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Viewing cable 09KOLONIA22, PRESIDENT REITERATES IMPORTANCE OF COMPACT FIVE YEAR REVIEW,

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Reference ID Created Released Classification Origin
09KOLONIA22 2009-02-25 03:32 2011-08-30 01:44 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Kolonia
VZCZCXRO1539
PP RUEHKN RUEHKR RUEHMJ
DE RUEHKN #0022/01 0560332
ZNR UUUUU ZZH
P R 250332Z FEB 09
FM AMEMBASSY KOLONIA
TO RUEHC/SECSTATE WASHDC PRIORITY 2210
INFO RUEHKR/AMEMBASSY KOROR 0306
RUEHMJ/AMEMBASSY MAJURO 0404
RHHJJPI/PACOM IDHS HONOLULU HI
RHMFIUU/COMNAVMARIANAS DET CAT GU
RUEHC/DEPT OF INTERIOR WASHINGTON DC
RUEHKN/AMEMBASSY KOLONIA 2572
UNCLAS SECTION 01 OF 02 KOLONIA 000022 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PREL ECON PGOV EAID CPAS FM
SUBJECT: PRESIDENT REITERATES IMPORTANCE OF COMPACT FIVE YEAR REVIEW, 
SEEKS SUPPORT ON PASSPORTS ISSUANCE PROCESS 
 
REF: E-MAIL WEMHOENER-CUITE/KORFF 1-26-09 AND PREVIOUS 
 
1.  (SBU) SUMMARY:  President Emanuel Mori used a February 23 
meeting with Ambassador Hughes to reiterate the importance he 
places in the Compact of Free Association's upcoming five year 
review, saying all aspects of the Compact are on the table. 
Mori also sought assistance in passport processing and school 
repairs.  The Ambassador, meanwhile, opened her comments by 
expressing her condolences for the death of a Micronesian 
soldier in Kuwait and described the efforts by the U.S. Coast 
Guard to find two boys lost at sea.  She protested judicial 
treatment of an American couple ensnared in a ten-year business 
dispute, and urged the President to assist in a satisfactory 
resolution of this case.  END SUMMARY. 
 
Ambassador Expresses Condolences 
-------------------------------- 
 
2.  (U) President Emanuel Mori opened a February 23 meeting with 
Ambassador Hughes by thanking her for coming to Palikir to meet 
with him and then asked that she open discussions.  The 
Ambassador used the opportunity to express condolences on behalf 
of the U.S. Government on the death of an FSM citizen serving 
with the Hawaii National Guard in Kuwait.  The Ambassador 
further stressed that the Department of Defense had contacted 
the Honolulu based family of 19 year-old Cwislyn Walter and were 
making burial arrangements.  Although the soldiers' parents are 
from Tol and Fefen Islands in Chuuk State, they have requested a 
memorial service in Honolulu and a burial ceremony in Pohnpei, 
with which DOD is assisting. DOD has launched a full 
investigation into the military vehicle accident that was the 
cause of death.  Mori asked to be kept fully informed. 
 
3.  (U) On February 18, the U.S. Coast Guard received 
information that two Chuukese boys, a seventh grader and an 
eighth grader, were lost at sea beyond the Chuuk Lagoon and 
immediately began search and rescue operations in the vicinity 
of Satawal.  The Ambassador highlighted that the USCG found 
their canoe and spotted one of the boys for a brief time. 
Efforts to rescue the boys were still continuing at the time of 
Ambassador's conversation with the President, although they have 
since been concluded and the boys are presumed drowned.  Mori 
responded that both pieces of news came as a surprise to him as 
he learned only that morning of Walter's death.  Looking around 
at his staff, he then stated that he hoped communication could 
be better in the future.  (Note:  The Ambassador contacted the 
Foreign Secretary immediately over the weekend, thus the delay 
in getting the information to the President was internal to the 
FSMNG.  End Note.) 
 
American Citizen Legal Dispute 
------------------------------ 
 
4.  (SBU) The Ambassador also used the opportunity to highlight 
strong U.S. concern regarding the treatment of two American 
investors in the FSM, Bob and Patti Arthur.  Staff members from 
the U.S. Congress have contacted the Ambassador expressing 
concern about how the FSM is proceeding against the Arthurs. 
The Ambassador then reviewed some of the difficulties the 
Arthurs are facing (Ref), including intrusive questioning by 
court officials required to temporarily regain their U.S. 
passports and permission to travel for medical care.  The 
President generally agreed with the Ambassador's assessment, 
commenting, "We would like the case to disappear, it is bad for 
everyone."  He emphasized, however, that he could not interfere 
with the courts.  He added, that it might be possible to sit the 
lawyers down and find a resolution, or that the Board of 
Directors of the FSM Development Bank overseeing a contested 
loan could meet and review the need for repayment considering 
the role of a former Pohnpei State Governor in undermining the 
Arthurs' businesses.  In the end, Mori promised to assemble a 
meeting, including with the FSM Attorney General, Foreign 
Secretary and the current Pohnpei Governor, among others. 
However, he was not very hopeful, opining, "Banks are 
inflexible." 
 
Mori on the Compact 
------------------- 
 
5.  (SBU) Following a brief, general discussion on American 
investors in the FSM, Mori steered the conversation to the five 
year review of the Compact of Free Association.  Mori wanted to 
assure the Ambassador that the FSMNG was reviewing all options 
available and was actively planning for the review.  He added 
that, in his opinion, all aspects of the Compact were on the 
table and open for discussion.  In preparation for discussions, 
Mori commented that he had sent Office of Statistics, Budget and 
Economic Management, Overseas Development Assistance and Compact 
 
KOLONIA 00000022  002 OF 002 
 
 
Management (SBOC) Director Fabian Nimea to Washington D.C. to 
consult on expectations for the five year Compact review. 
 
6.  (SBU) While discussing the Compact, the Ambassador commented 
that Pohnpei legislators had complained that the recent 
appropriation of Compact infrastructure funds by the FSM 
Congress appeared to have taken $2 million from Pohnpei's funds 
and transferred the money to Chuuk.  The national law upon which 
the accusation was based gives each state a specific percentage 
of infrastructure related funds allocated by the FSM.  Mori 
replied that the Pohnpei legislators' interpretation of funding 
disbursement was incorrect.  In the final accounting for 
infrastructure allocations, the national distribution formula 
would be accurately reflected, he said.  A brief discussion 
followed on other possible means of allocating the backlog of 
Compact infrastructure funds that might avoid future 
misunderstandings and disputes with the FSM Congress. 
 
7.  (SBU) During last week's Joint Committee Meeting (JCM, which 
focuses on DOD and security related issues), the Ambassador 
informed Mori that she had raised the possibility of the 
military restarting the Humanitarian Assistance, FSM (HAFSM) 
with the DOD representatives.  The last HAFSM project centered 
on water wells in Pohnpei, but the Ambassador recommended 
looking at other engineering repair and maintenance projects 
that could have an immediate impact within the FSM.  The DOD was 
willing to support HAFSM deployment, but all parties would still 
have to address funding issues.  Representatives from the Office 
of Insular Affairs (OIA) told the Ambassador they were willing 
to look at the possibility of using Infrastructure Maintenance 
Funds (IMF) to support such HAFSM projects, but that one 
difficulty for the FSM may be that the IMF requires matching 
funds. 
 
8.  (SBU) Mori was appreciative of the idea, stressing that the 
Seabees do a great job and they do it quickly.  One particular 
area where the FSM could experience immediate results was if 
such a team could do basic maintenance and repairs at the public 
schools.  While acknowledging that a renewed DOD HAFSM presence 
was still only a possibility, the Ambassador promised to keep 
Mori updated as information became available. 
 
Passport Issuances 
------------------ 
 
9.  (SBU) On FSM passport processing, Mori opened the 
conversation by saying, "This is very important to me."  Mori 
then thanked the Ambassador for the visit by Assistant Regional 
Director of the Honolulu Passport Agency Steven Mullen to review 
FSM's passport issuance procedures (Septel).  The FSM looks 
forward to his report.  The Ambassador agreed with the 
President's assessment, that Mullen was able to witness many 
positive aspects of the FSM process and that she anticipated his 
report to reflect those observations. 
 
10.  (SBU) In the meantime, Mori complained, the current process 
requiring applicants deliver applications from remote sites by 
mail or hand to Palikir for adjudication is too time consuming 
and unreliable.  Mori asked for assistance in acquiring at least 
three scanners that would permit remote application acceptance. 
Adjudication and printing authority would remain in Palikir.  He 
confirmed that the FSM was no longer looking to store blank 
passports for printing in remote locations.  Mori concluded the 
meeting by asking to meet with the Ambassador again in 
approximately two weeks to review passport issuance and other 
issues. 
HUGHESMK