Lawsuits challenge

Palau

Lawsuits challenge Palau compact

Two lawsuits challenging the legality of Palau s recently ratified Compact of Free Association have been filed.

One suit, filed by Isabella Sumang and Valentina Tmodrang against the Republic of Palau and the US government, contends the Compact’s approval was “procured by coercion”.

The suit also challenges the agreement on the grounds that it was not approved by two-thirds of the Palauan legislature, that the Letter of Assurances from the United States was not a favourable response to requested modifications as required by law, and provisions of the Compact relating to US military use of Palau were unconstitutional.

Residents of the western Pacific archipelago voted in November to approve the Compact, which assures self-rule and endorses a political, economic and defense pact with the United States.

The second lawsuit, filed by Nancy Wong and Lucia Tabelual, claims that since the republic’s Constitution requires a 75 per cent majority to approve the possibility of nuclear material being present in Palau, any amendment to consti tutional provisions should also require 75 per cent approval.

The vote was 5193 in favour, which represents 68.26 per cent of the votes cast.

Despite the lawsuits, which were filed on January 3, Palau President Kuniwo Nakamura said most, if not all of the issues raised in them, have been addressed by the courts.

“These lawsuits may delay the Republic in being able to implement the Compact at the earliest possible date as we had originally hoped,” he said.

“However, this administration is confident that the Compact will be implemented and the door will be opened for a bright new future for all Palauans.”

The pact failed in seven previous plebiscites, always getting more than 56 per cent of the vote, but never the required 75 per cent.

Last year, Palauans approved a constitutional amendment requiring that the pact need only a simple majority for passage.

The Compact allows Palauans self-rule and provides some SUS4SO million (5A658.76 million) in US economic aid.

Under the provisions of the Compact, the US military will be allowed to operate on Palau in a crisis and open two military bases.

The United States would be responsible for Palau’s defence and other countries would be denied military access to the region.

Palau, a series of islands with 15,000 people, is the world’s last remaining UN trust territory.

As the islands’ trustee, the United States has administered Palau’s affairs.

The archipelago is 7,200 km southwest of Hawaii.

Bank of Hawaii

opens in Vanuatu

A BRANCH of the Bank of Hawaii has opened has opened in Vanuatu. Bancorp Hawaii chairman Howard Stephenson announced that the Bank of Hawaii International had acquired 80 per cent interest in Banque Indosuez Vanuatu Limited and will rename it Banque D’Hawaii Vanuatu Limited.

The government of Vanuatu remains a 20 per cent shareholder in the bank which has the main office in Port Vila and a branch in Luganville.

Car prices worry

Solomons govt

IN the Solomon Islands, six used cars imported from Singapore are declared to be worth a total of just US$563. That is less than $94 each and all are in excellent condition.

The Customs department is now carrying out investigations to determine whether the incredibly low prices for the cars was an attempt to defraud the government of import duty.

Air Pacific set for

Los Angeles service

AIR Pacific is to establish services to the United States. The move by the Fiji international carrier to open a once weekly Boeing 747-200 operation be tween Nadi and Los Angles in July is a further indication of improving con ditions across the Pacific. Qantas has indicated that its service from Australia to Nadi and Los Angeles may be scaled down early this year, although nothing official has been announced.

Air Pacific chairman Gerald Barrack said the Fiji government’s decision to review its air transport agreement with New Zealand has proved a key factor in proceeding with the US service. The airline, which is 10 per cent owned by Qantas, hopes to emerge from the impending talks with a deal that will boost its competitive position against Air new Zealand on the route to the US west coast.

However, Barrack stressed that despite encouraging lifts in the Pacific market and the US economy, the proposed service would still be only marginally viable. Los Angeles is one of several so called “missionary routes” being con sidered by Air Pacific, and its develop ment could delay the introduction of another new service to South Korea.

United Airlines plans

flights to Sydney

UNITED Airlines will introduce non stop flights from Sydney to San Francisco in June. The flights will be three times a week, using Boeing 747-400 aircraft, a spokesman for the American company said.

Industry sources said they would help ease a shortage of trans-Pacific seats following the withdrawals of Continental Airlines from the South Pacific last year.

At present United schedules daily flights from Sydney to los Angeles non-stop, and from Melbourne to Los Angeles via Auckland.

Boost for PNG

oil industry

PAPUA New Guinea’s oil industry has been boosted with the success of a “significant” new exploration pro gramme close to the South-east Gobe project, inland from the Gulf of Papua.

In a statement to the Australian Stock Exchange, Oil Search Limited said that, together with its joint venture pertners, it had struck success with the drilling of the Gobe 4X sidetrack hole. This was about 15 kilometres south-west of the South-east Gobe project.

The South-East Gobe project, already identified as a 55 million barrels a day field is expected to be in production by mid-1996. The new Gobe 4X discovery will add a further dimension to the development of the area, especially as it is close to the Kutubu oil pipeline.

Royal Tongan ends

seat purchase deal

A SEAT purchasing agreement between Solomon Airlines and Royal Tongan Airlines was terminated at the end of last month. Royal Tongan has been purchas ing seats on the Solomon Airlines 737-400 jet between Auckalnd and Nuku’alofa since 1991.

Royal Tongan issued a notice six months ago as required that it would not renew its seat purchasing agreement with Solomon Airlines. Royal Tongan Air lines will now use Western Samoa’s Polynesian Airlines for the Auckland- Nuku’alofa route.

The announcement has caused Sol omon Airlines to change its international schedules. It has recently introduced a direct service betwen Honiara and Nadi, in Fiji, and two two direct flights each week between Honiara and Cairns.

Fiji says no to

bilateral agreement

THE Fiji government says it will not sign the present draft of proposals for a new bilateral agricultural agreement with New Zealand. This follows reservations by Fiji’s fruit and vegetable exporters who argue that the proposals are in favour of New Zealand.

The statement comes after talks in Suva between the two sides which discussed new stipulations for produce destined for the Neww Zealand market.

Under the proposal, all fruits and vegetables will be subjected to rigorous treatment procedures.

Last year New Zealand introduced lower residue limits to the use of the fumigant chemical EDB as of the start of this year. Fiji has now asked New Zealand to extend the use of EDB pending further research into ways of containingTruit flies.

Business magazine

launched in Tonga

A business-oriented monthly magazine was launched in Nuku’alofa on January 13. The publication Lali is being put out by Lali Communications Ltd, Nuku’alofa. The publisher is Kalafi Moala publisher/editor of the weekly newspaper Times of Tonga.

Published in English, the first issue features an interview with Minister of Labour, Commerce and Industries, Tutoataki Fakafanua. It includes reports on local banking, computing, agricul ture, aviation, energy, sports, politics and other financial reviews. Lali also contains business news and information from Pacific countries.

Norfolk shopping

complex sold

A SHOPPING arcade on Norfolk Island has been sold for more than US$5OO,OOO.

The Broadwalk Shopping Arcade, which consists of 10 shops, occupies a prime corner site in the centre of Burnt Pine the island’s commercial and retail centre.

Fully-leased, the property is capable of producing an income of US$lO5,OOO per annum.

The sale by Westpac bank attracted several Australian buyers but the success ful bidder was a Norfolk Island investor.

Norfolk Island, with a permanent popu lation of 2000, is only Bkm long and skm wide. Originally, it was a British penal colony but in 1856 became home to Pitcairn islanders, descendants of the Bounty mutiny. □