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Micronesia in Review: Issues and Events, I July I993 to 30 June I994
Reviews of Federated States of Micro of the constitutional amendment plebi nesia, Guam, Kiribati, and Marshall scite a year earlier. Sixty-eight percent Islands are not included in this issue. of Belau's voters accepted the compact. However, the Koror town voters, as BELAU usual, were the most critical of the The eighth compact plebiscite and agreement with a yes acceptance of related court cases, a national master only 54 percent. For a decade, Koror plan project, and the push for compact voters have been skeptical of the com implementation were the key events in pact, and the center of this opposition Belau for 1993-94. has been two ecumenical groups made Besides voting for congressional and up mostly of women: the Catholic chief executive candidates in the Women's Group, Kltal-Reng, a grass November 1992 election, the people of roots movement organized in 1979 to Belau agreed, by a margin of 62 per lobby in support of the original cent yes to 38 percent no, to amend nuclear-free Belau constitution, and their constitution, setting aside the 75 Otil A Belaud which emerged in 1987 percent requirement for approval of during the hostility of the furlough the Compact of Free Association period. The ideology of both groups Agreement with the United States. consists of three principles: to protect What was striking in the plebiscite the sovereignty and sovereign identity results is that only about half of of Belau; to protect the integrity of the Koror's voters accepted the amend Belau Constitution as an expression of IlleI1t:,_wh~re 126 POLITICAL REVIEWS 127 dent lined up support in the national of 1969. The compacts of the Republic congress and from the traditional of the Marshall Islands and the Feder chiefs and many of the state governors. ated States of Micronesia include For example, at a pre-referendum specific reference to application of meeting in late October 1993 at the the 1969 Act. On the other hand, the Belau Community Association Bai relaxation of environmental protec 'meetinghouse' on Guam, six national tions in the Belau Compact vis-a-vis congressmen and a state governor those of the two independent states from Belau spoke enthusiastically was a negotiating initiative of former about the compact. The Nakamura President Lazarus Salii in exchange administration actively supported the for the numerous compact funding compact and a considerable amount of increases. For example, the investment travel by executive and legislative fund was increased from $60 million branch leaders took place to campaign to $70 million. The fact that the plain off island on behalf of the compact. tiffs may not be able to demonstrate Despite Belau's approval of the injury, together with the fact that a compact in November 1993, the issue relaxation of environmental standards is not yet closed. In January 1994, was mutually negotiated, agreed upon, women of Otil A Belaud (meaning "to and ratified by the Belau electorate set the anchor securely") filed three may weaken the women's case con suits in Koror and on Saipan. Two siderably. suits were dismissed. However, two of In July 1993 Belau began an ambi the women, Isabella Sumang and tious national master development Nancy Wong, Otil A Belaud members, planning effort with nearly $800,000 gained the support of the Right Liveli of funding support from the US hood Foundation, London, and-filed Department of Interior and toe United yet another suit with the US District Nations Development Program. The Court in Honolulu. Their complaint planning work is being carried out by was based on a strategy of attacking an Australian company, SAGRIC Inter what they perceived as the weak national Proprietary Limited, which is environmental protections in the com expected to submit its final report to pact. The London-based foundation the Belau National Congress, the employed attorney George Allen, a Olbill Era Kelulau, in November specialist in environmental law, who 1994. The work is being done in con has claimed that "penguins have more junction with a special task force con environmental protections than sisting of individuals from all levels of Palauans" (Pacific Daily News, 4 Mar the Belau government and chaired by 1994,3)· Moses Uludong, former governor of This suit may have more merit than Ngchesar State and publisher of the the previous ones. Allen claims that Tia Belau newspaper. The major out sections 162 and 163 of the Belau comes of the planning effort will con Compact release the United States sist of detailed action plans and from complying with the standards of recommendations for achieving sus the National Environmental Policy Act tainable economic, social, and physical MM·UAilbM:g;;;;; II MiMW"4ij mil 'WBMy MNMM& "A' AWAfiMJ Wi • ns-mnr 128 THE CONTEMPORARY PACIFIC· SPRING 1995 development of Belau to the year Belau respond to shortfalls in reve 2020; promoting private sector and nue-both local and from the com national wealth creation; defining pact-to cover growing costs of opera policies and procedures for manage tions, maintenance, and development? ment of resources of land, foreshore, Finally, what should Belau do about its and seas; achieving human resources poor loan pay-back record and the development; improving physical proliferation of small banks in Koror? infrastructure and support services; In 1994 both Congressman Ron de strengthening institutions and build Lugo and Secretary of the Interior ing capacity for planning and moni Bruce Babbit visited Belau. Although toring. the visits tended to be more symbolic Although the planning effort is than substantive, Babbit's July trip making good progress, the SAGRIC addressed transition issues, indicating master planner, Dr Donald Townsend, that implementation of the compact was suddenly terminated in mid-June is getting serious attention in Wash 1994 by his superiors at the company. ington, DC. There had been some tension between Since Belau's separation from the the master planner and the president's other political entities of Micronesia in office early in 1994, when the govern 1978, the compact has been a divisive ment recognized it needed to prepare and controversial issue for the people. an Economic Development Plan. Such Roman Tmetuchl, Haruo Remeliik, a plan is required by section 23 I of the Alfonso Oiterong, Lazarus Salii, compact to assure economically effec Thomas Remengesau Sr, and Ngiratkel tive expenditure of US funds, which Etpison have all yearned to lead Belau during year one amount to some $228 out of its trust territory wilderness and .... million;·President Nakamura; in his intofreely·associatedstatus~President State of the Republic Address of 12 Nakamura will, finally, realize the April 1994, said that the two plans privilege. On 23 May 1994, he met should complement each other. "The with United States government offi EDP covers our current status and eco cials, and both sides agreed that the nomic goals related to CIP funding Compact of Free Association shall while the Master Plan [the United enter into force on I October 1994. Nations-Department of Interior-sup The following day, both governments ported effort] is to deal with broader announced the agreement in remarks issues through the year 2020." Naka before the United Nations Trusteeship mura sees the two plans as providing Council, and a draft resolution termi "a blueprint for a viable future." Be nating Belau's trust status was given that as it may, some nagging long-term limited distribution by the council. The planning questions remain: What can draft's pertinent section states that the be done to improve the low productiv council requests "the Government of ity of Belau's work force? How will the United States, in consultation with individuals in Belau respond to the the Government of Palau, to agree on a high inflation expected in the freely date on or about I October 1994 for associated state period? How will the full entry into force of the Compact POLITICAL REVIEWS 129 of Free Association, and to inform the COMMONWEALTH OF THE Secretary-General of the United NORTHERN MARIANA Nations of that date." Significantly, ISLANDS the Secretary-General is requested by the resolution to circulate as official During the past year the frenzy over documents all material received from Article XII and the land alienation issue the Administering Authority pursuant peaked, then came the campaign and to the resolution. gubernatorial elections. Federal author In addition to this United Nations ity over the internal affairs of the Com Trusteeship Council resolution certify monwealth of the Northern Mariana ing that the United States has com Islands was an issue, as were relations pleted its obligations to the Belau Trust with Washington in general, and the Territory as its administering authority, policies of the new administration. and the recent agreement between Beginning in May 1993, prepara Belau and the United States on a date tions for the November election of for entry into force of the compact, governor, lieutenant governor, legisla three other steps are required for the ture, and a referendum on a new con Belau-United States Compact relation stitutional convention were already ship to be implemented legally and rec under way. For the first time, an ognized internationally. President incumbent governor was challenged Clinton must certify to the US Con for reelection by one of his own party. gress that the compact was approved Governor Larry I Guerrero and Lieu by the Belau government and people tenant Governor Benjamin T Mang according to their constitutional pro lona were challenged in a primary elec cesses and that there are no legal tion on 29 May. Juan Babauta was the impediments to the ability of the Washington representative at tht: time United States to carry out fully its secu and, with Representative Tom Villa rity and defense rights and responsibil gomez as running mate, was presented ities. Second, the United Nations as a new, younger man untainted by Security Council must pass a resolu traditional politics, who would do tion approving the dissolution of the better than Governor Guerrero, espe Belau Trust Territory. Finally, President cially in the area of federal relations. A Clinton must issue a proclamation third candidate, Senator Juan Dema placing into full force and effect the pan, ran as a dark horse Republican Compact Agreement between the gov candidate. The combination of an ernments of the United States and the overwhelming vote from Rota (home Republic of Belau. Given the comple of Manglona) and a third candidate tion of these formalities and the retire spelled doom for Babauta. Guerrero ment of the two outstanding lawsuits, won the primary with a very narrow Belau will, after a century of foreign margin of about seven hundred votes, rule, regain its sovereignty as the almost exactly the number from Rota. world's newest freely associated state. From that point on, the campaign between gubernatorial candidates DONALD R SHUSTER became very personal. 13° THE CONTEMPORARY PACIFIC· SPRING 1995 The democrats, represented by on garment imports, and cut all finan former Washington Representative cial assistance. In the election, held on Froilan Tenorio and former Supreme 6 November 1993, the people voted Court Justice Jesus Borja, had no inter for a change; with 55 percent to 45 nal opposition after the primary and percent, it was not a clear victory for began their campaign by concentrating Froilan Tenorio, but it was enough. on the breakdown of relations with the The mayors of both Rota and Tinian federal government in Washington, the were replaced, a result contested for alleged $30 million deficit, and sugges months after the election, but finally tions of corruption in the Guerrero upheld by the courts. administration. In mid-I993, the issue of Article XII The Republicans countered by of the constitution, which limits land accusing Tenorio of not being com ownership in the commonwealth to mitted to the Commonwealth of the persons of Northern Mariana Islands Northern Mariana Islands because he descent only, was at the forefront owned no property in the islands and of all discussions. The article also re leased a home from a wealthy Japanese quires that boards of directors of land businessman. They also published in owning corporations registered in the the local newspapers copies of the Northern Marianas be of 100 percent letters Tenorio had allegedly sent from Northern Mariana Islands descent Washington to the previous governor, (following an amendment in 1986 Pedro P Tenorio, several years earlier. from 5I percent). Under the tutelage These letters were very strongly of legal counsel, several of the original worded and served to demonstrate a landowners sued for the return of their lack of courtesy and respect for the land, even though millions had been ---gnvermJcAsusual, tn-e fuTIm-r mills-ran -investeclDy-develop-ets.-lif july and rampant and scurrilous accusations August, the fever was so high that flew in every direction. Japan Airlines, owner of the $100 Relations with Washington were at million Nikko Hotel, threatened to an all-time low under Guerrero. At pull out of the Northern Marianas issue were abuse of alien workers, and influence other Japanese investors garment manufacturing, taxation, to do the same. Even mainland Ameri resistance to federal oversight, and a cans, who leased land for retirement running challenge to any exercise of and residential purposes (for the maxi federal authority within the com mum of 55 years), were being sued by monwealth. At the same time it was original landowners. claimed that the federal government Public hearings were held; major owed the commonwealth hundreds of corporations that were threatened, millions of dollars in 702 (Covenant) including Japan Airlines and DFS, as money. The United States Congress well as individuals, banded together threatened that if the legislators did to protect themselves; and local land not clean up their act, Washington owners were seduced by the thought of would take over control of immigra receiving millions in developed land if tion, eliminate preferential treatment they should win their cases. POLITICAL REVIEWS 13 1 A compromise was reached when 1994, and by 40 cents per year until the legislature adopted Senate bill the US wage was met in 1999. 8-124, which provided that in the The next bombshell came on 17 event a developer or lessee was found March 1994, when Governor Tenorio to have violated the constitution with released his executive branch reorgan out fraud or malfeasance, the land ization plan, informing his own cabi owner would have to reimburse the net of the contents only the day before. developer for the added value of the Executive Order 94-2 eliminated investment. The same bill limited law many boards and commissions (includ yers' fees to $700 per hour and prohib ing some that are required by federal ited contingency fees in land cases. It agencies in order to receive grant also established a six-year statute of funds, the Historic Preservation limitations on filing cases against Review Board, Arts Council, and so lessees on Article XII issues. Passage on), divided the Department of Com of this bill defused the tension on both merce and Labor into two departments sides. (Commerce and Labor, and Customs Taking his own campaign promises and Immigration), dissolved the Per seriously, Governor Tenorio wasted sonnel Office and parceled out its no time in instigating change, begin duties to several other agencies, and ning by personally carrying draft generally caused great confusion. (The legislation to amend the current mini first executive order, 94-1, prohibited mum wage to the House of Represen executive agencies from using private tatives. legal counsel without the permission of In reaction to strong criticisms from the attorney general.) The Marianas congressional committees and mem Visitors' Bureau filed a lawsuit against beisaooilt tli£clieap garmenfspro tliegovernor arid-woriipaitiilvictoiy duced in the Northern Marianas com when the court decided that the exe peting with American production, cutive order had been improperly Tenorio proposed an immediate approved by the Senate and was there increase in the minimum wage from fore null and void. However, the same $2.45 per hour to the US minimum judgment found that the Marianas Vis wage of $4.25 for the garment indus itors' Bureau was an executive branch try alone by the end of 1994. All other agency and subject to the governor's sectors of the economy would have to reorganizing authority. Meanwhile, the comply by 1 January 1996. In a pre House of Representatives filed a law dictable outcry, the garment industry suit against the governor, claiming that threatened to move out and leave the the order was a violation of his consti commonwealth with $19 million less tutional authority. in annual government revenues. The The new legislature soon began to legislature has refused to act on the have internal problems of its own. bill. In the previous year, under the Elections for officers were held early in same pressure from Washington, the January, and President of the Senate legislature had passed a bill raising the Jess Sablan was elected to replace Juan minimum wage from $2.15 to $2.45 in Demapan. The Demapan group, now a ;;, fA IJ'SiLMMiMwaauM"msws@i 4.- THE CONTEMPORARY PACIFIC· SPRING 1995 minority, was given very few adminis the unscheduled elections on 13 May. trative resources to work with, leading In the event that the Sablan faction to much ill feeling. prevails, all acts of the Senate between The Senate (especially the Tinian I3 May and the judicial decision could delegation) incurred the wrath of the become null and void. governor when it passed the House On the basis of the same procedure Joint Resolution disapproving his used by the Senate to approve the exec reorganization act. Immediately, the utive order, the Superior Court struck governor recalled several nominations down implementation of the order and of people from Tinian to cabinet-level declared it null and void. positions. Subsequent press accounts On Friday 24 June the Senate cite the governor's displeasure at the majority of five met and passed execu Tinian delegation's action. Tenorio felt tive order 94-3 unanimously, assuring he had had a fair understanding with success for the governor's slightly the Tinian senators that if they would amended reorganization plan fifteen approve the order (which required at minutes after receiving it from his least one House to approve it to office, and acting without any public become law), he would then appoint hearing or input. They amended execu people from Tinian to cabinet-level tive order 94-2 by putting Customs positions. back into Finance. The Marianas Visi To remedy the situation, the Senate tors' Bureau is appealing in court, and minority of four (not aligned by politi several other agencies have decided to cal party), which sided with the gover contest the governor's order. As of this nor and included one member of the writing, the new reorganization plan former majority, reacted to Governor will be implemented completely by the TeilOrioYcilU for aspecial session by··· -endofAligust,baffing-aily setback in attempting to reorganize its leadership. the courts. In the meantime, there is The first attempt failed when a quo great confusion, because the order put rum did not appear. However, on new people in new positions and Friday, 13 May 1994, a quorum of five closed others. If the order is eventually did appear and elected a new slate of declared null and void, does everybody officers for the Senate. The new major go back to their old job? ity then proceeded to approve the The days prior to 15 June were reorganization plan by passing a sim packed with special events to com ple Senate Resolution without recalling memorate the fiftieth anniversary of the previously approved House Joint the invasion of Saipan. World War II Resolution that had already killed the veterans came back to Saipan to help plan. inaugurate the American Memorial Now the new minority of the Sen Park in Garapan and relive those days ate, led by former President Jess Sab of June and July fifty years ago. While lan, is suing the new majority led by top federal officials were touring Nor Senator Juan Demapan on the basis mandy for the fiftieth anniversary that they acted outside the official sen there, no high-level American official ate rules of procedure when they held marked the importance of the begin- POLITICAL REVIEWS 133 ning of the end of the Pacific War. yers, they would get better advice. This Many veterans expressed their disap was not advice welcomed by the legis pointment and the Washington Post lative counselors. ran an editorial about "The Other D In June the US Congress agreed to a Day." Perhaps the next anniversary, in $27 million appropriation for capital August 1995, will have greater impact. improvement projects for the next That will commemorate the day the year, despite serious talk of cutting all Enola Gay took off from Tinian to end appropriations because of the ongoing the war. feud between Washington and the One of the strongest criticisms of commonwealth. the new administration has been the A perennial problem for many years proliferation of "special assistants" has been the relocation of the Puerto and"advisors." While the previous Rico dump, which has burned toxic administration and the constitution materials, with the smoke blowing into provided for special assistants for the resort areas of Garapan, and Indigenous, Carolinian, Women's and exploded World War II munitions, kill Military Affairs, Governor Tenorio has ing a ragpicker and once sending a added Filipino and Japanese Affairs. mortar round into the nearby Shell Oil These positions were created ostensi generator room, narrowly missing a bly to reward campaign efforts by the million-gallon petroleum storage tank. two communities. The Filipino posi After the Guerrero-Manglona adminis tion is paid at $3333 a month, but the tration spent several million dollars incumbent is the Japanese manager of excavating an alternative sanitary a tourist resort and is paid $1 a year by landfill site, just below scenic Suicide the governor. Still lacking is a special Cliff, opposition to the relocation -assistanCfor"haole"-affairs. - -(mainly f{om fourisf-felaJea-enter In addition, the governor has prises) prevailed, and Governor Teno appointed several advisors on special rio has ordered that a new site be contracts. One Washington-based found and excavated. Now two huge advisor is contracted at $5000 a holes just under the cliff are monu month while in Washington and an ments to the political whims of the additional $1000 a day when on commonwealth, and what has been business outside Washington. An called an ecological time-bomb contin other Washington-based consultant ues to fester at Puerto Rico. is contracted at $6000 a month only. Although casinos have been legal on In Saipan, a gubernatorial niece has Tinian since the 1988 referendum, so been hired at $8000 a month. For far none has been licensed or built. each of these, the job description is The new municipal administration of open, subject to instructions from the Tinian has renewed efforts to attract governor. investors, as yet without result. In the In his feud with the legislature over November 1993 election, the munici the legality of his executive orders, the pality of Rota, just north of Guam, governor was quoted as saying that if rejected casino gambling as an eco that body paid real money for real law- nomic enterprise. g; g"4§1N.";;;; MM 134 THE CONTEMPORARY PACIFIC· SPRING 1995 At the end of June 1994, the gover nant would require mutual consent nor had issued a new reorganization with the federal government to become plan (executive order 94-3) to com effective. Otherwise, the field is open pletely revamp the executive branch, for complete revision. liberally defined as all those agencies Both houses of the legislature finally and departments that were not part of approved a budget of $I5° million for the legislative, judicial, or Washington fiscal year 1994, which ends on 30 representative's jurisdiction. He is September. The new budget, which again being taken to court by the will have to be spent in just three Marianas Visitors' Bureau (which does months, gave the governor authority to not consider itself a part of the execu reprogram up to 75 percent of any tive branch of government subject to appropriated funds. It was assumed the governor's reorganization author that this budget would be at least $15 ity) supported by the House of Repre million more than the anticipated col sentatives. In the Senate of the lection of revenues. However, it does legislature, four senators are suing the mark the first time a budget has been other five for improperly holding elec passed since 1992. There is still no tions for officers on 13 May. Several budget for fiscal year 1995, which Senate employees are also suing the begins on 1 October 1994. new leadership in federal court for SAM MCPHETRES alleged civil rights violations when they were abruptly terminated by the new leadership. Six cholera cases were reported by NAURU the Public Health Department, which The Dowiyogo government was forced .- iiiaicafeO th-afifwasa ielativdy15enign . foresigliiiiSeptem15eri99 3 wheriPar variety, and all were treated as out liament voted in favor of an amend patients. The cases were unrelated to ment to the 1993-94 Appropriation each other, and the source of contami Bill. President Bernard Dowiyogo ten nation is being sought. These are the dered his resignation saying that "the first cholera cases reported in the Committee of the House has passed an islands since the epidemic in Chuuk amendment which [is] tantamount to a about ten years ago. rejection of the programme of the The entry of United Airlines to the Government." However, Parliament flight path to Saipan means more reelected Dowiyogo on the same day it tourist entries from Japan, and hotels sanctioned the passage of the bill. The report a very high occupancy rate. No composition of the cabinet remained new hotels are under construction or unchanged. planned for the near future. In the second reading of the bill, A constitutional convention will be Minister for Finance Vinci Clodumar held sometime in the next twelve stated that "under these trying times, months. There are no restrictions on Government has two choices-stop what can be amended, except that and recess or keep marching forward. some provisions linked to the Cove- Your Government elects to march for- ., POLITICAL REVIEWS 135 ward within the concept of sustainable ously consider as an additional means development because this country has of increasing revenue. no time to waste." The drop in phosphate income Briefly, the scenario of recent years brought unwelcome ripples through remains the same: phosphate, the sin out the national economic agenda. gle finite export product and the Clodumar pointed out that there has island's mainstay for close to ninety been a dramatic drop in real exports years, is expected to be depleted within per capita to A$3526 in 1991, a level the foreseeable future. Notwithstand well below the basic wage of A$8065. ing the remaining lifespan of phos Although there is a lack of information phate, the revenues it has generated from which to derive the gross domes have declined gradually over many tic product, a crude alternative using years and reached an all-time low of real exports per capita has been used A$23,082,000 in 1991; a decline in the by international organizations such as demand for phosphate, coupled with a the Asian Development Bank to deter drop in world price, resulted in a cor mine Nauru's status in relation to the responding drop in exports. rest of the world. The drop in phos The estimated expenditure for phate exports spells a serious situation 1993-94 amounted to A$96,583,000, for Nauru, a country highly dependent while revenue was approximately on imports. In 1991, imports were A$62,834,300. Revenue comprised valued at A$19,2I0,000 against dividends, received largely from the exports ofA$23,082,000. The minister Nauru Phosphate Corporation, and warned that families used to an afflu loans and receipts from the provision ent lifestyle, created by the very high of government services. Although the per capita income of the early 1970S deficitwas half that of the'previous into the 1980s,81101110 stattbuageting fiscal year, Clodumar urged a need to their incomes and expenditures so that further reduce government borrow they live within their means. The main ings and thus the national deficit. To sources of personal income are wages this end, he outlined a government and salaries received, plus phosphate agenda that included optimizing the royalties, giving an estimated income revenue capacity of government per capita of A$6,094 in 1992. In the quasi-commercial services, such as circumstances, and compared with telecommunications, Air Nauru, print other countries in the region, Nauru ing, and the Philatelic Bureau. The had a very high activity rate of 57.6 minister also urged Nauru to address percent in 1992, that is, the ratio of issues regarding the establishment of economically active persons to the alternative export-based industries to total population over the age of fifteen reduce the dependence on imports and years. Despite the financial constraints improve self-sufficiency in at least experienced over the last three years, some areas of food supply and agricul this rate has continued to rise. tural produce. He alluded to the intro The year 1993 marked not only duction of a tax regime, a future the twenty-fifth anniversary of option the government should seri- independence, but also a change in AiQ6ZNiiMriMf@fi!ij"W";;g;; h.w'aw -- THE CONTEMPORARY PACIFIC· SPRING 1995 government priorities with respect to Forum. During his visit, he signed the domestic development. To date, a large Nauru-Australia Compact of Settle proportion of Nauru's resources has ment, whose terms include the pay been channeled into various invest ment of A$ 57 million cash. Under the ment activities overseas. Two Boeing Rehabilitation and Development Fund 737-400 aircraft were obtained by the Cooperation Agreement, Australia will government, which intended to sell provide A$2.5 million a year to Nauru two smaller aircraft from the Air for the next twenty years. The Joint Nauru fleet. Several facilities were Declaration of Principles covers mat upgraded: the telecommunication ters such as civil aviation, access to system obtained international direct medical and educational facilities, use dialing facilities and expanded line of Australian currency, trade and capacity; the airport terminal building investment, and certain development and the Meneng Hotel underwent issues. The declaration also spells out extensive renovations; the Civic Centre the extent of the rehabilitation com complex and supermarket were given a mitment between Nauru and Austra facelift; and the airstrip extension was lia. In June 1994, a rehabilitation completed. A desalination plant was feasibility study began, and it is installed and working by the end of expected to be ready for presentation 1993, ending the saga of importing to the government in September 1994. fresh water from Australia and other In June 1993, the governments of countries. Parliament House was Nauru and India agreed that Nauru ripped down during the last months of would withdraw from Paradeep, a 1993, and construction of a new build joint-venture phosphate-fertilizer com ing began in June 1994. pany based in India. By withdrawing, . - miriilg Hie latter half of :i: 99), Nauru receiveaa-fiilrrefuria of the Nauru hosted three major regional invested amount of A$63.8 million. conferences: the twenty-fourth South Although the joint venture has been in Pacific Forum; the Asia-Pacific Parlia operation since the early 1980s, the mentarians Union; and the Pacific accounting value of Nauru's shares Islands Law Officers Meeting. was virtually zero. Nauru is currently The twenty-five-year-old dispute working to withdraw from a second over the rehabilitation of mined-out phosphate-fertilizer joint venture with phosphate lands under the administra the Philippine government. For the· tion of the partner governments of first time, Nauru opted to invest in a Australia, New Zealand, and the musical that was previewed in London United Kingdom was settled, with Aus in June 1993, a departure from tradi tralia compensating Nauru in the tional investment activities such as amount of A$I07 million in August financial undertakings and property 1993. In spite of the long years of asso development. The nature of the invest ciation between Nauru and Australia, ment and subsequent travel arrange Paul Keating became the first Austra ments to London were cause for lian Prime Minister to visit Nauru to grievance by a vocal minority. In late attend the twenty-fourth South Pacific 1992, it was alleged that cash funds .,J~f/I. POLITICAL REVIEWS 137 from the Nauru Phosphate Royalty earnings from phosphate royalties, Trust Fund amounting to us$60 mil requires government approval for all lion had been invested in a number of investment arrangements. The inves prime bank instruments around the tigation of the movement of funds world without the knowledge and con continues, with approximately US$4 sent of the government of Nauru. The million still unaccounted for. fund, which invests the substantial JULIE OLSSON