R 210703Z JAN 09
FM AMEMBASSY KOROR
TO SECSTATE WASHDC 1067
INFO AMEMBASSY KOLONIA 
AMEMBASSY KOROR 
AMEMBASSY MAJURO 
COMNAVMARIANAS GU
AMEMBASSY CANBERRA 
AMEMBASSY TOKYO 
AIT TAIPEI 0036
CIA WASHDC

UNCLAS KOROR 000011 
 
 
DEPT FOR EAP/ANP 
 
E.O. 12958: N/A 
TAGS: PS PGOV PREL
SUBJECT: INAUGURATION OF PALAU'S EIGHTH CONSITUTIONAL GOVERNMENT 
 
REF: 08 Koror 0193 
 
¶1.  Summary:  On January 15 Palau's eighth constitutional 
government was inaugurated into office.  The ceremonies began 
with the installation of the Senate and the House of Delegates 
followed by the swearing-in of President Johnson Toribiong and 
Vice President Kerai Mariur. The ceremonies took place at the 
new National Capitol Complex Building at Melekeok State. This 
was the first inauguration was held at the new capitol complex. 
End summary. 
 
¶2.  In his inaugural speech President Toribiong thanked the U.S. 
Government for the guidance and support through the years which 
made it possible for Palau to attain independence.  He 
acknowledged that the U.S. is Palau's most important bilateral 
partner, its major benefactor and its defender, and affirmed his 
commitment to enhance Palau's relationship with the U.S. 
 
¶3.  President Toribiong described the evolving fiscal situation 
as the major challenge facing his administration - specifically: 
government revenues were not sufficient to compensate for the 
reduction in Compact related funds.  This challenge is made even 
larger by the fact that the value of the Compact Trust Fund has 
declined by an estimated $50 million (from approximately $175M 
to approximately $125M) as a result of the current global 
economic recession. 
 
¶4.  As one avenue to address the fiscal problems confronting 
Palau, the new president seeks to promote foreign investment and 
advised Palauans not to fear foreign investors but to seek 
investments that will create jobs and increase tax revenues. 
With jobs and tax revenues generated from foreign investments, 
Palau would be less dependent on foreign aid and the quality of 
life would improve.  But Toribiong also stated that his first 
and highest priority is the Section 432 Review of the Compact of 
Free Association. 
 
¶5.  President Toribiong acknowledged Palau's other donors - 
Japan, Taiwan and South Korea -  and regional partners - the 
Philippines and the other Freely Associated States.  He singled 
Japan and Taiwan out for particular gratitude owing to the 
magnitude and importance of their contributions to Palau's 
infrastructure. 
 
¶6.  The U.S. delegation to the inauguration was led by Charge 
Mark Bezner and included Rear Admiral William French, Commander, 
U.S. Naval Forces Marianas; Tom Bussanich, Office of Insular 
Affairs, Department of Interior; and EAP Desk Officer Paul 
Neville.  Other dignitaries at the inauguration included former 
Prime Minister of Japan Yoshiro Mori, President of the Federated 
States of Micronesia Immanuel Mori, Taiwan Special Envoy Kuan 
Chung, Australian Parliamentary Secretary for the Pacific 
Affairs Duncan Kerr and ambassadors  from Australia, the Czech 
Republic, France, India, and Switzerland.   (Interestingly, 
former Australian Prime Minister Bob Hawk was also present 
during the inauguration, but was here on private business and 
kept a low profile.) 
 
¶7.   Comment: Prior to his inauguration, President Toribiong 
stated to Charge that he intends to make Palau's relationship 
with the U.S. even stronger than it already is.  In his 
inaugural address, which contained effusive praise for U.S. 
influence and assistance, and mingled excerpts from the Palauan 
constitution and the Bible with quotes from John F. Kennedy and 
Barack Obama, Toribiong publicly signaled his commitment to the 
U.S.-Palau relationship. 
 
The inauguration of this President represents the first time the 
power of Palau's executive branch has eluded the grasp of the 
Nakamura-Remengesau political clique since independence. In 
focusing on self-reliance in his inaugural speech, Toribiong, 
who has an excellent understanding of the Compact of Free 
Association, demonstrated his comprehension of the magnitude of 
the challenges his administration is inheriting from his 
predecessors. 
 
 
Post will email the full text of Toribiong's speech to the desk. 
 
BEZNER