Supreme Court upholds gross revenue tax - Page 6

The National UnionAN OFFICIAL PUBLICATION FOR THE PEOPLE AND THE STATES OF THE FEDERATED STATES OF MICRONESIA ^

Volune 6 Kolonia, Pohnpei, November 30, 1985 Member 22

SPEC FUNDS HOSPITAL ENESGY PBDJECT - South Pacific Bureau for Booao-mLc Cooperation Bnergy Officer Penni Drodrolagi, right, is preeenL-ing Nov. 22 a $4,607.50 check to FSM External Affairs Acting Secret-ary Asterio Tfefcesy as the first half of $9,215 to be provided bySPEC for installation of "occupant sensors" by ENE0CH, inc., of Guarain the Pohnpei State Hospital to autcnatically turn on and off elec-trical appliances. The sensors are expected to reduce hospital ener-gy use by one-half and cost by $18,000 a year. Rccm left are Alik L.Alik of the FSM External Affairs Department, Takesy, Pohnpei Hospit-al Administrator George Fleener and Drcdrolagi.

Pohnpei Census shows undercountroiONIA, Pohnpei - There were

28,902 people, including 27,618Bohnpeians and 1,284 non-Pohnpei-ans present in Pohnpei on Sept.15, Census Might, according to apreliminary count released Nov.18 by State Planning, Program-ming, Budgetting and StatisticsActing Administrator Dicn Neth,the office of Gov. Resio Mosesreported.Compared with the I960 Trust

Territory Census count for Pohn-pei which was 22,081, the 1985Pohnpei State Census preliminarycount shows the population inc-reased at the rate of 6 per centa year, which Neth said "is toolarge to be accounted for by nat-ural increase or net-migration

changes and is, therefore, likelyan indication of a significantundercount during the 1980 cen-sus."The 1980 undercount is estimat-

ed to be as much as 10 per cent,Neth said.For the Pohnpeians, the sex

ratio was 105 males to every 100females and non-Pohnpeians, 177males to every 100 females.Kolonia, with 6,313 people pre-

sent, had the largest de factoror actual location population onCensus Night, followed by Sokehs,MadolenihnK, Nett, Kitti and U.The count shows that U, Madol-

enihmw, Sokehs and Pingelap werethe areas most affected by thesuspected undercount in the 1980census.

Samoa seeksTuna quotaIn CompactHDIDNIA, Pohnpei - The U.S.

House Interior Ccnndttee is con-sidering a change in the resolut-ion to enact the Compact of FreeAssociation to set duty free quo-tas for future processed tuna im-ports from the FSM and MarshallIslands, according to Status Com-mission legal Counsel Greg Swartz."We are still hopeful that the

U.S. Congress will complete itsapproval of the Compact byChristmas," President Tosiwo Nak-ayama said.The U.S. Senate approved Nov.

14 the Compact by unanimous con-sent with a $60 million packageto compensate for the loss of taxincentives for U.S. citizens wor-king and investing in the FSM,according to a Nov. 19 dispatchfrom FSM Washington Representat-ive Epel Ilcn.In order to avoid sending the

Compact to a House-Senate confer-ence committee to iron out diff-erences in the two versions, ef-forts were being made to have theHouse take up the Senate versionand adopt additional amendments,then send the resolution back tothe Senate for final approval,

(Continued on Page 3)

InsideBusiness Fair planned

(See story on Page"2)

Municipal elections held{(See story on Page 3)

M/M4 computer sftowi vessels, fees Bank plansJOIONIA, Pohnpei - The FSM col-

lected mare than $500,000 fromJapanese fishing vessels from thebeginning Aug. 9 of the currentfishing agreement through Oct.31, according to the MicrcnesianMaritime Authority computer re-port for October.

Ofoe fees are paid into an ac-count in Japanese yen, accordingto M®. Executive Director MikeMcGoy who cited the average ex-change rate of 215 yen per dollar.With the Japanese fishing ag-

reement providing for payment offees based on the pervailingprice of fish in Japan at the endof each trip and permits beingissued for each trip, the MMAstaff is maintaining up-to-dateinformation in a "Foreign FishingVessels Licensing System" eorput-er program developed by Esmae Bn-erson of Auckland, New Zealand.Miss Bnerson also provided Bor-

eign Fishing Registration lioanseforms to MMA specifications whichwere printed in New Zealand to befilled out as each new vessel re-gistration is entered into theWANS PC computer.Hie license form provides space

for the vessel name, type, coun-try, registration number, callsign and date of first trip, plusblanks to be filled in forsubsequent trips by the shipcaptains who will rec eive theregistration forms by mail.*Vessels must either have this

form on board or demonstrateknowledge of the registraticn

nunter v/hen inspected by approp-riate BSM officials," McCtoy said.The computer program, Which was

installed in July by Hnerson,shows that 1% Japanese fishingvessels are registered to fish inthe EBM 200- tnile ecoocmic zoneand 79 permits have been issuedto them for individual trips asof Nov. 7.T5>sre *sere 237 foreign fishing

vessels registered since the beg-inning of 1985 to fish in FSM wa-ters, including others fron Tai-wan, South Korea, the UnitedStates and the Solomon Islands.Information en vessels regist-

ered to fish in FSM waters issent by TEifX. to the state gov~erraesots and FSM surveillancebeats to assist in surveillancefor illegal fishing, according toJWB. Deputy Director Peter Sitan.WMR is producing monthly rep-

orts on fees collected, based oninfcarnation entered into the com-puter by its two statisticians,Shra Alik and Evans Raymond,During the 12 norths beginning

in August, 1984, there were morethan 300 Japanese vessels regist-ered to fish in the FSM, accord-ing to McOoy who said that thesevessels are allowed to fish onlyoutside of 12 miles from any is-land in the FSM.The 300 vessels reported taking

mare than 900 trips during theperiod and revenue from licensefees for vessels of all national-ities licensed here in 1984-85exceeded $3,8 million, he said.

Business Fair

Fishing talks factor in settlementHQKJNIA, Pohnpei - Olie negotia-

tions for a regional fishing ag-reement between the United Statesand South Pacific Ffesrum FisheriesAgency nations were a factor inreaching a settlement negotiatedbetween the FSM and Ralston Puri-na Go. in the court case involv-ing the Lady Marion, a U.S. purseseiner caught fishing May 8 inFSM waters without a license, ac-cording to Assistant Attorney Ge-neral Lawrence Bertcncini.In a settlement agreement sign-

ed Nov. 15 in Honolulu, the FSMagreed to drop all criminal andcivil charges against the LadyMarion in exchange for paving a$35,000 fine and acknowledgingits fishing without a licensewithin the 200-mLle economiczone, according to Bertoncini.One half of the fine, $17,500,

was paid to Pohnpei state in ac-cordance with FSM .law, Bertoncinisaid.An FSM surveillance airplane

spotted the Lady Marion on May 8with her full mt in the water

about 30 miles southeast of Kap-ingamarangi Atoll, Pohnpei state?according to an affidavit by annational" governiresit surveillanceofficer.

ftie agreement was negotiated byBertoncini on behalf of the FSM;Honolulu attorney Dana W. Smithrepresenting the firm, and sever-al high-level Palston Purina of-ficials.

Ttie desire by both sides to av-oid jeopardizing the regionalfishing treaty negotiations wasone factor in reaching the set-tlement, Bertoncird said, notingthat the FSM is participating inthe negotiations as a member ofthe Ftarum Fisheries Agency.

Bertoncini said that the ladyMarion had been licensed to fishin the FSM in 1983 and 1984, andthat the Ralston Purina officialsexpressed a strong interest inavoiding further incidents and inhaving its boats licensed in theFSM next year.

HDIONIA, Pohnpei - The FSM Dev-elopment Bank is planning to holda one-week "Business Ffeir" ineach of the four states next yearto commemorate the fifth year ofits operations, according to FSM-DB President Manny Mori.Ohe government development

bank, which officially beganfunctioning on Oct. 15, 1981,with a president and secretary,expanded its staff to 15 persons,including seven in the centraloffice here and eight in thestate offices, and its loan port-folio to $3,049,301 through Sept.30, according to Mori."We expect the staff to grow to

21 and the loan portfolio to $5million during (fiscal) 1986,"Mori said.He said the bank has been able

to expand its services in thestates due to the support whichit has received from the stateresources and development depart-ments which are working closelywith the bank to utilize its loanfunds for "the economic develop-ment objectives of our nation."The states will determine the

exact dates of the businessfairs, Mori said, stating thatthe bank proposed holding them inMay.

"She bank proposed establishingan executive committee in each ofthe states to organize and con-duct the business fairs, he said.Each executive committee willinclude the FSMDB board memberfrom that state, the state R&Ddirector and three other msnbersfincluding the state FSMDB branchmanager or loan officer.The bank is planning to provide

cash prizes for the first threeplaces in each category of thefair and certificates for the top10 places, Mori said, adding thatdonations may be solicited fromthe private sector to add to thecash awards.The categories for competition

in the fair will be agriculture,including vegetable, fruit, rootand cofisnercial crops; fisheries;aninal husbandry; handicrafts andcottage crafts? small manufactur-ing industries, and cultural ev-ents, iiicluding arts and talentcontests.The executive conmittee in each

state will work out the methodsand criteria for judging the ex-hibits and will set the deadlinesfor registering participants,according to Mori who said thatthe bank will encourage registra-tion in advance to facilitateplanning the fair and organizingawards and certificates.

A. Samoa seeksTuna quota(Continued from Page 1)lion indicated.In a Nov. 26 dispatch from the

FSM Representative's Office inWashington, D.C., Swartz citedthe proposal by American SamoaDelegate Fbfo I.F. Sunia to limitthe amount of processed tunawhich could enter the UnitedStates duty free from the FSM andMarshalls to 10 per cent of theannual average amount of tunaprocessed in the United Statesduring the previous three years.The FSM and Marshalls do not

have tuna packing plants.American Samoa produces about

25 per cent of tuna consumed and30-35 per cent of the tuna proc-essed in the united States, ac-cording to Swartz who said theU.S. consumed 774 million poundsof tuna in 1984.Ote Senate adopted amendments

introduced by Energy and NaturalResources Chairman James McClureof Idaho to allow continuation ofLegal Services, Farmers Home Ad-ministration and public healthservices programs; a three-yeartransition period for other fed-eral programs; provisions forU.S. agreeing to amendments ortermination of the Compact, anddesignation of the Interior Dep-artment as the management agency.•Hie Senate also adopted a new

trade provision which would allowmost FSM products to enter theU.S. duty free, excluding but-tons, wathches, textiles, foot-wear and certain leather goods.The House had approved July 25 aCcnpact resolution which wouldeliminate the liberalized tradeand tax incentives negotiated inthe Compact.The Senate version retains the

earlier House provision which el-iminates tax incentives for U.S.citizens working in Micronesiaand U.S. investors.The Senate version provides for

an investment development loanfund to compensate for the lossof the tax incentives with $30million authorized for the firstyear and $15 million in the sixthand llth years to be made avail-able to attract U.S. investmentsto the FSM.The Senate provisicns also au-

thorize extension or continuationof Federal Deposit InsuranceCorp., Small Business Administra-tion, Economic Development Admin-istration and Commerce Departmentmarine resources development andtourisn programs, according tolion.

Ehmes winsPingelap raco HI

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CUES APPRBdATIDN - PresidentIbsiwo Nakayana, left, is presen-ting Nov. 28 in his office hispersonal official photograph as atoken of appreciation to DavidNevitt for his two years of ser-vice as FSM Attorney General anda close personal protege of thePresident*

Nevitt commendedK3IONIA, Pohnpei - President

Tbsiwo Nakayama presented Nov. 28a special token of appreciationto former FSM Attorney GeneralDavid Nevitt for his service tothe national government and as apersonal confident.The President presented the of-

ficial presidential photographwhich was hanging in his officewith an inscription, dated Nov.27, 1985, which states:"Please know that I cherished

your excellent service to me andmy people. We will all rememberyou and your family always."Nakayama said, following the

presentation in his office, that"Dave was more than a legal advi-sor to me, he was a protege," aclose personal advisor in policymatters.

In a Nov. 15 letter to Nevitt,the President acknowledged thathe resigned from the post whichhe held since Nov. 7, 1983, dueV.o his "family's needs."He said, "I find that as I look

back on each fitikoko (crisis) wehave faced together, the anxiet-ies of my office have been muchlessened by your competence andcharacter."Nevitt stepped down as Attorney

General when Carl "Bud" UUmanwas sworn in on Nov. 14. He rem-ained with the office as a spec-ial consultant through Nov. 29and was scheduled to depart Dec.1 to join a private law firm inSaipan.Nevitt, 40, joined the Attorney

General's Office in August, 1982,as chief litigator, after pract-icing law in his native Seattle.He was graduated from the univer-sity of Washington and receivedhis law degree fron the Universi-ty of California at Berkeley.

HDIDNIA, Pohnpei - In Nov. 12balloting for Pingelap chief mag-istrate, former Pohnpei State At-torney Delson Ehmes who is inprivate law practice here and ona retainer with the FSM Congressdefeated former State SenatorWelden Welbert by a vote of 362to 273, according to James Inek,Pingelap chief representative inPohnpei.Incumbent Chief Magistrate Per-

ens Solomon who did not seek re-election and was defeated in hisbid for a seat on the PingelapMunicipal Council, according toInek.In Nov. 18 a Sapwuahfik (Ngat-

ik) runoff election, Mwohti Solo-mon was the apparent winner overincumbent Chief Magistrate ElterSehpin, according to State Senat-or Baker Meninsor who said thenew chief magistrate and council-men will take office in January.Unofficial election returns

from Sapwuahfik gave Solomon 196votes to Sehpin's 159.A runoff election was scheduled

for Nov. 30 for Madolenihmw muni-cipal high ccnmissioner (formerlychief magistrate) between incumb-ent Alter Mwudong and Welson Ka-lio.Mwudong led the Nov. 12 ballot-

ing in the three-roan race with678 votes to 510 for Kalio and304 for Pedrus Silbanuz, but fai-led to get the 51 per cent requi-red by the new Madolehihmw munic-ipal constitution.Madolenihmw Municipal Council

winners were Pihdelis Helgenber-ger, Section 1; Dion Neth, Sect-ion 2? John Adolph, Section 3;Ersin Costigan, Section 4; SimonHam, Section 5; Masao Silbanuz,Section 6, and Seisiro Solomon,Section 7.In Nov. 12 Net municipal elect-

ions, incumbent Chief MagistrateReinrich Iriarte received 553votes to defeat his two oppon-ents, former Pohnpei State Senat-or Ignacio Rodriquez, who receiv-ed 418 votes, and Mathais Victor,131, for the first four-year termas "district administrator" underthe terms of its municipal const-itution.

Attends population workshopHDIONIA, Pohnpei - Education

Division Program Development Co-ordinator Stuart Arno representedthe FSM at the Sept. 23-Oct. 1Population Education RegionalWorkshop on Evaluation in Palauwhich was attended by officialsfrom the Cook Islands, Fiji, Kir-ibati, Tonga, the Marshall Isl-ands and Palau.

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I/Marine Matching Funds disbursed illegally, Auditorm03

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K3IONIA, Pohnpei - A total of$889,000 in Marine Matching Rindswas disbursed illegally to threestates through fiscal 1984, bec-ause the FSM Congress had not ap-proved their marine resources de-velopment plans as required bylaw, according to a June 20 rep-ort by Acting Public Auditor JackE. Yakana.Noting that the Congress appro-

ved Nov. 4, 1984, after the auditperiod, the Yap state marine res-ources development plan, the aud-itor recommended "that Congresscease appropriating funds tostates not eligible to receivemarine matching funds."A Pohnpei marine resources dev-

elopment plan vas approved by itsstate legislature, the auditorsaid, but was not introduced tothe FSM Congress for review andapproval as required by Publiclaw 1-26 which established themarine resources matching grantprogram with the FSM providing $2for every $1 provided by thestates up to $250,000 per state.A draft Truk marine resources

plan was introduced June 7, 1981,in the FSM Congress but was notacted on, according to the au-ditor.The audit was conducted at the

request of the Third FSM Congressin Resolution 3-146 which saidthat "despite the states' receiptof such funds, very little suchdevelopment has taken place," andthe report was made public by theauditor.The matching funds provided by

the FSM included $150,000 disbur-sed in fiscal 1981, $560,000 infiscal 1983 and $179,000 in fis-cal 1984 with Pohnpei receiving atotal of $280,000; Truk, $300,-000, and Yap, $309,000.The auditor also said goals and

objectives stated by the statesin their plans are too broad andreccfrmended that the Congress re-quire that these objectives bedefinitive enough to effectivelymeasure.He said that in order to prov-

ide direction to the programswhich vary widely in each statethe national government should"implement a coordination effortfor the various state matchingfund programs" and that the lend-ing programs conducted by thestates with the matching fundsshould be "analyzed and coordin-ated through the FSM DevelopmentBank."The Yap Fishing Authority and

Pohnpei Economic Development Ad-ministration were unable to docu-ment expenditures made under thefirst $50,000 which each receivedfrom the program, according to

the report which said that bothhired accountants and are main-taining adequate recordkeeping.The auditor also reported that

the Yap authority expenditurescharged to representation and en-tertainment lacked sufficient do-cumentation, such as who was ent-ertained, the nature of the busi-ness and reason for expenditures.He said that the Truk Maritime

Authority was purchasing fuel fora surveillance program on week-ends f ran a member of its boardof directors at a cost 40 percent higher than fuel at the gov-ernment depot which he said couldbe providing fuel for weekend useand that the authority was payingfor administrative costs, such asvehicle repairs, office foldingchairs purchase, printing and re-production and board expenses,which is prohibited by the match-ing fund law..The Truk State Resources and

Development Department was notreceiving monthly reports fromOneop municipality on the statusof the $10,000 provided for itsice plant and the condition andactivities of the plant, as req-uired by a memorandum of under-standing for the funding, the re-port said.The Pohnpei EDA records showed

more than $1,300 paid to restaur-ants for a dinner, loan ocromtteeluncheons, seminar luncheons andother purposes which should havebeen segregated into administrat-ive costs which are not authoriz-ed for payment by the FSM match-ing funds, according to the aud-itor.In a July 8 response, after the

audit report was issued, formerEDA Executive Director AnscnChong said that the first $50,000lacked detailed written recordsbut was used to construct and eq-uip the EDA ice plant; that thelunches were provided to the loancommittee which worked withoutpay; that the Pohnpei five-yearplan was approved and amended bythe legislature, and that the EDAfollowed a strict implementationagreement with the FSM Budget Of-fice for use of the funds.Chong called contents in the

auditor's report "largely out ofcontext and....not accurate."Yakana said in a July 18 resp-

onse to Chong that he did not ad-dress the issue of congressionalapproval of the plan, that therestaurant expenses were illegaladministrative expenses and thatthe case should be settled incourt, if he thought the auditreport was not accurate.Truk Maritime Authority Manager

Mark Mailo responded July 11, af-

ter the audit report was issued,that the vehicle repairs for apickup truck used to transportconservation officers to and fromthe dock, folding chairs for con-servation officers' weekly meet-ings and printing and reproduct-ion were program implementationcosts which "cannot be consideredas administrative costs of theprogram."Mailo also said, "We find no

instances in our records wherethe board utilized the matchingfund to cover its expenses."m response to Mailo, the audi-

tor requested a legal interpreta-tion on administrative expensesand the FSM Attorney General'sOffice issued an undated "Memor-andum of law" which cited a 1979Congress Ways and Means Committeereport which stated that thefunds should not be "utilized todefray administrativeincluding salaries,benefits, travel, acquisition ofsupplies, equipment or materials."Therefore, the vehicle repairs,

folding chairs, printing andboard expenses would be deemedadministrative expenses in acourt of law, according to thememorandum.

George signs billsLELU, Kosrae - Gov. Yosiwo Geo-

rge signed Sept. 30 into law fivebills, including one to authorizefiscal 1986 first quarter fundingfor the merger of the KosraeTransportation Authority into thePublic Works Department, accord-ing to an Oct. 21 Kosrae StateInformation Office release.The bill authorizes the Kosrae

state government to obligatefunds during the first quarter offiscal 1986 at the same rate asthe last quarter of fiscal 1985which ended Sept. 30.Other bills appropriate $250,-

000 to drydock the M/V Kaselehliafield trip ship, $17,500 for voc-aticnal education rehabilitationservices and $18,300 for the Mic-ronesian Legal Services Corp.Kosrae office and provide forcontinuation of fiscal 1984 En-hanced Operations and MaintenanceFunds without reversion.

Nan Model 1/sfedHDIONIA, Pohnpei - The Nan Mod-

al ruin in Pohnpei was designatedSept. 16 a U.S. National HistoricLandmark by the Secretary of Int-erior, according to a letter fromInterior Chief Historian EdwinBearss to Gov. Resio Moses.

Auditor: Student Loan Fund lacks revolving accountHDIONIA, Pohnpei - The FSM Stu-

dent loan Fund is being administ-ered without a revolving fund asrequired by law, fiscal manage-ment of the fund is inadequateand in violation of fund statuteand repayment terms and condit-ions are largely ignored by reci-pients capable of repaying theloans, according to a Sept. 3report by Acting Public AuditorJack E. Yakana.The FSM Student Services Office

responded through Education ChiefDaro Weital and Finance SecretaryAl Tuuth concurred that a StudentLoan Revolving Fund had been est-ablished since 1980 in specificaccounts in the Finance Depart-irent.But Yakana commented that "to

simply assign a number to an ac-count does not in itself consti-tute the establishment of a loanrevolving fund.""We were going to transfer the

funds deposited in account No.6090 to Student Loan RevolvingFund last year, but the amountcollected was not enough to rev-olve," the Student Services Of-fice reported, adding that "theamount collected ($26,221.93) isat a point where it can be used,and therefore, will be transfer-red to Student loan RevolvingFund...(and) loaned out effectivethis school year, 1985-86," theStudent Services Office said inthe Aug. 30 response.The auditor reported that with

$1,501,000 appropriated throughApril 30 by the FSM Congress forthe Student Loan Fund, its fiscalmanagement is inadequate due to alack of a control total of loansreceivable and individual loanledgers, resulting in StudentServices Offices loan disburse-ments not being reconciled withthe Finance Department which sho-wed $35,000 more in loans thanStudent Services.Student Services responded that

the Finance Department recordsrun behind its disbursement rec-ords and should show less moneyhaving been disbursed than itsrecords, and that it maintainsup-to-date ledgers of studentsrepaying loans by logging theirchecks and transmitting the in-formation immediately to the Fi-nance Department.The auditor said that 10 checks

for loans were, returned unclaim-ed, but were not turned over toFinance and the payees continuedto be listed as awardees.Student Services responded that

most of the payees were later lo-cated and given their checks,while the others were cancelled.Student Services agreed to the

auditor's recommendation that itobtain a qualified accountant andsaid that one was being transf er-ed from the Finance Department tothat office to update its recordsand loan processing procedures.The auditor said that loan man-

agement practices were in violat-ion of Public Law 2-50 which suc-ceeded the old Congress of Micro-nesia Student loan Fund law andestablished interest rates firstat 3 per cent per year and later4 per cent with a 10-year limiton repayment.The auditor said that the "cur-

rent practice for computing int-erest rates violates statutory

because instead ofinterest on an annual

basis, it is added to the totalloan, then divided by the numberof payments which sometimes gobeyond 10 years.He cited examples of a $6,000

loan with 3 per cent interest ad-ded totalling $6,180 to be repaidat $10 a month for 51 1/2 yearsand a $2,000 loan with 3 per centinterest added totalling $2,060to be repaid in three and one-half years.Student Services denied this

practice, stating that interestis calculated annually at 4 percent of the unpaid principalthat "we negotiate all loansbe fully paid in 10 years.While agreeing on the need to

enforce loan collections, StudentServices said, "The success of

to

our collecting loans throughoutthe FSM states will...depend uponthe availability of travel funds."The auditor commented that for

the Student Loan Officer to haveto meet in person with loan rece-pients to collect repayments "isan expensive way of collectingloans (which) therefore must bediscouraged."The promissory notes signed by

student loan recipients makesthem legally Hahle for and boundto repay the loans, so the Attor-ney General's Office could assistin collecting the payments, hesaid.

Accountant namedroiONIA, Pohnpei - Ruth Gilmete

was transfered in October by Pre-sident Tbsiwo Nakayama from theFSM Finance Department to theStudent Services Office to assistin administering the NationalStudent Loan Revolving Fund Pro-gram, according to EducationChief Daro Weital.Ms. Gilmete will assist Student

Services Officer Daimy Leopoldand his administrative assistant,Yasko Mendiola, in setting up andorganizing loan records, as rec-ommended by FSM Acting Public Au-ditor Jack E. Yakana in a Sept. 3audit report on the program.Weital also announced that reg-

ulations are being completed forthe National Student Loan Revolv-ing Fund as required by law.

UI

CBDWN AGEOT OFFICIALS VISIT - Officials of Crown Agents, Ltd., ofthe United Kingdom, the FSM Postal Service philatelic agent, are in-king courtesy calls on President Tosiwo Nakayama during separate vi-sits in November. The President is seated left and VSH PoetnasterGeneral Leo Falcam, center, Nov. 19 in left photo with Peter Berry,Crowi Agent senior director in charge of Asia and the Pacific andNov. 28, in right photo, with Crown Agent Stamp Bureau Sales andMarketing Director John Smith. Berry visited Pohnpei Nov. 17-20 tooffer other services to the FSM governments and Smith visited Nov.26-30.

I Says state lacked fishing proof

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lOIDNIA, Pohnpei - FSM SupremeCourt Chief Justice Edward C.King held that Pohnpei State Leg-al Affairs officials failed tomeet statutory requirements forseizing a Japanese squid fishingboat which ran aground April 29on the Ngatik Atoll reef.

In an Aug. 15 opinion, explain-ing his May 24 order to releasethe Meiho Maru No. 17, King saidthat the state officials failedto show probable cause that thevessel had been fishing or hadintended to fish in the state's12-nri.le jurisdiction, or in theFSM 200-mile economic zone.The tape-recorded account by a

Ngatik fisherman who reportedseeing the boat apparently fish-ing in the area on the night ofApril 27, during the day on April28 and that night before its col-lision about dawn April 29 provedto be "impossible," according toKing.He cited testimony that its sa-

tellite navigation printouts"show conclusively" that the Mei-ho Maru was about 250 milies from

Ngatik early April 28 and wasstill 50 miles from the atoll atmidnight that night.King also cited testimony by

FSM and state marine resourcesofficials that there are not suf-ficient quantities of squid intropical waters to justify fish-ing here, that the kind and con-dition of the squid found in thevessel hold supported the testim-ony of crew and ship log recordsthat it had been fishing in NewZealand waters and that the Jap-anese boat would not fish withoutthe fishing master who had flownfrom New Zealand to Japan beforethe incident.The court held that state and

national government officialsjustifiably boarded and searchedthe vessel where it ran agroundunder state and national fishinglaws, but the state governmentfailed to show probable cause forseizing the vessel, after the in-itial investigation showed noreason to bring charges againstthe owners and crew and it wastowed to Bohnpei on May 10.

gate/TimeDec. 2,

FSM Supreme Courf CalenderTRIAL DIVISSMMQIfflPRI

Case Erne

Dec. 3, 9 a.m.Dec. 4, 9 a.nu

10:30 a.m.Dec. 6, 9 a.m.

9 a.m.9 a.m.

Dec. 9, 9 a.m.9 a.m.

Dec. 10, 9 a.m.Dec. 11, 9 a.m.Dec. 12, 9 a.nu

Jan. 15

IBM v likitirausFSM vObstFSM v DakaimoAisek v ForeignInvestment BoardMsek v ForeignInvestment BoardIttJa vMaeda RoadFSM v LikitimusFSM vObetFSM v DamarlaneFSM vObetFSM v DakanoPanuelo v PohnpeiFSM v LUdtinusFSM v EBkanno

Sexual abuseBurglarySexual abuse

Proceeding

Pretrialmotions

tojunetive relief PretrialBijunctive relief TrialDamage BearingSexual abuse PretrialBurglary PretrialBurglary SentencingBurglary TrialSexual abuseSexual abuseSexual abuse

TRIAL DIVISJDN-IOSR&EFSM v Melander Misuse, governciesit

HearingTrialTrial

FSM v MongkeyapropertyAssault withdeadly weapon

Jan. 31

Feb. 24, 9 a.nu2 p.m.

FSM vMelander

FSM v MongkeyaFSM v AlbertFSM v Mongkeya

2 p.au FSM v Melander

Misuse, governpropertyAssault withdeadly weaponBurglaryAssault withdeadly weaponM]U5t286f JQ'W&tSl

PretrialmotionsPretrialnotions

sitResponses

ResponsesPretrialPretrial

2 p.nu2 p.m.

Feb. 25, 9 a.m.9 a.m.9 a.m.

Alien v AbrahamTolenoa v KosraeFSM Development Bankv Kosrae BuildersFSM v SigrahPFCA v Sigrah

DsmgesDamages

DebtTaxDebt

PretrialTrialTrialTrialTrialTrial

POLICE OKFK331 COMBOS) - Qov.Resio Moees, right, is presentinga letter of coamandation and mon-etary award Nov. 8 to BohnpeiState Police Officer Joseph Johnfor saving the life of 22-ncnth-old Eugene Oscar by applyingfirst aid and oral resuscitationwhen he found the child Nov. 2face dowi, apparently drowned, inthe D lagoon, according to theoffice of the governor.

Revenue tax upheldHDIDNIA, Pohnpei - ESM Supreme

Court Chief Justice Edward C.King held that the national grossrevenue tax "is a tax on incomewithin the constitutional powerof the national government," butdeclined to impose a penalty onthe firm which withheld paymentwhile making a "timely, goodfaith" challenge against the tax.In a Nov. 21 opinion. King said

that Ponape Federation of Cooper-ative Associations, known as PFCAand the Federation, must remit$24,498.22 and $24,910.20 in un-paid back taxes for the first andsecond quarters of 1985, plus in-terest at the rate of 6 per centper annum as provided by the ESMtax law.He confessed reluctance to im-

pose the penalty sought by theESM for delinquent tax paymentand reserved judgement, statingthat "the government should filea motion if it still feels entit-led to the penalty."King granted the government's

motion to dismiss the challengeby PFCA which said the gross rev-enue tax is unconstitutional be-cause it is actually a sales taxand not an income tax which theFSM Congress is authorized to im-pose by the national Constitution.

"A sales tax is triggered onlyby sales of goods, while thegross revenue tax applied to allbusiness income," he said, citing"nonsale income such as compensa-tion for personal services, int-erest, rentals, royalties, feesand returns on capital."King said that the ESM Constit-

ution "income tax clause bringsall income within the sweep ofthe conqressicnal taxing power."

for capital projectN5LONIA, Pohnpei - Fifteen con-

tractors were qualified by theFSM Office of Planning and Stati-stics as bidders on the nationalcapitol construction project withthe bid opening scheduled for 10a.m. Dec. 2 in the Congress cham-ber here, according to Construct-ion Chief John Crooks.The 15 qualified bidders were

determined after the Oct. 28deadline for "Notices of Intentto Bid," Crooks said.Nine construction firms were

represented at the second prebidconference here Oct. 17-18 and 34firms were represented at thefirst prebid conference held Ap-ril 10-11, prior to the May 31bid opening date when all bidswere rejected unopened becausethe U.S. Congress had not madefunds available to complete thebase project.Congress provided $3,94 million

in fiscal 1985 for the base proj-ect which is expected to cost $10million-$15 million, according tothe Aug. 14 "Notice to Bidders."The FSM also invited bids on

alternate projects, includingfour residences, Ccomunity Col-lege of Micronesia campus civilwork, a sewage treatment plant,asphalt paving of the road to thePalikir site and on-site roadsand driveways and concrete pavingof en-site roads and parking.The funding remains pending in

the U.S. Congress which has notcompleted action on fiscal 1986appropriations and the FSM gov-ernment is pursuing alternativesources of funding, according toConstruction Division officialswho said the bids will be openedas scheduled Dec. 2 and the con-tract will be awarded within the120-day review period.The qualifying bidders are

Fletcher/IDC, Inc., Kolonia; As-anauma Gutni Co., Ltd., Guambranch? Rush and Tompkins Inter-national, Ltd., Hampshire, Eng-land; Maeda Construction Co.,Ltd., Tokyo; Hanil DevelopmentGo., Ltd., Guam; Sate Kogyo Co.,Ltd., Tokyo, and Capital Const-ruction Corp., a joint venturewith Island Hardware Co. of Pohn-pei and two Philippine firms.Also, Atlantic? Gulf and Pacif-

ic Co. of Manila, Inc.; JDC Corp.of Guam; Lucky • Development Co.,Ltd., Seoul, Korea; Hazarra-Gumi,Ltd., Tokyo; Hawaiian Dredging-Kumagai Gumi Co., Ltd., Honolulu;Maeda Road Construction Co.,Ltd., Tokyo; Black-Micro Corp.,Guam, and a joint venture betweenJosman Corp., Yap, and F.F. Cruzand Co., Inc., Quezon City, Phil-ippines,

Bossy soys 73 skills needed H

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VOW, Truk - ESM Senator NickBossy told national Trades Train-ing and Testing Program graduateshere Nov. 26 that they "nave val-uable skills which will be neededto build our nation."Bossy urged the 28 trainees

which were certified in electric-al , mechanical and constructionskills to register with the stateand national labor offices to beavailable for upcoming capitalconstruction projects which willrequire large numbers of skilled'workers.The Truk senator noted that the

ESM Congress provided a total of$218,(XX) for the T3 program dur-ing fiscal 1986 to "continue toprovide excellent training oppor-tunities for our citizens to bet-ter themselves."The fiscal 1986 funds include

the construction of a nationaltraining center in Pohnpei, ac-cording to T3 Program CoordinatorHenry Hickey who said that a cer-emony is scheduled for Dec. 18for the first group of traineesto be certified in Yap where theprogram was implemented in Oct-ober.The program is scheduled to . be

implemented early next year inKosrae where Gov. Yosiwo Georgeis providing two buildings to berenovated and used as trainingfacilities, Hickey said.Applications are being sought

in Kosrae for trainees and train-ing officers to be trained by In-ternational Labor Organizationexperts, he said.During the ceremony in Truk,

Bossy presented trades certific-ates to Serino Xymcn, Trycan Sim-ina, Estor Erwan, Vick Hernist,Hamlin Rufes, Mickency Raymond,

SHNKTOR WT2H T3 - FSMright, isSenator Hick Bossy,

shewn with Trades Training andOfesting training officers in Trukduring, the Nov. 26 graduation ce-reBony there. Fsxm left are Mich-ael Martin, construction trainingofficer; Serino Xyaaonf electric-al; George Ircns, nechanicel, andBossy,

Happiness Ichin, Ruffo Bailers,Sinferio Kastor, Kasta Ninger,Basiente Herick, Basilo Joy, Ran-er D. Chaniel, Francis Lorenzo,MLke Welleison, Akinino Ungeni,Frank Son, Son M. Son, lowanesKbtaro, Harry Gouland, JosephKirion, Joseph Back, Kernes Lud-wig, Francis Francis, Anander H.year, Mike Hewiny.Black hydro bid winsHDLONIA, Pohnpei - Construction

as scheduled to begin in April orMay on the Nanpil River hydroel-ectric project here, according tothe office of Gov. Resio Moees.The U.S. Army Corps of Engin-

eers announced Oct. 29 that itawarded a $5,622,000 contract toBlack Micro Construction Corp. ofSaipan for the construction whichis scheduled to be ccn|xLeted byDecember, 1987.The hydropower project will in-

clude the construction of a 4,-600-foot long penstock and road-way, a powerhouse and switchyardnear the confluence of the Nanpiland Kiepw rivers and power trans-mission lines, according to Col.Michael M. Jenks, Honolulu dist-rict engineer.The facility will be located

near Kolonia in Nett Municipalityand will be capable of generating4.02 million kilowatt hours an-nually to supply some 20 per centof the island's energy needs, ac-cording to Jenks who said thatBlack Micro submitted the lowestof 13 acceptable bids.Design and construction docu-

ments for the Pohnpei Internat-ional Airport terminal are sched-uled to be conpJjeted in Januaryby the Hawaii architectural andengineering firm, Alfred A. Yee,a division of Leo A. Daly, whichwas awarded a $143,406 contractfor the design work which beganin April, according to the officeof the governor.The U.S. government provided $1

million and the Pohnpei State Le-gislature provided $200,000 forthe terminal which is scheduledto be completed in April, 1987,at the Teketik airport site.

09in

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Mofidoys setLELU, Kosrae - The Kosrae State

Code which went into effect Oct.1 revised the legal holidays forstate government employees, ac-cording to an Oct. 16 State In-formation Office release.The state holidays established

by the code are: New Year's Day,Jan. 1; Constitution Day, Jan.11; liberation Day, Sept. 8;Thanksgiving Day, last Thursday,of November, and Christmas Day,Dec. 25.

129 compfefe first CMS an/mo/ production workshopBDIONIA, Pohnpei - Twenty-nine

extension agents and fanners f ranthe ESM and Palau conpleted thefirst animal production improve-ment workshop conducted here Nov.12-21 by the College of Micrones-ia College of Tropical Agricult-ure and Science, according to CT-AS Director Ishmael Lebehn.The workshop is part of the CT-

AS four-year work plan approvedby the D.S. Agriculture Depart-ment which is providing $574,135to the fiscal 1986 COM Cooperat-ive Extension Service programunder the Smith-Lever Act.The Extension Service is sched-

uled to hold three Micronesia-wide workshops, including the an-imal production improvement work-

and five local workshopsthe fiscal year, according

to OTftS Assistant Director RubenDayrit.A citrus iitpcovement workshop

will be held in Kbsrae and a pep-per production workshop in Pohn-pei early next year, according toDayrit who said a cattle product-ion workshop is being planned forPalau.In addition, home gardening and

livestock workshops have beenheld in Rosrae and Bohnpei andare scheduled for Yap in Decemb-er; Truk, January; Marshall Is-lands, February, and Palau,March, according to Dayrit.The animal production improve-

ment workshop was held at thePREP board to meet

, Pohnpei - All ESMstate education directors arescheduled to attend the Dec. 6-7Badfic Region Educational Procf-ram Board of Directors meeting inHilo, Hawaii, according to natio-nal Education Division Chief DaroWeital who will be one of theparticipants.Guam, the Marshall Islands, Pa-

lau, Northern Marianas, AmericanSamoa and Hawaii public schools,ocrannity colleges and Kamehamehaschools also are scheduled to berepresented at the meeting to1discuss cooperative efforts intechnical assistance, curriculumand policy development.

Pohnpei State Agriculture Stat-ion, beginning with welcoming re-marks by state economic advisorDan Perrln on behalf of Gov. Re-sio Moses and ESM AgricultureChief Sadies Henry on behalf ofR&D Secretary Bernard Helgenber-ger.The training focused on pig,

poultry and goat production withfield trips and the use of a newslaughterhouse at PICS highschool here to demonstrate pigand goat meat processing.The workshop was held primarily

to train the extension agents totrain local livestock growers intheir jurisdictions, Dayrit said.The governor presented Certifi-

cates of Training during theclosing ceremony Nov. 21 in theCOM Land Grant Office to Kosraeextension agents Tara Talley andMurtanel Tolenna and fanner Rob-ert Sigrah, and Pohnpei ExtensionAgent Hermis Mendiola, livestockstaff members Martin Eldridge,Alpenster Henry, Petring Albert,Keener Hadley, Mercelino Martin

and Augustine Prime and fannersJames Santos, Johnny Rudolph andAnton Augustine.Also, Truk extension agents Ar-

thur Ansin, Thomas Sappa, Amanis-io Joseph and Julian Sivas andfanners Kiyoshi Phillip and Euse-pio Pisek; Yap extension agentsPeter Tairuwepiy, John Yurow andMark. Loochaz; Palau extension ag-ents Samuel Omengkar, Julio Yama-da and Kalistus Polloi and fannerBrikul Ngirichelbad; Linus Soume-taw of the Pohnpei Agricultureand Trade School, and CTAS staffmembers Jackson Phillip and EnglyIcanisIn addition to Lebehn and Day-

rit, the training was conductedby Pohnpei State AgricultureChief Morea Veratau, PICS agric-ultural science instructor NenonDayrit, Haresh Patel of the U.N.Development Program livestockimprovement project in Pohnpeiand U.N. volunteers Maxima Baroyof Truk, Dr. Thavalingan Mailuva-

of Yap and Dr. Miklosye of PASS.

ANIMAL WODUCTJUN W3RKSBOP HELD - Dr. Thavalingan Mailuvaganampill-ai, second from right, a U.N. volunteer working in Yap, is discuss-ing pig reproduction daring the Nov. 13 session of the Nov. 12-21anin&l productionture Station by theleft clockwise are

workshop held at the Pohnpei Agricul-Micronesia Extension Service. From

y Icanis and Jackson Phillip, COM Land GrantOffice; Tfera Talley, Kosrae; Linos Soumetaw, PATS; Robert Sigrah,Kosrae; John Yurow, Yap; Dr. Ruben Dayrit, College of Tropical Agri-culture and Science assistant director; Mailuvaganampillai; MarkLoochaz, Yap, and Brikul Ngirichelbad, Samuel Omengkar and KalistusPolloi, Palau.

01 BATtOHAl. OMIOIIPoblished tovt ran Intonation Officer.O. to* 490, Kolonla. Miap*iFederated States of Micronesia 96941Telephones 548KetSOn Johnson, Intonation OfficerfMi Bryan, Information AdvisorMiki*l Uppv*, Broadcast Division ChiefUlvsrson Johnay, InforastloB Specialist•llsssr Rospsl, Craphlc ArtistAnal* MMlia, Ateinistrstivs AssistantNary Alls* Namwl, Clerk Typist•si Jan**, Clerk Typist