[House Hearing, 118 Congress]
[From the U.S. Government Publishing Office]
PEACE THROUGH STRENGTH: THE STRATEGIC IMPORTANCE OF THE
PACIFIC ISLANDS TO U.S.-LED GLOBAL SECURITY
=======================================================================
OVERSIGHT FIELD HEARING
BEFORE THE
COMMITTEE ON NATURAL RESOURCES
U.S. HOUSE OF REPRESENTATIVES
ONE HUNDRED EIGHTEENTH CONGRESS
FIRST SESSION
__________
Thursday, August 24, 2023, in Tamuning, Guam
__________
Serial No. 118-57
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Printed for the use of the Committee on Natural Resources
[GRAPHIC NOT AVAILABLE IN TIFF FORMAT]
Available via the World Wide Web: http://www.govinfo.gov
or
Committee address: http://naturalresources.house.gov
__________
U.S. GOVERNMENT PUBLISHING OFFICE
53-236 PDF WASHINGTON : 2023
COMMITTEE ON NATURAL RESOURCES
BRUCE WESTERMAN, AR, Chairman
DOUG LAMBORN, CO, Vice Chairman
RAUL M. GRIJALVA, AZ, Ranking Member
Doug Lamborn, CO Grace F. Napolitano, CA
Robert J. Wittman, VA Gregorio Kilili Camacho Sablan, CNMI
Tom McClintock, CA Jared Huffman, CA
Paul Gosar, AZ Ruben Gallego, AZ
Garret Graves, LA Joe Neguse, CO
Aumua Amata C. Radewagen, AS Mike Levin, CA
Doug LaMalfa, CA Katie Porter, CA
Daniel Webster, FL Teresa Leger Fernandez, NM
Jenniffer Gonzalez-Colon, PR Melanie A. Stansbury, NM
Russ Fulcher, ID Mary Sattler Peltola, AK
Pete Stauber, MN Alexandria Ocasio-Cortez, NY
John R. Curtis, UT Kevin Mullin, CA
Tom Tiffany, WI Val T. Hoyle, OR
Jerry Carl, AL Sydney Kamlager-Dove, CA
Matt Rosendale, MT Seth Magaziner, RI
Lauren Boebert, CO Nydia M. Velazquez, NY
Cliff Bentz, OR Ed Case, HI
Jen Kiggans, VA Debbie Dingell, MI
Jim Moylan, GU Susie Lee, NV
Wesley P. Hunt, TX
Mike Collins, GA
Anna Paulina Luna, FL
John Duarte, CA
Harriet M. Hageman, WY
Vivian Moeglein, Staff Director
Tom Connally, Chief Counsel
Lora Snyder, Democratic Staff Director
http://naturalresources.house.gov
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CONTENTS
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Page
Hearing held on Thursday, August 24, 2023........................ 1
Statement of Members:
Westerman, Hon. Bruce, a Representative in Congress from the
State of Arkansas.......................................... 2
Leger Fernandez, Hon. Teresa, a Representative in Congress
from the State of New Mexico............................... 3
Statement of Witnesses:
Guerrero, Hon. Lourdes ``Lou'' Leon, Governor of Guam,
Hagatna, Guam.............................................. 5
Prepared statement of.................................... 6
Questions submitted for the record....................... 7
Palacios, Hon. Arnold I., Governor of the Commonwealth of
Northern Mariana Islands, Saipan, MP....................... 9
Prepared statement of.................................... 11
Questions submitted for the record....................... 16
Udui, Hon. Kaleb, Jr., Minister of Finance, Republic of
Palau, Koror, Palau........................................ 21
Prepared statement of.................................... 22
Questions submitted for the record....................... 24
Cantero, Hon. Ricky, Acting Secretary, Department of Foreign
Affairs, Federated States of Micronesia, Pohnpei State, FM. 24
Prepared statement of.................................... 26
Questions submitted for the record....................... 27
Ading, Hon. Jack, Minister of Foreign Affairs and Trade,
Republic of the Marshall Islands, Majuro, MH............... 29
Prepared statement of.................................... 30
Questions submitted for the record....................... 33
Barnes, Hon. Tina, Vice Speaker, Guam Legislature, Hagatna,
Guam....................................................... 49
Prepared statement of.................................... 51
Questions submitted for the record....................... 52
Sgambelluri, Irene, World War II Survivor, Talofofo, Guam.... 53
Prepared statement of.................................... 54
Questions submitted for the record....................... 55
Additional Materials Submitted for the Record:
Submissions for the Record by Representative Westerman
Brigadier General Roderick R. Leon Guerrero (Retired),
Letter to Chairman Westerman, dated August 22, 2023.... 64
Lemanu P.S. Mauga, Governor, American Samoa, Statement
for the Record......................................... 67
Western Pacific Regional Fishery Management Council,
``Waning US Influence and Impacts to Major US Pacific
Tuna Fisheries within the Western and Central Pacific
Ocean (WCPO): A Call for a US Government Strategic
Plan''................................................. 69
Submissions for the Record by Vice Speaker Barnes, Guam
``Transshipment on Guam'' by S. Luo, P. Wang, C.M.
Bhojwani, L. Tumaneng, and J. Ji, Jr................... 83
OVERSIGHT FIELD HEARING ON PEACE THROUGH STRENGTH: THE STRATEGIC
IMPORTANCE OF THE PACIFIC ISLANDS TO U.S.-LED GLOBAL SECURITY
----------
Thursday, August 24, 2023
U.S. House of Representatives
Committee on Natural Resources
Tamuning, Guam
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The Committee met, pursuant to notice, at 10:03 a.m. ChST,
at the Hilton Hotel, 202 Hilton Road Tumon Bay, Tamuning, Guam,
Hon. Bruce Westerman [Chairman of the Committee] presiding.
Present: Representatives Westerman, Lamborn, Radewagen,
Tiffany, Moylan, Hageman, Leger Fernandez, Stansbury, and
Sablan.
The Chairman. The Committee on Natural Resources will come
to order. I would like to welcome everyone to the Hilton Hotel
here in the heart of Guam for this timely hearing on the
importance of the U.S. Pacific Territories and the Freely
Associated States to the United States' ability to counter the
PRC's malign influence and maintain our nation's strategic
interest in the region.
Before we begin our official business, we will begin the
hearing with the U.S. National Anthem sung by Master Sergeant
Jack Larimer from Joint Region Marianas.
Sergeant, let's all stand and we will do the National
Anthem.
[National Anthem sung.]
The Chairman. Thank you, you may be seated. Thank you,
Sergeant, for singing the national anthem, and thank you to
everyone for being here today.
Without objection, the Chair is authorized to declare
recess of the Committee at any time. This Committee is meeting
today to hear testimony on Peace Through Strength: The
Strategic Importance of the Pacific Islands to U.S.-led Global
Security.
Under Committee Rule 4(f), any oral opening statements at
hearings are limited to the Chairman and the Ranking Minority
Member, therefore, I ask unanimous consent that all other
Members' opening statements be made prior to the hearing record
if they are submitted in accordance with Committee Rule 3(o).
Without objection, so ordered.
I also want to make everyone on the panel, the Members and
the witnesses, aware that there is a 3-second delay, I am told,
with the microphone, so when you push the button, give a few
moments to let the system get queued up before you begin
speaking.
I will now recognize myself for an opening statement.
STATEMENT OF THE HON. BRUCE WESTERMAN, A REPRESENTATIVE IN
CONGRESS FROM THE STATE OF ARKANSAS
The Chairman. Hafa Adai and good morning. It is, again, a
pleasure to be here. Thank you, Governor, for hosting us in
Guam. Today, the House Committee on Natural Resources has the
great privilege of convening this hearing on this beautiful
island of Guam in the heart of the Pacific. I would like to
thank the People of Guam for the hospitality that you have
exhibited to our entire Congressional Delegation. It is truly
an honor to be with you here today and to be joined by so many
of my colleagues. The warm reception we have received reflects
the beauty of this island and its people.
I also want to thank members of Guam's local government who
are with us, or who are taking time to be with the Delegation
and meet with us while we are on the island.
I would especially like to thank my friend and Congressman,
Jim Moylan, for the invitation to visit the island and to hold
this hearing, and most importantly, for his tireless work on
the Committee on Natural Resources on behalf of the People of
Guam.
Lastly, I would like to acknowledge the bipartisan group of
Members of Congress who have joined us for this historic
hearing and thank each of them for being here. There are
incredible demands on our time and our participation in the
hearing demonstrates the importance and the critical nature of
our discussion.
We are here today at a pivotal point in our nation's
history. Less than 2,000 miles away lies a threat to America
and our allies. The Peoples' Republic of China, under the
tyranny of the Chinese communist party, not only seeks to
challenge American leadership, but is aggressively working to
undermine the democratic values and institutions that we
cherish. We are a freedom-loving people in America, and above
all, we must never forget that it is freedom that unites us.
It is freedom.
And as we had some meetings earlier this morning and I
heard folks talk about the history of Guam and the way that
people here cherish freedom and love freedom and they have seen
that freedom challenged in the past, that I know that it is
truly an American thing that we, above all else, put freedom
first, and we are willing to make sacrifices, and there have
been many sacrifices made in the past to protect that freedom.
And I have no doubt that if we move forward, we will take the
necessary steps and make the necessary sacrifices so that
people can love and enjoy freedom.
It is important to explain that when we refer to the PRC,
we are referring to China's ruling communist party. There is a
distinct difference between the PRC's leadership and the many
Chinese citizens who long for that same freedom that we as
Americans enjoy.
The recent PRC state-sponsored hacking campaigns in Guam
targeted critical U.S. infrastructure systems and demonstrate
that Guam is not only a target for Chinese aggression, but is
also on the front lines on the fight against this threat.
Beijing is fully aware of the strategic importance of Guam
to the United States and it is testing boundaries by simulating
attacks on the island. Guam's importance to our nation's
history cannot be overstated, and it has bravely faced foreign
threats before. The tragedy and sacrifice made by the people of
this island in World War II is not forgotten, as Guam
celebrated Liberation Day last month. Our fight today is
reserved freedom across the U.S. territories and for all U.S.
allies in the Pacific.
Like the empire of Japan once did, the PRC aims to dominate
the Pacific and island people. While modern threats may look
slightly different and include political and informational
warfare, the underlying motives of domination and aggression
remain. The PRC continues its nefarious activities by using its
resources to exert influence in the U.S. territories and the
Freely Associated States.
The United States will swiftly address and counter the
PRC's maligned activity in the Pacific region. Congress has a
responsibility to meet this challenge head on and to protect
our shared American interests. It is for this very reason that
the Members of this Congressional Delegation are here today.
This hearing will spotlight the PRC's maligned activity in the
U.S. territories and the Freely Associated States, and examine
how the United States will stand united against these threats,
both on the continental part of our country and our partners in
the Pacific.
Again, I want to thank the witnesses for their
participation in this important hearing, and I look forward to
your testimony.
I yield back my time and I will now recognize the Acting
Ranking Member of the Committee today, Ms. Leger Fernandez,
from the great state of New Mexico.
STATEMENT OF THE HON. TERESA LEGER FERNANDEZ, A REPRESENTATIVE
IN CONGRESS FROM THE STATE OF NEW MEXICO
Ms. Leger Fernandez. Thank you so very much, Mr. Chairman.
And I truly want to thank each of our witnesses who have come
here today because it is the role of Congress to truly listen
because if we do not listen to the voices that come from the
people of America, from the people who are experts, because you
live this reality on these islands with the threat of China
ever so close. And it is our job to listen to those so that we
can then take your voices back to the people's House and
determine a policy that is in many ways written by you and your
concerns.
So, I am very grateful to the Chairman for pulling this
bipartisan visit together to the region. I am very grateful and
advanced to have what we have already learned on this visit,
both about military issues, but also about what it means to be
one Guam, what it means to be American in this island and in
this great, beautiful Pacific.
And we know that we must not say ``the U.S.'' as though it
is something over here, but when we are talking about the
territories that are part of the U.S., it is ``us,'' the United
States, that there is no us and them in this region, it is an
``us.'' So, I am very thankful for that.
The witnesses are so impressive. Governor Guerrero,
Governor Palacios, I hope I said that right, as well as
Minister Ading, Minister Udui Jr., and Acting Secretary
Cantero.
It is actually my first visit to Guam, which might be some
of the others. I come from a state that is in the middle of the
country. It has no water around it, so whenever I see this much
water, I get so very happy. And we recognize the four decades
that the United States has maintained a special relationship
with the Freely Associated States, the Federated States of
Micronesia, and the Republic of the Marshall Islands, as well
as the Republic of Palau.
And the Compact of Free Association, as we have been
listening to them in this Committee over the last many months,
recognize the importance of continuing that relationship into
the future, and as my colleagues have said, I do not think that
there is any doubt that all of us don't recognize that
importance. We are unified in a bipartisan manner across these
issues, and our need in this visit is to once again listen to
you tell us why it is so important so that we can then go back
and convince our colleagues, and I don't think they will need
that much convincing. I think you all have done a good job, and
history has done the job of telling us why this is important
and why this region is, in this moment, as important as it is.
The Biden administration and the Presidential Envoy for
COFA Negotiations, Ambassador Joseph Yun, are really being
commended for securing these new compact agreements with FSM
and Palau in May, and while negotiations have not been
completely concluded with the RMI, we expect that they will be
soon. Approving the proposal to review the financial provisions
of the Compact of Free Association with FSM, Palau, and the RMI
will continue our engagement with the FA and diminish the risk
of China filling the vacuum in the region.
We have heard that our people are scared of China because
these are smaller islands and these are places where the threat
could be easily carried out, so we will continue that and we
will continue to make sure that the point of the spear, as it
has been pointed out, continues to be strong and aimed
accurately.
In conclusion, I want to once again thank you, Mr.
Chairman, for scheduling this hearing today. I want to thank
the panelists for pointing out that it is not just militarily,
but it is also the link that will honor the sacred that it is,
the waters, the sea and all those beautiful creatures of Earth
and of God that we have been given to protect those, to protect
the environment, even as we protect the people and the security
of each of the islands and of the United States.
Muchos gracias. Thank you so very much.
Mr. Chairman, I yield back.
The Chairman. Thank you, Representative Leger Fernandez.
Now I will introduce our witnesses on our first panel. We will
be having two panels today, and first off someone who obviously
needs no introduction here, but the Honorable Lourdes ``Lou''
Leon Guerrero, Governor of Guam from Hagatna, Guam; the
Honorable Arnold I. Palacios, Governor of the Commonwealth of
the Northern Mariana Islands from Saipan, Mariana Islands; the
Honorable Kaleb Udui, Jr., Minister of Finance, Republic of
Palau; the Honorable Ricky Cantero, Acting Secretary,
Department of Foreign Affairs, Federated States of Micronesia,
Ponhpei, Federated States of Micronesia; and the Honorable Jack
Ading, Minister of Foreign Affairs and Trade, Republic of the
Marshall Islands, Majuro, Republic of Marshall Islands.
Let me remind the witnesses that under Committee Rules,
they must limit their oral statement to 5 minutes, but their
entire statement will appear in the hearing record.
To begin your testimony, please press the ``on'' button.
Remember, there is a 3-second delay. We do use timing lights.
When you begin, the light will turn green. At the end of 5
minutes, the light will turn red, and I will ask you to please
complete your statement. I will also allow witnesses on the
panel to testify before Member questioning.
The Chair now recognizes Governor Leon Guerrero for 5
minutes.
STATEMENT OF THE HON. LOURDES ``LOU'' LEON GUERRERO, GOVERNOR
OF GUAM, HAGATNA, GUAM
Governor Guerrero. Chairman Westerman, Ranking Member
Fernandez, and members of the House Committee on Natural
Resources, Hafa Adai, welcome to Guam and thank you for flying
so far to meet us here.
I would like to emphasize the vital importance of Guam and
other Pacific Islands in U.S.-led global security. Throughout
history, Guam has played a crucial role due to its strategic
location sitting at the crossroads of Pacific powers. With its
protected harbor and competitively large landmass, Guam serves
as a critical hub for air and sea travel connecting China,
southeast Asia, Japan, and North America.
This positioning has made Guam pivotal in major American
conflicts, contributing to peace and shared prosperity in the
Pacific. However, in recent times, China's increasing influence
in the region has raised serious threatening and real concerns.
China's efforts to expand its reach to other Pacific Island
countries through infrastructure projects, political
maneuvering and socioeconomic coercion have repercussions for
the Pacific Islands, including Guam.
China's intentions indicate a potential threat to regional
stability, an attempt to exert control over the region
concealed in otherwise benign diplomatic agreements.
Security in the Pacific means a viable and robust economy.
Security in the Pacific means an educated workforce, a quality
healthcare system, reliable infrastructure, resiliency of the
community, and digital modernization. Security in the Pacific
and the stable trade with Asia that follows it resonates far
beyond the Pacific.
Nearly 95 percent of America's potential customers live
outside U.S. borders. 29 percent of U.S. exports of goods are
sent to Asia, and this region represents over $2 trillion in
trading goods with the United States in 2022. Moreover, the
supply chain that sustains our daily lives, from food to
electronics, rely on a secure Pacific.
Given these circumstances, the question before us is
simple: Who should shape the rules of future trade in the Indo-
Pacific? If the United States does not engage actively, China
will, writing a future that will never put Americans first. To
prevent this, I support bipartisan efforts to enhance U.S.
engagement in the region and support efforts to bolster the
security of Guam, other key territories and our allies and
partners in the Indo-Pacific. This ensures the ability to drive
prosperity in a free and open Indo-Pacific, especially for
developing democracies in the Pacific.
I also urge the Committee to create policies that allow
Pacific Island countries to tap into American innovation and
entrepreneurship to address perennial challenges.
Furthermore, I ask Congress to recognize that our actions
in the Pacific reflect the values we share: peace, prosperity,
and a free democracy. I thank the Senate for including Guam in
RECA legislation, and I ask the House for their support. By
ensuring fair treatment of COFA citizens and investing in
Guam's infrastructure and workforce development, the United
States demonstrates its commitment to collaboration.
Initiative, like a Guam-only visa program, COFA cost
reimbursement, H2-B visa program, and funding for a new
hospital showcase America as a reliable partner, capable of
cooperation and competition.
In closing, I thank you, Chairman Westerman, and this
Committee for the opportunity to address this crucial issue.
Let us work together to preserve peace, win prosperity, and
expand opportunity in the Indo-Pacific region.
Si Yu'us Ma'ase [Thank you].
[The prepared statement of Governor Leon Guerrero follows:]
Prepared Statement of the Honorable Lourdes A. Leon Guerrero, Governor
of Guam, Government of Guam
Chairman Westerman, Ranking Member Grijalva, and distinguished
Members of the House Committee on Natural Resources, hafa adai! Welcome
to Guam.
Mr. Chairman, by air travel, you are approximately 7,447 miles away
from your home state of Arkansas and a similar distance from the
nation's capitol in Washington, DC. Like each of your colleagues, the
circumstances that bring you here are an equal blend of history,
present circumstance, and a future still waiting to be written. History
tells us that from 1521 to the present day, Guam has been, and
continues to be, a linchpin of every Pacific Power.
The reasons for this are simple. On the axis that crosses 5,000
miles of the Pacific between Hawai'i and Asia, Guam is the only island
with a protected harbor and sufficient land for major airports. Guam is
also the largest landfall for communications, shipping, and military
installations on the nearly 3,000-mile north axis from Japan to Papua
New Guinea and Australia.
This geography means that Guam has access by air and sea to China
and Southeast Asia to the west, Hawai'i and North America to the east,
and Japan to the north.
For these reasons, Guam has played a unique and pivotal role in
nearly every major American conflict in the late 20th and early 21st
centuries. As a result of American engagement in the Marianas and the
larger Pacific region, the United States won an unparalleled period of
peace, economic trade, and shared prosperity in the Pacific. Yet, as
time passed and other priorities drew America's watchful eye away from
Pacific Island Countries, China emerged.
Offering massive infrastructure packages, awarding what some have
called predatory debt, and dispensing travel and training to certain
Pacific Island Countries (PICs) personnel--China, in the present day,
has shown a commitment to its goals. But what are they?
Its first goal is to increase its popularity in the Pacific region
and gain support for pro-Chinese policies at the United Nations.
China's second goal: its proposed China-Pacific Island Countries Common
Development Vision and the China-Pacific Island Countries Five Year
Action Plan on Common Development (2022-2026).
Put simply, because Guam can project power throughout the Indo-
Pacific region, China is working to project equal power onto Guam and
its sister islands. This has brought with it specific consequences for
the People of Guam. Yes, Guam has always been considered the tip of the
American Spear in the Pacific. Some have said that the deployment of
missile defense systems throughout Guam now makes it a first strike
community in the eyes of China.
Mr. Chairman, I know it's hard for some Americans to understand why
any of this matters to their way of life. After all, Guam and the
Pacific Islands are thousands of miles away.
This is the best way I've heard it explained. Nearly 95% of
America's potential customers live outside U.S. borders. 29% of U.S.
exports of goods are sent to Asia, and this region represents over two
trillion dollars in trade in goods with the United States in 2022. That
trade, the lives and livelihoods that depend on it. The supply chain,
the food on supermarket shelves, or chips in our computers and mobile
phones--all if it relies on a secure Pacific.
Knowing that, who should write the rules of U.S. trade with the
Indo-Pacific? If we choose not to, China surely will. This is why I
support the bipartisan effort to increase U.S. engagement throughout
the region and invest in the security of Guam and other vital U.S.
territories. It is why I join other island leaders in seeking economic
and infrastructure support for the Pacific's developing democracies.
And it is why I ask the members of this Committee to adopt policies
and create programs that partner with PICs allowing them to engage
American innovation and entrepreneurship in solving the problems we
face.
From talking and listening to many Pacific Island leaders over the
years, it is clear that we want to grow our own economies and create
job and business opportunities that can help turn the corner on why so
many of our people have left our islands.
To combat the impacts of climate change and illegal, unregulated,
unreported fishing we need technology, we need financial expertise, we
need trained workers, and new businesses if we are to secure the hard
to access funds for climate change infrastructure and ocean resource
monitoring. The U.S. Congress could develop or strengthen an existing
incentive pathway for American businesses to help Pacific governments
create and implement the mitigation and adaptation projects that will
allow islanders to return and flourish at home. Furthermore, we must
continue to build regional resilience in health security, climate
adaptation and mitigation efforts, and energy security.
Finally, I respectfully ask that Congress recognize that American
values are constantly on display throughout the Pacific. How it treats
one Pacific island is seen and felt by all Pacific islands.
By ensuring fair treatment of COFA citizens and investing in Guam's
infrastructure, the U.S. demonstrates its commitment to collaboration.
Initiatives like a Guam-only visa program, COFA cost reimbursement, and
debt forgiveness showcase America as a reliable partner capable of
cooperation and competition. In short the Compact renewal must be
reflective of a whole of government approach and the U.S. Congress'
commitment to recognize the importance of our Pacific islands.
In closing, I thank Chairman Westerman and this Committee for the
opportunity to address this crucial issue. Let us work together to
preserve peace, win prosperity, and expand opportunity in the Indo-
Pacific region.
______
Questions Submitted for the Record to the Honorable Lourdes A. Leon
Guerrero, Governor of Guam
Questions Submitted by Representative Westerman
Question 1. Guam has and continues to be strategically important
for not only U.S. security, but also peace and stability in the Indo-
Pacific.
What do you see as Guam's role in maintaining peace and stability
in the region? Are there areas that you believe Guam could play a
greater role in U.S. national security strategy and engagement with the
Indo-Pacific?
Answer. Guam possesses the potential to assume a more significant
role in the United States National Security Strategy and its active
involvement in the Indo-Pacific Region. Peace and stability in the
region is a critical priority for our people, given our experiences
during World War II. Our administration has consistently been deeply
engaged in dialogue at the highest echelons of military leadership at
the Pentagon, Indo-Pacific Command, and the Joint Region Marianas, as
well as meeting with congressional delegates from the House and Senate
Armed Services Committees, underscoring the critical nature of national
security within this region. Within our team, we have committed
individuals who grasp this importance and remain actively involved in
deliberations concerning strategy, policy, and cultivating
relationships to advance and safeguard U.S. interests in Guam and the
Indo-Pacific. Guam has a unique opportunity to play a more significant
role as a U.S. Territory and be home to one of the largest and fastest-
growing U.S. military contingencies in the Pacific region by engaging
in all discussions regarding the Pacific. More notably, Guam should
participate in the most recent legislation passed in the NDAA to
establish a Regional Security Council. Given the pacing threat of China
in the region and recent infiltrations to our cyber security network,
Guam must be part of all security concerns and U.S. initiatives in the
Pacific.
Question 2. We are deeply concerned about the issue of People's
Republic of China (PRC) nationals illegally entering Guam from the
Commonwealth of Northern Mariana Islands. It has been reported that 27
PRC nationals have been caught attempting to enter Guam from CNMI in
the month of June alone.
What are you and your team doing to address this issue? Has it been
determined what these individuals were aiming to do once in Guam?
Answer. The Guam Customs and Quarantine Agency (GCQA) has assigned
officers to our main ports of entry, where they conduct roving
surveillance of Guam's shorelines. I have established a multi-agency
task force that reports vessel movements between the CNMI and Guam.
This task force is dedicated to the issue of illegal entry of Chinese
nationals and continues to meet to assess and maintain awareness of
this concerning situation. The illegal entry individuals were charged
with violations of local and federal statutes. These individuals have
stated they made the trip to Guam to continue the pursuit of asylum and
employment. Additionally, we have enlisted support of the public to
report suspicious activities observed around Guam's reefs and beaches.
Question 3. I think it is fair to say that we are all deeply
troubled by reports of the PRC creating so-called ``Guam-killer''
missiles and simulating attacks on U.S. bases on Guam. It has been
argued that U.S. military presence in Guam makes the island a target
for our adversaries.
Can you explain to us how it is important for Guam to continue to
play a strategic role in U.S. policy in the Indo-Pacific and why you
believe that the U.S. military presence on the island is important for
Guam's security long-term?
Answer. The U.S. military presence in Guam is strategically vital
to the security of our island and the Indo-Pacific region. The PRC and
other malign actors pose a significant threat to our security,
prosperity, and freedoms. Therefore, the U.S. military must continue to
have a strong presence in Guam long-term. However, any additional
military growth must be balanced and closely coordinated with the
government of Guam and the people of Guam. Any growth on the island
comes with both challenges and opportunities, and it is critical that
all parties take a ``Whole of Government'' approach to ensure that the
benefits to Guam outweigh the costs.
Question 4. The reports of the PRC government launching
cyberattacks against U.S. military bases in Guam is unacceptable and
alarming. This is a direct threat to our homeland and the American
people. This is also a direct threat to stability in the Indo-Pacific
and U.S. capacity to deter PRC aggression in the region. It appears
these attacks were conducted through what is called the ``living off-
the land'' technique. This involves PRC nationals living on the island
and infiltrating Guam's local networks.
What are you and the team doing to address this threat? Can you
share with us some of the work being done with federal agencies to
prevent future attacks? Why is this threat not only a threat for the
military, but also a threat for the residents of Guam?
Answer. Being prepared and ready is key. I am working with all
critical infrastructure agencies to establish and strengthen their
cyber security plans. I have just approved our islandwide cybersecurity
plan, and various agency plans will align up this plan. I have also
elevated cybersecurity discussions with the highest levels of the
Pentagon, the U.S. Department of Homeland Security's Cybersecurity and
Infrastructure Security Agency (DHS CISA), and other federal partners
to address this concern. My Homeland Security Advisor is engaged with
DHS CISA to identify resources and/or funding to support our cyber
security priorities. These threats from the PRC put critical
infrastructure that the residents of Guam rely on at risk, including
telecommunications, healthcare information, financial systems, and
critical government websites.
______
The Chairman. Thank you, Governor Guerrero.
We will now move on to our next witness. I want to
recognize Governor Palacios for 5 minutes. You are recognized.
STATEMENT OF THE HON. ARNOLD I. PALACIOS, GOVERNOR OF THE
COMMONWEALTH OF NORTHERN MARIANA ISLANDS, SAIPAN, MP
Governor Palacios. Thank you, Mr. Chairman. Hafa Adai,
Tiroow Faischo [Hello and how are you] Chairman Westerman,
distinguished members of the House Committee on Natural
Resources. To my fellow islanders on the Committee, Congressman
Sablan, Congressman Moylan and Congressman Radewagen, welcome
back. Welcome back to the Marianas. Thank you for inviting me
to speak with you today about some of the critical issues that
are impacting our regions.
Today's hearing is a testament to the significance and
urgency of the role of the Pacific Islands in global
geopolitics. That you have traveled thousands of miles to
conduct this oversight hearing indicates that you indeed
recognize the strategic value of these Pacific Islands in
securing peace and freedom in our nation and the world.
It is in the interest of national and global security for
the U.S. Government to protect and fortify the Pacific
territories and allies in the Freely Associated States against
the growing threat of Chinese Communist Party.
America's security architecture in the Pacific is not only
founded in military defense, but also in the pillars of
economic, social, and political stability in the region. It is
based upon the economic prosperity, the health of people and
eco-systems, and the rule of law. It is rooted in genuine
trustworthy relationships and shared commitments backed by
actions to a free and open Indo-Pacific.
As such, I am happy that the United States is at last close
to completing the negotiation to renew all the Compact of Free
Association Agreements.
The U.S. territories of the Northern Marianas, Guam, and
American Samoa firmly anchor America's position in the Pacific,
and together with the Freely Associated States, create a vast
corridor of peace and security that spans nearly 3 million
square miles and connects to the seas of the other island
nations.
Recognizing the strategic importance of America's
territories and allies in Micronesia, the CCP moves
aggressively to fill perceived voids in America's assistance,
and to capitalize on social and economic vulnerabilities of the
Pacific Island communities.
We see these aggressively in massive investments in
infrastructure and economic development. We see it in land
grabs and fishery expansion. We see it in unauthorized research
vessels lurking around our undersea fiber optic cables. We see
it in organized crimes, public corruption, and political
interference. There is a strategic edge in all these
activities, and it stabilizes the island communities and cuts
against America's influence and security in the region.
In the Northern Marianas, during times of economic
hardships and vulnerability, we too have turned to Chinese
investment for solutions. In fact, for almost 40 years now, the
Peoples' Republic of China has had a firm foothold in our
islands, Chinese investors who are always conveniently there
when we needed them, offering new industries and revenue
sources that directly or indirectly advance the interest of the
PRC in the Marianas.
From the 1980s to early 2000, we had a garment industry,
primarily Chinese owned, with more than 30 factories in the
island of Saipan. Of course, there were many human rights and
labor violations associated with the industry during those
years. When the garment industry shut down, the Commonwealth
lost a major source of revenue and drastic measures had a
deeply destabilizing effect on our islands. To make up for the
loss, we turned to Chinese tourism, and also to Chinese casino
gaming.
Prior to the COVID-19 pandemic, tourists from PRC comprised
approximately 40 percent of all visitors arriving in the
Marianas. The casino in Saipan had peaked billions of dollars
in rolling chips, volumes generated from just 16 VIP tables.
So, for a brief period, Chinese tourism and gambling
revenue propped up the Commonwealth government and the economy,
but this was short lived and had, unfortunately, consequences.
Today, Chinese tourism dried up and the casino was shut
down. The Commonwealth economy continues to struggle, and the
government and our people are in deep fiscal distress. These
are the conditions that makes the Commonwealth, again, acutely
vulnerable to CCP exploitation.
Shortly after I was inaugurated as governor this year, I
announced the position of my administration, that we would
pivot away from the Commonwealth's over-reliance of Chinese
investment, and seek to strengthen our relationship with
Federal partners and allies in the region.
I worry about the instability of the Chinese markets in
light of the shifting geopolitical currents. I also worry about
the Commonwealth's potential exposure to national security
concerns. Of course, not everyone was pleased with this
position. We are taking a lot of hits for it, both economically
and politically.
And to this day, we are continually asked to open up to
Chinese investment once again. That same kind of pressure
ripples across the Pacific in various ways. Whatever form this
pressure takes, it is always erosive to America's influence and
security in the region.
To strengthen the security architecture in the Pacific and
to bolster our defense against CCP threats, the United States
must expand its engagement in all of the island jurisdictions,
and increase support for economic and social development for
our communities.
I offer the following recommendation: I ask that Congress
revisit the provision of the covenant between the United States
and the Northern Marianas, especially our Section 702, which
provides direct financial and other assistance for the
Commonwealth government and the islands for government
operations, capital improvements, and economic development.
Secondly, we are currently facing a workforce shortage that
threatens the CNMI's economic recovery. And while we fully
appreciate the Federal Government's considerable financial
assistance for infrastructure improvements, we will not be able
to carry these projects in a timely manner because of the labor
challenges we face.
I, therefore, ask for your urgent congressional support for
legislation to repeal, or at least delay, the implementation of
the touchback provision for the Commonwealth-only transitional
program, which would require a significant portion of our
workforce to exit the Commonwealth for an indefinite period
while they wait for new permits to be processed.
The touchback provision, as probably all of you know, is
going to take effect next month and could not come at a worst
time for us. Many businesses in the CNMI will be adversely
impacted, and therefore, our economy too.
Relative to this, I ask your support for Congressman
Sablan's H.R. 560, the Population Stabilization Act, which aims
to shore up the eroding population on workforce in the Northern
Marianas----
The Chairman. Governor, I am going interrupt. I am going to
ask you to wrap up your testimony. Again, I will remind the
witnesses that your written testimony is part of the record,
but try to keep your oral statements to 5 minutes. If you want
to just quickly wrap up, I will afford you that.
Governor Palacios. Thank you. I have emphasized many of
these points before in testimonies in the U.S. Senate Committee
on Energy and Natural Resources, and before the IGIA in
February, and in conversations that I had with my military and
political leaders, the stability of America's territories and
allies in Micronesia are inseparable from national security and
peace in the region.
Help us. Help us help ourselves so we can be stronger
partners in bolstering national security and ensuring that the
Pacific remains a haven of peace, prosperity, and freedom.
Thank you, si yu'us ma'ase, ghilissow [thank you] for inviting
me to testify before you today, and for coming all this way to
have this field hearing. May God bless the Northern Marianas,
all the Pacific Islands, and may God bless America.
[The prepared statement of Governor Palacios follows:]
Prepared Statement of Governor Arnold I. Palacios, Commonwealth of the
Northern Mariana Islands
Hafa Adai and Tiroow, Chairman Westerman and distinguished members
of the House Committee on Natural Resources. To my fellow islanders on
the committee, Congressman Sablan, Congressman Moylan, and
Congresswoman Radewagen--welcome back to the Marianas.
Thank you for inviting me to speak with you on some of the critical
issues that are impacting our region. Today's hearing is a testament to
the significance and urgency of the role of the Pacific Islands in
global geopolitics. That you have traveled thousands of miles to
conduct this oversight hearing indicates that you indeed recognize the
strategic value of the Pacific islands to securing peace and freedom in
our nation and the world.
And I am here to ask Congress to do more.
It is in the interests of national and global security for the
United States government to protect and fortify its Pacific territories
and allies of the Freely Associated States of Micronesia (FAS) against
the growing threat of the Chinese Communist Party (CCP). America's
security architecture in the Pacific is not only founded upon military
defense; it is also built on and inseparable from the pillars of
economic, social, and political stability in the region. It is based
upon the rule of law and the resilience of democratic institutions. It
is rooted in economic prosperity and the health of people and
ecosystems. It hinges upon genuine, trustworthy relationships and
shared commitments, backed by action, to a free and open Indo-Pacific.
Interwoven, historic connections
In the Marianas, we are Americans. We are also Micronesians. The
social, cultural, political, and economic ties that weave together the
islands of Micronesia, from Palau to the Marshalls, date back to
ancient times. These connections survived colonization from different
nations, natural disasters, and war. For centuries, the peoples of
Micronesia have traveled back and forth across the broad expanse of the
Pacific, stopping in the islands to live, work, trade, study, marry,
and raise families.
Since the beginning of the 20th century, the islands of Micronesia
have been strategically important on the global stage, particularly in
the midst of conflict and competition between superpowers. Our
relationship with the United States was forged in war, in the bloody
battles of World War II, and refined in peace, when the islands of
Micronesia were administered by the U.S. under the United Nations Trust
Territory of the Pacific, from 1947 through 1994.
It was during the Trust Territory era that each of the
jurisdictions would freely determine their political status and their
paths to self-sufficiency and the economic and social advancement of
their citizens. The island of Saipan in the Northern Marianas was the
center of many political negotiations, and served as the seat for the
Trust Territory administration's headquarters. It was also the
birthplace of the Congress of Micronesia.
Ultimately, each of our jurisdictions chose democratic forms of
government, and a close relationship with the United States. In the
Northern Marianas, we decided against becoming a sovereign nation to
become American citizens, members of the American family. We chose to
become a commonwealth in political union with the United States, and we
negotiated the terms of this special relationship in a document we know
today as the Covenant.\1\
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\1\ U.S. Public Law 94-241, 48 U.S.C. Sec. Sec. 1801-1805, The
Covenant to Establish a Commonwealth of the Northern Mariana Islands in
Political Union with the United States of America.
---------------------------------------------------------------------------
The Covenant was approved by the people of the Northern Marianas in
1975, and ratified by the U.S. Congress and signed into law in 1976. It
guarantees the right of local self-government for the people of the
Northern Marianas, and provides the United States with complete
authority and responsibility over foreign affairs and defense. The
Covenant also requires the United States government to assist the
government of the Northern Marianas in its efforts to achieve a higher
standard of living for its people and to develop the economic resources
needed to meet the responsibilities of local self-government.
Our brothers and sisters in Micronesia opted for independence--
Palau and the Marshall Islands became republics, and the jurisdictions
of Kosrae, Pohnpei, Chuuk, and Yap formed the Federated States of
Micronesia. They retained their national sovereignty and control over
foreign and domestic affairs, and negotiated special relationships with
the United States defined in each of the Compacts of Free Association.
The Compacts provide significant economic assistance for the island
nations, as well as the right of FAS citizens to reside and work in the
United States as lawful non-immigrants. The Compacts also grant the
United States full authority and responsibility over national security
and defense, including the right to deny military access for other
countries to the land, sea, and airspace of the Compact nations.
America's corridor of peace and security in the Pacific
There is no agreement between the United States and any other
nation that is quite like the Compacts of Free Association. The Freely
Associated States of Micronesia are among America's closest allies on
earth, and our nation's most strategically important partners in the
Indo-Pacific. The U.S. territories of the Pacific firmly anchor
America's position in the region, and together with the Freely
Associated States create a vast corridor of peace and security that
spans nearly three million square miles and connects to the seas of
other allied nations.
The Pacific territories and the Freely Associated States form a
critical line of defense against America's adversaries in the region.
It is in America's national security interests to fortify this line of
defense by expanding engagement in the region and support for the
territories and Compact nations.
The United States is more than a nation with borders on the North
American continent. It is also a Pacific nation, and on U.S. soil
everywhere in the Pacific we experience CCP aggression on multiple
fronts. We see it in massive investments in infrastructure and economic
development. We see it in land grabs and fisheries expansions. We see
it in unauthorized research vessels and divers lurking around our
undersea fiber optic cables. We see it in organized crime, public
corruption, and political interference. There is a strategic edge in
all of the CCP's activities, and it destabilizes island communities and
cuts against America's influence and security in the region.
Rising influence of the CCP in Micronesia
Across the Pacific and over the course of decades, the CCP's
influence has grown, particularly through economic aid, commerce, and
infrastructure. There are signs seemingly everywhere of ``friendship
projects'' sponsored by the People's Republic of China (PRC) in the
islands. The CCP moves both quickly and methodically to fill perceived
voids in American assistance and to capitalize on the social and
economic vulnerabilities of Pacific Island communities.
In the Northern Marianas, during times of economic hardship and
vulnerability, we have also turned to Chinese investment for solutions.
Chinese investors were always conveniently there when we needed them,
offering almost irresistible opportunities for new industries and
revenue sources that also directly or indirectly advanced the interests
of the PRC in the Marianas.
From the 1980s through the early 2000s, we opened our doors to the
garment industry. More than 30 factories, predominantly Chinese-owned,
set up operations throughout the 47-square mile island of Saipan to
assemble garments for export to the continental United States. Tens of
thousands of people were brought in, many from the PRC, to work in
these factories. The factories began to close after global trade rules
changed in 2005, stripping the commonwealth of competitive advantages
it had through tariff-free and quota-free access to U.S. markets. In
2008, with the passage of U.S. Public Law 110-229, the commonwealth
lost local control over immigration after years of well-documented
human rights and labor violations. Many of these abuses were associated
with the garment industry. The last factory shut down in 2009.
With the closure of the garment industry, the commonwealth lost a
major source of revenue.\2\ Drastic austerity measures followed, and
had a deeply destabilizing effect on the people and economy of the
Marianas. To make up for the loss, we turned once again to Chinese
investment. We turned to Chinese tourism, capitalizing on the
commonwealth's approved destination status with China and special visa-
free access to Chinese tourists that was granted during the transition
to federal immigration control.\3\ We turned to Chinese gambling,
legalizing casino gaming on Saipan even after the venture previously
failed on Tinian. An exclusive license was nevertheless awarded to a
Chinese casino operation that has been mired in litigation and criminal
investigation practically from the start.
---------------------------------------------------------------------------
\2\ In 1998, the garment industry contributed approximately $52
million, or 22 percent, of the Northern Marianas government's $234
million budget. ``Northern Mariana Islands: Garment and Tourist
Industries Play a Dominant Role in the Commonwealth's Economy.'' U.S.
General Accounting Office, Report to Congressional Committees. February
2000.
\3\ Since November 2009, PRC nationals have been allowed to enter
the Northern Marianas as tourists visa-free, under the discretionary
parole authority of the Secretary of Homeland Security.
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Prior to the Covid-19 pandemic, tourists from the PRC comprised
approximately 40 percent of all visitor arrivals in the Northern
Marianas.\4\ The Chinese casino on Saipan at its peak raked in billions
of U.S. dollars in monthly rolling chip volumes from just 16 VIP
tables, outdoing even the glitziest casinos in Macau. The casino also
provided jobs and contracts for U.S. residents and substantial revenues
for public services. For a brief period, Chinese tourism and gambling
revenues unsustainably propped up the commonwealth's government and
economy. But this short-lived recovery was fraught with controversy--
from human trafficking to birth tourism, labor abuse, money laundering,
and public corruption.
---------------------------------------------------------------------------
\4\ Marianas Visitors Authority, Annual Reports for Fiscal Year
2018 and Fiscal Year 2019.
---------------------------------------------------------------------------
Since the pandemic, Chinese tourism to the Marianas has all but
dried up, and the Saipan casino has closed. The commonwealth was
fortunate to have received over a billion dollars in federal assistance
during the pandemic years to shore up our economy and sustain essential
public services. This aid was a lifeline, but unfortunately, to our
shame and dismay, much of it was squandered by my predecessor. My
administration continues to work with our federal partners to track
where those funds may have been illegally or improperly spent, and how
much can be recovered.
The Northern Marianas economy continues to struggle, and the
government remains in deep fiscal distress. These are conditions that
make the commonwealth acutely vulnerable to CCP exploitation. When I
came into this office, I announced the position of my administration
that we would pivot away from the commonwealth's overreliance on
Chinese investment, and seek to strengthen our relationships with our
federal partners and allies in the region. I worried about the
instability of the Chinese markets in light of shifting geopolitical
currents. I also worried about the commonwealth's potential exposure to
national security concerns.
Not everyone was pleased with this position. We are taking the hits
for it, both economically and politically. To this day, certain
influential business interests in the community continue to ask me as
well as members of the commonwealth legislature to open up to Chinese
investment once again. That same kind of pressure ripples across the
Pacific in various ways--to sell fishing rights or accept Chinese
investment in public infrastructure, for example, or enter partnerships
with PRC law enforcement, or lower visa requirements for Chinese
tourists and workers. Whatever form this pressure takes, it is always
erosive to America's influence and security in the region.
Supporting the Compacts, and strengthening America's engagement in the
Pacific
I am happy to see that the United States is at last close to
completing negotiations to renew all of the Compacts of Free
Association. But I urge Congress and all of our federal partners in the
region to exercise more timeliness and a sense of urgency in
negotiating such critical agreements with the Freely Associated States.
The appearance of reluctance or foot-dragging by the United States
directly undermines national security interests, and reinforces the
perception of the PRC as a more reliable partner and a bigger economic
player in the region. These perceptions only become more pronounced
with heightened economic, social, and political vulnerabilities in the
islands.
The U.S. can strengthen its security architecture in the Pacific by
expanding engagement with all of the island jurisdictions, both the
territories and the Compact nations, and increasing support for the
economic and social development of these communities. Safety, security,
and prosperity should not be mere aspirations but tangible realities
for all in the Pacific. Stable, democratic island communities are able
to meet the obligations of self-government and provide for the
wellbeing of their citizens. And they make stronger partners with the
United States in advancing the goals of national security and ensuring
a free and peaceful Indo-Pacific region.
In the Northern Marianas, we support the Compacts, and we welcome
our brothers and sisters from the Freely Associated States. We extend
to them the same hospitality and respect when they come to our islands
as they do when we go to theirs. We are, after all, members of the
Micronesian family.
We know there are costs associated with the broad array of public
services that are afforded to citizens of the Freely Associated States
who migrate to the United States to live, work, study, or seek
healthcare. For the U.S. territories and Hawaii, Congress has
appropriated what is known as ``Compact Impact Funds'' to help defray
these costs and at least partially reimburse local governments for the
health, educational, social, or public safety services provided to FAS
citizens and their families. Since 2004, through Public Law 108-188,
Congress has authorized $30 million in annual Compact Impact grants
distributed to the Northern Marianas, Guam, American Samoa, and Hawaii.
That authorization expires in Fiscal Year 2023.
The Northern Marianas share of those funds has always been
considerably small at approximately $1.7 million a year, and almost
certainly far short of actual expenditures for services rendered. Fully
and accurately accounting for FAS residents and associated public
expenditures is challenging, however. The American Community Survey
does not cover the territories, and so we rely on the decennial census
and population estimates drawn from that data.
Moreover, in the Northern Marianas, our agencies and social service
organizations do not use a consistent definition to capture the FAS
populations they serve. They also do not use a consistent methodology
for determining expenditures that can be attributed to services
provided to FAS residents.
I think that part of our difficulty in tracking such data lies in
our discomfort with putting a number on costs associated with the
presence of our Micronesian brothers and sisters in the Marianas. To be
frank, I dislike the term, ``Compact Impact.'' The connotation is
negative, and it understandably makes people bristle. It brushes over
the reciprocal nature of the relationship between the United States and
the Compact nations. It also erases the close ties that bind island
communities across the Pacific. And it fails to adequately acknowledge
the shared contributions of all of the island jurisdictions to the
defense of our nation and freedom and security in the Indo-Pacific
region.
I suggest that we stop calling it Compact Impact. Let's call it
``Compact Support.'' And let's not only rename it, but reframe its
purpose beyond merely ``defraying costs'' and ``mitigating impacts.''
The economic aid provided in the Compacts of Free Association is a
crucial element in America's security architecture in the Pacific.
Compact Support funds are also key to enabling America's Pacific
Islands to build up and expand our defenses against CCP ambitions.
Compact Support funds can help fortify vulnerable island communities by
providing the means to achieve economic, social, and political
stability and shore up financially distressed governments.
The Northern Marianas should be America's diplomatic center in
Micronesia
Reciprocity and mutual aid are bedrock Pacific values, and
islanders place great stock in cultivating long-term, mutually
beneficial relationships. With our deeply rooted cultural and
historical ties and close friendships in the region, the Northern
Marianas can and should be America's bridge to strengthen relationships
with our Pacific neighbors, and facilitate multifaceted defenses to
counter CCP aggression, from economic development and law enforcement
capacity building, to learning exchanges, national security networks,
and think tanks.
The Department of Defense maintains a strong presence in
Micronesia, particularly through Guam. So, too, should the State
Department, and I propose that the U.S. base for diplomatic engagement
with the nations of Micronesia and all of Oceania should be
headquartered in the Northern Marianas. Formally establishing the
Northern Marianas as the U.S. center for diplomacy in Micronesia can
open pathways for enduring relationships and deeper engagement with our
brothers and sisters in the Pacific.
I urge Congress to support initiatives that reinforce America's
position as a strong and trusted partner in the Pacific. To bolster our
defenses against CCP threats in our region, we need a robust network of
national security advisors across the territories and Freely Associated
States. These networks can play a critical support role for territorial
governors and Micronesian heads of state, and deliver capacity building
to help island communities effectively respond to difficult and
destabilizing problems, from illegal, unreported, and unregulated (IUU)
fishing to organized crime and money laundering. Complementary to this
effort is the bipartisan H.R. 5001, which I support, and which would
place special advisors for insular areas in every executive department
of the federal government, and help ensure that the needs and concerns
of island communities are carefully considered in federal decision-
making.
Stability in the Pacific is key to national and global security
The social, economic, and political stability of America's
territories and allies in the Pacific cannot be separated from national
security interests and peace in the region. As the commonwealth pivots
to closer relationships with our federal partners and allies in the
Pacific, I see many ways that Congress can support territorial
stability and therefore national security.
In previous forums, I have called upon Congress and the Biden
administration to help us build our law enforcement capacity with
federal partners, strengthen our financial accountability systems, and
secure parity in key federal programs that serve our most vulnerable
citizens, like Medicaid and Nutrition Assistance. These asks are still
very much relevant and remain ongoing endeavors.
We also need Congress to recognize the unique challenges we face in
the islands, and to make changes to federal policies that hinder our
economic and social development. In the Northern Marianas, our recovery
from several major typhoon disasters and the pandemic has been slowed
by federal policies that have created roadblocks in procurement and
instability in the workforce. With respect to our procurement
challenges, we understand and appreciate the goals of the Build
America, Buy America (BABA) Act to strengthen American industries and
national security, and deliver good-paying jobs. In the Pacific
Islands, however, this policy becomes untenable when it makes the
sourcing of equipment and supplies extremely cost-prohibitive and when
it is exceedingly difficult for small island territories to compete
with bigger states in procurement.
Thankfully, several federal agencies have recognized the
extraordinary hardship that BABA requirements impose on small island
communities, and have moved to grant BABA waivers for the Pacific
territories. Each federal agency must go through a rather lengthy
process to grant these waivers, however, and every day of delay in an
important infrastructure project costs us dearly. A blanket BABA waiver
from Congress across the federal family would efficiently resolve the
issue, and allow the territories to access closer markets with allied
nations so that our projects can move forward.
With respect to our workforce challenges, nearly all of our
infrastructure and recovery projects are slowed by worker shortages,
and the Northern Marianas has seen significant population declines over
the past 20 years.\5\ To shore up the commonwealth's eroding population
and workforce, I urge Congress to pass Representative Gregorio Kilili
Sablan's H.R. 560, the Northern Mariana Islands Population
Stabilization Act, which would provide stability and permanent
residency in the Marianas for an estimated 1,600 long-term foreign
workers. I also ask for congressional support to repeal or at the very
least delay implementation of the touchback provision in the
Commonwealth-Only Transitional Worker (CW) program, which requires a
significant portion of our workforce to exit the commonwealth for an
indefinite period while they wait for permit renewals to be processed.
---------------------------------------------------------------------------
\5\ U.S. Census data show that the Northern Marianas population has
declined by nearly 32 percent from 69,221 in 2000 to 47,329 in 2020.
---------------------------------------------------------------------------
The touchback provision goes into effect for many CW workers next
month, and the disruption that would be created by a mass exodus of
workers could not come at a worse time. Businesses large and small, and
workers across the commonwealth, are deeply anxious. The touchback
requirement will only cause further instability in already-uncertain
times, and we need Congress to urgently and expeditiously change this
federal policy.
American engagement ensures a free and peaceful Indo-Pacific
America's national security interests are interwoven with the needs
of the territories and the Freely Associated States for support and
stability, just as the island communities of Micronesia are interwoven
with each other. American engagement and assistance to the region are
vital for both national and global security, strengthening partnerships
of mutual benefit and supporting the advancement of Pacific Island
communities.
Again and again, the CCP has demonstrated its capacity to exploit
the vulnerabilities of the islands in order to amplify the presence and
power of the PRC and undercut American influence and security in our
region. The CCP fully recognizes the strategic importance of America's
territories and allies in Micronesia. To counter CCP aggression,
America must stand as a beacon of shared commitment and respect, and
deliver on its promises to take care of its citizens and friends.
Congress can do more to support the Pacific Islands and protect
national security by recognizing our unique challenges, expanding
engagement and direct assistance, and making changes in federal
policies that impair our development.
I have emphasized many of these points before in testimonies before
the U.S. Senate Committee on Energy and Natural Resources and the
Interagency Group on Insular Areas in February, and in conversations I
have had with military and political leaders. Help us help ourselves,
so we are stronger partners in bolstering national security and
ensuring that the Pacific remains a haven of peace, prosperity, and
freedom.
Si Yu'us Ma'ase, Ghilisow, and Thank You for inviting me to testify
before you today, and for coming all this way for this important field
hearing. I invite the members of this committee to visit us in the
Northern Marianas as well, so you can enjoy our hospitality and
beautiful islands and see for yourselves the unique opportunities and
challenges that we face.
May God bless the Northern Marianas and all the Pacific Islands.
May God bless the United States of America.
______
Questions Submitted for the Record to the Hon. Arnold Palacios,
Governor, Commonwealthof Northern Mariana Islands
Questions Submitted by Representative Westerman
Question 1. What are you and your administration doing to diversify
CNMI's economy and become less reliant on the People's Republic of
China?
Answer. As I indicated in my written testimony submitted to the
U.S. House of Representatives--Natural Resources Committee, I announced
the position in the first few weeks of my administration that we would
pivot away from the Commonwealth's overreliance on Chinese investment.
Of course, this was not an entirely popular decision with some
sectors of the community. We continue to take hits for it, both
economically and politically. To this day, we are continuously
pressured and asked to open up to Chinese investment once again or to
actively pursue activities that would restart and expand Chinese
tourism to the CNMI.
Nonetheless, we remain steadfast in our commitment to diversifying
our economy by strengthening relationships, seeking investments, and
expanding tourism from Japan, Korea, and other U.S. allies in the
region:
Japan
Because of the historic, economic, and strategic significance of
Japan to the CNMI, one of the first initiatives I pursued as Governor
was to personally engage government leaders from key Japanese
government agencies, airline executives, and senior executives of some
of the largest tour agencies to discuss how we can expand the tourism
source market from that country.
In addition to increasing flight service, we also discussed the
possibility of launching new, direct flight routes from Haneda Airport.
Flying from Haneda would be more convenient for many Japanese residents
because that airport is located in the metropolitan area of Tokyo.
Current flights to the CNMI fly out of the Narita Airport, which is
located approximately two hours from Tokyo and whose distance from
Tokyo may present barriers and inconveniences. We also sought the
assistance of the U.S. Embassy to assist in this effort.
The meetings we had in Japan included the following organizations
and companies:
------------------------------------------------------------------------
Organization Representatives in Attendance
------------------------------------------------------------------------
U.S. Embassy in Japan 1. Mr. Alan Turley, Counselor for Commercial
Affairs
------------------------------------------------------------------------
Japan Association of 1. President of JATA, Mr. Tadashi Shimura
Travel Agents (JATA),
whose membership
includes 1,100 travel
agencies
------------------------------------------------------------------------
Japan's Ministry of 1. Minister of Defense, Yasukazu Hamada
Defense
------------------------------------------------------------------------
Japan's Ministry of Land, 1. Vice Minister of MLIT, Nishida Shoji
Infrastructure,
Transportation and
Tourism (MLIT)
------------------------------------------------------------------------
Japan Airport Terminal 1. Executive Vice President, Hisayasu Suzuki
Co., Ltd. (Operates and
manages Haneda Airport)
------------------------------------------------------------------------
Japan's Ministry of 1. Deputy Minister of ETI, Mr. Shinichi
Economy, Trade and Nakatani
Industry (ETI)
------------------------------------------------------------------------
H.I.S. (Travel and Tour 1. Osamu Yamaguchi, General Manager, Leisure
Agency) Travel Sales Division Overseas Travel
Department, Micronesia/Indonesia/Philippines/
South Pacific/Indian Ocean Section
2. Shingo Mizushima, Manager, Beach Tour
Planning Team and Packaged Tour Sales Group
------------------------------------------------------------------------
Rakuten (Travel and Tour 1. Futoshi Habaya, General Manager, Airline
Agency) Sales and Package Tour Dept.
2. Dhimant Thakker, Vice General Manager,
Airlines Sales and Package Tour Dept
3. Masamichi Takayasu, Vice General Manager,
International Sales Department
4. Karin Ide, International Airlines Sales
and Package Tour Group
5. Aya Tojo, Manager, International Airlines
Sales and Package Tours
6. Richard Gustafson, DFS Group Managing
Director for Japan, Korea, and Mid Pacific
------------------------------------------------------------------------
JTB (Travel and Tour 1. Junichiro Takahashi, President of Tasi
Agency) Tours and T.P. Micronesia (Guam)
2. Masaki Yoshida, General Manager, JTB
3. Sabumi Ito, Manager, Planning and
Purchasing Section
------------------------------------------------------------------------
------------------------------------------------------------------------
Organization Representatives in Attendance
------------------------------------------------------------------------
United Airlines 1. Toru Takahashi, Managing Director, Japan
and Micronesia Sales United Airlines
2. Hieaki Takahashi, Manager, Online Sales
and Business Development
3. Hiroshi Hamada, Sales Manager (Japan)
4. Koji Nagata, Director of Asia/Pacific
Communications
------------------------------------------------------------------------
Skymark Airlines 1. Hayao Hora, President and Executive
Officer
2. Manabu Motohashi, Senior Managing Director
and Executive Officer, Corporate Planning,
Sales
3. Tetsuya Okuno, General Manager, Corporate
Planning Department
------------------------------------------------------------------------
South Korea
At this time, the Korean tourism market makes up the largest source
market for the CNMI. Thus, it was important that we continue to grow
this market and to learn how we can further enhance the CNMI as a
compelling destination for Korean tourists. To do this, I traveled with
representatives from the Marianas Visitors Authority to Seoul, Korea,
where we also had positive discussions with top government leaders and
senior executives from Korean airlines and tour agencies.
During the meeting with Jeju Airlines, the company's executives
announced that it would restart direct routes from Busan, Korea, to the
CNMI (prior to this all Saipan bound flights originated from Seoul). Of
course, this was welcome and excellent news, and I expressed my
appreciation and offered support to sustain the additional route past
the peak summer season.
Our meetings in Korea included the following:
------------------------------------------------------------------------
Organization Representatives in Attendance
------------------------------------------------------------------------
U.S. Embassy in South Korea 1. Ambassador Philip S. Goldberg
2. Michael Kim, Commercial Officer
3. Jessica Son, Senior Commercial
Specialist
------------------------------------------------------------------------
South Korea Ministry of Land, 1. Eo Myeong-so, Vice Minister for
Infrastructure and Tourism Transport
2. Kim Namgyun, Director, International
Air Transport Division
3. Kim Jinhee, Deputy Director,
International Air Transport Division
4. Kim JaeHyeong, Assistant Director,
International Air Transport Division
5. Song Jee-un, Interpreter,
International Air Transport Division
------------------------------------------------------------------------
Jeju Air 1. Kim, E-Bae, CEO
2. Jung, Kaepil, Director, Commercial
Division
3. Joo, Sangho, Team Leader, Sales and
Marketing
4. Mo, Miyoung, Manager, Sales and
Marketing
------------------------------------------------------------------------
T'way Airlines 1. Jeong, Hong Geun, President, CEO
2. Kim, Hyung Yi, Executive Managing
Director
3. Park, Kibae, Team Leader
------------------------------------------------------------------------
Asiana Airlines 1. Doo, SungGuk, Executive Vice
President, Passenger Business
2. Seon, WanSeong, Senior Vice President,
Sales Strategy
3. Moon, YouSang, Team Leader, Sales
Strategy 1
4. Yoon, Seokmin, Team Leader, Sales
Strategy
5. Kim, Sangwon, Team Leader, Revenue
Management
6. Son, SangSeok, Manager, Sales Strategy
1
7. Cho, Sujin, Manager, Marketing
------------------------------------------------------------------------
Mode Tour (Travel and Tour 1. You, In Tae, President
Agency)
2. Cho, Jaewang, Director of Product
Headquarters
3. Chung, Heeyoung, Senior General
Manager
4. Yeon, Chimo, General Manager
------------------------------------------------------------------------
Yellow Balloon (Travel and 1. Kim, Jin Kook, CEO, President
Tour Agency)
2. Kim, Sungtae, Director
3. Han, Ye Rim, General Manager
4. Ju, Shin Ah, Team Manager
------------------------------------------------------------------------
Hana Tour 1. Song, Misun, CEO
2. Kim, Chang Hun, Head of Division
3. Kim, Jaewoon, Head of Department
4. Le, Jinju, Team Leader
------------------------------------------------------------------------
Engaging other Direct Investment from other Countries
Representatives from my administration continue to invite and
engage foreign direct investment from other countries. As part of this
overall effort to diversify our economy, I led a small delegation to
the SelectUSA Investment Summit back in May. The Summit, organized by
the U.S. Department of Commerce, is the leading event in the United
States for FDI promotion, connecting investors, companies, economic
development organizations (EDOs) and industry experts to elevate
investment in the states and territories by vetted foreign countries.
This past year's event was the U.S. Department of Commerce's
largest investment summit to date, with record levels of participation
from over 4,900 attendees from 83 international markets and 55 states
and territories. The CNMI hosted a booth on the exhibit floor where our
team spoke with potential investors from numerous countries
representing different industries.
It was also the first time the Summit featured a panel composed
entirely of governors from all the U.S. insular areas who talked about
potential investment opportunities. The event also afforded me the
opportunity to participate in the following:
1. U.S. Department of Commerce's Secretary Gina M. Raimondo
roundtable discussion which featured a conversation on the
role CHIPS is playing to help build the U.S. semiconductor
ecosystem across the country and how states are driving
implementation, competitiveness, and local impact through
incentives. The governors' roundtable discussion
demonstrated the impact of federal, state, and local
government partnerships to drive innovation to improve
America's competitiveness and attract investment to build
the U.S. semiconductor ecosystem--leveraging SelectUSA as a
critical mechanism to do so.
2. Reception for Taiwanese investors organized and hosted by Taiwan
representative Bi-khim Hsiao of the Taipei Economic and
Cultural Office (TECRO)
3. Reception for Japanese investors organized by the Japan External
Trade Organization (JETRO)
4. Reception for Indian investors organized by the Indian ambassador
to the U.S.
5. Reception for Japanese investors organized by the Japan
ambassador to the U.S.
Moving Forward
Despite these efforts itemized above, we know that the economic
challenges that face the Commonwealth may become more severe without
significant federal government financial assistance. When I testified
last month before the Natural Resources Committee, I mentioned that the
CNMI is facing financial conditions that make our commonwealth again
acutely vulnerable to Chinese Communist Party exploitation.
I also echoed this message when I testified before the U.S. Senate
Committee on Energy and Natural Resources in February and top level
federal officials at the meeting of the Intergovernmental Group on
Insular Affairs. I explained the path we are forging to fiscal,
economic, and social stability in the Commonwealth. I acknowledged the
rapidly shifting geopolitical sands affecting our entire Pacific
region. I also emphasized the vital role the Marianas plays in the
security of our nation and America's position in our region.
I sought technical assistance in auditing the Commonwealth's
federal and local accounts, and expanding our capacity for tax
collections and enforcement. I asked for support in breaking
bottlenecks in federal review processes to allow hundreds of millions
of dollars in federally funded infrastructure projects to move forward.
I urged for the passage of key legislative initiatives, including
Congressman Kilili Sablan's H.R. 560, the Population Stabilization Act,
as well as amendments to the U.S. Workforce Act to repeal the touchback
provision.
Here at home, our administration has been focused on identifying
ways to streamline government processes, reduce costs, and improve the
service experience and responsiveness of government. I have directed
our regulatory agencies to track and report on turnaround times for
permit reviews and decisions so that doing business in the CNMI is
easier and more efficient.
We are exploring ways the Commonwealth can be a regional hub for
targeted educational programs--such as in the areas of healthcare and
English language training. The Commonwealth can also be a regional hub
for shipping, using our Covenant and key federal policies to our
advantage. And as we move closer to completion of a renewable energy
feasibility study and a strategic energy plan for the Marianas in the
next few months, the Commonwealth can become a leader in the region in
transitioning to clean, renewable energy that will lower the cost of
business and benefit all ratepayers.
I will continue to update you and the members of the Natural
Resources Committee about our progress to diversify our economy and
build economic sustainability. In the meantime, I continue to ask for
your urgent support, especially for the requests I listed in my written
testimony.
Question 2. We are deeply concerned about the issue of People's
Republic of China (PRC) nationals illegally entering Guam from the
Commonwealth of Northern Mariana Islands. It has been reported that 27
PRC nationals have been caught attempting to enter Guam from CNMI in
the month of June alone.
What are you and vour team doing to address this issue? Has it been
determined what these individuals were aiming to do once in Guam?
Answer. The CNMI continues to be very concerned and seriously
considers violations against any applicable U.S. laws that prohibit
human smuggling or human trafficking. We are working with enforcement
representatives and policy makers from federal agencies and the
Government of Guam to see how we can address and eliminate unauthorized
entries of PRC nationals into Guam from the CNMI.
There is a need to strengthen federal enforcement efforts to help
curb these entries, as the resources and legal authority by the Guam
and CNMI governments are limited. To expand the dialogue and
collaboration with federal enforcement agencies, we recently met with
the following representatives from the U.S. Department of Homeland
Security to help align local and federal activities to address illegal
entries into Guam:
1. Daniel Delgado, Director, Border and Immigration Policy
2. Patrick Madaj, Regional Affairs Specialist, Indo-Pacific
Affairs Office of Strategy, Policy, and Plans
3. John F. Tobon, Special Agent in Charge, Homeland Security
Investigations
4. John Duenas, Assistant Special Agent in Charge, Homeland
Security Investigations
5. Valentina C. Seeley, OPE (A) Assistant Deputy Director, Office
of Partnership and Engagement (OPE), Immigration and
Customs Enforcement (ICE)
6. Moises Becerra, Field Office Director, ICE--Enforcement and
Removal Operations (ERO)
7. Orestes Cruz, Deputy Field Office Director, ICE--Enforcement
and Removal Operations (ERO)
8. Joseph Joh, Assistant Director/Sr. Adviser, USCIS and ICE/
Immigration, OLA (listen-mode)
9. Kim Johnson, Deputy Director, Office of Intergovernmental
Affairs
10. Cedric McMinn, Associate Director, Office of Intergovernmental
Affairs
As these conversations advance, I will provide regular updates,
when requested, to the Committee on Natural Resources on our activities
and progress.
Again, thank you for allowing me to provide this additional
information about the challenges and opportunities that we face in the
CNMI. If you have any additional questions, please let us know.
______
The Chairman. Thank you, Governor.
I will now recognize Minister Udui, Jr., for 5 minutes of
testimony. You are recognized.
STATEMENT OF THE HON. KALEB UDUI, JR., MINISTER OF FINANCE,
REPUBLIC OF PALAU, KOROR, PALAU
Minister Udui. Thank you. Mr. Chairman, distinguished
Members, it is an honor to be here from Palau. President Whipps
would be here as he was in the Committee's Task Force hearing
last month, but he has a long-standing commitment to host more
than 20 members of the national legislatures of Japan and
Taiwan today, so he has approved my statement submitted in
writing and he looks forward to meeting with you in Palau.
The Compact of Free Association between our nations is
somewhat unique. It provides the United States can use any land
it needs for defense. This is why a top U.S. military commander
has called Palau part of the homeland. We are the western-most
jurisdiction in which the United States has exclusive strategic
rights. Our land, sea, and airspace the size of Texas, borders
Asia and includes shipping lanes critical to China. It is also
where Chinese vessels have been without authorization.
The United States is now putting its closest-to-Asia
earliest-warning radars and extending a runway in Palau. It is
also considering other facilities. There appears to have been a
Chinese effort to derail one of the radars through a proposal
to locate a hotel and casino next door. That proposal was not
only more attractive to the local community, but it played the
fears that U.S. military facilities will make Palau a target as
it was in World War II.
President Whipps and I want Palau and the United States to
be inextricably linked, and Palau to continue to stand firmly
with Taiwan. Continuation, however, cannot be taken for
granted. China has worked to undermine our relationship and has
made inroads.
Another unique aspect of our Compact is that it requires
periodic joint reviews of the relationship and Palau's needs
with the U.S. commitment to act on the conclusions.
The first review agreement in 2010, however, was not
approved by Congress for 8 years, only because of a dispute
between the U.S. executives and Congress on how to pay for it.
China took advantage of the impasse, began to subject Palau to
economic carrots and sticks to shift our alliances. Tourism is
our largest industry.
During the U.S. impasse, China quickly ramped up tourist
visits from a handful to two-thirds of the 160,000 tourists a
year. It bought hotel rooms far in advance, crowding out
visitors from other nations, then it said it would cut off the
flow if we didn't shift. We didn't shift and it did cut off
those flows. COVID hit right after. The two blows shrank our
economy 30 percent in just 5 years, causing real pain for our
people and eliminating budget surpluses.
China has offered to send us as many tourists as we can
accommodate and establish a huge new industry in Palau, but
again, only if we shift alliances. Tourism from other nations
is coming back, but slowly. We are working to develop these
markets and get more flights, but are limited by a runway so
short that only smaller jets can use it, larger ones have a
maximum of a 70 percent passenger load.
We are also working to develop other industries. Meanwhile,
most private sector investment in Palau is from China. Some of
our people, including some of our most important leaders, are
tempted by its offers. They see China as the best opportunity
for the private sector growth that we want.
The United States does not have a command economy, but it
has the Compact and the agreement produced by the second
review. Enacting the legislation for it by the agreed date of
September 30, or as soon as possible this year, is the most
effective way to counter China and maintain U.S. strategic
interests.
The agreement has already been approved by Palau's
Congress. After the experience of the 2010 agreement, a
significant delay in the new agreement will give those in Palau
who see a future with China, or who have Chinese connections,
an opportunity to sow doubt about the United States. A long
enough delay would be another opportunity for China to affect
our economy and people.
Thank you for the opportunity to speak today.
[The prepared statement of Minister Udui follows:]
Prepared Statement of the Honorable Kaleb Udui, Jr., Minister of
Finance of Palau on behalf of President Surangel S. Whipps, Jr.
I am pleased to represent President Whipps. He would be here
himself--as he was for the Committee's Indo-Pacific Task Force hearing
last month--but he has a long-standing commitment to host more than 20
Members of the national legislatures of Japan and Taiwan today. So, he
has asked me to say that he looks forward to meeting you in Palau
tomorrow.
To understand Palau's role in the ability of the United States to
counter China and maintain U.S. strategic interests in the region, one
must understand the relationship between the U.S. and Palau, including
its background; Palau's economic and budgetary situation; and China's
recent actions.
The relationship began after bloody battles with the Pacific enemy
in World War Two that decimated Palau but were the final step to
retaking the then U.S. territory of the Philippines.
Later, the United Nations entrusted Palau and the other Pacific
islands that Japan had governed to the U.S. as one of 11 territories to
develop into a self-governing status.
This ``trust territory'' was the only one designated as a
``Strategic'' territory. The designation enabled the U.S. to deny other
nations access to a region larger than the 48 contiguous States of the
U.S., including the region's seas and airspace.
In Palau's case, the area is the size of Texas, borders the
Philippines and Indonesia, and includes critical shipping lanes. It the
jurisdiction closest to Asia over which the U.S. has strategic control.
The U.S. sought to preserve this with financial and domestic
programs assistance and a U.S. territorial status.
Palauans wanted a level of self-government not possible under such
a status, but had grown to admire and feel a deep kinship with the U.S.
The solution was national sovereignty but in free association with
the U.S. The U.S. has no closer relationship with any other nation.
President Reagan, in urging acceptance, said, ``You will always be
family to us.''
The Compact of Free Association continued the ability of the U.S.
to deny forces of other nations access and granted the U.S. land it
needs for defense and Palau agreement to refrain from interactions with
other nations that the U.S. says would compromise security. These
factors prompted a top U.S. military commander to call Palau part of
``the homeland.''
The arrangement is vital to a free and open Indo-Pacific.
The U.S. is now putting its closest-to-Asia earliest-warning radars
and extending a runway in Palau. It is also considering other air and
sea port facilities.
We are committed to having the facilities that the U.S. military
needs in Palau, but the runway on the island of Peleliu and the radars,
one of which is on the island of Angaur, have caused concern in Palau,
and there may have been a Chinese effort to derail the Angaur radar.
Peleliu and Angaur were the sites of major World War Two battles
that devastated those islands. The concern is that these new military
facilities, especially the radars, would make Palau a first `bullseye'
for a missile attack. When the plans for the Angaur radar were
announced, there was opposition asserting that there were already plans
for a Chinese hotel and casino next door, a much more attractive
development for the community,
The Compact also provided financial assistance for 15 years,
primarily through a Trust Fund that was to last for 50 years--but which
your government and mine now agree was inadequate; a number of domestic
programs; and free access to the U.S. for our small population.
It also, however, recognized that adjustments and further
assistance would be needed over time. So, it required periodic joint
reviews of the relationship as well as Palau's needs, with a U.S.
commitment to act on the conclusions. I serve as Palau's Chief
Negotiator for the second review, the 30th Anniversary Review.
An Agreement has been reached with the U.S. Executive branch, which
has submitted a legislative package for it to the U.S. Congress for
enactment. It was negotiated to take effect October 1st.
President Whipps strongly supports it, and it has been approved by
Palau's Congress.
The legislation would not only improve the relationship for the
next 20 years; it would enable the relationship to continue afterwards
for as long as both governments want. It would do this by providing a
basis for financial and programs assistance continuing after 20 years
if both governments agree. It would repurpose the Trust Fund for needs
that would otherwise not be met.
Palau and the U.S. are `joined at the hip.' Palau also recognizes
Taiwan's right to exist and stands firmly behind Taiwan.
Continuation of the relationship, however, be taken for granted.
The majority of Palauans want to maintain our current alliances, but
China has worked to change this and has made inroads with some people.
The 15th Anniversary Review reached agreement in 2010, but its
legislation was not enacted for eight years, solely due to an impasse
between the U.S. Executive and Congress on how to pay for it.
China took advantage of the impasse. Palau continues to be
subjected to China's substantial economic `carrots and sticks' to shift
Palau's alliances.
Tourism is our largest industry. During the U.S. impasse, China
quickly ramped up tourist visits from a handful to two-thirds of
160,000 a year. It bought hotel rooms far in advance, crowding out
visitors from other nations. Then it said it would cut off the flow if
we did not shift. We didn't, and it carried through on its threat.
Just before COVID, China offered to send as many tourists as we
could accommodate and establish a huge new industry in Palau, but again
only if we shift alliances.
The pandemic hit right after the Chinese body blow to our economy.
The combination shrank the economy 30% in just five years, causing real
pain for our people and eliminating budget surpluses.
Palau then became the only U.S.-affiliated jurisdiction to not
receive COVID revenue loss grants. The Federal government gave grants
to States, territories, Tribes, and municipalities. The Asian
Development Bank gave grants to the other two freely associated states.
The ADB only offered us loans because of the previous level of our
economy. We have had to cut our budget, improve revenues, and borrow
more than is desirable to continue basic government operations.
Tourism is coming back, but more slowly than the ADB and other
economists projected.
We are working to open other markets and get more flights but are
limited by a runway so short that only narrow body jets can use it--and
use it at a maximum of 70% passenger loads.
We are also working to develop other industries.
Meanwhile, most of the private sector investment in Palau is from
China. Palau is only five hours away from Beijing.
Some of our people, including some of our most important leaders,
are tempted by Chinese offers. They see China as the best opportunity
for the private sector growth we want.
The U.S. does not have a command economy, but it has the Compact
and the 30th Anniversary Review package. Enacting it by September 30th
or as soon as possible thereafter is the most effective way to counter
China and maintain U.S. strategic interests in the region.
After the experience of the 2010 Agreement not being approved by
the U.S. Congress until 2018, a significant delay in the approval of
the current agreement will give those in Palau who see a future with
China and those with Chinese connections an opportunity to sow doubt
about the U.S.' interest in our islands. Obviously, if the delay is
long enough, there will be another opportunity for China to affect our
economy and people.
The Agreement's funding is also essential for keeping Palauans in
Palau instead of moving to the U.S., where they can earn more. When
they leave, they often have to be replaced by people from other nations
who do not feel the same identification with the U.S. that most
Palauans feel.
Putting the Agreement's provisions into effect and letting the
State Department bureaucracy take the lead from there, however, will
not be sufficient over time. Some at State have wanted to treat us like
nations that exercise all of their sovereignty and do not have Federal
domestic programs, etc. We have a different status and a uniquely
closer relationship with the U.S.
When the Compact was initially approved by the U.S. Congress, your
Committee insisted on a separate Office of Freely Associated State
Affairs at State and a meaningfully functioning Interagency Group. The
Office was established administratively but closed some years later.
This time, your Committee should lead the Congress in re-
establishing the Office--but by law--with coordinators appointed by the
Secretaries of Defense and the Interior and reporting to the NSC
through a senior-level Interagency Group.
______
Questions Submitted for the Record to the Hon. Kaleb Udui Jr., Minister
of Finance, Republic of Palau
The Honorable Kaleb Udui Jr. did not submit responses to the Committee
by the appropriate deadline for inclusion in the printed record.
Questions Submitted by Representative Westerman
Question 1. The People's Republic of China (PRC) has been seeking
to increase its influence in the Freely Associated States and other
Pacific nations by offering economic assistance and PRC led
infrastructure projects. We have seen that in certain instances that
assistance from the PRC has had corrosive effects on democratic
institutions and economies within countries have accepted this
assistance from the PRC.
Can you describe how the U.S. economic assistance provided under
the Compacts have had positive benefits for Palau?
Question 2. I am encouraged by the reports that the U.S. Department
of Defense (DoD) will build an Over-The-Horizon Radar facility in
Palau. This facility will be key to increasing U.S. capacity to detect
and respond to threats in the region.
What benefits will this facility and increased U.S. DoD engagement
have for Palau?
Question 3. What is your government currently doing to increase
resiliency and capacity to push back against PRC's attempts to expand
its influence and exert leverage within Palau?
______
The Chairman. Thank you to the gentleman for your
testimony.
I now recognize Acting Secretary Cantero for 5 minutes. You
are recognized for your testimony.
STATEMENT OF THE HON. RICKY CANTERO, ACTING SECRETARY,
DEPARTMENT OF FOREIGN AFFAIRS, FEDERATED STATES OF MICRONESIA,
POHNPEI STATE, FM
Mr. Cantero. Thank you. Chairman Westerman, Ranking Member
Teresa Leger Fernandez, members of the House on Natural
Resources Committee, thank you for convening this hearing today
and for the opportunity to testify before you today.
My name is Ricky Francisco Cantero, I am the FSM Assistant
Secretary of Foreign Affairs. I have had the distinct honor to
serve my country in its foreign service for the last 24 years.
On behalf of President Simina, I have the honor to share my
government's perspectives on the long-standing U.S.-FSM
partnership, including ways to strengthen our collaboration.
I begin by confirming the FSM's firm commitment to fulfill
all of its Compact obligations, including those related to
security and defense.
The FSM, of course, follows closely the changing dynamics
of competition in the Indo-Pacific region. The FSM is committed
to doing its part to cooperate with the United States to ensure
that our region, our people, live in a safe and secure
environment, as enshrined in our Compact.
The security and defense interests of the United States are
the security and defense interests of the FSM. The ever-
increasing enlistment of our citizens to serve in the U.S.
Armed Forces and those that have paid the ultimate sacrifice is
living testimony to this creed.
Our relationship with the United States predates the
establishment of the FSM as a sovereign country, and dates back
to the period immediately following the second World War.
When we became a sovereign country in 1986, we gave the
United States strategic rights of denial over a vast portion of
the Western Pacific Ocean, with the United States retaining
responsibility for the security and defense of the FSM. This
arrangement continues. This responsibility includes the right
to foreclose military access of other countries to defend the
FSM and its people from military threats, and the right to
establish and use military areas and facilities in the FSM on
agreed terms.
These steps all provide the United States with access to
our sovereign territory to protect shared security interests in
the region. The security and defense elements of the Compact
has no termination date. The FSM is committed to playing a
vital role in supporting the U.S. security presence in the
Pacific and the United States' effort to combat for aggression
in the region.
Through our prescribed joint committee meeting, for
example, the FSM continues to work with the U.S. military in
identifying ways of strengthening and enriching bilateral
security engagements on their Compact.
The FSM conducts its own foreign policy in foreign
relations in ways that are very consistent with the terms of
the amended Compact. The FSM maintains the United States as its
primary partner, while also having diplomatic relations with
over 90 countries throughout the region and around the world.
Additionally, the FSM and United States belong to many of
the same international organizations, including the United
Nations where the voting practices of the two nations are
aligned and remain very, very consistent.
The FSM ties with the United States are strong, ongoing,
and permanent. Beyond Congress' consideration of the pending
Compact legislation to extend expiring economic assistance
provisions until 2043, there are numerous other opportunities
to enhance our collaboration.
The FSM welcomes strengthening joint activities with the
U.S. Department of Defense which, among others, include
military construction projects in the FSM. For many years, the
Department of Defense deployed Civic Action Teams in the FSM to
support the initiatives on our islands.
Knowing that the CAT program lapsed in 2003, the FSM is
pleased to see U.S. congressional efforts advocating for its
restoration.
Similarly, the FSM fully supports ongoing efforts that we
hope will lead to restoring the U.S. Peace Corps program in the
FSM, an essential program in direct support of people-to-people
engagements. These kinds of initiatives are very important to
strengthening and enriching our existing ties with the United
States.
We look forward to working with the Committee on ways to
enhance our enduring partnership with the United States. We
hope the U.S. Congress approves the Compact legislation
expeditiously to usher in the next chapter of the enduring FSM-
U.S. Compact partnership.
Mr. Chairman, I thank you for this opportunity to testify
and I look forward to answering questions. Thank you so much.
[The prepared statement of Mr. Cantero follows:]
Prepared Statement of Mr. Ricky F. Cantero, Acting Secretary,
Department of Foreign Affairs, Federated States of Micronesia
Thank you for convening this hearing today and for providing me the
opportunity to testify before you this morning. As permanent custodians
of this vast oceanic region, we are pleased to welcome you to our
peaceful part of the world.
My name is Ricky Francisco Cantero. I am first a long-time public
servant for the FSM--proudly serving my country as the Deputy Secretary
of Foreign Affairs and, in the context of today's hearing, as the
Acting Secretary of Foreign Affairs. I have had the distinct honor in
serving my country in the field of diplomacy for the last 24 years.
On behalf of President Wesley Simina, I have the honor to share my
government's perspectives on the long-standing U.S.-FSM partnership,
perspectives on opportunities to strengthen collaboration between our
two sovereign nations and, perhaps, to share perspectives on the
ongoing and progressive military cooperation that exists between our
two governments.
Towards this end, I proudly submit to this Committee FSM's firm and
concrete commitment in fulfilling its Compact Treaty obligations--
obligations that are necessary to support the advancement of the United
States' military readiness in our region.
Indeed, the FSM is not oblivious to the rapid changing dynamics of
geo-strategic competitions that, not only lingers, but continues to
spread throughout the INDO-PACIFIC region. Being surrounded by the
world's most consequential relationships, behooves both our sovereign
countries to reflect on regional challenges of mutual interests. In
doing so, I submit the strong commitment of the FSM in performing its
part to ensuring that our region and our people live in an environment
that is safe--an environment that is secured. Whether bilateral,
regional or global, the FSM has and will continue to stand ready to
support security and defense interests of the United States. Your
Interest is Our Interest; Your Protection is our Protection; Our Home
is Your Home. The ever-increasing enlistment of our citizens to serve
in the US Armed Forces and those that have paid the ultimate sacrifice
is a strong testimony to this creed.
The FSM is dedicated to its strategic partnership with the United
States, which has always been our most steadfast and consequential
ally. The FSM and U.S. relationship predates the establishment of the
FSM as a sovereign country.
The origins of this relationship are based on strategic defense
interests following World War II, when the U.S. administered the Trust
Territory of the Pacific Islands, a region that includes the present
day-FSM. Our Compact Treaty with the U.S. reflects both the FSM's
emergence as a sovereign nation in 1986 and our unwavering commitment
to the U.S. and the peace and security of the region. Under the Compact
Treaty, the U.S. has been granted strategic rights of denial over a
vast portion of the western Pacific Ocean and the U.S. Government
retains responsibility for security and defense matters in or relating
to the FSM.
This responsibility includes, among others, the obligation to
defend the FSM and its people from third-party military threats, the
option to foreclose access to military personnel from other countries,
and the right to establish and use military areas and facilities in the
FSM, on agreed terms. The FSM provides the U.S. with access to our
sovereign territory to protect shared security interests in the region.
The security and defense elements of the Compact Treaty are also core
pillars of our enduring relationship--core pillars that DO NOT have a
termination date.
As the U.S. Administration recently articulated, ``the Compacts of
Free Association agreements form the bedrock of America's broader
strategic interests and engagements in the Indo-Pacific, are key to the
national security of the United States, and underpin our important
bilateral relations with these partner nations.''
The FSM is proud to play a vital role in supporting the U.S.
security presence in the Pacific region and the United States' efforts
to combat foreign aggression in the region. Through our prescribed
annual Joint Committee Meeting, the FSM continues to work
collaboratively with the US military in identifying ways of
strengthening and enriching bilateral security engagements, under the
overall Title III spectrum of security and defense. Among many other
initiatives, this also includes FSM's Treaty commitment to provision
our precious and limited land to support interests of the US military
to establish military defense sites on our soil.
The FSM conducts its own foreign relations in ways that are very
consistent with the terms of the Amended Compact Treaty. The FSM
maintains the U.S. as its primary partner while also having diplomatic
relations with over 90 countries throughout the region and around the
world--thus, providing true testimony to our constitutional creed of
extending to all nations what we seek: Peace, Friendship and
Cooperation, and Love in our Common Humanity.
Additionally, the FSM and U.S. belong to many of the same
international organizations, including the United Nations, where voting
practices of the two nations are aligned and remain extremely
consistent.
The FSM remains firmly dedicated to its strategic partnership with
the U.S. and looks forward to the continuation of this dedication far
into the future, through the renewal of economic assistance during the
next 20-year Compact period.
The FSM and U.S. ties are strong, ongoing and will always
persevere. Beyond Congress' consideration of the Compact renewal
legislation to extend expiring provisions for 2023 to 2043, there are
also limitless opportunities for enhanced collaboration at all levels.
The FSM welcomes intensification of joint activities with the
Department of Defense which, among many others, includes planned
military construction projects in the FSM. For many years, the
Department of Defense deployed Civilian Action Teams (CATs) in the FSM
to support civil engineering initiatives on our islands.
Noting that the CAT program was lapsed in 2003, the FSM is pleased
to see recent U.S. congressional efforts advocating for its
restoration. Similarly, the FSM fully supports ongoing efforts to
restore the U.S. Peace Corps program in the FSM--an essential program
in direct support of people-to-people engagements. Among many others,
Mr. Chairman, these are few initiatives that very important to
strengthening and enriching our existing ties with the U.S.
We look forward to working with the Committee on ways to enhance
our enduring partnership with the U.S. and on efforts to advance the
Compact legislation, expeditiously; And, to bring into existence a new
chapter in the FSM/US Treaty partnership.
Thank you again for the opportunity to testify and I look forward
to answering a few questions.
______
Questions Submitted for the Record to the Hon. Ricky Cantero, Acting
Secretary of Foreign Affairs, Federated States of Micronesia
Questions Submitted by Representative Westerman
Question 1. The People's Republic of China (PRC) has been seeking
to increase its influence in the Freely Associated States and other
Pacific nations by offering economic assistance and PRC led
infrastructure projects. We have seen that in certain instances that
assistance from the PRC has had corrosive effects on democratic
institutions and economies within countries have accepted this
assistance from the PRC.
Can you describe how the U.S. economic assistance provided under
the Compacts have had positive benefits for the Federated States of
Micronesia?
Answer. The FSM is grateful for the unwavering economic support
provided by the United States under our Compacts of Free Association
first entered into force in 1986. The United States is far and away our
primary partner. U.S. support is critical to the FSM's economic
development and progress toward self-sufficiency. Our strategic and
economic relationships with the United States are central to our
Nation.
The majority of the financial assistance being offered by the U.S.
are in seven sectors the two countries have identified together as
essential to our continued growth and future self-sufficiency:
education, health care, public infrastructure, environment, public
sector capacity building, private sector development, and enhanced
reporting and accountability. U.S. assistance under these sector grants
has, for example, helped us provide educational opportunities for FSM
children, provide medical care in our hospitals, and develop and repair
our infrastructure, including our roads, ports and bridges.
Beyond this grant assistance, numerous U.S. federal agencies
provide programs and services in the FSM, including the Federal
Aviation Administration, National Oceanic and Atmospheric
Administration, U.S. Postal Service, Small Business Administration,
Departments of Agriculture, Defense, Education, Health and Human
Services, Interior, Homeland Security, and State. The Bank of the FSM,
which has been FDIC-insured since 1986, is essential for our banking
and economic sector. We have relied on USPS service to our government
since World War II and do not have the capacity or funding to replace
USPS. The FSM is highly vulnerable to natural disasters and relies on
U.S. support for preparedness and recovery. U.S. assistance also helps
build FSM's resilience on environmental and climate issues. These are
all essential for our Nation and our people. The U.S. also provides
other programs and services that we cannot provide on our own, such as
judicial training for our court systems.
At this stage in our development, roughly half of key government
services in the four FSM states are funded by the U.S. through the
Compact. A funding lapse at the end of September 2023 of these sector
grants and other support would create an unprecedented economic and
political crisis for our country and our people, and would have a
destabilizing effect on the region as a whole. The consequences for our
Nation would be catastrophic.
The FSM receives support from many international supporters,
including the EU and countries in the region (China, Japan, and
Australia, etc.). While China has periodically provided infrastructure
support to the FSM, this support has been minor compared to the broad
infrastructure, economic development and other assistance we have
received from the United States. We are fully transparent with the
United States about assistance we receive from the PRC and all other
countries. The FSM is grateful to the United States for its crucial
economic support as our primary economic and strategic partner.
Question 2. What is your government currently doing to increase
resiliency and capacity to push back against PRC's attempts to expand
its influence and exert leverage within the FSM?
Answer. Under the U.S.-FSM Compact of Free Association, the U.S.
Government has full authority and responsible for security and defense
matters in or relating to the FSM. This responsibility includes the
obligation to defend the FSM from attack, the option to foreclose
access to military personnel from third countries, and the right to
establish and use military areas and facilities in the FSM on agreed
terms. These reciprocal commitments do not have any termination date.
The FSM is committed to playing a vital role in supporting the U.S.
security presence in the Pacific region and the United States' efforts
to combat foreign aggression in the region. Through our prescribed
annual Joint Committee Meeting, for example, the FSM continues to work
with the U.S. military in identifying ways of strengthening and
enriching bilateral security engagements, under the Compact. The U.S.
Embassy in the FSM includes a U.S. military attache in constant
communication and coordination with our government. U.S. military
personnel frequently visit and stay in the FSM. Most recently, the U.S.
Department of Defense expressed an interest in using Yap State's
airport and seaport facilities for U.S. military operations when
needed. We welcome the U.S. decision to undertake these kinds of
improvements and projects throughout the FSM to facilitate capacity for
U.S. military operations and humanitarian response. This fall, about
100 U.S. Marines will spread out across Yap, Chuuk, Pohnpei, & Kosrae
for small scale construction, medical, communications, and community
engagement projects. We welcome these and any future opportunities to
enhance cooperation with the U.S. military under the Compact.
The FSM conducts its own foreign relations in ways that are
consistent with our commitments under the Compact. We have diplomatic
relations with over ninety countries throughout the region and around
the world, including the PRC. In this connection, we are very conscious
of the PRC's efforts to expand its influence and leverage in all
Pacific countries, including ours. Our sweeping partnership with the
United States--both strategic and economic--provides us resources and
wherewithal that many other developing countries lack when approached
by the PRC. Our infrastructure assistance from the PRC (consisting of
periodic construction projects) is dwarfed by the vast and crucial
assistance provided by the United States in infrastructure and the
other six sectors covered by our Compact, including health and
education. We have never taken loans from the PRC and do not engage
with the PRC on any strategic or defense issues.
One ongoing concern of the FSM is in the control of our waters,
which is essential to our economy and for which we are particularly
grateful for U.S. support. The FSM appreciates the long-standing
cooperation between the United States on illegal, unreported and
unregulated (IUU) fishing in its waters. The FSM appreciates the
support it has received from the U.S. Coast Guard on these issues and
values its cooperation with the Coast Guard in the shiprider program.
The assistance we received is helpful to all illegal fishing activity,
including nationals of China or other countries who seek to fish in our
waters.
______
The Chairman. Thank you, Secretary Cantero.
I now recognize Minister Ading for 5 minutes.
STATEMENT OF THE HON. JACK ADING, MINISTER OF FOREIGN AFFAIRS
AND TRADE, REPUBLIC OF THE MARSHALL ISLANDS, MAJURO, MH
Minister Ading. Thank you, Chairman Westerman [Speaking in
Marshallese]. Mr. Chairman and distinguished members, thank you
for inviting President Kabua or a designee to this important
hearing. It is extremely time consuming to travel here and back
from Marshall Islands, so I am representing my President.
President Kabua and his cabinet look forward to meeting with
you next week.
Under the Free Association between our nations, the RMI
allows the United States to deny access to forces of other
nations to an area west of Hawaii, as big as Alaska,
California, and Florida combined; refrain from interactions
with other nations that the United States says would comprise
security; and hosts what the Joint Chiefs of Staff say is the
world's premiere range for testing ICPMs and supporting
military space operations.
Kwajalein is where the military perfected its missile
strike to be so precise that a shot can hit a single house
thousands of miles away. RMI is also a staunch ally of Taiwan.
During the U.S. administration of our islands, we also
served U.S. strategic interests worldwide by the United States
using our islands for most of all of its atmospheric nuclear
bomb tests. The United States perfected its nuclear weapon in
our islands. It also sent radioactive waste from tests in
Nevada to our islands. The detonations in our islands were
equivalent to 1.7 Hiroshi bombs every day for 12 years. The
radioactive iodine was 42 times that in Nevada and 150 times
that from Chernobyl.
The U.S. Senate has just passed legislation to expand the
Radiation Exposure Compensation Act to cover the health
problems from the Marshall test, but only for residents of
Guam.
At the same time, the United States recognized that only 4
of our 29 atolls were affected. Before the United States'
biggest bomb test ever, U.S. officials learned that winds would
blow radioactive to inhabited Rongelap. They went ahead anyway.
About 70 percent of the children under 10 developed thyroid
tumors. Several women from Rongelap gave birth to babies
without spines. Other babies were stillborn or born without
limbs on the atoll that the United States has not recognized
they were contaminated.
The people of Bikini, where I am from, Rongelap, and Utrik
were forced to leave their islands, but resettled based on U.S.
assurance it was safe, only to find out years later that no
local food could be safely consumed due to high levels of
radiation.
Some of the islands of Bikini, Enewetok, and many others
remain unsafe for habitation today.
The United States administers us in trust for the UN.
When the Security Council expressed concern about plans to
test in Enewetok, President Truman wrote, and I quote, ``The
Enewetokese will be accorded all rights which are the normal
constitutional rights of the citizens under the Constitution
but will be dealt with as wards of the United States for whom
this country has special responsibilities.''
The settlement for the Marshallese, many of whom have been
exiled from home for most the century, is a fraction of the
billion paid to compensate Americans who lived hundreds of
miles from the Nevada test. The sad fact is that the United
States has fallen far short treating us equally, fairly, and
consistently with the Compact.
The RMI highly values our Free Association and want it to
continue. Unresolved problems from the nuclear test and
radioactive waste is a serious irritant in our relations and
has the potential for being exploited by China.
The Compact Agreement would not solve the issue, but it
would be an important step in doing so.
Thank you [Speaking in Marshallese].
[The prepared statement of Minister Ading follows:]
Prepared Statement of the Honorable Jack Ading, Minister of Foreign
Affairs and Trade of the Marshall Islands
Thank you for inviting President Kabua to testify or send a
designee to the Committee's hearing in Guam on the importance of U.S.
territories and the Freely Associated States to the United States'
ability to counter China's malign influence and maintain U.S. strategic
interests. It is extremely time-consuming to travel from the Marshall
Islands to Guam and back, primarily because of limited flights, but
this hearing is of the highest importance to the Marshall Islands. So,
I have the honor of representing the President, who looks forward to
meeting with you in a few days.
We can only speak regarding the role of the Republic of the
Marshall Islands (RMI), of course, and the issues in our islands that
undermine U.S. interests and create vulnerabilities to China.
The role starts with the RMI having a relationship with the U.S.
that is much closer than any that which the U.S. has with nations with
which it is not freely associated.
A Compact of Free Association, subsidiary agreements, and U.S. laws
that amended and added to the Compact define the relationship. More
fundamentally, however, the relationship is based on shared values and
the great extent to which these were developed during four decades of
U.S. administration of our islands.
Under the relationship, the RMI--
Allows the U.S. to deny access of forces of other nations
to an area west of Hawaii that is as large as Alaska,
California, and Florida combined;
Refrains from interactions with other nations that the
U.S. says would compromise security; and
Hosts what the U.S. military Joint Chiefs of Staff have
categorized as the world's premiere range for testing
Inter-continental Ballistic Missiles and supporting the
military's new space operations at Kwajalein Atoll. This is
where the U.S. military perfected its missile strikes to be
so precise that shots can hit a single house from thousands
of miles away and where the U.S. military continues to
develop its ICMB shot capabilities.
Additionally, the RMI generally votes with the U.S. in the United
Nations.
Also--and perhaps most importantly--enlistment rates in the U.S.
military from the RMI are higher than from any State, although the U.S.
has not yet provided for standard care of veterans if they come back to
the RMI. Many, therefore, do not, depriving the RMI of talent it needs.
Further, the RMI is a staunch and enduring ally of Taiwan, which is
important to countering China's malign influence and maintaining U.S.
strategic interests in the region.
The RMI highly values its relationship with the U.S. and wants to
strengthen it so that it can continue.
During U.S. territorial administration of the Marshall Islands, two
of the most important roles that our islands had and continue to have
in preserving U.S. strategic interests worldwide and countering Chinese
influence in the Pacific were initiated by the U.S.
The first was most of the atmospheric testing of nuclear bombs that
the U.S. has conducted. The U.S. perfected its nuclear weapons
capability in our islands.
In the process and after, however, even more of all of the
radioactive waste that U.S. produced in atmospheric nuclear bomb tests
than the waste from tests in the Marshall Islands was left in the RMI--
making populated and what had been populated atolls even more unsafe,
because the U.S. shipped in radioactive waste from weapons testing in
Nevada when it administered our islands.
Fallout from the testing; the radioactive waste; inadequate and
irresponsible efforts to bury the waste and not sufficiently cleaning
up waste--which generated terrible health problems for people and made
populated and what had been populated atolls unsafe; a lack of health
care; and the U.S. not fulfilling its obligations in connection with
the testing created the paramount issue that the Marshall Islands has
with the U.S. and could undermine the relationship. I will explain this
major and multi-faceted issue further later in my statement.
The second role that the RMI serves in maintaining U.S. strategic
interests around the world and countering malign Chinese influence in
the region is the major U.S. military facility that the RMI hosts on
Kwajalein, which you are scheduled to visit when you reach the RMI. The
ICBM testing has also created problems in the RMI, but we continue to
host the base in keeping with the RMI's commitments to the U.S.
Regarding Chinese efforts to get the RMI to shift its alliances,
one example relates to the second largest portion of our private sector
and a major contribution to the RMI's economy and budgets. This is the
RMI being one of the three largest ship registries in the world. China
charges vessels flying our flag significantly more to dock at its ports
than it charges the other two.
Another effort has tried to financially shift the positions of RMI
leaders on the RMI's alliances.
The RMI, however, is now concluding negotiations with the U.S. on
financial and Federal programs assistance needed to enable the
relationship to continue and counter Chinese efforts that could
undermine it.
This assistance is vital to the RMI. It is urgently needed as of
October 1st since most crucial assistance is due to expire September
30th.
It is provided for in legislation that the U.S. Executive branch
has submitted for congressional approval and emphasized the need for in
anticipation of underlying agreements. The representatives of the
presidents of the RMI and the U.S. are working to conclude these
agreements before Congress goes back into session.
The precursors to the negotiations included meetings with our
president requested by President Trump in the Oval Office and with
Secretary of State Pompeo. The importance of the talks has also been
highlighted by statements and actions of President Biden.
The U.S. initiated the negotiations just over three years ago, but
the talks really started to become productive at the end of 2021 with
the engagement of senior U.S. National Security Council staff and the
March 2022 appointment of a presidential envoy on top of much lower-
level departmental officials.
When the U.S. initiated the negotiations, it asked the RMI to
identify its priorities. From the first, President Kabua and the people
of the RMI emphasized justice related to unresolved issues from the
U.S. nuclear weapons legacy as being of the highest priority.
Another was challenges related to rising seas, which threaten the
existence of a nation with no elevation higher than two meters. As U.S.
strategic control over the area of the RMI is based on our land
borders, this is also a national security threat for the U.S.
Other priorities included the living conditions of the people who
work at the Kwajalein base but live elsewhere on the atoll and impacts
on nearby islands as well as financial and Federal program needs.
The biggest issue dividing our nations, which has the potential for
being exploited by China and undermining U.S. strategic interests in
the RMI, consists of serious, unresolved problems lingering from the
U.S. nuclear weapons legacy.
I know that the purpose of this hearing is to discuss China's
malign influence in the region and in our islands and preserving U.S.
strategic interests, but the Committee should understand the context of
these issues and how not adequately addressing RMI issues lends itself
to increasing that malign influence and undermining U.S. interests.
Americans are an exceedingly decent and generous people. I am
certain that most would be shocked and embarrassed if they were to
learn about the history and legacy of the nuclear testing program while
we were governed by the U.S.
In appointing the U.S. as trustee for the Marshall Islands, the
U.N. gave the U.S. the responsibility to protect us and promote our
well-being.
When plans for nuclear bomb testing at Enewetak Atoll began to be
implemented, the U.N. Security Council expressed concern. It was told
by President Truman that, ``The Enewetakese will be accorded all rights
which are the normal constitutional rights of the citizens under the
Constitution but will be dealt with as wards of the United States for
whom this country has special responsibilities.''
This was a promise that was never kept, as the people of Enewetak
languished in impoverished exile for 33 years in the previously
uninhabited atoll of Ujelang, the most remote atoll in the Marshall
Islands. It was inconsistent with America's role as trustee to
desecrate our homeland by massive nuclear explosions for 12 years,
exposing us to deadly, horrific health and environmental hazards that
we were never warned about--and that continue to affect us to this day.
The nuclear detonations in the Marshall Islands had an explosive
yield equivalent to roughly 1.7 Hiroshima-sized bombs per day over the
entire 12 years of testing. In terms of radioactive iodine alone, 6.3
billion curies of iodine-131 were released during the U.S. nuclear
testing program--42 times greater than in all of the atmospheric
testing in Nevada, 150 times greater than released by the Chernobyl
breach, and 8,500 times greater than released from Atomic Energy
Commission operations at Hanford, Washington.
Preparing for a 1954 test at Bikini Atoll--one that would result in
the largest U.S. nuclear detonation ever--U.S. military officials
learned that a change in wind patterns threatened to bring fallout to
inhabited Rongelap and Utrik atolls, including others that had not been
evacuated. They went ahead with the test anyway without warning the
islanders, who were blanketed in radioactive fallout and had no idea
what it was or that it was dangerous.
Almost 70 percent of the children on Rongelap Atoll who were under
10 years old at the time of the blast eventually developed thyroid
tumors. And many women from several atolls, Rongelap and Utrik for
example, later gave birth to babies who resembled jellyfish and peeled
grapes, incidents similar to mothers in Utah who were downwind from the
Nevada test site. Some died at birth or after a few hours of life. Many
other women had miscarriages.
The people of Rongelap, Utrik and others from the Marshall Islands,
did indeed become human guinea pigs under a secret radiation study of
their bodies, code named ``Project 4.1.'' And these studies were done
without their consent or knowledge.
The people of Bikini, Enewetak, Rongelap and Utrik were forced to
leave their islands. And were exiled from their atolls and eventually
returned home based on U.S. assurances that it was safe--only to find
out years later that radiation levels were too high, and no local food
could be consumed. Some of the islands of both Bikini and Enewetak were
completely vaporized. Many others remain unsafe for human habitation
today--and will be for as long as anyone can imagine. Today, people of
Bikini and Rongelap cannot return to their atolls due to high radiation
contamination of their land, food, and environment.
The damage to our environment and our health caused by the U.S.
nuclear testing program are not just a part of our history: They
continue to plague us even today.
For example, the people of Enewetak have lived in the shadow of a
massive nuclear waste dump for over four decades. That waste dump,
known as Runit Dome, contains 110,000 cubic yards of radioactive waste
gathered from around the atoll decades after the nuclear weapons tests.
The waste includes tons of plutonium-239 with a radioactive half-life
of 24,100 years.
The U.S. Department of Energy admits that radioactive material is
leaking from Runit Dome into Enewetak's lagoon, but we were told not to
worry because the radioactive material already in the lagoon dwarfs the
amount of radioactive material buried under Runit Dome. We need the
U.S. to tell us: What are the health risks of living on the shores of a
lagoon with a larger amount of radioactive material than the infamous
Runit Dome nuclear waste dump?
The settlement for the Marshallese, many of whom are still exiled
from their home islands nearly three-quarters of a century after the
nuclear testing program began, is a tiny fraction of the billions of
dollars that have been paid to compensate Americans living downwind--
some several hundred miles downwind--of the Nevada Test Site under the
Radiation Exposure Compensation Act (RECA). This disparity shows that
the U.S. has fallen far short of the ideal of equality in our case.
The U.S. Senate has passed legislation that would expand RECA
eligibility for compensation from the Marshall Islands nuclear tests
but only to residents of Guam. We applaud this action and the
realization that U.S. atmospheric nuclear testing in the Marshall
Islands had consequences beyond the Four Atolls that the U.S. has
recognized. The imitation to the four atolls in the RMI is belied by
overwhelming scientific, radiological and health evidence and
consequences to the contrary.
All of this provides opportunity for the PRC to create mischief in
our relationship and numerous attempts to undermine the very close
relationship that my country enjoys with Taiwan. This isn't necessary,
and while we will work to complete our negotiations with the U.S. to
extend the Compact, we must remember that the nuclear issue must be
addressed to retore the confidence of the Marshallese people in the
United States.
______
Questions Submitted for the Record to the Hon. Jack Ading, Minister of
Foreign Affairs and Trade, Republic of the Marshall Islands
The Honorable Jack Ading did not submit responses to the Committee by
the appropriate deadline for inclusion in the printed record.
Questions Submitted by Representative Westerman
Question 1. The People's Republic of China (PRC) has been seeking
to increase its influence in the Freely Associated States and other
Pacific nations by offering economic assistance and PRC led
infrastructure projects. We have seen that in certain instances that
assistance from the PRC has had corrosive effects on democratic
institutions and economies within countries have accepted this
assistance from the PRC.
Can you describe how the U.S. economic assistance provided under
the Compacts have had positive benefits for the Republic of the
Marshall Islands?
Question 2. What is your government currently doing to increase
resiliency and capacity to push back against PRC's attempts to expand
its influence and exert leverage within the RMI?
______
The Chairman. Thank you, Minister Ading, and thank you to
all of the witnesses for your testimony.
Minister Ading, I do have a large Marshallese population in
my home state of Arkansas and really enjoy getting to interact
with those folks when I am back home.
That concludes our witness testimony. We are now going to
move to our Member questions. Each Member will be recognized
for 5 minutes, and we are going to start with the gentleman
from Colorado. Mr. Lamborn, you are recognized for 5 minutes.
Mr. Lamborn. I want to thank Chairman Westerman and also
the leadership of my colleague on the House Armed Services
Committee, Congressman Jim Moylan. Representative Moylan is a
tireless advocate for Guam in Congress.
Hafa Adai to all of the distinguished panelists and all of
the members of the audience, and thank you for being part of
today's Natural Resources Committee oversight hearing.
As some of the panelists have noted, we have traveled
thousands of miles to show our support of the strategic value
of the Pacific Islands in protecting U.S. interests and human
rights, in general, and free trade in the Indo-Pacific region.
As a beacon for democracy and a strategically important
counter to Beijing, the United States needs to increase its
support of our Pacific Island territories and our treaty
partners.
Governor Guerrero, I am going to ask my first question to
you. In your testimony, you note the Chinese Communist Party's
intent to project power onto Guam and her sister islands, and
you described that very well. We have all recently become aware
of the CCP's cyber-attack on telecommunication systems in Guam
via their Volt Typhoon actor. Can you describe any other
malicious tactics that you have witnessed that the CCP has
undertaken to challenge U.S. military interest in this entire
region.
Governor Guerrero. Thank you very much, Congressman. I have
not witnessed anything, nor have I had any official reports
about Chinese attacks. There have been, I think, reports in the
paper and in articles, but not anything officially written to
me. But be that as it may, we do understand and recognize this
great threat of our cyber security.
During the typhoon, we witnessed and experienced a shutdown
of communications. Our radio stations were not on, our
telecommunications were not on, we had no means of
communicating with each other. That was the feeling of
paralysis for me, and it was a very scary feeling because I
could not even talk to my frontliners or my frontline defense
people, or even communicate with my family, and just think
about what that means in terms of life, in general.
So, we very much experienced what I think could happen if
there is a big Chinese cyber security attack. Can you imagine
if our airport and our Port Authority is paralyzed because of
those attacks? We would not be able to survive.
And although we have not had a real experience of that
through China's cyber security attack, we experienced it during
the typhoon and after the typhoon.
So, what we are doing, as a government, is we are creating
a cyber security island wide emergency plan, and we are working
with very key stakeholders in business and public sectors. We
have directed our government agencies, specifically, to
establish their cyber security plan which will filter up toward
our island-wide security----
Mr. Lamborn. Thank you, I appreciate that, and I am going
to have to ask another question before my time runs out. I
appreciate that answer, though. There are so many things that
we could point to that the Chinese Communist Party is doing to
suppress other people when they don't get their way. The
suppression of human rights and political rights in Hong Kong
against what they had promised that they would do when the U.K.
withdrew, a genocide against the weaker population in western
China, theft of intellectual property, debt diplomacy, and then
there is illegal fishing. What experience do any of the other
witnesses here have of illegal fishing in your territorial and
sovereign waters.
Mr. Cantero. Thank you, Congressman. With respect to your
question, Congressman, the FSM appreciates the long-standing
cooperation with the United States on any and all illegal,
unreported, and unregulated fishing in its waters. For example,
the FSM appreciates the support it has received from the U.S.
Coast Guard on these issues and values its cooperation with the
U.S. Coast Guard in the new Expanded Shiprider Program. The
assistance we receive is helpful to all illegal fishing
activities.
In a nutshell, the support that we get from your side,
especially from the U.S. Coast Guard, is very, very critical.
We just went through an annual joint committee meeting with
your military. We do it on an annual basis and we review the
defense strategic posturing in this region, and one of the
issues that we always, always discuss is how do we counter
illegal fishing, and that is one of the primary reasons we
agreed to the Expanded Shiprider Agreement.
Mr. Lamborn. Excellent. Thank you so much.
Mr. Chairman, I yield back.
The Chairman. The gentleman yields back.
The Chair now recognizes the gentleman from the Northern
Marianas. Mr. Sablan, you are recognized for 5 minutes.
Mr. Sablan. Thank you very much, Mr. Chairman. And I will
say I am very grateful that you and our colleagues have taken
the time to come out here. I know it is a big chunk of your
August break, but thank you very much. Welcome to our
witnesses, good morning, para todos hamyu [good morning to you
all].
Governor Palacios, I am going to sort of stick with you for
now, sir. You mentioned Covenant 702. We, obviously, have a
problem with our workforce. Construction is a major issue with
us. How much in projects do you estimate are not moving because
of----
Governor Palacios. As of today, we have an estimate, that I
know of, of over a half billion dollars already approved.
Mr. Sablan. And that requires just a technical change in
some of the legislation, but it is important that we get these
things moving. You mentioned an issue of touchback. How many
businesses are affected this year by this touchback issue.
Governor Palacios. I can assure you that there are over 60
percent, maybe more, of our businesses, all the hotels, all the
construction companies. So, all the projects are going to be
impacted.
Mr. Sablan. And the Covenant Section 702, it was a really
wonderful section in the beginning, even had capital
improvement funds and everything. We had a little money up
front for operations. What do you want Congress to do?
Governor Palacios. Consider not necessarily changing where
we are at today regarding the Covenant 702, but consider
putting aside another $10 to $20 million just to set aside for
operations of our government in case we run into problems
again. That is where we are at today, and, thankfully, there is
a clause in the agreement and that gives us a little bit of
flexibility today.
Mr. Sablan. Governor, thank you very much. Because, look,
some of you who know me well enough know that I have been quiet
about the Northern Marianas' relationship with the Peoples'
Republic of China. I have been quiet about that for a while. We
had a trade with China, but I am now concerned that there have
been some things that have happened here in our region, for
example, not necessarily the people of China, but of course the
government, CCP and PRC, and concerned enough that I have
actually taken a stance and said, look, I will join this task
force and work with trying to also get our Micronesian brothers
and sisters fairly treated.
Thank you to the Minister and the Secretary.
Mr. Ading, it is nice to see you again, sir. Governor
Guerrero.
Mr. Udui, do you have anything more to add? I think I have
time, right? No, I don't.
The Chairman. You have time.
Mr. Sablan. Oh, yes? Minister, do you have anything you
would like to say? Don't worry, these people know, sir, that we
are family and that as family, you and I are allowed to talk
about them behind their back.
[Laughter.]
Minister Udui. Not to say that I would do that, but thank
you for the opportunity to add. And I think the realities are
evident when you are able to visit our islands yourself and see
firsthand what exactly we are dealing with.
To Congressman Lamborn's question on fishing, Palau has
closed off our waters to commercial fishing because it is just
too impossible to regulate. And we appreciate the United
States' help in patroling our waters and to counter intrusions,
unauthorized access that survey our undersea fiber optic
cables.
But the other point, Congressman Sablan, is that this is
not something that happens periodically, it happens every day,
and it happens at different levels. We have a Federal system,
it happens at the state levels and with our state legislatures,
as well as our state executive officials, are approached almost
every day. So, it is something that we have to be mindful of
and address as part of the routine order of business every day.
Thank you.
Mr. Sablan. Thank you. My time is over.
The Chairman. The Chair now recognizes the gentlelady from
American Samoa. Ms. Radewagen, you are recognized for 5
minutes.
Mrs. Radewagen. Talofa. Let me first thank my Chairman, Mr.
Westerman, for appointing me to serve as Chair of the House
Natural Resources Committee's bipartisan Task Force on the
Indo-Pacific. Thanks also to Chairwoman Hageman.
As a prelude to today's proceedings, we conducted a task
force hearing in July on PRC, COFA, and the territories with
the valued support and leadership of task force Co-Chair,
Kilili Sablan. This hearing truly is a homecoming for me,
having lived here and graduated from the University of Guam,
but this hearing is also about the Marshall Islands where my
family lived for years when my father was appointed head of
Government under the administration of President Eisenhower and
Interior Secretary Seaton in the darkest days of the Cold War.
And at that time, the shadowy world of creeping communist
totalitarianism was nightmarishly illuminated by ominously,
frightful, over-the-horizon flashes emanating from 67 nuclear
weapon tests in the Marshalls. And shortly before my father was
sent to take first steps to restore a post-nuclear testing
civil order, which literally included his own footsteps across
atomic bomb craters on his inspection at Bikini and Enewetok.
And we meet here in the southern-most of the Mariana
Islands to hear from the Governor of the northern-most of the
Mariana Islands where my family lived for 12 years while my
father represented President Kennedy and Secretary of the
Interior Udall in relations with the Northern Marianas,
Marshall Islands, Palau, Yap, Pohnpei, Chuuk, and Kosrae.
So, I join this homecoming with my father's spirit close in
my heart and in my mind, aware that much of it was in the Cold
War era under the UN trusteeship. Guam and the CNMI formed the
western-most of America's homeland at the doorstep of Asia in
the time zone adjacent to Tokyo's.
We are here as a Committee because Guam and CNMI truly are
the northern keystones in architecture of what, since 1945, has
been mostly a free and open Pacific.
In this new era, America's allies in Palau, FSM, and RMI
formed the integrated superstructure of regional security and
peace. Once as a child mentored by my father and other leaders
of the Pacific nations who so often sat at our dinner table,
and now as an elected leader in this region, I understand in a
very profound way how and why the UN trusteeship, our Compact
of Free Association, stood, for decades, against soviet
imperialism as a threat to democracy and post-colonial free
enterprise under rule of law.
Now we are facing the threat of the once concealed but now
overt velvet-gloved hand of PRC ambitions that hides the iron
fist of PRC totalitarian communist imperialism.
Thus, we come here under Chairman Westerman's leadership to
regroup and confront together the PRC's threat to the freedom
of the blue continent that stretches across the Indo-Pacific
region.
Of course, the American homeland also reaches deep into the
Southern Pacific where American Samoa's alignment with the
United States is foundational to a free and open regional
order, and I have the honor of serving first and foremost my
own people in my family's true homeland where my father was
elected and served with both great dedication and success as
governor.
So, it is in that spirit of homecoming that I want to
commend each of my fellow Pacific Islanders who are witnesses
today. In addition to your oral testimony, I urge my colleagues
to study your written statements for the record. We gather here
in the Pacific way, but you have spoken your truth here today
boldly.
In that same spirit, my question to each witness is based
on the powerful statement written by the governor of the CNMI
that exposes PRC methods and tactics to opportunistically
exploit our needs and weaknesses.
Let me say that when I run out of time, and I am about to,
I am going to ask each of these witnesses to please submit the
answers for the record, please. We can learn from Governor
Palacios how PRC uses illegal influence in a democracy to
corrupt and destroy democracy.
PRC invests in free enterprise with political warfare
instead of profit motives to destroy free enterprise. Without
naming names or specific economic sectors or institutions that
are under attack, please tell us if you are aware of PRC
political warfare tactics going on today in your islands. Is it
getting worse year by year? Are your government's becoming more
effective in restoring the rule of law.
And finally, again, without revealing specific cases, is
U.S. law enforcement and U.S. Department of Justice cooperating
in any criminal investigations you are pursuing.
I have 35 seconds. Perhaps one witness could answer, and
the others submit it for the record? Thank you, Mr. Chairman.
Governor Palacios. Thank you, Congresswoman. Yes, we will
do that. I will further submit also a written response to your
questions. Yes, we see it. We absolutely see it. With the
geopolitical stance shifting in the Indo-Pacific region, we saw
what was going on. Luckily, when the pandemic closed down our
economy and all the flights coming to the Northern Marianas,
that was sort of a blessing because we have almost half of our
tourism industry, our visitors were coming in from PRC. Over
200,000 tourists in 2019. That is significant.
Mrs. Radewagen. Thank you, Governor, and I will look
forward to getting the rest of your written answers in the near
future. Thank you, Mr. Chairman. I yield back.
The Chairman. Thank you, Representative Radewagen, and
thank you for your leadership on the Task Force, and for your,
obviously, vast knowledge of the region. It is a real benefit
to have you serving on the Committee.
I now recognize the gentleman from Wisconsin.
Mr. Tiffany, you are recognized for 5 minutes.
Mr. Tiffany. Thank you, Mr. Chairman.
Mr. Cantero, in March of this year, President Panuelo wrote
a letter stating how the CCP is waging political warfare in the
Federated States. And by the way, it was a very methodical,
detailed letter that the President wrote, and I hope you have
had a chance to read it, all of you, because I have read it
twice. Very methodical, very detailed. Have things changed
since that letter, Mr. Cantero.
Mr. Cantero. Thank you, Congressman Tiffany for your
question. I think the great thing about that letter is that it
provided some highlights, it provided some allegations of
challenges, it provided some input to the FSM government, and
particularly, the current administration, things that we can
take home and see how we can improve.
At the same time, I have every confidence that our internal
good governance process is more than suitable to weed out if
something is happening and identify those and provide some
rectification to it.
Mr. Tiffany. So, the FSM government has duly noted the
letter and is aware that we need to be cautious in dealing with
the PRC?
Mr. Cantero. We are fully aware of the content of the
letter, and like I was saying, the highlights provided will
give us the impetus to make things better for us.
Mr. Tiffany. Thank you. Governor Palacios, does earth
tourism continue in the CNMI.
Governor Palacios. Not to the extent that it was 4 or 5
years ago. Very recently, I was alerted by our Commonwealth
Healthcare Corporation, our hospital, that there was a little
tick, just a marginal tick, and I asked that they continue to
monitor that. Right now, we don't have any direct flights in
from China. Chinese tourists were coming in through Korea. They
go from Hong Kong or other points, to Korea, but the number of
tourists now coming to Saipan has almost dwindled to nothing.
So, over a thousand Chinese tourists in the last month, the
number of tourists that are coming in, at this point, no, that
is not a major point of concern for us, but we will be
continuing to monitor that, and we will----
Mr. Tiffany. Is it your Government's actions that have
limited that number compared to what it was a few years ago.
Governor Palacios. Well, it was, and we had asked all our
tour groups, charter flights to continue to monitor it with our
CBP.
Mr. Tiffany. Thank you for doing that. And Mr. Chairman, I
would just highlight, this is one of many loopholes in our
immigration system that is not solving our workforce challenge.
We hear about the workforce challenges, and while we have
millions of people coming into the mainland of America, the
lower 48 states, we have so many loopholes like this that are
allowing illegal immigration to fester in our country, and it
still remains a major challenge because it is not solving the
workforce challenge how we are handling it currently in
America.
Mr. Udui, if you could take just a couple seconds, what
happens if Palau succumbs to this diplomacy that has been going
on with the PRC? Or is Palau making sure that you don't----
The Chairman. We will stand in recess.
[Pause.]
The Chairman. The Committee will come to order, and the
gentleman is recognized to finish your question.
Mr. Tiffany. Let me restate my question. Have you seen any
instances of the PRC trying to bribe government officials?
Minister Udui. Thank you, Congressman. I would say that
there are clear influences toward our government officials in
the form of trips or invitations for trips, sponsored trips to
Beijing, for instance, and to dinners and some of these even in
countries where we later found out the connections to organized
crime or to the CCP with the help of U.S. officials to identify
these individuals.
As I said, it is a daily affair, and some of it we can see,
some of it we try to stop, and we appreciate the U.S. law
enforcement assistance to help us address those challenges.
Mr. Tiffany. Mr. Chair, may I make a brief closing here?
The Chairman. Be very brief.
Mr. Tiffany. Thank you. First of all, this is terrific, we
have been doing these hearings since this Congress convened
back in January across America, and it is such a privilege to
be here in the island of Guam to do this also because this is
the exact response that the House of Representatives Committee
has been getting across America where we have packed houses
that people attend where they can address us, rather than
having to go to Washington, DC.
I want to thank all of you who are supporting Taiwan. Thank
you so much for that. It is time to end our ``One China''
policy, the misguided ``One China'' policy that was not in
place in 1979.
And Mr. Chairman, to this end, if you look at a map that is
in our hand-out today from the Congressional Research Service,
it lists Taiwan, or the map depicts Taiwan, as being part of
Communist China. That is not the case.
Taiwan is a separate country. It has never been held by the
mainland and it is time for us to do our part in Congress to
also recognize Taiwan as we go forward. I yield back.
The Chairman. The Chair now recognizes the gentlelady from
New Mexico. Ms. Stansbury, you are recognized for 5 minutes.
Ms. Stansbury. Thank you, Mr. Chairman, and good morning. I
want to just start by saying thank you to our governors and to
our ministers, and I know we have many distinguished guests who
are here in the audience with us.
Hafa Adai, thank you so much for hosting us in Guam and in
the islands, and I also want to extend my thanks to our three
island Representatives who are representing American Samoa, the
Mariana Islands, and Guam with us, and who have helped to bring
us here today.
I am Melanie Stansbury, and I am the Congresswoman for New
Mexico's 1st Congressional District, and New Mexico has many,
many ties to Guam and to our island, and especially through the
service of our military. I do want to just take a moment
because I know many, many members of our island communities
have been active duty military and veterans who have served in
the U.S. military, and I want to say thank you for your
service, and thank you for your commitment.
Mr. Chairman, I am especially grateful for this opportunity
to be here. I think we have heard a lot this morning about the
strategic importance of our relationships with our territories
and our Freely Associated States, but I think some of the
conversation this morning has also pointed to not only the
strategic military importance for the United States, but also
because our territories are Americans and our relationships
with our sovereign nation states are also important to us
because we care about the well-being of the people of the
islands and all island communities.
So, our commitment here is not only military and
diplomatic, but also the common well-being of our communities
and our commitment to the island people of the South Pacific,
so I wanted to make sure that we said that.
New Mexico's interest in these issues may seem a little off
the beaten track, but my district is the district where
Kirtland Air Force Base and Sandia National Labs reside, which
play a critical role in helping to support our military
missions here in the South Pacific, along with many of our
bases and our national laboratories. So, we not only have a
relationship with our cultural ties and our military ties, but
also indirectly being engaged in the South Pacific here in
these communities.
And we have a shared commitment to the safety and well-
being of our service members and of our communities, and that
is why I, myself, and I know Madam Ranking Member who is also
here from New Mexico, part of why we wanted to be here is to
affirm to you all our commitment to getting these compacts to
our Freely Associated States renewed, authorized by Congress,
and making sure that we appropriate the dollars that have been
committed to by the Biden administration through those
negotiations that have been held with your nations, and we are
here to make that commitment to you and to fight in Congress to
make sure that we get those through the process, and I think it
is really important to affirm that here in this forum.
But I do want to take a few moments to hear, Governor
Guerrero, we had a moment before we came here to this hearing
to talk about the threats the Chinese influence in the region
play, and I was particularly struck by some of the comments
that you made about the threats to freedom, democracy, and ways
of life, and I wonder if you could share a little bit more
about that, especially for the public, about why it is so
important that we affirm American commitments here in the South
Pacific.
Governor Guerrero. Thank you very much. Just briefly, our
history as Guam has been an experience of war, which dates back
to the 1600s when Magellan came and invaded and occupied our
island, and as a result, we saw a decrease in our race from
150,000 to 8,000. But as a resilient community, we became
resilient once again.
We saw the Japanese occupation. So, our people have
witnessed and experienced direct atrocities of war, and as a
result of that, we do not want to go back in that direction. We
saw the atrocities of our women being raped, our children
forced into labor. We had to witness beheading of our loved
ones, and that is very traumatic and very, I think, significant
in terms of our great desire to once again be prepared to
defend our island and our people. And that is why I think our
island is very much committed to working with our partners, our
Federal partners, our military partners, because we do not want
that to happen. And as I have always said, we do not want to be
under Chinese rule, which can possibly happen if we do not pay
attention to this part of our island and if the United States
does not give us the resources and the protection to not just
protect our island, but this part of the Indo-Pacific region.
Ms. Stansbury. Thank you, Governor. And I want to say, once
again, thank you for all of you traveling here, for your
commitment and your relationship to the United States. And I,
unfortunately, am out of time, but I do want to reconfirm that
we are here to fight for and make sure that we make good on our
commitments. Thank you.
The Chairman. The gentlelady yields back. The Chair now
recognizes the gentleman from Guam. Mr. Moylan, you are
recognized for 5 minutes.
Mr. Moylan. Thank you, Mr. Chairman. Thank you to the
panel. I appreciate your time and effort coming and explaining
to us, and thank you to my colleagues for being here with us
today, and also our audience.
My questions are directed to Governor Leon Guerrero. Last
fall, you began an important process of seeking membership in
the Pacific Island Forum for Guam. Can you speak on how Guam's
membership in the Pacific Islands Development Forum would
strengthen democracy in the Pacific.
Governor Guerrero. Thank you very much, Congressman, for
that question. In this part of the world, Guam is part of the
North Pacific, but we are also part of the whole Pacific. And
as you realize, the Pacific Island Forum is a very strong
formidable voice that represents the concerns and the
challenges and the initiatives that we, as an island community,
move forward together. Our membership into the Pacific Island
Forum is going to be very beneficial for both the islands and
also from a democracy and freedom standpoint.
We have been applying for associate membership and the PIF
delegation has been out here. We have spoken to them, and they
are very impressed with what they feel will be a strong input
to the other islands. We could contribute ideas and
initiatives, innovation, creative ways of dealing with how to
be a stronger economy, how to educate people, how to keep our
workforce developed, how to address challenges and barriers of
climates that we see in the islands. Also, how we can all work
together to have digital modernization throughout because it is
very key to communicate.
So, my passion in being a member of that is to be a member
of that, to be part of this whole Pacific Island Nations, and
to be able to contribute to the betterment of all of our
Pacific Island brothers and sisters, so we can learn from them
too what their challenge is so we can, again, deliberate,
discuss, and debate ideas in a very official capacity.
Mr. Moylan. Thank you, Governor. My next question, we both
work to eliminate the housing shortage that affects the people
of our island. Between the military buildup and the influx of
COFA migrants, demand would only increase further, squeezing
our residents. For the benefit of the Committee, could you
share some of the solutions you have been working on to address
the housing shortages.
Governor Guerrero. Yes, thank you very much.
We have been working very closely with, of course, our
realtors here in how we can increase inventory of housing, not
just ownership housing, but apartment and rentals. We have also
been working very closely, for the Committee's information,
with HUD and how HUD can help us with lower cost housing and
how HUD can help us with more tax credits to be able to afford
construction development of housing. We are working very
closely with our own government agencies to see how we can
develop lands that we own maybe through the Chamorro Land
Trust, or even Ancestral Land Trust, and have a developed
affordable housing there where we can bring in developers to
help us and we can provide the infrastructure for them. We are
working very closely, again, with our Federal partners to see
how we can take advantage of grants and opportunities through
financing for lower income houses. It is a big concern for us,
especially in light of the increased population we will be
having with the military buildup. We have also been working
with the military to see how they can increase their inventory
in their own bases so that they wouldn't have to take options
out in the civilian community because that does impact the cost
of rental and ownership.
Construction is another high cost of labor and homes, so we
are working, again, to see how we can bring in more workers to
help us with our construction opportunities. Supplies is
another big cost also.
Mr. Moylan. Thank you, Governor. About a minute left, just
a final question. Can you speak on how the University of Guam
can serve as a vehicle to further U.S. soft and hard power
goals in the Pacific.
Governor Guerrero. Yes. The University of Guam is the pre-
eminent high learning institution here in Guam, and since its
inception, there have been numerous graduates that they have
graduated that went into leadership opportunities like elected
officials, business entrepreneurs, and so forth, and the UOG
has been very influential in providing that education
opportunity throughout the regions also, as many of our COFA
citizens have come to Guam for higher education, and so
training, I think, is a very key thing in terms of when we look
at soft power. Educating ourselves to the ability that we can
improve our lives and our livelihood is so powerful, and that
is the importance, I think, of having our University of Guam
within this region.
Mr. Moylan. Thank you very much, Mr. Chairman. I yield
back.
The Chairman. The gentleman's time is expired. The Chair
now recognizes the gentlelady from Wyoming, who is also the
Subcommittee Chair on Indian and Insular Affairs.
Ms. Hageman, you are recognized for 5 minutes.
Ms. Hageman. Thank you. And I am very honored to serve as
the Chairman of the Subcommittee on Indian and Insular Affairs.
And I want everyone to understand that this isn't the only
hearing that we have held on the particular issues that we have
been addressing today.
The issues that we have discussed, the relationship with
our territories, as well as the other islands in the entire
region has been at the forefront of our interest throughout the
last 8 months, as we have been in Congress. We have held
several hearings in Washington, DC talking about the importance
of where you are located, and not only your importance to the
security and the geopolitical interest of the United States of
America, but to the world at large, because of the risk that we
all recognize are posed by China and the communist party that
runs that country.
Minister Udui, since taking office, President Whipps has
reported publicly, on numerous occasions, where Chinese ships
violate Palau's Exclusive Economic Zones or EEZ. Some of these
violations are Chinese surveying activities. In one recent
incident, a Chinese vessel conducted questionable maneuvers
over your undersea fiber optic cables. When it comes to the
surveying, does Palau have mineral or energy potential off its
waters that China may desire to sustain its massive economic
and military buildup.
Minister Udui. Thank you, Congresswoman. And yes, you are
correct, we believe there are undersea minerals that would be
of value economically, and they are surveying the cable, this
is very evident from the tracking that we see and the requests
that they officially make to enter our waters, but the vessels
that we see are not made for research, they are made for other
purposes. We also see that they are taking steps to name ridges
in our waters, we suspect, for future claim to take possession
of some of our northern waters.
Ms. Hageman. Those are highly concerning developments.
Through your role as the Finance Minister, are you able to
detail for the Committee the significance of these cables for
Palau's commerce and what a Chinese threat to these cables
would mean for your country.
Minister Udui. The cables are very significant to us.
Recently, new infrastructure that has really changed the
opportunities that are available to Palau for economic growth,
we have sought to take advantage of these opportunities and
looking at more opportunities in e-commerce, digital
government, and other new industries. This is something that we
recently found is something that we don't want to lose, as we
had a disruption in a cable recently, about a week's worth of
interruption, and we were unable to restore full service using
satellite backup.
So, it is very important that we do have that additional
cable that is being installed right now, and we hope that that
will provide the resiliency that we could rely on to attract
further investment to our island.
Ms. Hageman. That is good to hear. President Whipps has
also talked about those encroachments as part of a possible
retaliation from China for Palau's recognition of Taiwan.
Minister Udui, have you or President Whipps identified any
other adverse treatment from China based upon your recognition
of Taiwan?
Minister Udui. I think, in my experience and some of the
discussions I have had, are the subtle influences that they try
to exert politically, and that is many of the improvements we
are trying to make for our people are being resisted locally,
often without a good explanation as to why some of our
politicians are not in favor of some of these initiatives, such
as a minimum wage, and we think that there is a resistance to
see improvements that our President is proposing.
Ms. Hageman. And I would note, for anyone who is watching,
and this is certainly a sentiment I will bring back to my
colleagues in Congress as we consider the Compact renewals,
that when we discuss Chinese political warfare, there are
clearcut examples of China using these tactics to achieve one
of its main political goals, which is eliminating Taiwan's
diplomatic space.
And, again, I want to assure the folks who are here and the
people who have been so gracious to undergo our questioning and
visit with us today about these important issues, that you are
not forgotten, that the people in Congress really do recognize
the important role that you play and that the citizens out here
and the islands play in protecting world peace.
So, the messages that we have heard today, I think, are
very important. We will all be taking them back with us when we
go back to Washington, DC, but I want you to know that you are
being heard, loud and clear. Thank you so much. I yield back.
The Chairman. The gentlelady yields back. The Chair now
recognizes the Acting Ranking Member of the Committee. Ms.
Leger Fernandez, you are recognized for 5 minutes.
Ms. Leger Fernandez. Thank you, once again, Chairman, and
thank you, once again, our panel of witnesses, as well as all
of those who are tuned in and all of those who have joined us
today to listen and to participate in this hearing.
Something that I have been hearing the last couple of days
that we have been in the area is that it is the role of the
United States, and it is the role of the leadership of the
islands with whom we are meeting and traveling through today,
to protect not just the bases, right? That would be the wrong
approach, but it must also be to protect the places, to protect
the people, to protect the reefs and the culture, and this need
of participating with the United States. I am a Latina, so we
love it when familia just gets really big, you can always
incorporate more and more into that, and what you need do is
provide both the protection of those you love, but also the
security of those you love.
I want to touch on the issues around the comments with
regards to protecting the reefs, the air, the land, and the
culture, because I know that there are amazing things that have
been done. We will visit Palau and see how they have protected
your reefs and we can't take our own sunscreen, we have to use
yours, which I think is a great idea, but also, we heard
yesterday about the seahorses that your Representative used to
play with in the oceans off of this island and how some of them
were no longer there.
Could you talk a little bit more about the importance of
protecting the beauty that nature has provided us, even while
we are developing both commercial development as well as
military development, and how that is working and what should
we be doing differently? What advice would you give Congress
and this administration to do differently.
Maybe I will start with you, Honorable Udui, and see if
Governor Guerrero wants to add to that, as well, since we are
here.
Minister Udui. Thank you for the chance to talk about our
environment. We believe we work very closely with our
environment, protecting the source of life for us. It is a
small resource and we can't afford to lose it. It is something
that, over thousands of years, Palauans culturally have
developed a system for, so we continue to use those systems to
protect the reefs, which is so important for in-shore fisheries
and livelihoods of people without which they would suffer
absolute poverty.
So, it is important for us to continue to look at our
resources as something that we need to preserve. It is also a
great source of our economy. We have restricted harvesting of
certain resources in order to highlight those as economic
resources for tourism. Rather than to harvest one fish, that
one fish can bring in millions of dollars in tourist visits to
the country.
So, we have taken this approach in integrating
environmental protection and care into national policy.
Ms. Leger Fernandez. Thank you. Governor.
Governor Guerrero. I certainly agree that as an island, we
have very limited resources, and the wealth of our people is in
our culture, our land, our people, in protecting the
environment, and so forth. Our reef also has barriers. They are
defense against tsunamis and storms and so forth, so we need to
even be extra careful about protecting our reefs because it is
actually the security of our lives.
Also, marine life is very rich and can be used for
sustaining of livelihood, and so forth. It is very crucial. I
think your policies with, for example, the NEPA regulations
have been so very influential in adhering and having Federal
projects and the military adhere to those regulations and for
the influence of protecting our resources, our culture, and so
forth. So, that is what I think----
Ms. Leger Fernandez. Thank you for pointing that out. Also,
that was good to understand that in this instance, the NEPA
process has been useful.
As I close, I just do want to recognize, and we heard
testimony with regards to the impact from nuclear testing. I
come from a state where we exploded the very first nuclear
bomb. When you go to see Oppenheimer, I think it is one of
those things we need to recognize, that there was also fallout
and downwinders, and those who mined the uranium.
So, for that, do know that I will continue to raise those
issues because it is only fair that those who have sacrificed
for our national security also receive recognition and
compensation for it as well. Thank you very much.
Mr. Chairman, I yield back.
The Chairman. The gentlelady yields back.
I now recognize myself for 5 minutes of questioning. And,
again, thank you to the witnesses. And the theme I have heard
today is a sense of pride in this area, love for this culture,
love for the nature and the beauty of what surrounds you.
Also, I grew up a fisherman and how can you come to the
islands and not talk about fishing. It has already been
discussed some, wish I had more time to spend here and maybe
partake in some of that. But thinking about fishing, and Mr.
Udui, you brought this up a little bit about how the Chinese
don't really respect fishing conservation and how they have
abused that, but also, I know that as a fisherman, if I want to
catch a fish, the thing I want to do is put a very enticing
bait on that hook and I want to get it in front of that fish
and I want to make it irresistible. But unbeknownst to the
fish, there is always a hook. There is always a hook that is
going to take them out of the water, and probably to their
demise if I take them home and have them for dinner with my
family.
But I see the Chinese Communist Party on a fishing
expedition. I see them dangling bait out to people and saying,
here is something you must have, and we see what that means.
You talked about the hotels, how they booked hotels and then
they canceled them and said, well, if you will agree with us,
then we will ensure you have tourists coming back.
These economic incentives that they provide through their
Belt and Road Initiative often seem very appealing, but there
is always a hook. And I want to give all the panel an
opportunity to talk about how we convey the message to the
public that there is a hook, that these aren't just goodwill
gestures from the Chinese Communist Party.
And, also, what does it look like to have a real
partnership, both economic and strategic partnership, and what
message can we take back, as Members of Congress, to develop
that partnership from our end. Governor Guerrero, I will start
with you, and we will just go down the line.
Governor Guerrero. I think the message that you should take
back is those Chinese threats are very real here to our island.
And how you convey that could be through the stories that we
have told. I think it is very important also that we continue
the strong relationship with our Federal partners, our U.S.
partners, and in that way encourage more support this way
toward workforce development, education, and so forth because
that is how we are going to be securing and defensive in this
part of the world.
The Chairman. Thank you. Governor Palacios.
Governor Palacios. Thank you, Mr. Chairman.
Mr. Chairman, we see it on a daily basis. We see those
hooks and those baits being dangled every day. As I have
stated, a lot of our economies are driven by Chinese
investments. How do we address that? I think the Federal
agencies need to become more involved, not just in regulations,
but become more involved in the economic developments of our
island countries, not just in Guam, not just in the Northern
Marianas and Micronesia, but across the Pacific.
Many times, we have policies that were put on us, but no
guidance. We really need to ask our Federal agencies to provide
guidance and the over-arching policies of our Federal
Government, including those policies that were set into statute
by Congress.
The Chairman. Thank you. Mr. Udui.
Minister Udui. Thank you, Chairman Westerman, and I want to
thank many of your members of your Committee for all the
support that you have provided us in the process of
negotiations. Part of it resulting in the appointment of
Ambassador Yun. I appreciate the support that helped move our
negotiations along. Regarding the fishing analogy and the hook,
I think our challenge is getting our people to realize that we
need to look for long-term sustainability rather than short-
term gains, and this is something that I think during our
negotiations the United States was very receptive to, and the
agreement reflects that.
I think what has helped us is having that relationship with
the United States and having standards that determine how we
review decisions. I think it is also about looking at
sustainability and how diversification can be part of that
sustainability and the impact of the Chinese tourism strategy
in not just reserving rooms but buying rooms, even though there
were no tourists to occupy those rooms, eliminating the
opportunity for our other tourist segments, and we learned
diversification is important to tourism during the economic
financial crisis and the SARS fears in the region before. We
worked very hard to structure our tourism so that it is
diversified with many different countries, visitors.
And in the course of 2 years, the Chinese were able to push
back on that strategy and weaken us further, making it harder
for us to recover post-pandemic.
The Chairman. Thank you. Mr. Cantero.
Mr. Cantero. Thank you. I think the unique thing about the
group here is my country is the only country that has
diplomatic recognition with China.
We have had that for the last 30 years, but I want to
confirm that irrespective, even if it is a hundred years, it is
nowhere near in comparison to the value that we give to our
relationship with the United States, not even close. To our
people, to our country, the United States will always be, that
relationship, No. 1.
And in saying that, I also want to just reaffirm our
commitment to security in this region. Irrespective of that
relationship, we are committed to making sure that we work with
the United States and everything and anything that has to do
with security and defense, that commitment is firm and is
really, really strong.
On our side, we have our own internal rules of engagement
with that relationship, and I think it is spinning, we submit
that we do not engage with them on anything and everything that
has to do with security discussions. If it is raised, we drop
it completely. We do the same for loans. If it is raised, we
drop it completely. These are just parameters that we put in
place just to give us some good oversight. So, it has been
quite helpful in my view.
But I guess the strongest message that we can convey to
that relationship, that side, is perhaps support in passage of
the Compact. Passage of that, in my view, displays the true
relationship that exists between FSM, the United States, and of
course our brothers and sisters here. That is just my take on
it, but the messaging, I think, is really, really important at
the regional level, especially at the regional level. I think
whether we like it or not, the Compact itself serves as a
standard of testament of commitment of the United States in the
region, and our commitment to you.
I think whether we like it or not, Pacific Island countries
also look at the Compact as a way to ask themselves, if it
works then the commitment is there. So, there is a sense of
evaluation, I think, that is the way they see us from their
perspective. That is my take on it, but thank you so much for
your invitation to be here.
The Chairman. Thank you. And Mr. Ading, we will close with
your response.
Minister Ading. Thank you, Chairman Westerman. Before I
respond to your question, I just want to say thank you for
hosting our citizens in your state and providing them with
opportunities, jobs, education, health. The Marshallese
community in Arkansas is the biggest Marshallese community in
the United States, and thank you for supporting our citizens.
I have no doubt that there are IUU fishing activities in
RMI, in our waters, and we are trying our best with the
resources that we have to try to curtail these kinds of
activities. And with the partnership from the United States, we
appreciate that very much. We have our sea patrol divisions
that does surveillance of our water, and also, we have the
maritime authority doing the same.
We do have two fishing businesses in RMI, licensed
businesses, I should say, and we do export tuna for canning, so
that helps our economy. I can provide you with more detailed
information, Mr. Chairman, in writing. I just need to talk to
the right person first and then respond to you.
The Chairman. Thank you. And, again, thank you to our
witnesses. The members of the Committee may have some
additional questions for you, and we will ask you to respond to
those in writing. That will conclude our first panel. We are
going to take a short recess while we change out for the second
panel. The Committee will stand in recess until call of the
Chair, and I anticipate that is going to be at 12 sharp.
[Recess.]
The Chairman. The Committee will come to order. We will now
begin our second panel and I will introduce our witnesses. For
our second panel, we have the Honorable Tina Barnes, Vice
Speaker of the Guam Legislature from Hagatna, Guam; and Ms.
Irene Sgambelluri, World War II survivor from Talofofo, Guam.
Let me remind the witnesses that under Committee Rules,
they must limit their oral statements to 5 minutes, but their
entire statement will be included in the hearing record.
When you begin your testimony, the light will turn green
and when you have 1 minute left, the light will turn yellow. At
the end of 5 minutes, the light will turn red, and I will ask
you to please complete your statement. I will also allow all
witnesses on the panel to testify before Member questioning.
I thank the witnesses for being here, and I recognize Vice
Speaker Barnes for 5 minutes. You are recognized.
STATEMENT OF THE HON. TINA BARNES, VICE SPEAKER, GUAM
LEGISLATURE, HAGATNA, GUAM
Ms. Barnes. Chairman Westerman, Committee members and
distinguished Pacific leaders, I am Tina Muna Barnes, Vice
Speaker of the 38th Guam Legislature. As the longest serving
member of the legislature and a daughter of Guam, I extend a
warm welcome and express gratitude for your visit to understand
our challenges firsthand.
My testimony today is based on my personal experience from
my travels throughout the region. As a former national athlete
and now a policy maker for Guam, I have witnessed the thrives
of China's soft power diplomacy in our region, from airports to
critical infrastructure, to government landmarks, and people-
to-people exchanges, China has made it a point to make known
their presence, open checkbooks, and influence right here in
our backyard.
I am the granddaughter of Col. Juan Muna, whom the Guam
Army Guard headquarters is named after. He organized the Guam
Militia, a volunteer force of Chamorros who risked their lives
to fight alongside the Americans during World War II.
My late husband is a U.S. Air Force veteran who spent his
final days fighting for his life in Arizona navigating
bureaucracy that is the Department of Veterans Affairs. My son
is an Air Force veteran, and my grandson-in-law is deployed
with the Army. While I may not be able to vote for my loved
ones' Commander in Chief, I understand duty.
This same sense of patriotism and duty is shared by many on
Guam. I am not a defense expert, but I share with you some
ideas on how the United States can bolster our capabilities in
this region.
First and foremost, we need to come to an understanding
that while Guam is a territory of the United States, we are
home to about 160,000 Americans, both sons and daughters of
Guam who serve our country, as well as your constituents
stationed on Guam protecting democracy and promoting peace.
Despite the nearly $600 billion passed by Congress for
infrastructure, our power infrastructure remains damaged from
Super typhoon Mawar, causing daily outages. We are a vital
defense point, but lack proper resource allocation.
Esteemed Members, I understand that some of you serve on
the committees that have oversight on justice and immigration.
I come before you today, cognizant of the issues you face at
the southern border.
Considering our small Pacific community population decline,
we lack skilled laborers and the growing DOD presence compete
for a limited workforce. I urge support for more workers,
especially for projects outside the fence to tackle
unaffordable housing and other infrastructure challenges.
Many of you remember the problems caused by COVID-19 on our
supply chains. During this time, I noticed an uptick in loading
cargo planes from China landing on Guam to refuel.
During the pandemic, when traditional supply chains were
disrupted, Guam's strategic location posed as a solution to the
supply chain issues. I passed legislation creating the
Transshipment Task Force to study the success of such an
industry on Guam. Today, that study has been funded by U.S. EDA
and is currently being conducted, and based on my research and
conversations with U.S. Commerce, there needs to be some policy
changes to make this happen.
Imagine a world where China decides to cut off the United
States from their exports. This would leave us and our allies
in the Pacific in limbo. Utilizing the deepest port in the West
Pacific right here on Guam would not only strengthen the
American supply chain, but create American jobs, boosting the
American economy. I hope to be able to count on your support to
make this a reality.
More importantly, especially with the growing challenges in
our region, when DOD assets needs critical supplies to maintain
force readiness, making Guam a regional hub for transshipment
and trade would make for a better equipped military.
But this can't be done piecemeal. This would require a
collective approach at examining our infrastructure,
strategically investing in our island the needs of the civilian
population in Guam, while reaping the added benefits of
equipping the best war fighters in the world.
Guam is the hub of the Pacific, and one way to demonstrate
this is the jurisdiction of Coast Guard Sector Guam led by
Capt. Simmons and his predecessor, Capt Chase. I had the
opportunity to learn exactly what they do for Guam and the
region. The men and women of the Coast Guard pride themselves
on being a force for good, and results speak for themselves.
Having a jurisdiction of almost 2,000,000 square miles, Sector
Guam ensures that all those who sail our waters are responsible
maritime partners.
As you may know, most of commerce in the Pacific comes
through Guam. With their insight and genuine desire to curb
illicit shipping, we passed legislation to implement a digital
manifest wherein Coast Guard intelligence can begin conducting
their assessment on every container coming into Guam,
regardless of their final destination in the Pacific. This has
been one of the major deterrents for curbing illegal shipments
in our homes.
Not only does Sector Guam provide a critical source of
protecting our maritime ports, a vital hub supporting
commercial defense interest in the Pacific, but the impact that
the Coast Guard has on the region is something the entire blue
continent takes to heart.
Whether it be preventing boats with immigrants of our
enemies from entering Guam and other neighbors illegally, or
our countless successful critical search and rescue operations,
I urge each and every one of you here today to continue
furthering their capabilities here on Guam.
The robust partnerships that the Coast Guard has brought to
the region is evident in the regular successes we see right
here.
I thank you for your time and look forward for your
continued partnership. God bless Guam, God bless our troops,
and God bless America. Si yu'us ma'ase [thank you].
[The prepared statement of Ms. Barnes follows:]
Prepared Statement of Tina Rose Muna Barnes, Vice Speaker,
37th Guam Legislature
Chairman Westerman, Committee Members, and distinguished Pacific
leaders, I'm Tina Muna Barnes, Vice Speaker of the 37th Guam
Legislature. As the longest-serving member of the Legislature, and a
daughter of Guam, I extend a warm welcome and express gratitude for
your visit to understand our challenges firsthand.
My testimony today is based on my personal experience from my
travels throughout the region. As a former national athlete and now a
policy maker for Guam, I've witnessed the rise of China's Soft Power
diplomacy in our region. From airports to critical infrastructure, to
government landmarks, and people-to-people exchanges, China has made it
a point to make known their presence, open checkbooks, and influence,
right here in our backyard.
I am the granddaughter of Colonel Juan Muna, whom the Guam Army
Guard Headquarters is named after. He organized the Guam Militia, a
voluntary force of Chamorros who risked their lives to fight alongside
the Americans during World War II. My late husband is a United States
Air Force Veteran, who spent his final days fighting for his life in
Arizona navigating the bureaucracy that is the Department of Veterans
Affairs. My son is an Air Force Veteran, and my grandson in law is
deployed with the Army. While I may not be able to vote for my loved
ones' Commander in Chief, I understand duty. This same sense of
patriotism and duty is shared by many on Guam. I am not a defense
expert, but I share with you some ideas on how the United States can
bolster our capabilities in the region.
First and foremost, we need to come to an understanding that while
Guam is a territory of the United States, we are home to about 160,000
Americans--both sons and daughters of Guam who serve our country, as
well as your constituents stationed on Guam protecting democracy and
promoting peace. Despite the nearly $600 billion passed by Congress for
infrastructure, our power infrastructure remains damaged from Super
typhoon Mawar, causing daily outages. We're a vital defense point--but
lack proper resource allocation.
Esteemed members, I understand that some of you also serve on
Committees that have oversight on Justice and Immigration. I come
before you today cognizant of the issues you face at the southern
border. Considering our small Pacific community's population decline,
we lack skilled laborers and the growing DOD presence competes for a
limited workforce. I urge support for more workers, especially for
projects outside the fence, to tackle unaffordable housing and other
infrastructure challenges.
Many of you remember the problems caused by COVID-19 on our supply
chains. During this time, I noticed an uptick in loaded cargo planes
from China landing on Guam to refuel. During the pandemic, when
traditional supply chains were disrupted, Guam's strategic location
posed as a solution to the supply chain issues. I passed legislation
creating the Transshipment Task Force to study the success of such an
industry on Guam.
Today, that study has been funded by the US EDA and is currently
being conducted. Based on my research and conversations with US
Commerce, there needs to be some policy changes to make this happen!
Imagine a world where China decides to cut off the US from their
exports--this would leave us and our allies in the Pacific in limbo.
Utilizing the deepest port in the West Pacific right here on Guam,
would not only strengthen the American supply chain but create American
jobs boosting the American economy. I hope to be able to count on your
support to make this a reality. More importantly, especially with the
growing challenges in our region, when DOD assets need critical supply
to maintain force readiness, making Guam a regional hub for
transshipment and trade would make for a better equipped military.
But this can't be done piecemeal. This would require a collective
approach at examining our infrastructure, strategically investing in
our island--the needs of the civilian population in Guam, while reaping
the added benefit of equipping the best warfighters in the world.
Guam is the hub of the Pacific, and one way to demonstrate this is
the jurisdiction of Coast Guard Sector Guam. Led by Captain Simmons,
and his predecessor Captain Chase, I had the opportunity to learn
exactly what they do for Guam and the region. The men and women of the
Coast Guard pride themselves on being a ``force for good'' and the
results speak for themselves.
Having a jurisdiction of almost 2 million square miles, Sector Guam
ensures that all those who sail in our waters are responsible maritime
partners. As you may know most of commerce into the Pacific comes
through Guam. With their insights and genuine desire to curb illicit
shipments, we passed legislation to implement a digital manifest,
wherein Coast Guard intelligence can begin conducting their assessments
on every container coming into Guam, regardless of their final
destination in the Pacific. This has been one major deterrent for
curbing illegal shipments to our homes.
Not only does Sector Guam provide a critical resource in protecting
our maritime port, a vital hub supporting commercial and defense
interests in the Pacific, but the impact that the Coast Guard has on
the region is something that the entire Blue Continent takes to heart.
Whether it be preventing boats with immigrants of our enemies from
entering Guam and our neighbors illegally, or the countless successful
critical search and rescue operations, I urge each one of you here
today to consider furthering their capabilities here in Guam. The
robust partnerships that the Coast Guard has brought to the region is
evident in the regular successes we see right here before us.
I thank you for your time and look forward to the continued
partnership. God Bless Guam, God Bless our Troops, and God Bless
America. Si Yu'us Ma'ase!
______
Questions Submitted for the Record to the Hon. Tina Muna Barnes, Vice
Speaker, Guam
The Honorable Tina Muna Barnes did not submit responses to the
Committee by the appropriate deadline for inclusion in the printed
record.
Questions Submitted by Representative Westerman
Question 1. Given the fact that the U.S. is just opened the new
Marine Corps Base Camp Blaz in Guam, can you speak on the economic and
security benefits of continued U.S. military development in Guam?
______
The Chairman. Thank you, Ms. Barnes.
The Chair now recognizes Ms. Sgambelluri for 5 minutes. You
are recognized, ma'am.
STATEMENT OF IRENE SGAMBELLURI, WORLD WAR II SURVIVOR,
TALOFOFO, GUAM
Ms. Sgambelluri. Good morning and Hafa Adai. Members of
Congress, leaders from the Pacific and dignitaries, thank you
for coming to Guam for this important hearing to discuss the
concerns our island has regarding the rising tensions with the
Peoples' Republic of China.
My name is Irene Ploke Sgambelluri and I am 92 years old.
[Applause.]
I am testifying before you today as a daughter of a World
War II veteran, mother, grandmother, great grandmother, and
World War II survivor. I love my island and I believe that this
is the most beautiful place in the world, not only because of
the natural beauty, but also because of what it represents.
Guam is the center of American values in the middle of the
Pacific Ocean.
I am proud to testify before you today in this field
hearing to signify the importance our island has in our nation.
Almost 80 years ago, I lived through the worst conflict our
island has faced, World War II. I was just 10 years old. On
December 8, 1941, the feast of Guam's patron saint, Santa
Marian Kamalen, the imperial Japanese military began attacking
and invading our island.
In the early days of the war, my father, John F. Ploke, a
U.S. Navy Pharmacist Mate First Class was captured and was a
prisoner of war in Japan. I never had a chance to say goodbye
and I feared I would never see him again. War ripped my family
apart and took away every aspect of life I had known up until
that point.
During the day, my siblings and I were forced to attend
Japanese school, where learning the Japanese language was
mandatory. In the morning, students would face the sun, bowing
to the emperor, and then exercise. My brother, sister, and I
were physically assaulted in school. They would pull my hair,
drag me, and hit me because I am an American. When we were not
in classes, we were required to work in the field under the hot
and scorching sun. We were deprived of food and water for
hours.
Shortly after Liberation Day, my father returned from
Japan. I was overcome with emotion to see that he had survived
and that our family was reunited. He had suffered immensely,
and I hardly recognized him. He brought back with him a black
book with the names of American prisoners of war who were
imprisoned with him. I have this book today and I am proud to
have this as a lasting memory of my family.
The war was the most difficult and painful period of my
life, and this is coming from someone with cancer.
While I have told my stories many times, I still find these
memories agonizing. While I was one of the lucky ones to
survive, I nearly lost my family, my home, and the life I knew.
History cannot repeat itself. In other words, Guam should
never be the focal point of a violent and brutal conflict in
the Pacific. Nobody should ever have to endure what I went
through. I would not wish that pain and despair on any worse
enemy. I cannot let that happen to my grandchildren, great
grandchildren, and the people of this island.
Japan attacked us because of our strategic and important
location in the Pacific. With control of Guam, Japan could
control the Pacific. China sees the importance of the Pacific
Islands, as well. However, we will not let them have control
over Guam and the Pacific region. No way.
[Applause.]
I will forever be thankful to the United States when they
liberated our island 79 years ago on July 21, 1944.
I was just 13 years old, and I was proud and happy to see
service members land on Asan beach. To me, their presence
signified more than just the end of the Japanese occupation in
Guam, it signifies liberty, democracy, and freedom.
These American values have been forged in our culture here
in Guam, and we are proud to be where America's day begins. The
United States needs to take every possible action to ensure
that these values remain a part of our lives, no matter what.
The Federal Government has supported Guam for as long as I
can remember. You cannot give up on us now. If there is ever a
time to support the island, it is now. With your commitment to
protecting Guam, I can sleep at night knowing my community,
family, and friends are protected by the full faith of our
Armed Forces and government.
Un Dangkulu na si yu'us ma'ase [a big thank you], thank you
very much for having me this morning and allowing me to share
with you my story and the trust I have in the United States of
America. God bless you, God bless the United States of America,
and God bless Guam.
[Applause.]
The Chairman. Thank you, ma'am.
Ms. Sgambelluri. If you have any questions for me, please,
refer them to Congressman James Moylan.
[Laughter.]
Ms. Sgambelluri. I will answer them at a later date in
writing, which will be submitted into the record.
Thank you ever, ever so much.
[Applause.]
Ms. Sgambelluri. God bless you all, coming from a 92-year-
old lady.
[The prepared statement of Ms. Sgambelluri follows:]
Prepared Statement of Irene Sgambelluri
Hafa Adai, Members of Congress, leaders from the Pacific, and
dignitaries: Thank you for coming to Guam for this important hearing to
discuss the concerns our island has regarding the rising tensions with
the People's Republic of China.
My name is Irene Sgambelluri, and I am 92 years old. I am
testifying before you today as a daughter of a World War II veteran,
mother, grandmother, great-grandmother, and World War II Survivor.
I love my island and I believe that this is the most beautiful
place in the world, not only because of its natural beauty, but also
because of what it represents. Guam is the center of American values in
the middle of the Pacific Ocean. I am proud to testify before you today
in this field hearing to signify the importance our island has in our
nation.
Almost 80 years ago, I lived through the worst conflict our island
has faced: World War II. I was just 10 years old when on December 8,
1941, the feast of Guam's Patron Saint, Santa Marian Kamalen, the
Imperial Japanese military began attacking and invading our island.
In the early days of the War, my father was captured and was a
Prisoner of War in Japan. I never had a chance to say goodbye and I
feared I would never see him again. War ripped my family apart and took
away every aspect of life I had knew up until that point.
During the day, my siblings and I were forced to attend Japanese
school, where learning the Japanese language was mandatory. In the
morning, student would face the sun, bow to the emperor, and then
exercise. My brother and I were physically assaulted in school; they
would pull my hair, drag me, and hit me.
When we were not in classes, we were required to work in the fields
under the hot and scorching sun. We were deprived of food and water for
hours.
Shortly after Liberation Day, my father returned from Japan. I was
overcome with emotion to see that he had survived and that our family
was reunited. He had suffered immensely, and I had hardly recognized
him. He brought back with him a black book filled with the names of
American Prisoners of War who were imprisoned with him. I have this
book today and am proud to have this as a lasting memory of my family.
The War was the most difficult and painful period of my life, and
this is coming from someone with cancer. While I have told my story
many times, I still find these memories agonizing. While I was one of
the lucky ones to survive, I nearly lost my family, my home & the life
I knew.
History cannot repeat itself. In other words, Guam should never be
the focal point of a violent and brutal conflict in the Pacific. Nobody
should ever have to endure what I went through. I would not wish that
pain and despair on my worst enemy. I cannot let this happen to my
grandchildren, great-grandchildren, and the people of this island.
Japan attacked us because of our strategic and important location
in the Pacific. With control of Guam, Japan could control the Pacific.
China sees the importance of pacific islands as well; however, we will
not let them have control over Guam and the Pacific region.
I will forever be thankful to the United States. When they
liberated our island 79 years ago on July 21, 1944, I was just 13 years
old. I was proud and happy to see servicemembers land on Asan Beach. To
me, their presence signified more than just the end of the Japanese
occupation in Guam. It signified liberty, democracy, and freedom.
These American values have been forged in our culture here in Guam
and we are proud to be where America's day begins. The United States
needs to take every possible action to ensure that these values remain
a part of our lives no matter what.
The federal government has supported Guam for as long as I can
remember. You cannot give up on us now. If there is ever a time to
support the island, it is now. With your commitment to protecting Guam,
I can sleep at night knowing my community, family, and friends are
protected by the full faith of our armed forces and government.
Un Dangkulu na si yu'us ma'ase, thank you very much, for having me
this morning and allowing me to share with you my story and the trust I
have in the United States.
God Bless you, God bless the United States of America, and God
Bless Guam.
______
Questions Submitted for the Record to Ms. Irene Sgambelluri, World War
II Survivor
Ms. Sgambelluri did not submit responses to the Committee by the
appropriate deadline for inclusion in the printed record.
Questions Submitted by Representative Westerman
Question 1. When comparing what you saw and felt when the Empire of
Japan invaded and occupied Guam, and what you are seeing and feeling
today from the People's Republic of China's increasing activities in
the island, what is the same? What is different?
Question 2. Do you believe that your experiences of your generation
are still felt and remembered in Guam today? If not, what should be
done to help preserve and remind future generations on the importance
of protecting the homeland and the horrors that come with failing to
protect it?
______
The Chairman. Thank you, ma'am. The Chair will now
recognize Members for questions. I want to first start with the
gentleman from Colorado. Mr. Lamborn, you are recognized for 5
minutes.
Mr. Lamborn. Mr. Chairman, I found that very touching from
both of the witnesses. I appreciate you being here. For the
sake of time, I will submit my questions for the written record
and yield back to the Chairman.
The Chairman. The gentleman yields back. The Chair now
recognizes the gentleman from the Northern Marianas. Mr.
Sablan, you are recognized.
Mr. Sablan. Thank you very much, Mr. Chairman. Saina, si
yu'us ma'ase, gracias ni un gasta tiempo'mu pa un [thank you
for your time]. Thank you for coming here and sharing with us
the horrible experience of war that you went through. My 92-
year-old mom and I had an argument the other day and now I have
to call her and apologize. Geez. But thank you for being here.
Vice Speaker, I do have just a couple of questions for you,
but first, happy birthday. I understand it is your birthday
today.
Ms. Barnes. Si yu'us ma'ase [thank you].
Mr. Sablan. Of course, Guam, my district and across the
nation we face similar challenges. What can Congress do to best
help Guam? In your opinion, if given an opportunity, what would
you ask for.
Ms. Barnes. Si yu'us ma'ase [thank you], thank you,
Congressman, and to the panel members here. If I had to answer
that right now, I would say a permanent authority to bring the
H2-B labor here, a financial partnership with our power, water,
and wastewater utilities, and I would be remiss if I didn't
include an expanded and fully staffed Veterans clinic, because
we here on Guam, per capita, have the highest enlistment rate,
and our veterans are here in the thousands and thousands. And
if we could have a fully staffed veterans clinic, that would
help us.
Si yu'us ma'ase put enao na question-mu [thank you for that
question], Congressman.
Mr. Sablan. Thank you, and I yield back.
The Chairman. The gentleman yields back. The Chair
recognizes the gentlelady from American Samoa, Ms. Radewagen.
Mrs. Radewagen. I want to welcome and thank the panel for
appearing today. Both of your statements have been very
touching, and I don't have any questions at this time, but I
will submit something later for you to answer for the record.
Mrs. Sgambelluri, you are amazing.
Ms. Sgambelluri. Thank you.
Mrs. Radewagen. Thank you very much for your insights, and,
of course, Vice Speaker Barnes, si yu'us ma'ase [thank you] to
both of you.
Ms. Barnes. Buen prubechu [you are welcome].
Mrs. Radewagen. I yield back, Mr. Chairman.
The Chairman. The gentlelady yields back. The Chair
recognizes the gentleman from Wisconsin, Mr. Tiffany.
Mr. Tiffany. Thank you, Mr. Chairman. I am very surprised,
having a mother that is about to turn 92 years old here in the
month of September, that Mr. Sablan is arguing with his mother
these days.
The Chairman. The gentleman will suspend. The Committee
will be in recess.
[Pause.]
The Chairman. The Committee will come to order. The
gentleman is recognized. Mr. Tiffany.
Mr. Tiffany. Thank you very much, Mr. Chairman. I love
those words that they had on their signs, peace, diplomacy.
That is what the United States of America has always stood for,
and you see it here with the testimony that we are hearing
today and the messages that we have been receiving here over
the last couple days. We stand with respect with all of you. We
don't seek to use underhanded means and things like that to try
to gain authority. We have always tried to be above-board in
the United States of America. We are imperfect, but we have
always done it from a position of respect, and that is why we
come here today before all of you, is with respect for what you
have to say, and that is the message we will take back to the
American people.
I just want to ask Ms. Sgambelluri, do you have any
lessons, ma'am, do you have any lessons for the 21st century
that we should remember as a result of your experience from the
20th century.
Ms. Sgambelluri. You have to repeat it because sometimes I
have poor hearing. When you are 92 years old, you don't expect
miracles. I am sorry, can you repeat the sentence again, sir.
Mr. Tiffany. Do you want to repeat the question to her?
Ms. Barnes. Yes.
Mr. Tiffany. What lessons should we remember now?
Ms. Sgambelluri. All I am going to share is that for
everyone to love each other, take care of your family, be kind
and always support the United States of America, and don't let
any other enemy come to be involved in our island.
We don't want that to happen, especially China.
Mr. Tiffany. I just want to highlight one word that Ms.
Sgambelluri used in her testimony, and that was the term
liberty. It is one of the most beautiful words that we have in
the English language. And if you go back to our founding
documents, you will oftentimes see that our founders have used
the term liberty as they use the term freedom, and there really
is a distinction because to me, liberty means freedom, but it
also means responsibility for your actions and that is
something that we have always done in the United States of
America.
As I said earlier, we are imperfect, but we usually take
responsibility for our actions if we are imperfect at any time.
And I just want to highlight, based on my question there,
that we are deciding right now, in the 21st century, and that
is why I am so grateful for all of you standing together and
standing with the United States of America and why we are here
with you, as Americans, that we stand with you also.
We are deciding right now whether the 21st century is going
to be an American century, just like the 20th century was, with
our values, or is this going to be a PRC century.
And we have no quarrel, as the Chairman said earlier, with
the Chinese people, but we do have a disagreement with their
government. And we are deciding now, as we speak, are we going
to hold those values, are we going to have a strong foreign
policy, are we going to have a strong economy where we become
more responsible with our spending at the Federal level, which
has led to the inflation we have, are we going to be energy
independent here in America? Are we going to continue to have
uncontrolled immigration at our borders.
Those things are all weakening America, and a weak foreign
policy is certainly something we don't want to have. And I can
tell you, that is why we are here, that is why we are here in
Guam today, is to emphasize to you that we believe in a strong
America, and we are going to take that message back, that you
all want to be partners in that as we go forward.
So, let's make the 21st century also a great century, a
great American century that emphasizes peace and prosperity
throughout the world here in the blue Pacific.
We really look forward to working with all of you, and I
yield back, Mr. Chairman.
The Chairman. The gentleman yields back. The Chair
recognizes the gentlelady from New Mexico.
Ms. Stansbury, you are recognized for 5 minutes.
Ms. Stansbury. Thank you, Mr. Chairman. And I also want to
say thank you to Madam Speaker and happy birthday, Madam
Speaker, as well as to Ms. Sgambelluri. Thank you so much for
being here and sharing your story once again. Also, with
honoring us with the opportunity to hear and to also honor your
experiences. And hearing the pain, it is difficult to hear, but
we are grateful that you were willing to share your story again
in this public forum.
And one of the things I was reflecting on as I was
listening to you share your story, is the shared history that
New Mexicans have with the People of Guam, because New Mexico
is a home of many, many veterans who served in World War II,
and in particular, over 900 members of the New Mexico National
Guard who were captured at Bataan, and 900 of our New Mexicans
who were forced into POW camps, and many of them never
returned.
And Congresswoman Leger Fernandez and I were actually
talking about many of our veterans the other day, and how many
people we grew up with, because of the pain and the horrors
that they experienced, never spoke about it ever again, but we
know their stories and we know the losses.
So, for us, as New Mexicans, our history is inextricably
tied with the people of Guam and the people who served in our
great military here in the South Pacific. So, I wanted to just
honor that and share that history, as well.
I was struck, in particular, I wrote down the comment that
you made, Ms. Sgambelluri, that Guam and our island nations are
the center of American values and the center of the Pacific
Ocean, and also that you noted that those values are liberty,
democracy, and freedom.
And I think like other Members on the panel today, that is
really why we are here. It is not just to address the strategic
and military concerns that we have and economic concerns we
have with the PRC, but to really celebrate and uphold our
shared values as Americans, and as allies in the region.
So, I want to thank everyone who came out to be a part of
this. We have heard a lot this morning from various panelists,
but I think it is important to really take a moment to talk
about what we are seeing as the PRC's interventions and why
they are so concerning to us, and the ways in which the PRC is
trying to project power in the region and why that undermines
our shared values of democracy. The ways in which the PRC is
undermining strategic and economic interest in the area, is
trying to reshape narratives in the region, and even to retell
history to align with their own diplomatic and economic
interests and the ways in which this threatens the stability
and values of democracy in the region. And we heard on the last
panel why it is engrained, and I think Ms. Sgambelluri, your
story really reflects that painful history, that we know what
happens if we let democracy slip away.
So, Mr. Chairman, I just want to say one more time, thank
you so much for helping to bring the Committee and our Task
Force here. This is such important testimony, and thank you,
again, to our witnesses for sharing your stories.
Ms. Sgambelluri. Thank you.
Ms. Stansbury. I yield back.
The Chairman. The Chair now recognizes the gentleman from
Guam. Mr. Moylan, you are recognized for 5 minutes.
Mr. Moylan. Thank you, Mr. Chair. Madam Vice Speaker, of
course, happy birthday, and also to your twin sister as well.
Ms. Barnes. Thank you.
Mr. Moylan. I want to thank you for highlighting the need
for the expanded Coast Guard assets in Guam and within the
region. Of course, this is an issue I have been tracking for
future legislative and administrative actions, and I believe it
is an issue we can work together on moving forward. Could you
please elaborate for the Committee why this issue is so
important for the people of Guam and for the Indo-Pacific
region.
Ms. Barnes. I think, Congressman, with the collaboration
and support of Uncle Sam to this part of the region, as we look
at peace through strength, and as we look at these threats that
are coming our way, and knowing that we are American Asian or
Asian America, I think the collaboration with Uncle Sam making
sure that the peace through strength is imbedded and engrained
in here through the protections, through the authorization of
bringing resources to us. It is who we are when Uncle Sam owned
us or bought us in 1898 from the Spaniards, and it is because
of that that we continue to believe in the true liberties of
democracy today and the protections of our waters, and the
protection of our military personnel coming to our islands and
making sure that those protections are here.
I think that with strength and helping us within this blue
continent and protecting our borders is most key, and I think
that is why we need to have Uncle Sam here in this region.
Mr. Moylan. Thank you. Just one more quick question for
you, Madam Vice Speaker. Could you speak on the benefits of
granting SSI benefits to both Guamanians and FAS migrants.
Ms. Barnes. I think as Americans, parody should be shared,
and what is given with the folks in the national level should
be shared here. You talked about one America, you talked about
not us versus them, you talked about us as one family, and I
think that when benefits are provided to one, they should be
provided for all who call America a part of their family.
Mr. Moylan. Thank you. And for my final question, Mrs.
Sgambelluri, thank you for your testimony.
Could you please talk a little about the position you think
Guam would be put in if we did not have the U.S. military
presence like we do now.
Ms. Sgambelluri. I have lived through a conflict in Guam
before and it was the scariest time of my life. I am worried
that this will happen again if Guam is not given the proper
attention by the U.S. military.
Mr. Moylan. Thank you, Mrs. Sgambelluri, that was well
said. I really appreciate and thank you for sharing with us
here today.
Ms. Sgambelluri. Thank you, Congressman.
Mr. Moylan. Mr. Chairman, I yield back.
The Chairman. The gentleman yields back. The Chair
recognizes the gentlelady from Wyoming.
Ms. Hageman, you are recognized for 5 minutes.
Ms. Hageman. Thank you. And, again, it is so wonderful to
be here. Earlier this summer, as the Chairman of the
Subcommittee on Indian and Insular Affairs, I was invited to
speak at the ceremony for the 79th anniversary of the
liberation of Guam in Washington, DC, and it was a fabulous
ceremony. I am learning more about your culture, I have really
enjoyed getting to know your Congressional Representative. He
has done an excellent job of representing your interests and
being your voice back in Washington.
And Mrs. Sgambelluri, listening to you talk about what it
meant when you saw those soldiers landing on Guam 79 years ago,
and you said that this represented for you, liberty, democracy,
and freedom.
And I do think those are the words what the United States
has always aspired to be, not only for all of us who are
Americans, but for others around the world, as we have
liberated other areas, as well, as we have gone through the
scourge of things like World War I and World War II.
And now we are facing what has been referred to several
times today as an existential threat, and we know what that
existential threat is, it is the PRC, it is the Chinese
Communist Party, and they have made no bones about what their
intent is.
In fact, they have been in South Africa most recently
talking about their efforts to displace, really, what for so
many of us is embodied in those words, the liberty, democracy,
and freedom. And all we need to look at is what has happened in
Hong Kong over the last couple of years, the response to COVID-
19, the reaction to that particular situation. And we can see
what the future would be if they ascend, and we descend.
So, again, that is why we are here and that is why we have
been focusing on this issue for the last several months, pretty
much since the beginning of the 118th Congress, as a Committee,
as the Natural Resource Committee, and as the Subcommittee as
well.
One of the things that has been a great concern to me is
related to the PRC's illegal, unreported, and unregulated
fishing or the IUU practices in the vicinity of Pacific Island
countries.
And Ms. Barnes, just very quickly, I would like to ask you
a couple of questions about the impact that that has had on
Guam and will continue to have. These actions show that the PRC
not only disrespects the sovereignty of these islands, but it
is a significant national and international security threat.
How has the PRC's IUU fishing impacted the economy of Guam
and the likelihood of your citizens?
Ms. Barnes. When you take away from the livelihood of the
community, you take away the very vital strength for them to
survive. That threat is real, and we need the support coming
from Uncle Sam.
I want to share with you, not too long ago, the 35th Guam
Legislature Speaker, I did receive a call from the Ambassador
of China saying that I should advocate for a ``One China''
plan. And I said, way above my pay grade, this is not right, we
are Americans and that we are here peacefully. And if this is a
threat, then I think that you have really asked something way
above my pay grade.
But in all fairness to that, as you see that coming here
and you see what is happening with what they can do without the
support from Uncle Sam, we will then have what Auntie Irene
Sgambelluri is so afraid to happen to our children, our
grandchildren, our great grandchildren, and that is peace and
democracy. So, we can't allow that to happen.
Ms. Hageman. Well, I agree with you, and I can assure you
that every one of the people on this panel will be taking that
message back to Washington, DC describing the interests of Guam
and the surrounding islands, and why they are so important, not
only to all of us, as American citizens, but again, to freedom
around the world.
Do you have any suggestions on how the United States can
increase cooperation and coordination to address these unlawful
activities from the PRC?
Ms. Barnes. I think a full collaboration with our brothers
and sisters of the blue continent is very key and important. I
think, as we come together as one big, blue continent and
having over 212 million miles, I think we have a big block of
people who believe in freedom and democracy, and it starts with
bringing all of us together and sharing in the principles, the
values, the equipment, and the resources that it needs to
protect the freedoms that we have today. That pure
collaboration is needed.
Ms. Hageman. I just want to say how inspiring it is to sit
here and listen to the folks from Guam describe their
patriotism and what they are fighting for and what their vision
of the future is, and I want to thank you from the bottom of my
heart to be able to participate in this. With that, I yield
back.
The Chairman. The gentlelady yields back. The Chair now
recognizes the Ranking Member, Ms. Leger Fernandez, for 5
minutes.
Ms. Leger Fernandez. Thank you so much, Chairman. Mrs.
Sgambelluri, what powerful words you shared with us, what a
powerful story you shared with us. And the fact that you are
sharing the story which you, yourself, said hurts every single
time you have to say it. That describes the love that you have
for your Guam, the love that you have for the United States of
America, the love that you have for peace, freedom, and
liberty, and I thank you so very much for sharing that love
with us today. It was beautiful and it touched us.
Ms. Sgambelluri. Thank you ever so much. God bless you all.
Ms. Leger Fernandez. And God bless you as well. I wanted to
really thank you, Madam Vice Speaker, and formerly Speaker, for
sharing the importance of treating equal as equal, so that if
you are an American citizen who resides in Guam, that you will
receive the same treatment as an American citizen residing in
New Mexico. And I think that that was very important for us to
realize that, especially given the high participation and the
patriotism that the people of Guam show in serving.
Can you talk a little bit more about the importance of
having reliable VA services and medical services here in Guam.
Ms. Barnes. Thank you very much, Congresswoman Fernandez.
We are thousands and thousands of miles away where expertise
and specialties of medical need and what have you, mentalists,
are needed. We are so far away and with the little resources
that we have here, we have to travel and spend so much money.
Don't have to go far. I said earlier my husband had a very rare
lung disease and needed a transplant, and the specialty is not
here. We have great doctors here, but we do not have that
specialty and we had to pay, and having to go through the
bureaucracy of not just the paper pushing, but the literally
telling the story over, and over, and over again, the veterans
here will tell you, they don't know who else to turn to. We
have non-profit organizations to help fill out forms, to help
get from one Federal agency to another, sometimes to no avail.
We need better collaboration. We need a veteran clinic that is
fully staffed. We need workers that can help our veteran
families here because we believe in freedom and we believe in
protecting who we are as Americans, and yet a lot of times we
feel that when needing the help back, that support is not
provided to us.
Ms. Leger Fernandez. Right. And I think it is important
that when we say the words ``thank you for your service,'' that
we must back up those words with providing you with the
services that you have earned and deserve. Because if we are
going to say the words, mean it when you pass legislation, when
you pass appropriations, to fund the VA at that level.
I wanted to ask a little bit, to the extent you might be
aware of it, the Biden administration released the first ever
strategy for the Pacific Island Partnership. What have you
seen, and what do you think is important with regards to that
partnership and how it may work and influence what is happening
here.
Ms. Barnes. I think it is very important. In order for it
to work, you need to engage with our islands. And inclusive of
our island brothers and sisters, I think with the partnership
and the plan, in order for it to be successful, it has to be
shared across everywhere that is America. And this
administration has taken that point, I think, that the
awareness needs to come out, that the program needs to be here,
but more importantly, we need to be able to acquire and to be
able to be included in everything that is being given through
that plan should be shared also with us here in this region.
Ms. Leger Fernandez. OK, thank you so very much. And with
that, Mr. Chairman, I yield back. I thank both of you for your
testimony and for making real for us in our hearts and in our
minds what you are facing here in Guam.
Ms. Sgambelluri. Thank you.
The Chairman. The gentlelady yields back. I recognize
myself for questions, and instead of questions, I just want to
say a great big thank you, Ms. Sgambelluri.
Ms. Sgambelluri. Thank you.
The Chairman. I can tell you that getting to come here and
hear your testimony in person made the whole trip worthwhile,
and it made running for Congress and serving and doing the job
that we do worthwhile just to have that reminder, that reminder
of how precious freedom is, how we should never, ever forget.
I had a chance to look briefly at the book that your father
wrote those names in, and I thought how he thought we could
never forget these people that made sacrifices and the freedom
that we have was bought with blood and sacrifice. Thank you so
much for reminding us of that today.
Ms. Sgambelluri. And I am thankful that I am an American.
[Applause.]
The Chairman. And Ms. Barnes, thank you for your service
and for the same passion that we see from both of you. A
passion for what we have and where we have come from, and a
passion for where we are going. As I think about December 7,
1941 and December 8, 1941, I often think not about those days,
but maybe 10 years before that. And if those Members of
Congress that were serving in the 1930s could go back, what
would they have done different that could have possibly avoided
what we saw through the second world war?
And I think that is something that we, as leaders, we have
to ask ourselves today, is what can we do to maybe prevent
another atrocity like happened back then. And, personally, I
think that we do seek peace through strength, that we have to
project strength and resolve. And Ms. Barnes, it is up to you,
and me, and the others at this table now to make those
decisions.
What do you think we can do as Guam, as Americans, as
Congress, to strengthen our position here, to show that resolve
and to hopefully avoid something like we have had to experience
in the past? What are the main things that you are looking for
from Congress where you want to partner with us to make that
happen?
Ms. Barnes. I think presence is key, resources is key,
collaboration is key, and most importantly, making sure that
what America gets, Guam and the islands of the blue continent
get.
The Chairman. Thank you. And with that, it will conclude
our testimony and our questions. The Committee may have some
additional questions for the witnesses, and we will ask you to
respond to those in writing. Under Committee Rule 3, members of
the Committee must submit questions to the Committee Clerk by 5
p.m. on Tuesday, August 29, 2023. The hearing record will be
held open for 10 business days for these responses.
Again, thank you to our witnesses. If there is no further
business, without objection, the Committee stands adjourned.
[Whereupon, at 12:53 p.m., the Committee was adjourned.]
[ADDITIONAL MATERIALS SUBMITTED FOR THE RECORD]
Submissions for the Record by Rep. Westerman
August 22, 2023
Hon. Bruce Westerman, Chairman
Committee on Natural Resources
1324 Longworth House Office Building
Washington, DC 20515
Hafa Adai Congressman Bruce Westerman:
Thank you for the invitation to speak in this Oversight Field
Hearing entitled ``Peace through Strength: The Strategic Importance of
the Pacific Islands to U.S.-Led Global Security''. I am in favor of
actions that lead to the safety and protection of Guam, an island that
I call home.
Guam is the ``Tip of the Spear'' when in comes to the Defense of
the United States. As with any spear, it must be hard, sharp at the
edge, and in capable hands against foreign adversaries. In the worst
case, missile launched from Asia can reach Guam in as little as 15
minutes. Distances and regular airline flight time from Guam to the
following location are as follows:
Philippines: 2,492.21 km (2.73 hours)
Japan: 2,613.57 km (2.86 hours)
Taiwan: 2752.82 km (3.02 hours)
South Korea: 3,021.88 km (3.31 hours)
Continental USA: 11,562.54 km (12.67 hours)
These distances and time emphasize the strategic importance of
Guam. In the event of a crisis in this region, getting the right
resources in a timely manner is critical. Guam is the closest part of
the United States to Asia.
Guam has two major military installations, a third currently being
built and one minor installation that continues to grow. Andersen Air
Force Base, Guam, the 36th Wing mission is to project airpower, expand
combat capability, and strengthen partnerships from the forward edge of
the Indo-Pacific. Naval Base Guam is a consolidated Navy installation
with several components across the island. The base provides critical
logistics support to the U.S. Pacific Fleet and is the only
installation in the region that can be used for berthing, ship
operations and maintenance, refueling, and ordnance handling. Camp
Blas, a U.S. Marine Base is currently under construction and is
projected to have approximately 5,000 Marines and their families being
relocated from Japan to Guam by 2025. These installations place Guam as
a viable military missile target by nations that may become hostile to
the United States. The minor installation is the Barrigada Readiness
Center that house the Guam National Guard. The multimillion-dollar
complex is fairly new, in comparison to Navy and Air Force Base, as the
nation relies on the Guard and Reserve as an operational reserve unit
vice a strategic reserve.
As of September 30, 2021, Department of Defense controlled 62,695
acres (97.96 square miles) of land or approximately 46% (This
percentage is different from what is published to the general public of
one quarter (1/4) to one third (1/3) of the island depending on the
source of information). While a large percentage is controlled by the
military, many servicemembers and their families that are stationed
here live outside these installations. The estimated 21,700 military
personnel and their families is part of Guam's population of
approximately 154,000, most of which are residents and citizens of the
United States.
The United States has a duty and a responsibility to ensure the
safety of its people against all enemies, foreign and domestic. In
2013, North Korean President, Kim Jung Un, threatened Guam with nuclear
missiles. The THAAD (Terminal High Altitude Air Defense) missile system
was not on Guam until after the threat subsided. The only protection
against any Intercontinental Ballistic Missiles (ICBM) during this
threat were Aegis equipped ships in the area. We were fortunate to have
the THAAD permanently assigned to Guam prior to the next North Korean
Missile Threat in 2017.
But North Korea is not the only threat to the stability of this
region. Nations have opposing claims over water rights and islands.
Threats to freedom of sea navigation and the threats against Taiwan
bring the possibility of conflict in this region. Conflicts may not be
limited to direct intervention but also economic bans, political
tensions, and cyber-attack. The United States has an interest in
maintaining stability in this region, whether it is due to economic
inter-dependency such as and not limited to specialized microchips from
Taiwan or agreements with partner nations to come to each other's aide
in any type of attack.
A question brought forth to this committee is, will the US be
reactive, such as when we brought the THAAD to Guam after the 2013
North Korean Missile Threat concluded with North Korea deciding when to
end the threat. Or will the United States take proactive measures to
protect its citizens here in Guam against possible future armed
conflict. The proposed action to deploy and operate a comprehensive,
persistent, 360-degree Enhanced Integrated Air and Missile Defense
(EIAMD) system to defend the entire island of Guam against the rapidly
evolving threats of advanced cruise, ballistic, and hypersonic missile
attacks from regional adversaries, seems on face value, a good plan.
But, just like any plans, it must be thoroughly researched, subject
matter experts on both sides given the opportunity to speak, and
concerns mitigated. The U.S. military does a great job in planning for
buildup projects inside the gates. As their infrastructure grows, the
U.S. Military needs to realize the bigger impact they will have on the
island. The COVID pandemic flu is a good example of the local
government working with the U.S. Military to develop a joint
operational plan to address the pandemic. The same thing needs to
happen as the U.S. Military builds the MDA on Guam. For example, will
road networks be built up at the cost of the project rather than the
local community paying for roads damaged by increased traffic to
include more heavy equipment. If roads are upgraded, secondary effects
should be mitigated such as flooding on lands next to the roads. With
the proposed system, all concerns to the infrastructure should be
mitigated, not at the expense of the local government but part of the
program's cost.
There are concerns highlighted from the Congressional Research
Service on the topic Navy Aegis Ballistic Missile Defense (BMD)
Program: Background and Issues for Congress, updated on April 20, 2023.
Mentioned in this paper include:
1. Missile Defense Agency (MDA) continues to omit the military
services' operations and sustainment costs from the program
life-cycle cost estimates . . . . By omitting these costs,
MDA limits decision-makers' insight into the full financial
commitments needed for affordability and funding
determinations.
2. MDA continues to adjust program baselines without clear
traceability over time. MDA also forgoes recurrent
comparisons to the original baseline. Such adjustments and
omissions impede decision-makers' awareness of each
program's cost performance and total system cost.
3. Vice Adm. Jon Hill said that Aegis has been integrated to operate
with the Terminal High Altitude Area Defense system, and
THAAD has been integrated with the Patriot missile defense
system, but MDA hasn't integrated all the regional defense
systems with homeland defense systems.
Potential Cost Cutting Measures:
1. Congress should consider mandating the integration of the Guam
National Guard into the Missile Defense plan of Guam. An
example bf how the integration could help cut cost is when
the Guam Guard was activated to provide a security unit for
the THAAD mission. For a couple of years, the U.S. Army
rotated a company size unit into and out of Guam. The unit
provide security for the THAAD. Guam Guard asked for the
security mission and completed a cost analysis. To get the
mission, Guam Guard demonstrated to the U.S. Army they
could save over $1 million dollars every year in
transportation cost if Soldiers who lived on Guam, could
complete the security mission. Today, Soldiers from the
Guam Guard have been doing the security mission for the
THAAD unit for several years.
2. In addition to providing security, the Guam Guard provided
personnel and finance support and extended family programs
support such as Marriage Encounters for Soldiers and their
spouses in the THAAD unit.
3. At one point in time, the Guam Guard had an active Signal
Detachment. The signal unit was assisting the active-duty
signal unit in Guam. When the U.S. Army was downsizing, the
Guam National Guard lost the signal unit. If given a signal
unit, Guam Guard can provide much needed signal
capabilities to MDA.
Finally, the island of Guam has a need for a Missile Defense System
and must be used as a last resort! The people on the island of Guam
have suffered much during World War 2 and Guam does not need to suffer
another attack. To spare the island of Guam and other Pacific Islands
in the region, the United States Government must ratchet down the
tension with other countries in the region and place more emphasis in
improving diplomatic relations. A quote from Ulysses S. Grant can best
express my sentiments. ``Although a Soldier, by profession, I have
never felt any sort of fondness for war, and I never advocated it,
except as a means for peace.''
In conclusion, while I support actions that will make Guam and this
region a safer place to live in, I recommend improving diplomatic
relations, mitigate and address missile defense concerns and answers to
questions given by individual citizens and to Congress. I encourage MDA
to work closely with National Guard Bureau and the Guam National Guard
to determine where they can help reduce cost to the U.S. taxpayers by
working as an integrated team on Guam.
Sincerely,
Roderick Leon Guerrero,
Brigadier General, U.S. Army (Retired)
______
Statement for the Record
Lemanu P. S. Mauga
Office of the Governor
American Samoa Government
Honorable Chairman and members of the House Committee on Natural
Resources, it is a pleasure to be before you today to discuss the
strategic importance of the Pacific Islands to the global security
efforts led by the United States. We all know that the Pacific Islands
occupy a very large strategic area. Strategic issues like food
security, fishing rights, international trade, strategic communication
lines, and the free flow of ideas should set the Pacific Islands and
their people at the forefront of the discussion of global security.
As Governor of the U.S. Territory of American Samoa, I speak today
with particular pride about the strategic importance and opportunities
of the islands I call home. While every Pacific Island and the people
of those islands should be considered strategically important in the
push for global security, today I seek to demonstrate American Samoa's
importance to the global security efforts. I hope that I can impress
upon you how American Samoa is uniquely positioned to strategically
enhance these efforts and how the U.S. can support us in doing so.
As we all know, a wholistic strategy for global security requires
engagement on many fronts. From defense and security initiatives to
economic development to cultural engagement, the opportunities to
bolster global security through American Samoa are nearly limitless. As
America's only South Pacific territory, we are uniquely positioned in
geography, culture, and regional interactivity to become a hub for
growing strategic engagement.
With the appropriate and sufficient allocation of resources,
American Samoa can become the go-to regional partner of our Pacific
Island neighbors for healthcare, economic development, education, and
jobs. For instance, as I am sure you all know, American Samoa is
blessed to have one of the world's largest and deepest natural harbors.
The opportunities that stem from this harbor alone makes our Territory
strategically important for global security. With adequate development
it can become a place of regional engagement benefiting everyone in the
region and helping stave off outside influence. An increased U.S. Coast
Guard presence would be a perfect fit in our harbor to, among other
things, monitor and deter illegal fishing activities. In doing so, the
U.S. demonstrates its commitment to sustainable economic development of
not just American Samoa but our regional partners and allies alike.
When we enhance food security and protect mutual resources that sustain
ourselves and our neighbors, global security is strengthened.
Additionally, development of a more robust industry-leading
shipyard within this strategic natural resource would not only support
Coast Guard needs but also allow American Samoa to provide our Pacific
Island neighbors with a place where they could obtain much needed
shipyard services. Again, being able to exploit such a resource for the
benefit of everyone in the region leads to stronger global security.
There is no need to turn to others who may not have our best interest
at heart if these resources are available from those who do. Consider
how much more effective American Samoa could be in the global security
push if we were also provided with resources needed do this through
healthcare, education, and economic development.
These are just a few of the numerous ways that American Samoa can
play a vital role in helping secure global security. Sometimes, just
being a good neighbor is enough to stave off negative foreign
influences. We are not naive enough to think that this is all it takes,
but these are the types of building block initiatives that bolster the
strategically necessary relationships between the U.S. and our brothers
and sisters in the Pacific Island nations. They are so critically
important in the effort for global security. These are the very real,
practical needs that when we help meet them, we shore up holes in our
global security efforts at the ground level.
Please understand that the people of American Samoa share blood,
culture, heritage, and history with so many of the people in these
other Pacific Island nations. Many scholars point to Samoa as the
mother of Polynesia. We know the history of how Samoan missionaries
have spread Christianity across the Pacific. We know the history of the
Samoans that traveled extensively around the Pacific, including those
sent to Micronesia. American Samoa has a historical connection to all
regions of the Pacific and these are the ties--the relationships--that
bring American Samoa closer to all of the island nations of the
Pacific. It allows our leaders to connect and understand each other on
a level that only exists when there is a shared and mutual respect of a
common culture.
We also know of the involvement of the U.S. throughout history in
the Pacific. Engagement through the Peace Corps brought the U.S. closer
to the Pacific region. It was one of the best strategies implemented by
the U.S. Because of this engagement in the 1960s and 70s, most if not
all leaders of the Pacific today were taught and trained by the Peace
Corps. This engendered good will toward the U.S. that has lasted for
decades.
But we also know of the absence of the U.S. in the Pacific in
recent decades. This is what has led to the void that allowed foreign
nations like China to find and develop opportunities to further their
national interest through engagement with our Pacific neighbors. Make
no mistake, when the U.S. neglects the Pacific, China and other foreign
powers will move in and offer the support to our Pacific nation
neighbors.
With this in mind, please note that American Samoa has the highest
U.S. military enlistment rate and highest casualty rate per capita of
any state or Territory. We are a very patriotic community that revels
in its relationship with the United States. There is no independence
movement, and protests against the U.S. are non-existent. We are here
today imploring you, the leaders of the U.S., to help us become the
South Pacific hub from which U.S. engagement reaches out to our
brothers, sisters, friends, and allies in these most strategically
important Pacific Island nations. It is how we continue to win the
hearts and minds of the people and the strategic support of their
leaders.
Thank you for your time and consideration. I welcome further
discussions about how American Samoa can play a key role in supporting
the U.S.-led global security efforts among these strategically
important Pacific Island nations.
______
Western Pacific Regional Fishery Management Council
Waning US Influence and Impacts to Major US Pacific Tuna Fisheries
within the Western and Central Pacific Ocean (WCPO): A Call for a US
Government Strategic Plan
Summary
For the small island developing States across the Pacific, fishery
resources--particularly tuna--are often the greatest, if not the only,
natural resource available to support their national development. As a
result, engagement in the fisheries sector is seen by the Pacific
Island States as a litmus test for the commitment of other States to
support their development aspirations. The engagement of the United
States in tuna fisheries across the Pacific has declined significantly
in recent years. This is due to a variety of factors, including
competition from highly subsidized fleets from China and other Asian
nations; exemptions granted to other fleets (but not US vessels) from
strict conservation and management measures under international
management regimes; positions and policies of certain Pacific Island
States that are wholly adverse to US interests (including by States
receiving significant amounts of US economic assistance); and the lack
of any concerted US strategy to combat these factors in favor of US
interests.
The diminishing role of US fisheries in the Pacific has a range of
adverse consequences including 1) economic consequences for the state
of Hawaii and the US Pacific Territories of American Samoa, Guam, and
the Commonwealth of the Northern Mariana Islands; 2) waning US
political and economic influence throughout the region; 3) weakening
national security in the face of China's growing influence and presence
across the Pacific; 4) conservation consequences for the species
impacted by fisheries in the region, including protected and endangered
species of marine mammals, sea turtles, and sea birds; 5) weakening of
regional governance and rule of law; among others.
The greatest beneficiary of diminished US engagement and influence
is China. China is actively implementing a specific set of policies,
programs, and investments to expand its influence throughout the
Pacific specifically focusing on the fisheries sector, recognizing that
the Pacific Island States see their development aspirations tied as
closely to the fisheries sector as the Middle East is to oil. If the
United States is to effectively stem China's rise as a regional power
across the Pacific, it must develop a more holistic, high-level
strategy to reinforce and reinvigorate the US posture in the Pacific,
using fisheries as the influential conduit. Such a strategy requires
coordination across multiple federal departments and agencies,
including the Departments of State, Interior, Commerce, Defense, and
Homeland Security.
I. Overview of Competing Interests in the Pacific
In post-war years, the United States maintained a strategic
geopolitical position among Pacific nations, much of which was brought
about through foreign assistance and economic development in Pacific
Islands. This strategic position helped advance the mutual interests
between the US and those of Pacific Islands and Oceania nations,
particularly with respect to national security which extended to
fishery interests. Many of these Pacific Islands where the US had
physical presence included its overseas possessions--which were to
become US Territories (American Samoa, Guam, and the Commonwealth of
the Northern Mariana Islands, CNMI) and the Freely Associated States
(Federated States of Micronesia, Republic of the Marshall Islands, and
Palau). Since the Compact of Free Association in 1986, the United
States has provided economic assistance through trust funds, defense,
and other services or benefits to Freely Associated States
(approximately $270 million in 2020 obligations \1\). The Freely
Associated States prove to be critical in negotiating fishery policy in
the Pacific, as discussed in following sections. The United States also
contributes foreign aid elsewhere throughout the Pacific, such as $2
billion of its global $51 billion 2020 aid obligations to be disbursed
throughout Oceania and East Asia.1
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\1\ USAID Foreign Assistance Data Dashboard, https://
foreignassistance.gov/
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While the US maintains a pivotal role with respect to foreign aid
distribution and global security, the US seldom has its fishery
interests supported the Pacific, which should serve as a litmus test
for how the US is unable to advance its interests in the Pacific in a
time when it needs to counter the influence of competing countries.
Such an interest includes having a US catch limit for bigeye tuna
commensurate with current capacity. Advancement of US fisheries
interests in the Pacific are often stymied through disagreements with
beneficiaries of US aid. US fisheries also operate with inherent
disadvantage relative to other competing nations, most of which are
also industrialized and are vying for influence in the Pacific. Many of
these competing fishing nations rely significantly on subsidies, much
of which are deemed `harmful' towards sustainability which include
capacity enhancing or fuel subsidies, whereas the majority of US
fisheries subsidies were deemed `beneficial' because they enhance
conservation, research, and management.\2\ 55% of global fishery
subsidies originate from Asia, including China which invested the
greatest amount in fishery subsidies--$7.3 billion in 2018, of which
91-95% are deemed `harmful'.1 This contrast may be apparent
whereas the registry and fishery participation of Chinese flagged tuna
vessels in the Pacific has increased dramatically over the last two
decades.\3\ The World Trade Organization vowed to move towards reducing
harmful fisheries subsidies; however progress on this front has been
delayed as of November 2021 with draft negotiation text still in
circulation.\4\
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\2\ Sumaila, U.R., N. Ebrahim, A. Schuhbauer, et al. (2019).
Updated estimates and analysis of global fisheries subsidies. Marine
Policy, Vol. 109
\3\ Attachment--Informational Paper: The Rise of China in Pacific
Tuna Fisheries
\4\ Godfrey, M. ``WTO fishing subsidies agreement draft text sent
to trade ministers, raising hopes of deal'' Seafood Source November 29,
2021
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China has contributed an unknown portion of its global 2020
contribution of $4.8 billion in foreign aid to the Pacific region--to
countries such as Kiribati, Solomon Islands, Papua New Guinea, and
others that are supported by the United States as well. Policy analysts
warn that much of this aid, as part of China's Belt and Road
Initiative, could lead to `debt-trap diplomacy'--a practice of issuing
monetary or infrastructure assets in another country that cannot be
reciprocated or repaid, thus creating leverage on that nation out of
repercussion of having those assets seized. China's presence in the
Pacific challenges the posture of US (and of other nations) influence.
Such a presence and revisionist approaches to erode alliances and
partnerships have been noted by the US Navy and the Tri-Service
Maritime Strategy as detrimental to US naval advantages and potentially
degrading to free and open international order.\5\ Recently in Kiribati
and the Solomon Islands, China supplanted Taiwanese influence,
restored, and strengthened diplomatic relations. In Kiribati, China
drafted plans to develop a large airstrip and infrastructure that could
be used for military purposes, which is of concern for US national
security. Chinese influence for fishing access in Kiribati is purported
to have driven a decision towards opening the world's second largest
marine protected area--the Phoenix Island Protected Area--adjacent to
the EEZs of US Pacific Remote Island Areas (PRIAS).
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\5\ US Navy. 2020. ``Advantage at Sea Prevailing with Integrated
All-Domain Naval Power.''
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Other Asian distant water fishing nations or entities (ADWFN), such
as Korea, Japan, and Taiwan compete with the US through foreign aid,
much of which is intended to influence fisheries specifically. For
example, Japan's Ministry of Foreign Affairs reported that Japan had
provided $172 million in grants to Federated States of Micronesia and
$233 million to Palau from 1980 to 2016, plus numerous other
contributions and infrastructure projects to Pacific Island nations.
The Japan Trust Fund and the Chinese Taipei Trust Fund contribute
significant funds for fisheries development within the Western and
Central Pacific Fisheries Commission (WCPFC).\6\ Aid by ADWFN may be
conditional on support for donor nations' fisheries in international
fora and negotiations. Fisheries are the economic common denominator
and the largest shared commodity among all communities in the Pacific,
including the ADWFN and the US alike.
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\6\ https://www.wcpfc.int/implementation-article-30-convention
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II. Overview of the Western and Central Pacific Fisheries Commission
Roughly 60% of the world's tuna supply, including the majority of
US-caught tuna, is under international management of the Western and
Central Pacific Fisheries Commission (WCPFC), a regional fishery
management organization (RFMO) that includes waters under US
jurisdictions around Hawaii and the US Pacific Territories. The WCPFC
was established by the international treaty, Convention on the
Conservation and Management of Highly Migratory Fish Stocks in the
Western and Central Pacific Ocean. The treaty was ratified in June
2004, based off the 1995 U.N. Fish Stocks Agreement. The WCPFC serves
the purpose to ensure, through effective management, the long-term
conservation and sustainable use of highly migratory fish stocks in the
western and central Pacific. This is achieved through a consensus-based
approach to adopt resolutions and conservation and management measures
(CMMs) for which members agree to abide.
The WCPFC, like other tuna RFMOs, assesses and reviews stocks
through a scientific committee on an annual basis. The major tuna RFMOs
manage the principal species which include tropical tunas (yellowfin
tuna, bigeye tuna, skipjack tuna) and albacore stocks. The WCPFC is the
only tuna RFMO for whereas these species are not overfished nor
experiencing overfishing (Figure 1).
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
Figure 1--Comparison of catch volume and stock status between
the WCPFC and other RFMOs: International Commission for the
Conservation of Atlantic Tunas (ICCAT), Indian Ocean Tuna Commission
(IOTC), and the Inter-American Tropical Tuna Commission (IATTC).\7\
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\7\ Hare, et al. 2020. The western and central Pacific tuna
fishery: 2019 overview and status of stocks. SPC Ocean Fisheries
Programme. Noumea, New Caledonia, 2020.
Conservation and management is to be consistent with Articles of
the WCPFC Convention Text, which include objectives and guidelines from
incorporating principles related to best available science,
precautionary approach, governance, WCPFC functions, compliance,
enforcement, monitoring, cooperation with other organizations, and
other guidelines. One of the most important and unique considerations
of conservation and management within the WCPFC is the recognition of
special requirements of small island developing states (SIDS) through
reducing or preventing `disproportionate burdens' that may affect them.
SIDS may have inherent economic and political disadvantages relative to
larger nations such as the US, Australia, New Zealand, or ADWFN; and
SIDS may be more reliant on its marine resources within their
jurisdictions (inside their respective EEZs). WCPFC members are to be
cognizant that shared fishery resources managed under the WCPFC are
highly migratory, and thus these resources move among and outside
national jurisdictions, often into the high seas where SIDS may not
have the capacity to access them. The US Participating Territories are
also entitled to the same considerations and privileges as SIDS.
American Samoa also has a special consideration the WCPFC must
consider, in that it does not have direct high seas access from its own
EEZ. There are salient concerns among WCPFC members that non-compliance
to CCMs and threats from illegal, unreported, and unregulated (IUU)
fisheries on the high seas disproportionately impact SIDS and
Participating Territories. Cooperation with developing states, such as
the SIDS, to combat IUU fisheries, promote safety at sea, and
strengthen compliance are notable priorities of the US Coast Guard in
its 2021 implementation plan.\8\
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\8\ US Coast Guard. 2021. ``Illegal, Unreported, and Unregulated
Fishing Strategic Outlook and Implementation Plan''.
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While the US has its own delegation to the WCPFC, each US
Participating Territory is also recognized participant to the
Commission, such that they may have their own delegation and thus
attend and speak at Commission meetings on their own behalf. Having
separate delegations consisting of the US and the three US
Participating Territories also underscores the importance of the
territories in negotiating mutual interests in the WCPFC and the need
for US federal agencies work closely and in coordination with the US
Participating Territories, particularly with improving relations with
Pacific Island nations that may share cultural and economic
commonalities.
III. US Pacific Tuna Fisheries Operating in WCPO and their Hardships
US Pacific Tuna Fisheries in the WCPO include the Hawaii-based
longline fishery, the American Samoa longline fishery, and the US purse
seine fishery. The Hawaii longline fishery is a limited-entry two-
sector fishery (capped at 164 vessels) that targets bigeye tuna and
swordfish, operating predominantly on the high seas around the Hawaiian
archipelago. The American Samoa longline fishery targets albacore, but
fishes exclusively in the US EEZ around American Samoa. Both the Hawaii
and the American Samoa fisheries operate using vessels less than half
the size of competing foreign longline vessels with fewer crew, do not
transship, and far exceed all mandatory observer coverage
requirements.\9\ Many regard the Hawaii and American Samoa longline
fisheries as the gold standard with respect to compliance and
monitoring within the WCPFC. The US purse seine fishery operates almost
exclusively in waters between 10+S and 10+N, targeting skipjack tuna
that supplies canneries in American Samoa and throughout the Pacific.
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\9\ Attachment--Uneven Playing Field for U.S. Longline Fleet within
the Western and Central Pacific Ocean (WCPO)
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Hawaii Longline Fishery
The Hawaii longline fishery is recognized as a `fresh fish'
fishery, in that it packs bigeye tuna on ice for the purpose of
consumption as poke and sashimi to supply the US market and Hawaii
locally. The fishery is the most important domestically managed tuna
fishery in the United States, supplying nearly 60% of the ex-vessel
revenue of US-landed tuna fisheries, excluding canned tuna, and is the
leading domestic US supplier of swordfish. The fishery contributes over
$105 million annually \10\ in ex-vessel dockside revenue to Hawaii
alone and is a significant component to the Hawaii economy, local
culture, and food security. The Hawaii longline fishery has additional
value in supporting thousands of jobs and supplying the local
restaurant industry and vast tourism industry.
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\10\ Data from: WPRFMC Stock Assessment and Evaluation Reports,
https://www.wpcouncil.org/annual-reports/
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Despite the national importance that the Hawaii fishery has in the
geopolitical footprint of the US in the Pacific, the US has been unable
to negotiate a fair US longline catch limit for bigeye tuna that is
representative of fleet capacity, historical production, and demand. At
present the US has a longline bigeye tuna catch limit of 3,554 mt,
which is the lowest catch limit for six countries with specified catch
limits.\11\,\12\
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\11\ Attachment--Annual Western and Central Pacific Bigeye Tuna
Longline Catch Limits Adopted by the Western and Central Pacific
Fisheries Commission (WCPFC).
\12\ WCPFC CMM 2021-01 Conservation and Management Measure for
bigeye, yellowfin and skipjack tuna in the Western and Central Pacific
Ocean
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At the 18th Regular Session of the WCPFC (WCPFC18) in December
2021, the US proposed increasing the US longline bigeye tuna catch
limit by 3,000 mt, based on the rationale that a significant portion of
catch remains unutilized by other members and such an increase would
not undermine conservations objectives. The WCPFC Science Committee
noted that the `temperate region', which includes the region where the
Hawaii fishery exclusively operates has some of the lowest levels of
regional depletion and offered scientific advice with the goal to
increase bigeye fishery yields but reduce any further impacts on the
spawning biomass in the tropical regions.\13\ The delegations of the US
and US Participating Territories also submitted analyses further
demonstrating that increases in US fishing privileges do not create
disproportionate burdens for SIDS and may have positive benefits for
SIDS and Participating Territories.\14\ Despite scientific support and
demonstrable evidence that an increase of US longline bigeye tuna catch
would pose no conservation risk or hardship to other members, the US
was rebuked and was placed into a defense posture at WCPFC18. As a
result, the US is to retain its catch limit through 2023.
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\13\ WCPO Bigeye Tuna Stock Status and Management Advice, https://
www.wcpfc.int/doc/01/bigeye-tuna
\14\ Assessments under CMM 2013-06 for Proposed and Potential
Provisions of a New Conservation and Management Measure for the
Tropical Tuna Stocks, 18th Regular Session of WCPFC, WCPFC18-2021-TTM-
DP09
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American Samoa Longline Fishery
The American Samoa longline fishery has declined in participation
and fishery performance since 2007, declining from over 5,000 mt catch
to under 1,200 mt in 202010. In 2007, the ratio of Chinese to US catch
South Pacific albacore was approximately 1:1. Since that time, Chinese
catches of South Pacific albacore are over 20 times that of the US. In
2018, the WCPFC adopted an interim target reference point to increase
biomass with the goal to increase biomass and resulting catch-per-unit
effort (CPUE). WCPFC members have suggested a reduction in fishing
effort in the South Pacific targeting the stock, noting that the stock
has gradually declined and CPUE has declined even greater. Despite all
of this, the stock is not overfished, nor experiencing overfishing.
However, regional depletion in waters around American Samoa is the
highest in a region comprised mostly of EEZs of Pacific Island
States.15 There is little to no chance of an interim target
reference point for the stock being reached under status quo levels of
catch and effort.\15\ Therefore, there was a need for WCPFC18 to
possibly revise the CMM 2015-02 for South Pacific albacore to encompass
the entire stock distribution and develop harvest strategies.
Unfortunately, the WCPFC18 made no progress on reducing catches towards
a biomass target and instead was fixated on reducing catches on the
high seas, while substantive level of catches are extracted from areas
inside EEZs around American Samoa. Meanwhile, fishery performance and
profitability for the American Samoa fishery continues to decline due
to increasing disproportionate burden, despite being entitled to
special consideration as a SIDS.
---------------------------------------------------------------------------
\15\ Reference Document for South Pacific Albacore for the Review
of CMM 2015-02 and Development of Harvest Strategies under CMM 2014-06,
18th Regular Session of WCPFC, WCPFC18-2021-18
---------------------------------------------------------------------------
US Purse Seine Fishery
From 2018-2020 the US purse seine fishery caught and landed an
annual average of 202,415 mt of tuna, of which on average of 78,879 was
offloaded in American Samoa \16\ to supply the local StarKist cannery
in Pago Pago. Viability of the only remaining cannery is existential
for the American Samoa economy and directly tied to the success of all
American Samoa fisheries--including the American Samoa longline
fishery. GDP of American Samoa dropped 18.2% from 2007 to 2019,\17\
following closure of a cannery in Pago Pago. The remaining StarKist
cannery needs assurance of product supply to maintain business. US
purse seiners have been offloading on average of 39% of catch among all
US-flagged vessels in Pago Pago from 2016-2020.13 From 2005-
2007, 76% of those vessels were offloading in Pago Pago.13
While total tonnage has been relatively consistent, there is room to
expand and increase the amount of product from US vessels offloading in
Pago Pago as the amount of fish from US vessels offloading in foreign
ports has increased.
---------------------------------------------------------------------------
\16\ Data provided by NMFS Pacific Islands Regional Office,
Honolulu, HI
\17\ Government Accountability Office, https://www.gao.gov/
products/gao-20-467
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However, from 2018 to 2021, the US purse seine fleet declined from
34 vessels to 13 vessels, considerably lower than the peak of US purse
seine operations with 60 vessels in previous decades. Many of these
vessels re-flagged from the US to avoid perceived stringent
restrictions on allowable fishing effort on the high seas, access fees
for US vessels under the South Pacific Tuna Treaty, and FAD closures.
At WCPFC18, the US proposed recognizing US-flagged purse seine vessels
that operate out of American Samoa as being eligible to benefits of
SIDS. The idea was rebuffed and no progress was made to recognize these
vessels.
The inability for the US to progress and advance its interests in
the WCPFC will undoubtedly have negative consequences--not only on the
economies of Hawaii and the US Pacific Territories, but also for
conservation and management of marine resources. When US fisheries
cannot contribute adequately to meet demands, they supplanted by
foreign fisheries that do not have regulatory equivalencies to the
Magnuson-Stevens Act, Endangered Species Act, Marine Mammal Protection
Act, National Environmental Protection Act, and other applicable laws
to that US fisheries are beholden to. Supplanting US fisheries would
likely lead to higher catches of sea turtles, mammals, birds, sharks,
and other species in loosely regulated foreign fisheries. These
fisheries are often not as well monitored and do not have the level of
monitoring and surveillance as US fisheries. Diminishing the relevance
of US fisheries in the Pacific also diminishes the political capital of
the US to advance conservation and management measures that benefit
marine life.
IV. Dynamic Political Landscape in the WCPFC
The WCPFC political landscape is driven by blocs of likeminded
participating members, either linked by geographical, cultural, or
economic commonalities. The US is often dismissed by delegations at the
WCPFC, likely due to animus towards the US that may be residual from
unrelated or past disagreements. With Pacific Islands, the animus is
likely predicated on the notion that the interests of Pacific Islands
are counter to those of the US and the lack of progress (or perceived
willingness) by the US to find common ground with those nations. In
contrast, ADWFN, despite cultural or political differences, tend to
find themselves in mutual agreement among one another with respect to
conservation and management negotiations.
Most Pacific Island nations are generally unified by their
membership to the Pacific Islands Forum Fisheries Agency (FFA). FFA
members generally support interventions and negotiations by other FFA
members. Eight Pacific Island nations comprise the Parties to the Nauru
Agreement (PNA), which have specific interests regarding fishery
management in the highly productive waters around the Equator.
To ameliorate any perceived or substantiated disproportionate
burdens for SIDS in negotiating conservation and management, the FFA
and PNA often promote a rationale to balance fishing effort and/or
catch between waters within SIDS jurisdiction and waters on the high
seas. Presumably, WCPFC members would utilize high seas waters or
within their own jurisdiction at no access cost, but would access
another nation's jurisdiction (such SIDS) at an associated cost. This
rationale is referred to as `zone based management'. US fisheries do
not have access to most of the US EEZs in the WCPFC Convention areas
due to establishment of Marine National Monuments and other closures,
hence access to the high seas is important for the US. Zone based
management is integrated in the WCPFC tropical tunas CMM through
implementation of a vessel day scheme (VDS). Within the VDS, WCPFC
members are limited to purse seine effort on the high seas, balanced
with effort limits within member EEZs. WCPFC members are also subjected
to seasonal restrictions on the use of fish aggregating devices (FADS)
on the high seas and within EEZs. SIDS may declare registered vessels
exempt from seasonal FAD closures on an annual basis.
This privilege of FAD exemptions for SIDS often comes with debate
at the WCPFC, out of concern that these exemptions undermine
conservation precaution for bigeye tuna without due diligence of
scientific review or may be misused by partnering distant water
nations. In 2020, nearly one third of purse seine vessels in the WCPFC
had declared exemptions from FAD closures, including 14 Chinese-flagged
purse seiners operating through agreements with Kiribati.\18\
Meanwhile, US-flagged purse seiners are subjected to FAD closures,
effort limits on the high seas, and may not have incentive to remain in
the WCPFC Convention Area through the year in order to supply the
American Samoa cannery.
---------------------------------------------------------------------------
\18\ WCPFC Circular 2020/08, 3 August 2020: Notifications Relevant
to Footnote 1 of CMM 2018-01
---------------------------------------------------------------------------
Freely Associated States comprise three of the eight members of the
PNA, which render the opportunity for the US and US Participating
Territories to work towards mutual goals with these nations through the
Compact of Free Association (COFA) and the Micronesia Island Forum.
Through COFA, the US contributed $170 million in 2019 to Free
Associated States within a 20 year trust fund of $3.5 billion. While
the US does not presently identify closely with any group of WCPFC
members, which can make it difficult to garner support or open
dialogues that could be beneficial, Guam and CNMI are members of the
Micronesia Island Forum. External to the WCPFC, the Micronesia Island
Forum is an organization which plans for, and enhances, the quality of
life throughout its member states while preserving each states diverse
culture. Improving the relationship with the Freely Associated States
can be critical to improving the positions of the US and the US
Participating Territories and may reduce the overall animus towards the
US.
V. A Path Forward and Need for a Strategic Plan
The diminishing role of US fisheries in the Pacific can have dire
consequences on US food production for the Pacific Islands and local
economies. This may be indicative of waning US geopolitical influence
in the region, while the present is a point in time that strengthening
US positions within the Pacific is critical to countering the
influences of global competitors such as China. Congressional members
have demonstrated interest on this issue with proposed legislation
referred to House Foreign Affairs \19\ and Senate Foreign Relations
\20\ Committees. The US Navy, US Coast Guard, and the Tri-Services
Maritime Strategy identify threats to US influence and its sustained
national security advantages 5,8 that could very well be
resulting in part to inaction of US agencies to advance US fisheries in
international fora. A more holistic, high-level strategy is needed to
strengthen US interests in the Pacific, using fisheries as the
influential conduit. Such a strategy requires coordination across
multiple federal departments and agencies, including the Departments of
State, Interior, Commerce, Defense, and Homeland Security.
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\19\ H.R. 2967--BLUE Pacific Act. Introduced May 4, 2021 to the
117th Congress, 2021-2022.
\20\ S. 1774--Honoring OCEANIA Act. Introduced May 20, 2021 to the
117th Congress, 2021-2022.
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A task force consisting of representatives from agencies within
these federal departments need to design a roadmap for calculated
actions each agency must take within a timeline in the next two years
consistent with the current Administration. This task force may need to
plan workshops and in-country visits. For example, Council had
requested NOAA-NMFS to develop a workshop on zone-based longline
management for WCPFC fisheries with cooperation with the Pacific
Islands Forum Fisheries Agency. This task force could glean steps
needed to assuage any disagreement or unrelated issues taken by Pacific
Island countries. This may require numerous meetings of US Pacific
Island stakeholders with decision makers in Washington DC. The end
result must lead to increased US agency integration in the Pacific
which will improve the US posture in the Pacific so it may achieve its
goals for increased economic development, food security, and national
security.
ATTACHMENTS
Informational Paper: The Rise of China in Pacific Tuna Fisheries
February 2017
I. Introduction \1\
---------------------------------------------------------------------------
\1\ This introductory section on China and its fisheries is freely
adapted from a paper by Zhang Hongzhou (2015).
China has experienced substantial growth of its fishing industry
since the late 1970s with catches increasing from about 5 million tons
to over 60 million tons. Historically, China's marine fisheries
production was eclipsed by freshwater fisheries production and
disrupted by political events such as the mid-1960s Cultural
Revolution. In 2013, China's total fishery production reached 61.7
million tons, representing over one-third of the world's total fishery
production. China's enormous fishing industry is supported by the
world's largest fishing fleet, with nearly 200,000 marine (sea-going)
fishing vessels and 2,460 distant-water (i.e., fishing on the high seas
beyond China's EEZ) fishing vessels that fish on the high seas beyond
---------------------------------------------------------------------------
China's EEZ.
Apart from being the biggest fishery producer, China has also been
being the world's leading exporter of fishery products since 2002. In
2013, China grossed USD 11.6 billion surplus from its external fishery
trade.
II. China's Tuna Fisheries in the Pacific Ocean
Since 2000, there has been rapid growth in Chinese longline and
purse seine fisheries operating in the Pacific Ocean targeting tuna.
Longline Fisheries
Chinese longline vessels target bigeye, yellowfin, and albacore
tuna, and operate in both the high seas and national waters of Pacific
Island countries. Significant increases in both number of vessels and
catch have been observed since 2000 (Figures 1). In 2015, 429 Chinese-
flagged longline vessels operated in the Western & Central Pacific
Ocean (WCPO), catching over 35,000 mt of tuna and billfish. A
significant component of the Chinese longline fleet is capable of
landing ice-chilled and super-frozen tuna for various markets including
sashimi (e.g. bigeye) and cannery (e.g. albacore). Chinese large scale
longline vessels also operate in the Eastern Pacific Ocean (EPO), with
observed increased catches since 2000 (Figure 3).
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
Figure 1: a) Number of active Chinese-flagged longline vessels
operating in the WCPO; b) WCPO catch of tuna by Chinese longline
vessels
Source: WCPFC 2016.
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
Figure 2: EPO catch of tuna by Chinese-flagged longline vessels
Source: IATTC 2015.
Purse seine Fisheries
China has a growing purse seine fishery. In 2000, there were no
Chinese flagged seiners operating in the WCPO, now there are 20. The
WCPO catch of Chinese-flagged purse seine vessels in 2015 was 43, 236
metric tons. China's emergence in purse seine fishing has been coupled
with significant investments in onshore processing facilities under
development in Papua New Guinea, Federated States of Micronesia, Fiji,
Marshall Islands, and Kiribati. Onshore investments are typically
coupled to fishing access agreements to the EEZs of certain Pacific
Island countries.
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
Figure 3: a) Number of Chinese-flagged purse vessels operating
in the WCPO; b) WCPO catch of tuna by Chinese purse seine vessels
Source: WCPFC 2016.
III. Chinese Government Subsidies \2\
---------------------------------------------------------------------------
\2\ The following section on China's subsidies for its fishing
industry is freely adapted from paper by J. Ilakini and R. Imo of the
Forum Fisheries Agency (2014).
---------------------------------------------------------------------------
China subsidizes its distant water tuna fleets to levels unmatched
globally. In its 11th five-year plan (2006-2011), China's central
government's `going global' strategy was emphasized, as it announced
that it intended to actively support domestic enterprises abroad. Part
of this strategy includes a set of incentives and subsidies to continue
expanding its distant water fleet. These include subsidies on fuel,
vessel construction, preferential tax treatment and payment for access
to other nation's EEZs (Table 1).
Table 1: Tax incentives and Direct Subsidies by the Chinese government
to its distant water fleets
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
Source: Ilakini and Imo 2014.
The extent and magnitude of the subsidies and other support given
by the Chinese government to its DWF sector is significant and likely
to provide the Chinese DWF with significant cost advantage over
unsubsidized fleets. The extent of Chinese subsidies and tax incentives
appears to be growing under each five-year plan. Operators of other
fleets operating in the WCPO longline fishery feel that they may soon
be rendered economically unviable due to their cost disadvantage.
IV. Influence in Western and Central Pacific
It is no coincidence that China's rapid growth in fisheries also
coincided with its growing influence in Oceania. Since the early 2000s,
China has been an aggressive player in Oceania in search of natural
gas, minerals, fish, and other raw materials. China provides hundreds
of millions of dollars in foreign aid to governments of Pacific small
island developing states. In many cases, the aid includes
infrastructure projects, which are constructed by Chinese firms
employing non-local Chinese workers. There are numerous articles that
describe China's increased interest in Oceania and its mounting
influence over Pacific Island countries. See the following reference
list for further reading.
V. Competition with US fisheries
Chinese longline vessels are supplying the same US markets that are
supplied by US longline fleets operating out of Hawaii and American
Samoa. Chinese vessels are also competing for fish on the same fishing
grounds, often fishing side by side with Hawaii longline vessels on the
high seas adjacent to the US EEZ around Hawaii.
VI. Conclusion
China's rapid growth in Pacific tuna fisheries since 2000 has
served to overcapitalize fisheries and has led to stock declines in
bigeye and albacore fisheries. Significant government subsidies for
Chinese vessels lessen the impact of reduced catch rates, which allow
Chinese vessels to outcompete fleets of other nations including the
United States. The expansion of China into Pacific tuna fishing is
undermining US influence in the region, and exacerbating our seafood
trade deficit through the influx of Chinese caught tuna supplied to US
markets.
References
Hongzhou, Zhang. 2015. China's Fishing Industry: Current Status,
Government Policies, and Future Prospects: a paper for the China as a
``Maritime Power'' Conference. July 28-29, 2015, CNA Conference
Facility, Arlington, Virginia. 34 pages.
Ilakini, J. and R. Imo. 2014. Fisheries subsidies and incentives
provided by the Peoples Republic of China to the its distant water
fishing industry. Prepared for the Forum Fisheries Agency. Honiara,
Solomon Islands. 8 pages.
IATTC. 2015. The fishery for tunas and billfish in the Eastern Pacific
Ocean, 2015. Seventh Meeting of the Scientific Advisory Committee of
the Inter-American Tropical Tuna Commission. May 9-13, 2016. La Jolla,
California. 50 pages.
WCPFC. 2016. Tuna Fishery Yearbook, 2015. Western and Central Pacific
Fisheries Commission. Pohnpei, FSM. 149 pages.
Further reading
1. Feizkhah, E. 2001. How to win friends . . . Beijing is courting
tiny Pacific nations. Time International. 157:22. 34 pgs.
2. Henderson, J. and B. Reilly. 2003. Dragon in Paradise. China's
Rising Star in Oceania. The National Interest. 72. 94-104.
3. Tamara Renee Shie. 2007. Rising Chinese Influence in the South
Pacific. Asian Survey. 47:2. 322.
4. Leitner. B. 2007. China's third wave, part II. The sinicizing of
the South Pacific. Asia Times. April 18, 2007.
5. Wesley-Smith,T. 2007. China in Oceania. New forces in Pacific
Politics. Honolulu. East-West Center. 14 pgs.
6. Lum, T. and B. Vaughn. 2007. The Southwest Pacific. US interests
and China's growing Influence. CRS Report for Congress. 5
pgs.
7. Crocombe, R. 2007. Asia in the Pacific Islands: replacing the
west. University of the South Pacific. 135 pgs.
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
Submission for the Record by Vice Speaker Barnes from Guam
TRANSSHIPMENT ON GUAM
By
Sissie Luo, Emory University
Patrick Wang, St. Mary's College of California
Chirag M. Bhojwani, Director of Policy and Communications, Office of
Vice Speaker Barnes
Laurie Tumaneng, Chief of Staff, Office of Vice Speaker Barnes
Dr. James Ji, Jr., PPI Advisor, Assistant Professor, University of Guam
Introduction:
The people of Guam are resilient. Having overcome world wars,
centuries of colonization by three foreign oppressors, natural
disasters, tragedies, as well as global pandemics--the people of Guam
have been able to unite and rebuild. To address the economic
devastation caused by COVID, the Guam Legislature recently passed Bill
2-36, which was signed by Governor Lourdes A. Leon Guerrero as Public
Law 36-23 on May 12, 2021. Based on reports by global stakeholders, in
order to withstand future economic disruptions, a policy response is
needed to address supply chain vulnerabilities in a post-COVID era.
Guam's Capacity to serve as a Transshipment Hub
Guam's economy is primarily driven by three sectors--tourism,
government spending, and defense spending. Guam's economy was thriving
prior to the pandemic. However, COVID-19 has caused the economies and
supply chains in Asia and the Pacific to suffer immensely. According to
a white paper written by the Guam Chamber of Commerce titled Proposed
Economic Diversification Initiatives for Guam, the contraction of
production and consumption led to a ``slowdown in maritime trade,
reducing shipping demand and port traffic and turnover.'' The proposed
transshipment solution demands a coordinated regional response to
ensure the smooth operation of global supply chains and the health and
safety of shipping-related personnel. According to former Governor Carl
Gutierrez, Bill 2-36 (LS) will close critical gaps in Guam's economic
recovery.\1\ This solution urges the participation of both governmental
and private stakeholders to efficiently sell and gain rapid access to
consumers within the Asian market.
---------------------------------------------------------------------------
\1\ Gutierrez, Carl T.C. ``Support for Bill 2-36 (LS), `Relative to
Developing a Plan to Implement a Transshipment Industry Through the
Creation of a Transshipment Task Force.' '' Received by the Office of
Vice Speaker Tina Rose Muna Barnes on 22 April 2021.
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
According to the U.S. Department of Homeland Security, the
maritime transportation system (MTS) is the ``economic lifeblood of the
global economy.'' Moreover, Guam has the unique capacity of receiving
more shipments in comparison to other ports in the Pacific. A notable
advantage of the commercial port is its convenient access to the
Antonio B. Won Pat International Airport, allowing major airlines to
fly to cities in the mainland from Guam. Furthermore, the Port
Authority of Guam has the ability to move containerized, break-bulk,
and fresh fish cargo. Not only does Guam have easy access to
manufacturing hubs in the Asia-Pacific supply chain, but its strategic
location also allows the United States to secure the defense of the
nation and protect its allies. Furthermore, Public Law 35-105 has
enabled the Guam Customs and Quarantine Agency to efficiently improve
its procedures through automation and update its manifest requirements.
This will contribute to Guam's post-COVID recovery by transporting
goods into the mainland at faster rates. Public Law 35-105 will also
improve operational and cost efficiencies while digitization and
automation ensure maritime transportation remains uninterrupted.
Notably, the COVID-19 pandemic has negatively impacted Guam's
shipping and port sector. For example, the United Nations Economic and
Social Commission for Asia and the Pacific report, published on
September 30, 2020, indicated that ``any significant disruption to the
MTS can have devastating implications for the global supply chain, as
well as America's National Security. Thus, maritime elements of the
global supply chain are considered by Homeland Security to be critical
assets and systems that must be protected.'' \2\
---------------------------------------------------------------------------
\2\ United Nations ESCAP. COVID-19 and Its Impact on Shipping and
Port Sector in Asia and the Pacific. Tech. Washington, DC: United
Nations, 2020. Print.
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The transshipment task force can play an active role in
reactivating the MTS. Additionally, Public Law 36-23 encourages the
U.S. to maximize the potential of Jose D. Leon Guerrero Commercial Port
and A.B. Won Pat Airport to protect the MTS from vulnerabilities caused
by the pandemic. Public Law 36-23 would further diversify the economy
and assist in Guam's post-COVID recovery by increasing the production
and sale of Guam-made goods; creating thousands of new jobs; injecting
the financial industry with much needed liquidity, credit, savings, and
assets; producing new revenue streams; and controlling reverse
logistics costs. It would also support a sustainable initiative of
green packaging and contribute to efficient delivery systems.
Regional Benefits:
With tourism at a standstill, Guam is presented with an opportunity
to rebuild an even stronger economy, capitalizing on new industries
that have not been tapped. One such opportunity is to return to our
roots and utilize Guam as a transshipment hub. According to a recent
report by the International Finance Corporation (IFC), logistics can
contribute greatly to a country's productivity and economic
development. In fact, the cost of logistics as a percentage of GDP can
be up to 25 percent in some developing economies. Investment and
increased efficiency in the logistics and transshipment sector can
boost competitiveness and stimulate economic growth in emerging
markets.\3\
---------------------------------------------------------------------------
\3\ International Finance Corporation. The Impact of COVID-19 on
Logistics. Tech. Washington, DC: World Bank Group, 2020. Print.
---------------------------------------------------------------------------
However, the global economy was greatly impacted due to logistical
challenges as a result of COVID-19.\4\ Supply chain disruptions have
made a dramatic impact on competitiveness, economic growth, and job
creation. When ports in China closed in response to the spread of
COVID-19, a backlog of containers was created--impacting the production
and movement of automotive, electronic, pharmaceutical, medical
equipment and supplies, and consumer goods. While the IFC is unable to
put an exact dollar amount on the losses as a result of port shutdowns,
it is predicted that the economic recession will produce a second
demand shock in the various industries that have been impacted.
Companies of a smaller scale simply do not have the flexibility nor the
resources to afford a backup plan. Companies of a larger scale, such as
DHL, have declared their contracts force majeure because of
unforeseeable circumstances that prevent someone from fulfilling a
contract--essentially deeming all existing contracts null and void. The
impact of this declaration has had a spillover effect on ports,
workers, landlords, and suppliers across the world.
---------------------------------------------------------------------------
\4\ International Finance Corporation. The Impact of COVID-19 on
Logistics. Tech. Washington, DC: World Bank Group, 2020. Print.
---------------------------------------------------------------------------
These sentiments were reinforced by the United Nations Economic and
Social Commission for Asia Pacific (UNESCAP). In their report, UNESCAP
translated these challenges to represent the repercussions in the Asia
Pacific Region.\5\ For many of the smaller Pacific Island nations, one
ship a week may be all that services the population--limiting the
amount of food and supplies that are available for the local
population. Not only is the ability to survive jeopardized but exports
of raw material and agriculture are discontinued, cutting off economic
activity for these small populations.
---------------------------------------------------------------------------
\5\ United Nations ESCAP. (2020). Transport and trade connectivity
in the age of pandemics U.N. solutions for contactless, seamless and
collaborative transport and trade. COVID-19 AND ITS IMPACT ON SHIPPING
AND PORT SECTOR IN ASIA AND THE PACIFIC.
---------------------------------------------------------------------------
Both the IFC and UNESCAP agree that a plan is needed to avoid the
same economic devastation in the next pandemic. Lessons from this
disaster serve as a guidebook for the future. These recommendations
include an increased hybrid air and sea cargo capability, restructuring
of the global supply chain to be further spread out, and expansion of
digital services within the shipping industry. Guam has recently
updated its decades-old law requiring a physical manifest of each cargo
ship--the first step to modernizing its procedures at the port.
As stated in the Guam Business Opportunities Report, Guam offers
attractive business opportunities for private sector firms from various
industries.\6\ The island benefits from a duty-free exemption for goods
entering the continental U.S. Additionally, Guam laws already allow for
tax rebates and exemptions for investors who choose to invest in Guam.
With these tax benefits, as well as the protection of the U.S. Military
and the political stability that it brings with it, Guam has a chance
at tapping into this new industry. Furthermore, Guam is home to the
largest deep-water port in the Asia Pacific, which is ranked 55th in
the world for its military and economic importance and handles, on
average, about two million tons of cargo a year. ``Port Strong'' is
more than a motto for the Port Authority of Guam--it is a testament to
the capabilities of the CHamoru people.
---------------------------------------------------------------------------
\6\ Kulik, N. & Maruska, K. (2007). Guam Business Opportunities
Report. Prepared for the United States Department of the Interior
Office of Insular Affairs.
---------------------------------------------------------------------------
Guam can take advantage of its geographical location to serve as a
technology hub to return to a state of pre-COVID prosperity. With
nearly every industry shifting its services online, this has created
congestion in the existing technological infrastructure. When a
consumer accesses data virtually, such requests travel in submerged
submarine fiber optic cables to the respective servers where
information is stored. With a global demand to access information on-
demand, the island's location as a bridge between the east and the west
makes Guam a favorable candidate as a global tech hub. Creating a
technology-hub in the Guam and Mariana Islands archipelago will render
lucrative employment for our people.
Conclusion:
Transshipment provides a significant improvement for the people of
Guam and its economy. Guam's geographical and political-strategic
location within the Asia Pacific represents a vital component to not
only U.S. military logistics and operations but also an active role in
serving as a manufacturing hub in the Asian market. While the
challenges caused by the pandemic have created a need to establish Guam
as a strategic hub for shipping for the area, the island is positioned
for export-import businesses to capitalize on the benefits and import
duties for U.S.-flag jurisdictions. The cost of living on Guam would be
lowered as Guam acts as an intermediary location for the shipment of
goods while at the same time improving the livelihoods and economic
prosperity of the entire region.
[all]