VZCZCXRO7230
RR RUEHKN
DE RUEHKN #0091/01 1630612
ZNR UUUUU ZZH
R 120612Z JUN 09
FM AMEMBASSY KOLONIA
TO RUEHC/SECSTATE WASHDC 2307
INFO RUEHC/DEPT OF INTERIOR WASHINGTON DC
RUEHKN/AMEMBASSY KOLONIA 2675

UNCLAS SECTION 01 OF 02 KOLONIA 000091 
 
SENSITIVE 
SIPDIS 
 
DEPT FOR EAP/ANP 
INTERIOR FOR OIA 
 
E.O. 12958: N/A 
TAGS: PGOV PREL EAID FM
SUBJECT: GOVERNOR EHSA'S PRESS CONFERENCE HIGHLIGHTS POHNPEI STATE'S 
QUEST FOR ASSISTANCE, NO MATTER THE SOURCE 
 
(U) 1. Summary.  In a recent press conference, Pohnpei State 
Governor John Ehsa highlighted his government's attempts to seek 
assistance from various sources, including both Taiwan and the 
People's Republic of China (PRC).  He also praised the Compact 
Infrastructure Sector grants while simultaneously complaining of 
their insufficiency.  End summary. 
 
Pohnpei Governor Holds Rare Press Conference 
-------------------------------------------- 
 
(U) 2. Pohnpei State Governor John Ehsa held a press conference 
on June 5 at the state's executive office.  Ehsa is the first 
Governor to hold press conferences, and this was his third such 
event since assuming office in 2007. 
 
(U) 3. In his opening statement, Ehsa said that Pohnpei did not 
escape the global financial crisis, but he's thankful for the 
Infrastructure Sector Grants available under the Amended 
Compact, referring to that money as "Pohnpei State's own 
economic stimulus package."  He noted that three schools are 
under construction and should be completed by January 2010. 
Bidding began on three other schools and construction will start 
soon.  These projects have "created jobs and a boost into the 
economy."  Moreover, Ehsa said he also intends to ask the 
Department of the Interior for one million dollars under the 
Compact Maintenance Fund.  Since maintenance funds do not have 
to go to the National Government for approval, Ehsa claimed that 
his "absolute control" of the funds allows him to get the job 
done faster. 
 
(U) 4. Ehsa reported that two projects utilizing bio-gas were 
successfully implemented, thanks to a grant from the People's 
Republic of China (PRC).  The projects use methane from 
composted pig waste to provide electricity and cooking fuel.  He 
seeks to install similar facilities in all residences that have 
pig pens, and a large majority of Pohnpean residences raise 
pigs.  He said each bio-gas unit will cost about $8,000, and he 
has asked the United Nations Development Program (UNDP) to help 
him find funding. 
 
(SBU) 5. Ehsa also reported that the PRC's pilot farm project 
has been successful.  He asked the PRC Government to extend the 
program for another year.  [NOTE: "Success" is not a term 
officials at the PRC Embassy would use.  In previous 
conversations with post personnel, they indicated their 
intention to shut the farm down, citing the lackadaisical work 
standards of local employees and crop theft.  End note.]  This 
is the second time his government has asked for an extension to 
the pilot farm project. 
 
(SBU) 6. The Governor has also courted Taiwan for commercial 
assistance and other aid despite the national government's 
official recognition of the People's Republic of China.  In 
fact, Ehsa traveled to Taiwan earlier this year to discuss 
opening a trade office in Taipei, which created some tensions 
with the Chinese Embassy in Pohnpei and the national government. 
 Highlighting his efforts, Ehsa announced that Taiwan will 
assist Pohnpei by building additional hydroelectric plants.  He 
said that Taiwanese engineers identified potential sites to 
build five such plants.  Ehsa claimed that the total capacity of 
the facilities will be 10 megawatts.  Since Pohnpei's normal 
consumption is 7 megawatts per day, the state's future capacity 
will exceed its current power needs. 
 
(U) 7. Ehsa also reported on new business opportunities.  He 
said that Hong Kong entrepreneur Eric Hotung is interested in 
financing a 3-5 star hotel in Pohnpei.  Ehsa also claimed that 
the Shangai Deep Sea Company wants to open a tuna processing 
facility in Pohnpei, creating about 500 local jobs.  [NOTE: 
Ehsa did not elaborate on how this compares to a similar 
investment plan by the American company Oceania that was blocked 
by the previous Governor's administration.  Nor did he explain 
how to resolve the potential conflict with Luen Thai, a company 
that already operates a tuna processing facility in Pohnpei. 
End Note.] 
 
(U) 8.  The Governor's statement elicited about eight questions 
from the audience.  One person asked if the overtures to Taiwan 
violated the FSM's one-China policy.  Ehsa responded that the 
relationship with Taiwan dealt strictly with trade and private 
sector development, unaffected by the diplomatic relationship 
with the People's Republic of China.  Moreover, he claimed that 
the Pohnpei State Constitution allows him to conduct business 
with Taiwan.  Another questioner asked the Governor to comment 
on local complaints regarding his extensive travel abroad.  Ehsa 
said that without travel he wouldn't have been able to make the 
accomplishments he made.  Ehsa added that he had to travel to 
seek outside financial assistance to achieve his development 
 
KOLONIA 00000091  002 OF 002 
 
 
plans.  Ehsa complained that Compact funds are not sufficient to 
develop the state. 
 
Limited Audience, but First Live Broadcast 
------------------------------------------ 
 
(U) 9. Attendance at the conference demonstrated the paucity of 
media in Pohnpei state.  Bill Jaynes of the Kaselehlie Press, a 
biweekly newspaper, attended, as did Dave Arthurs of the Calvary 
Christian radio station.  Martin Jano also attended.  Jano 
published the Da Rhong (What's The News) newspaper until about 
two years ago when he ran out of money.  Bermin Weilbacher, who 
runs the "Bernmin News Network" (BNN) also attended.  BNN is a 
website containing Weilbacher's comments on local news.  Pohnpei 
State Radio's presence did give the event an air of importance, 
however.  It was the first time the station broadcast one of the 
Governor's conferences live. 
 
(U) 10. Members of the diplomatic corps actually outnumbered the 
members of the press, at least initially.  Two representatives 
from the Chinese Embassy showed up, but left about half way 
through the conference.  The press officer from the Japanese 
Embassy was there, as was Embassy Kolonia's Pol/Mil Assistant 
and DOI Representative. 
 
Comment 
------- 
 
(SBU) 11. Economic issues dominated the Governor's press 
conference.  The Governor seeks to play both sides against one 
another by seeking aid from both Taiwan and the PRC.  While his 
comments may betray Pohnpei's dissatisfaction with the 
Federation (to wit: the Governor's apparent belief that his 
state constitution overrides the federal government's primacy in 
foreign affairs), the Governor's greatest motivation appears to 
be economic benefit, not constitutional crisis.  Ehsa displays a 
sincere interest in furthering his state's development. 
 
(SBU) 12. However, it is noteworthy that the only foreign 
investment and/or private sector development mentioned involved 
two planned projects that may or may not take place.  The 
Governor failed to mention any present-day foreign investment, 
tacitly acknowledging that such business ventures are 
practically nonexistent.  The Governor focuses on obtaining 
foreign assistance, not foreign investment, a strategy that 
encourages more dependency than development.  End comment. 
DOUGLASSWD