" (pc, 30 July 1993, I). ticipate in further talks. However, the The most controversial law and Wingti government was apparently not order measure introduced in 1993 was prepared to facilitate a second confer­ the Internal Security Act passed by Par­ ence in Cairns that would have liament in May and gazetted in August. included representatives ofthe seces­ The Act allows the head ofstate to ban sionist movement. organizations that are, in his opinion, The Wingti government had prom­ "promoting or encouraging, or ... ised firm action on Papua New Guin­ likely to or about to promote or ea's perennial problems oflaw and encourage terrorism." Appeals against order, and several strategies were pur­ designation as a terrorist organization sued. Late in 1992, plans were are to be heard, not by an independent POLITICAL REVIEWS 455

body, but by cabinet and the head of ber, Speaker Bill Skate announced the state, who would have issued the resignation in Parliament, read the orders in the first place. Alleged mem­ governor general's response, and called bers or supporters of such organiza­ for nominations for the office ofprime tions can be identified by the police minister. With the opposition caught commissioner and imprisoned (TPNG, completely off guard, Communications 20 May 1993, 4, II, IS). Minister Martin Thompson, the archi­ Critics were dismayed by the way tect ofthe scheme, nominated Wingti, the legislation was pushed through Par­ who was duly reelected unopposed liament without serious debate. They (TPNG, 30 Sept 1993, 4). Wingti were also concerned about the enor­ claimed that the possibility of a vote of mous discretionary power it gives to no confidence early in 1994 was an the executive branch ofthe govern­ unacceptable source ofinstability that ment, and the associated erosion ofthe placed his reform program in jeopardy. individual freedoms protected by the As it turned out, his successful bid to constitution. In October, the Ombuds­ remove the threat served to weaken, man Commission filed a challenge to rather than strengthen, his position. the Act in the Supreme Court (TPNG, 7 Speculation about likely contenders Oct 1993, I). for power in a vote of no confidence The court had not passed judgment had long centered on Deputy Prime on the Internal Security Act by the end Minister and Leader ofthe Peoples ofthe year. By this time Wingti himself Progress Party Sir Julius Chan, who was having second thoughts about its was known to disagree with Wingti utility. In another stunning reversal, over certain key policy issues, such as the prime minister announced in Octo­ how best to deal with the mining com­ ber that he would consider amend­ panies. Furthermore, his party's parlia­ ments to the Act. The immediate impe­ mentary strength, at twenty, was sec­ tus for this particular change ofheart ond only to that ofWingti's Peoples seems to have come from Minister for Democratic Party, and could have pro­ Mining Masket Iangalio, who had vided the core of a new coalition. It already gained the support of some was no coincidence that Wingti's resig­ other members ofthe government (pc, nation gambit occurred when Chan 6 Oct 1993, I). Like his previous rever­ was out ofthe country. Chan claimed salon the provincial government issue, no prior knowledge ofit (TPNG, 30 Wingti's decision was heavily influ­ Sept 1993, 3)· enced by the political fallout from his Wingti underestimated the level of slick maneuvers in Parliament at the opposition that his move would pro­ end ofSeptember. voke. Several thousand people The mechanics ofWingti's Septem­ marched on Parliament to demand the ber ploy were simple. He gave a letter resignation ofWingti, Skate, and ofresignation dated Thursday, 23 Sep­ Korowi. Chris Havieta, who had tember to Governor General Sir Wiwa become leader of the opposition after Korowi. On the morning of24 Septem- Jack Genia died suddenly ofmalaria in THE CONTEMPORARY PACIFIC· FALL 1994

July, instigated a court challenge charg­ Papua New Guinea Economic Perspective. ing some technical irregularities. Address to PNGIAustralia Aid Forum, Although the National Court ruled in Brisbane, 29 November. Wingti's favor in December, the late­ Bilney, Gordon. 1993. Changing to Make night scheming revealed by the case Aid More Helpful. Address to PNGIAus­ was politically destructive (TPNG, 2 tralia Aid Forum, Brisbane, 29 November. Dec 1993,10). Perhaps most damaging, In PC, 3 Dec 1993, II. however, were the rumblings of dissent Chan, Julius. 1993. Keynote Address. that emanated from within the govern­ PNGIAustralia Aid Forum, Brisbane, 29 ment. At least six coalition supporters November. complained publicly ofWingti's dicta­ Davis, Mark. 1993. Stunning Deal Renews torial style, and some of them joined Confidence. Mining Quarterly Review. the opposition (TPNG, 30 Sept 1993, I). Supplement to PC, 20 May, 24-27. Ben Micah, who was leading the attack on provincial government for Wingti, Iangalio, Masket. 1993. Porgera Is the Best was a vocal critic ofthe resignation Deal PNG's Ever Negotiated. PC, 19 March, II. move (TPNG, 7 Oct 1993, 3)· Although Wingti managed to sur­ Kaputin, John. 1993a. Statement to Parlia­ vive his self-inflicted political crisis, ment on Overseas Assignments. 27 April. In there were serious consequences for his Kundu Newsletter I (2): 1-6. program ofreforms. With his public ---. 1993b. Foreign Minister Questions and parliamentary support signifi­ Resumption of Australian Citizenship by cantly eroded, he was forced to seek a Former MP. Statement issued 28 June. In broader consensus on the provincial Kundu Newsletter 1(2): 64-65. government and law and order issues. ---. 1993c. Papua New Guinea and The momentum for radical change will Australia: Drifting or Pulling Apart? Princi­ be hard to regain. ples, Practice and Problems in the Bilateral Relationship. Address to the National Press TERENCE WESLEY-SMITH Club, Canberra, 4 November. ** Kundu Newsletter. Quarterly. Papua New Guinea High Commission. Canberra. THANKS TO Bill Standish for helpful com­ Mai, David. 1993. Malaysian Trade Minis­ ments on an earlier draft ofthis review. ter Visits Papua New Guinea. Kundu Newsletter 1(2): 56-59. References Nadarajah, Tahereh. 1993. Overexploited or Overcommitted: PNG's Forests in Crisis. Amnesty International. 1993. Papua New Port Moresby: National Research Institute. Guinea "Under the Barrel ofa Gun": Bougainville 1991 to 1993. Sydney: Amnesty Needham, Bob. 1993. Insight into MRDC International. Index number ASA Operations. Address to Mining and Petro­ 34 /05/ 93. leum Conference, Port Moresby, 17 November. In Mining Review. Supplement Aopi, Gerea. 1993. Towards 2000: The to PC, 18 November, 51-54. Economic Impact on Papua New Guinea of the Changing Aid Relationship-The pc, Post-Courier. Daily. Port Moresby. POLITICAL REVIEWS 457

SaHu, Yaw. 1993. A Current Example of tainty. The national general election Policy-Making on the Trot in Papua New took place on 26 May 1993. Seats in Guinea. Paper presented at Pacific Islands each of the 47 constituencies through­ Political Studies Association conference, out the country were contested by Rarotonga, 5 December. some 280 candidates. The state of Togarewa, Neville. 1993a. Lihir a "Goer." uncertainty lasted for some time after PC, 24 May, II. the results were announced over na­ tional radio. Solomon Mamaloni's --. 1993b. Government Sets Saturday party of National Unity won the most Deadline for Talks on Lihir. PC, 29 July, 3. seats, but with only 21 of the total of47 --. 1993c. 50 pct Equity Decision Is it did not have a clear majority. Of the Final. pc, 13 August, 5I. other parties, the People's Alliance Party led by Nathaniel Waena won 7 TPNG, Times ofPapua New Guinea. Weekly. Port Moresby. seats; the new National Action Party of Solomon Islands (Francis Saemala) and the United Party (Ezekiel Alebua) won 5 each; the Labour Party (loses Tuha­ SOLOMON ISLANDS nuku) won 4; the National Front for New Year's Eve 1992 brought havoc to Progress (Andrew Nori) and the new the southeastern parts of Solomon Solomon Islands Leaders Fellowship Islands as Cyclone Nina passed (Reverend Michael Maeliau) won 2 through. Parts ofMalaita, South each; and 1 was won by an indepen­ Guadalcanal, Makira, Temotu, and dent (Francis Billy Hilly). A coalition Rennell and Bellona were devastated. government had to be formed. For the people in these islands, a sea­ Uncertainty and political specula­ son of celebration and reflection tion were fueled by strong indications became overnight a time ofdisaster that veteran politician and incumbent and lost hopes. Homes and schools had Prime Minister Solomon Mamaloni to be rebuilt, new gardens had to be and his party might lose their parlia­ cleared, and short-term assistance was mentary majority. The first sign of necessary. The much-needed assistance impending doom for Mamaloni came was given promptly when the whole with the election for Speaker of the nation pitched in and, with some help House, which was held a few weeks from other governments and organiza­ after the general election and before tions, pledged SI$L5 million toward the that for the new prime minister. In the government's rehabilitation program election for the Speaker, the two con­ (ss, March 1993). As in the aftermath tending groups, the Government for ofother natural disasters, Solomon National Unity led by Mamaloni and Islanders looked to the future with the National Coalition Partnership optimism as they rebuilt their homes, group whose leader was yet to be churches, and schools, and hoped for named, fielded their respective candi­ better fortune in the year to come. dates. Waita Ben, who was then Another kind ofstorm-a political Speaker, was the nominee ofthe Gov­ one-was awaited with equal uncer- ernment for National Unity, and Paul THE CONTEMPORARY PACIFIC. FALL 1994

Tovua, who had just lost his Malango and became the leader ofthe indepen­ (central Guadalcanal) constituency dent group in Parliament. In this sec­ seat, was nominated by the National ond term, he became deputy prime Coalition. When Paul Tovua was minister and served as minister for the elected Speaker, political gurus were Ministry ofHome Affairs in a coalition left with little doubt that, if the coali­ government led by Peter Kenilorea. In tion (especially its new members) held August 1981, Hilly resigned from the together and survived the intense lob­ coalition, serving as an ordinary mem­ bying, political intrigue, and wantok ber, and did not seek reelection in the manipulations that characterized the 1984 elections. Instead, he successfully period leading to the election for prime ran in the Western Province elections minister, it would have a chance to lead and became president of the Western the next government. When the votes Provincial Assembly. In 1989, he ran for prime minister were counted, Ma­ unsuccessfully for the National Parlia­ maloni's party for National Unity was ment. At the time ofthe elections in ousted by the narrowest margin since May 1993, he was running a family independence-24 votes to 23. On 18 business. June, a new government was formed, One ofthe chief aims ofthe parties led by the 45-year-old member for that made up the coalition was to oust Ranongga and Simbo, the Honourable Mamaloni's strong Government of Francis Billy Hilly. National Unity, and they closed ranks The new coalition government con­ to do it. Among other matters, such as sists ofthe existing parties-Peoples' allegations of corruption, the Mama­ Alliance Party, United Party, Labour loni government appeared to have Party, National Front for Progress­ allowed prime land sites in and around and the independent member, plus two the capital to be bought and occupied new parties-the National Action by foreign investors. Eager to change PaIty ofthe Solomon Islands and the the situation, and guided by their new Solomon Islands Leaders Fellowship. vision and new policies, the coalition (Though a political anomaly, the last was determined to lead the country and insisted it not be called a political carry the developmental trajectory in a party.) different direction. Though Hilly was new as prime The new government led by Francis minister, a post dominated by Solomon Billy Hilly did not acquire political Mamaloni or Sir Peter Kenilorea since power without having its mettle tested 1974, he was not a novice in politics. and its unity shaken. From the begin­ After a Bachelor's degree from the Uni­ ning, the Mamaloni camp gave clear versity ofthe South Pacific and almost indications that power would not be two years of employment with the gov­ yielded easily; a catalogue of election ernment and the Solomon Trading petitions was lodged in the High Court Company, Hilly entered politics in and political horse-trading ensued. The June 1976 as member ofParliament for election petitions included one by Ranongga and Simbo. He was returned Mamaloni himself, challenging the for a second term in the 1980 elections legality ofHilly's majority and that his POLITICAL REVIEWS 459 election as prime minister was uncon­ ofreforms as well as immediate and stitutional (sv, Oct 1993). The High long-term priorities. The immediate Court settled in favor of Hilly. As if goals include investigation into corrup­ this were not enough, Dennis Lulei, tion, malpractice, and abuse ofpower; leader of the Alliance Party in Parlia­ establishment of a new national plan­ ment and new minister for education, ning strategy; effective control and use was terminated by the coalition leaders of government assets and utilities; for insurbordination after challenging review ofpermanent secretaries; the government's leadership and deci­ review ofthe taxing regimes; review of sions. And Allan Paul resigned from the provincial establishments; conven­ the Hilly government but later decided ing ofeconomic, religious, and youth to rejoin. summits; reengagement of doctors who Despite these wrangles, things had earlier resigned; formulation of a seemed to be settling down as months new foreign assistance policy; and passed and most of the petitions to the review and assessment of Solomon High Court failed, and the coalition's Islands' overseas representation. A position appeared much more secure. ministerial consultative committee will Because of the nature ofpolitics in monitor the implementation ofthese Solomon Islands, where allegiance can policies. change overnight, a former member of The long-term goals include self­ the Government of National Unity, reliance, decentralization, and im­ Walter Folotalu, accepted the portfolio provement of government services left vacant by the withdrawal ofDennis around the country. The economic pol­ Lulei to become minister ofeducation. icy ofthe government is designed to A successful petition against the mem­ promote self-reliance. Importantly, ber for East Honiara, the Honourable government assistance to rural areas is Charles Dausabea (a spokesman for guided by the principle of self-reliance the Government ofNational Unity and is not viewed as a government group and a staunch supporter of Solo­ handout. The decentralization strategy mon Mamaloni), alleging illegality of involves maximizing linkages to the voting practices, further strengthened rural masses and requires the develop­ the coalition's position. At the end of ment of a new decentralizing formula the year, it was again strengthened by to allow a more direct and meaningful the approval ofthree additional minis­ sharing ofideas, powers, and responsi­ tries during the December sitting of bilities with traditional leaders and Parliament, and the Mamaloni camp resource owners (villagers who are seemed resigned to their defeat, if not landowners) throughout the country. exhausted. All ofthese power struggles Hilly's government recognizes the took up a good six months, which the importance ofthe resource owners to government could have put to better the country and believes they should be use in serving the country and its afforded maximum benefits from their people. resources. On the domestic front, the coalition In support ofits goal to improve government's policies include a number government services, the coalition gov- -lW..&biii*WA.9mIiEMSWJII,4t¥@§A§'P#@tit4U gg;; M4h Hlf,.

THE CONTEMPORARY PACIFIC. FALL 1994

ernment hopes to improve and expand closed down and replaced with a peace health services and to implement an office. (3) to encourage the convening open education policy that should ofthe proposed pan-Bougainville lead­ allow maximum access to schools. ers' conference as a necessary avenue The Hilly government places great for a meeting of minds from the differ­ importance on state-church relations ent sides on Bougainville; (4) to restore and the need to strengthen this link. normal services on the Solomons side The government has announced it will of the border, including immigration provide assistance to the churches, for and customs control; (5) to establish an example in the training of their leaders, honorary consulate in Port Moresby as and will encourage the churches to take a center for bilateral discussions an active role in linking the govern­ between Solomon Islands and Papua ment to the rural communities. The New Guinea. This office will also cater government also sees the state and the for the interests of Solomon Islanders churches as the most important agen­ living in Papua New Guinea. (6) to cies ofdevelopment, and hopes that work toward the establishment of a close state-church relations will result proper border treaty with Papua New in greater participation by Solomon Guinea (5N, July-Aug 1993). Islanders in the political process. Beside the attempt to restore Papua The chief thrust of the new Solomon New Guinea-Solomon Islands rela­ Islands foreign policy can be character­ tions, especially with an eye to working ized by the slogan, Friendship by Reci­ together to resolve the Bougainville cri­ procity. Central to this approach is an sis, the government has also pledged to emphasis on the use of foreign assis­ increase dialogue with regional and tance for economic development. A global friends in order to renew friend­ beginning will be made through recon­ ship and gain respect and support. A ciliation with foreign governments. new foreign policy paper will be intro­ Particular importance is attached to duced to iay the foundation for further­ Papua New Guinea, with whom pre­ ing Solomon Islands' image and integ­ vious relations had soured, especially rity overseas, and relations with all over the Bougainville crisis and the overseas donors will be improved. spillover effects when three Solomon After taking office, the government Islanders were killed in September decided to slowly phase out logging, to 1992. The coalition government pro­ encourage local processing oflogs, and duced a six-point initiative to aid in to conserve forest resources. To effect resolving the Bougainville debacle: (I) its policy on timber and forest re­ to normalize relations with Papua New sources, the coalition would place a Guinea through dialogue rather than moratorium on the granting oflicenses confrontation; (2) to restore respect for to logging companies, effective early in the laws, customs, and immigration 1994 (55, July 1993). A lot had gone regulations of Solomon Islands that wrong with forest exploitation in the have been violated since the beginning country. For instance, the permanent ofthe border problem. The Bougain­ secretary for the Ministry ofNatural ville Humanitarian Office is to be Resources had revealed that the coun- POLITICAL REVIEWS try was losing SI$15 million a year from economies and trade ofmember coun­ underpricing of its timber exports. tries, is expected to be an economic Companies operating in the Solomons milestone in the relations between the achieved this through collaboration member countries ofthe Melanesian with overseas companies. Not only did Spearhead Group. Each country will landowners lose money, but the gov­ export products in which they have a ernment also lost revenue because of competitive advantage. The countries undertaxation. For example, the gov­ presently involved are Papua New ernment had to ask Kalena Timber Guinea, Vanuatu, and Solomon Company to pay SI$900,000 in under­ Islands, but others such as Fiji and stated duties and royalties (sv, April Kanaky (New Caledonia) could be 1993). In other cases, many of the included if they wished. Under such an Asian companies operating in the arrangement, Vanuatu beef could be country did not follow the legal proce­ exported to Solomons and Papua New dures required by the Forest Resource Guinea; Solomons tuna to Papua New and Timber Utilization Act. Some were Guinea and Vanuatu, and so on. operating on lands not covered by their In education, the World Bank ap­ permits and licenses (ss, Jan 1993). proved us$16.9 million (approximately Other coalition government policies SI$52 million) for the construction of are influenced by cost-containment more secondary schools in the country. measures. Soon after the new govern­ The Implementation Project Unit in the ment took office, it decided to suspend Ministry ofEducation is to be respon­ construction ofthe new State House, sible for the different phases ofthe pro­ contracted to be built for SI$15 million, ject. The process will be slow and cau­ which it claimed would be a burden on tious to avoid the misappropriation of the government's purse. Individuals or funds or bungling of contracts that companies adversely affected would be happened with an earlier World Bank compensated accordingly. The perma­ project in the mid-1980s. The Honiara nent secretary positions that had been Town Council established an innova­ contracted out by the Mamaloni gov­ tive program to absorb Standard 6 ernment were revoked in October (ss, dropouts so that they can be taught the Oct 1993) and were reestablished under basic skills they will need in the work­ the normal public service employment place. Essentially, middle schools will structure. For the new positions, sixty­ provide an alternative avenue for these seven applicants vied for fifteen vacan­ students; it has yet to be decided cies. Most ofthe former permanent whether these schools will form a secretaries were rehired, with only four bridge to get the students back into the ofthem unsuccessful. Permanent secre­ main stream of schooling, toward tary salaries, placed on a permanent advanced studies. basis instead ofcontractual employ~ The long-running dispute between ment, were reduced from sl$60,000 to the national doctors and the govern­ $43,000 a year (ss, Oct 1993). ment finally came to an end in Octo­ The proposed Melanesian Trade ber. Prime Minister Hilly personally Bloc, whose objective is to improve the invited the doctors to discuss the condi- "GWmiWMlij@i!@'I't!%\flfGlMJI€QPA,.' .'.410"$91 if!HttfM,.",,· Me

THE CONTEMPORARY PACIFIC. FALL 1994

tions ofthe new contract with him. Dr In line with the emphasis on state­ Quan, a spokesperson for the doctors, church relations, Provincial Premier later informed S%man Voice that they Mathias Ramoni ofMakira encour­ were happy with the new contract, aged the churches to establish schools which if implemented would for the in his province. Speaking during cele­ first time place them among the most brations ofthe tenth anniversary ofthe highly paid professionals in the country province, the Honourable Ramoni (5V, Sept 1993). With an improved pay commended the Anglican, Catholic, package of between 51$30,000 and South Seas Evangelical, and Seventh $60,000 (5N, April-May 1993), the Day Adventist Churches for running doctors were required to take up the the schools in the province. In addition new offer and resume work no later to the primary schools, the churches than 29 October (55, Oct 1993). operate some vocational and pre-theo­ In March, history was made when logical colleges, an example being the John Muria became the first indige­ Stuvenberg Rural Training Centre in nous chief justice ofthe Solomons. East Makira. The South Seas Evangeli­ From Guadalcanal, Muria was edu­ cal Church proposed to establish a sec­ cated at the Catholic St Joseph's Sec­ ondary school. The premier highly ondary School in Honiara and the Uni­ commended this kind ofinitiative (55, versity ofPapua New Guinea, from Oct 1993). which he graduated in law in 1979. He The Tourist Authority collaborated had worked for a short time in Papua eagerly with Dr Robert Ballard ofthe New Guinea and was a public solicitor United States National Geographic in Honiara before his appointment. He Society on his book, The Lost Ships of is 37 years old and married with three Guada/cana/, in the hope offinding out children. whether Iron Bottom Sound (a major A well-known anthropologist who Second World War battle site) might did extensive work among the Kwaio eventually become a vast underwater people on Malaita, Professor Roger museum. As the general manager ofthe Keesing, died on 7 May during an aca­ Tourist Authority predicted, "We are demic meeting in Toronto. His ashes sitting on a gold mine ifonly we can were taken to the Solomons by his turn technology and vision to Solomon partner, Christine Jourdan, and his Islands' advantage." He was very opti­ children and buried at Ngarinasuru, mistic: "The international exposure for Malaita (55, Aug 1993). us is priceless. This is right next to In September, the Solomon Brewery Honiara and suddenly Dr Ballard is was officially opened by Governor putting us on the world map" (5V, Oct General Sir George Lepping. The 1993)· brewery is owned partly by the Ger­ Overall, the political wranglings man company Brachaus and partly by and delayed implementation ofthe new Nauruan interests. Dignitaries from policies ofthe Hilly government, which Nauru, Brachaus, and the government are innovative and pragmatic in many were present at the official opening cer­ ways, made the overall achievements emony (55, Sept 1993). ofthe country seem slow and few. But POLITICAL REVIEWS given the complexity ofthe country his responsibilities by transferring and the many hurdles the new govern­ external trade to the new economic ment had to overcome, 1993 may be affairs ministry (PR, Jan 1993; VW, regarded as a year ofpreparation for 9 Jan 1993, I). the Hilly government to start with a In the course ofthe year Korman clean slate in 1994. carried forward his foreign affairs responsibilities with reasonable suc­ JOHN MOFFAT FUGUI MIKE WATE cess. He consolidated relations with France, and developed links with New Caledonia, including by opening a con­ References sulate in Noumea in April. But France maintained a relatively cautious 55, Solomon Star. Weekly. Honiara. approach, notwithstanding the hopes 5V, Solomon Voice. Weekly. Honiara. of some UMP supporters, and the fears 5N, Solomon Nius. Government monthly. Honiara. of some critics ofthe French presence in the region, and despite the return to power ofthe conservatives in the French elections in March. Korman VANUATU and his government also maintained Maxime Carlot Korman's government harmonious relations with Australia, retained office during 1993, despite ten­ Vanuatu's leading aid donor, avoiding sions between the coalition partners, a recurrence ofthe tensions that had Korman's Union ofModerate Parties twice arisen in 1992 (Fry 1993, 396, 399; (UMP) and the National United Party Henningham 1993, 427). Australia's (NUP). These tensions, combined with Minister for Development Assistance those within the coalition parties, and the Pacific Islands' Gordon Bilney repeatedly distracted attention from visited Vanuatu in June and described problems of economic management bilateral relations as "good and and development. improving" (vw, 19 June 1993, 5). In Prime Minister Korman began the addition, the Korman government year with a ministerial reshuffle, the sought to develop and consolidate first since his government took office in Vanuatu's external relations more December 1991, intended to consoli­ widely, with some success. date his position and to rein in two IfVanuatu's external relations were ministers whose conduct had been generally constructive and serene dur­ capricious. Korman took over the for­ ing 1993, this was not true ofdomestic eign affairs portfolio from his leading affairs. Walter Lini's National United rival within the Union ofModerate Party proved anything but united. Its Parties, Serge Vohor, shifting him to internal problems had unsettling effects the new post ofminister for eco- on the governing coalition, as did ten­ nomic affairs. He made his move sions between anglophone-educated while Vohor was on an official visit and francophone-educated ni­ to Noumea. He retained Willie Jimmy Vanuatu. During the course ofthe year .as minister for finance, but reduced Lini repeatedly demanded that Korman WHY•• Ni@li_MM1MJf?fWtRi9Ji1iiqg"GlPS,iaQ.4"!i'_jWas"§dlJlMlIWi5i M.

THE CONTEMPORARY PACIFIC· FALL 1994

dismiss from the ministry two NUP man responded by dismissing Hilda members, Onneyn Tahi and Edward Lini from the post of health minister Tabisari. The party had earlier sus­ (vw, 21 Aug 1993, I). Ms Lini, a sister pended and disciplined these men fol­ ofWalter Lini, is a prominent public lowing disputes, involving allegations figure in her own right; later in the year and counter-allegations ofcorruption, she was awarded the Sean McBride between them and Lini and his close International Peace Prize in recognition business associate, Dinh Van Than, the of her years ofanticolonial and antinu­ NUP general secretary (vw, 17 July clear campaigning (PIM, Dec 1993,27). 1993, I). In early September Korman dismissed By mid-1993 Lini, who hitherto had Police Commissioner Sato Kilman, played a low-key role as an ordinary contending that he had failed to keep member ofthe governing coalition, him informed ofpolice and security despite his position as NUP president, matters (PR, 13 Sept 1993,6). Critics of was demanding the posts ofminister the government complained that the for justice and deputy prime minister. morale and efficiency ofthe public ser­ Lini again wished to playa central role vice were being eroded by politically in the government ofVanuatu, instead motivated sackings. of implementing an earlier understand­ Following Hilda Lini's dismissal, ing that he would take up the post of Walter Lini withdrew the support of president after Fred Timakata steps the National United Party from the down in early 1994. In addition, he governing coalition. But whereas Lini apparently wished to gain authority was followed by six party parliamen­ over ChiefJustice Charles Vaudin tarians, four others, including Tahi and d'Imecourt, who had recently found Tabisari and headed by Justice Minis­ Mrs Goiset-the sister ofLini's associ­ ter Sethy Regenvanu,remained with ate, Dinh-guilty of business malprac­ the coalition. Following the appoint­ tice. While the court case was under ment ofthe speaker ofthe house, Kor­ way, Lini had written to President man was able to retain a slim parlia­ Timakata urging Imecourt's dismissal, mentary majority of 23 to 22. In on the grounds that he had acted mid-September Korman increased his against the interests of justice in several majority to three by persuading a mem­ recent cases (vw, 28 Aug 1993, I; PR, 27 ber ofthe opposition Vanua'aku Pati, Sept 1993, 2). Thomas Faratia, to shift allegiance to Tensions within the governing coali­ the Union ofModerate Parties in tion began to come to a head on 10 return for a ministry (vw, 18 Sept 1993, August, when four francophone civil I). A few days later Lini made a deal servants were suspended from the Min­ with Economic Affairs Minister Vohor istry ofHealth, apparently in retalia­ that would have brought Lini and his tion for the politically motivated sus­ supporters into the government at the pension the week before of four expense ofthe Regenvanu group. But anglophone civil servants from minis­ the deal, which attracted criticism from tries controlled by UMP members (vw, some senior UMP figures, had been con­ 14 Aug 1993, I). Prime Minister Kor- cluded following Korman's departure POLITICAL REVIEWS on a visit to Asia and the United States, commitment (PIM, Nov 1993, 20). and he revoked it on his return (PR, 27 Vanuatu's public servants struck for Sept 1993). several weeks from 24 November, Until her portfolio was withdrawn, demanding a 16 percent pay rise to Hilda Lini had been the only woman in compensate for the erosion oftheir sal­ the ministry; she was one of the first aries by inflation over the previous four two women members elected to the years. The government responded by forty-six-member parliament in offering 5 percent, but warned that it November 1987, and was reelected in planned to shed two hundred public 1991. Women continue to play only a service positions in early 1994, as an limited part in public affairs in economy measure and to reduce over­ Vanuatu, and hold few senior posi­ staffing. Further industrial trouble tions, whether in the public or the pri­ seemed likely (PR, 20 Dec 1993). vate sector. In early February, nonethe­ Meanwhile controversy had arisen less, Ms Rita Naviti was sworn in as over alleged corruption, abuses of jus­ Vanuatu's first woman magistrate (vw, tice, and environmental risks asso­ 6 Feb 1993, I). Attitudes to women ciated with large-scale logging projects. .came under scrutiny in August, when Critics ofthe government complained Le Flamingo night club held Vanuatu's that an established logging concern had first beauty contest. The government been squeezed out in favor of a Malay­ had given its assent, but the National sian company. The Malaysian com­ Council of Chiefs, the Vanuatu Chris­ pany had been permitted to pay a tian Council, the Vanuatu National much-reduced reafforestation fee and Council ofWomen, the Port Vila had been granted permission to log Women's Centre, and other groups 70,000 cubic meters per year, whereas denounced the contest, claiming it was previously the annual limit per com­ demeaning to women and inconsistent pany had been 5000 cubic meters. For­ with the traditions and values of merly, the total annual cut had been Vanuatu (VW, 18 Sept 1993, 4, 5; Wom­ less than 25,000 cubic meters, the en's News, Oct 1993, II). amount regarded by forestry experts as In the final months ofthe year the the maximum allowable under sustain­ Korman government was still in able development guidelines (PR, 9 power, but its future looked uncertain. Aug, 13 Sept, 27 Sept, and 25 Oct 1993; The economy remained sluggish, with PIM, Oct 1993,14,15). increased tourist arrivals and reason­ Critics complained that, like its able returns from the finance center predecessors, the government was offset by poor commodity prices (see restricting the freedom ofthe press. PIM, May and July 1993). During the They also cited poor financial manage­ 1991 election campaign the Union of ment, especially with respect to an Moderate Parties had promised copra arrangement made by Finance Minister growers generous price support Jimmy. Under this scheme Vanuatu, arrangements. By the end of1993 it working through an Australian inter­ seemed clear that the government mediary, would open a line ofcredit, would not have the funds to meet this reportedly for up to US$2 billion, for w;;a 4 Ai!MW'letHfi W"'IN"'" lI!!! MaW

THE CONTEMPORARY PACIFIC. FALL 1994 infrastructure and development pro­ References jects. Vanuatu's recurrent budget is Fry, Greg. 1993. The Region in Review: (PR, about us$so million 9 Aug 1993; International Issues and Events, 1992. The PIM, Oct 1993,13; Nov 1993, 20). Contemporary Pacific 5 (2): 390-402. At a regional ministerial meeting on population and sustainable develop­ Henningham, Stephen. 1993. Vanuatu in ment held in Port Vila in early Septem­ 1992. The Contemporary Pacific 5(2): 26 2 ber, Prime Minister Korman warned 4 -4 9. that Vanuatu was heading for disaster PIM, Pacific Islands Monthly. Suva. unless current population and develop­ PR, Pacific Report. Fortnightly newsletter. ment trends were reversed (vw, II Sept Canberra. 1993, I). Unfortunately, the govern­ ment, although aware ofthe looming VW, Vanuatu Weekly. Vila. problems faced by Vanuatu, has yet to Women's News. Quarterly newsletter ofthe develop and implement effective poli­ Pacific Women's Resource Bureau. cies in response. Noumea. STEPHEN HENNINGHAM