Palau mourns soldier’s death and opposes Guantanamo detainees

http://wire.antiwar.com/2009/06/16/soldiers-death-guantanamo-detainees-rattle-palau-2/

Soldier’s death, Guantanamo detainees rattle Palau

Palau mourns countryman killed in Afghanistan while serving in US Army

TOMOKO A. HOSAKA
AP News

Jun 16, 2009 10:33 EST

The war in Afghanistan hit too close to home for the tiny village of Ngardmau in this remote, close-knit Pacific nation.

Hundreds throughout Palau, from children to the president, gathered Tuesday in sweltering heat to mourn Jasper Obakrairur, a 26-year-old U.S. Army sergeant and the first Palauan killed in Afghanistan. They wept as if he were one of their own.

And in a way, he is. For this archipelago of some 20,000 where families and acquaintances are deeply intertwined, just one casualty represents a collective tragedy. The young soldier’s death has shocked Palau’s core and left many questioning whether it was sacrificing too much for the U.S.-led effort.

“I’m always telling our leadership, us Palauans, we are very few,” said Queen Bilung Salii, the country’s highest-ranking female traditional leader. “And here we are sending our kids to war.”

As they bid farewell to their native son, Palauans at the funeral expressed anxiety over the expected arrival of 13 men detained as possible terrorists at Guantanamo Bay. Their country leapt into headlines recently after agreeing to President Barack Obama’s request to take the group of Chinese Muslims, known as Uighurs, after other countries turned Washington down.

The Uighurs (pronounced WEE’-gurs), a Turkic people from China’s far western region of Xinjiang, were captured in Afghanistan and Pakistan in 2001. The Pentagon determined last year that they were not “enemy combatants.”

Palau’s president, Johnson Toribiong, has described the agreement as a humanitarian gesture, in line with his people’s tradition of welcoming those in need.

Still, the decision does not sit well with Florencia Ebelau, who watched Obakrairur’s state funeral on a TV monitor outside the Capitol rotunda. Flags flew at half-staff, and Toribiong declared Tuesday a national day of mourning.

The proceedings were followed by a Palauan service in Obakrairur’s village in Ngardmau, on the western coast of the biggest island.

Ebelau, 64, worries that the Uighurs will threaten the tranquility and safety of Palau.

“It’s good to be nice to other people, but only as much as you can afford to,” said Ebelau, whose women’s group includes one of the fallen soldier’s relatives. “I don’t mean to be a nasty person, but we cannot afford that kind of thing.”

When asked about the president’s possible motives, she, along with many others, said, “Because the U.S. asked us to.”

Fermin Meriang, editor of the local Island Times newspaper, has been a vocal critic of the Uighur issue in his publication. The public should have been consulted before a final decision, he said.

“Otherwise, you get what’s happening right now – a backlash,” he said.

Palau is one of the world’s smallest countries, totaling 190 square miles (490 square kilometers) of lush tropical landscapes. Its economy depends heavily on tourism and foreign aid, mainly from Washington.

Toribiong has repeatedly denied that his country stands to benefit financially in exchange for accepting the Uighurs. But the arrangement coincides with the start of talks to review the agreement that governs Palau’s relationship with the U.S.

Under the Compact of Free Association, U.S. aid to Palau from 1995 to 2009 is expected to exceed $852 million, according to a report last year by the U.S. Government Accountability Office. It includes direct funding as well as access to U.S. postal, aviation and weather services.

The compact also allows Palauans to serve in the U.S. armed forces.

The military does not release specific numbers on how many Palauans are currently serving, but it has been a prominent option for young men seeking career, educational and travel opportunities unavailable at home.

Toribiong estimates that about 30 to 40 Palauans join the U.S. armed forces every year. Locals regularly claim that per capita, Palau sends more people to the military than the U.S.

Obakrairur was killed by a roadside bomb on June 1 in Nerkh, Afghanistan. Three other Palauans have been killed while serving in Iraq.

“In the past, a lot of Palauans joined the military, but nothing like this had ever happened,” said Vameline Singeo, who attended elementary school with Obakrairur. “Before it was more of a positive thing. Now that there have been deaths, people are more reserved in sending their kids.”

Obakrairur is his family’s only son. He was posthumously awarded a bronze star and purple heart Tuesday.

Source: AP News

“Blood and treasure”: America’s claim to the Pacific

Sec. of Defense Gates speaking at the “Shangri-La Dialogue” on Asia Pacific Security evoked the old argument for America’s claim to the entire Pacific region: “blood and treasure”:

America has paid a significant price in blood and treasure to fight aggression, deter potential adversaries, extend freedom, and maintain peace and prosperity in this part of the world. We have done so over many generations and across many presidential administrations. Our commitment to the region is just as strong today as it has ever been – if not stronger since our own prosperity is increasingly linked with yours.

Blood and treasure was one of the reasons cited after WWII for the Pacific to be treated differently than other regions of the world. While the world community denounced imperialism and colonialism as root causes of wars and called for decolonization through an internationally mediated process, the Pacific was treated differently.

The U.S. wanted to have exclusive control over the Pacific because it had spent so much blood and treasure “liberating” the Pacific from the Japanese, and because the Pacific was seen as an integrated strategic area for maintaining America’s security. This is why there were “strategic trusts” created for the Pacific islands where the US maintained control over the process of transition from Japanese colonialism to self-determination. Of course, the US had no intentions of letting these islands become truly independent and made every effort to stunt their development and maintain their dependency on the US in order for the US to maintain a military base network that blanketed the Pacific.

The Pacific is increasingly becoming the strategic center of gravity for the US and the other regional powers. Here’s a quote from Gates’ speech:

So, in the central and western Pacific, we are actually increasing our military presence, with new air, naval, and marine assets based over the horizon in Guam and throughout the region – prepared as always to respond to a number of contingencies, natural or man-made.

It is time to rethink the whole meaning of the Pacific region: “American Lake” or “Ka Moana Nui” (The great ocean that connects the Oceanic nations, a term the developed out of the Nuclear Free and Independent Pacific movement and other Pacific peoples’ struggles for freedom and justice.)

===

Sat, 30 May 2009 21:49:00 -0500

Gates Outlines Administration’s Asia Security Strategy

By Fred W. Baker III
American Forces Press Service

SINGAPORE, May 30, 2009 – Defense Secretary Robert M. Gates opened the “Shangri-La Dialogue” Asia security summit here today outlining a broad set of regional security issues and promising continued support from the U.S. administration.

The annual conference gathers defense, senior military and other officials from across the region to discuss mutual security challenges.

“America has paid a significant price in blood and treasure to fight aggression, deter potential adversaries, extend freedom, and maintain peace and prosperity in this part of the world,” Gates said. “Our commitment to the region is just as strong today as it has ever been, if not stronger, since our own prosperity is increasingly linked with yours.”

Gates said the challenge now is to fashion defense policies that adapt to the new realities of the region. He cited the long-standing treaties with Japan and South Korea, both formed in the early years of the Cold War “when both nations were impoverished and virtually destroyed.” Now, Gates said, the countries are economic powerhouses with modern, well-trained and well-equipped military forces.

“They are more willing and able to take responsibility for their own defense and assume responsibility for security beyond their shores,” Gates said.

As a result, the United States is making adjustments in its policies to maintain a posture that is more like that of a partner, Gates said. South Korea will take the lead role in its own defense in 2012. The U.S. military presence in the Pacific is growing, Gates added, noting increased relationships with India and China.

The secretary said the changes represent a shift in the defense strategy in the region, placing more emphasis on building the capacity of its allies and less on solely conventional military deterrence. The shift will represent a more balanced mix of “soft” and “hard” power, he added, with military, diplomatic, economic and humanitarian elements integrated seamlessly.

“It is an approach intended to further strengthen and deepen security in the Pacific Rim through maintaining our robust military presence, but also through strengthened and deepened partnerships,” Gates said.

The secretary noted the unity in the global responses to the economic crisis, the threat of a pandemic flu and piracy. Despite occasional differences of opinion, he said, nations overall have come together to develop unified responses.

Gates said that stronger relationships among countries in the region are the key to facing security challenges such as piracy, weapons proliferation and terrorism, and that the U.S. administration promises a more collaborative and consultative foreign policy.

“What these challenges all have in common is that they simply cannot be overcome by one, or even two countries, no matter how wealthy and powerful,” Gates said. “While the United States has unparalleled capabilities, we also recognize that the best solutions require multiple nations acting with uncommon unity.”
Related Sites:

Speech Transcript

The Shangri-La Dialogue

Another Case Confirms Agent Orange on Guam

Another case confirms AO on Guam

http://guam.mvarietynews.com/index.php?option=com_content&view=article&id=6726:another-case-confirms-ao-on-guam&catid=1:guam-local-news&Itemid=2

Tuesday, 26 May 2009 00:14 by Mar-Vic Cagurangan |Variety News Staff

ANOTHER veteran who was stationed at Andersen Air Force Base from 1962 to 1965 won his claim for disability benefits based on medical findings which showed that his illness was the result of his exposure to Agent Orange.

The decision issued by the Department of Veterans on April 16 was the fourth case won by veterans who were deployed to Guam in the 1960s. All four cases confirmed dioxin contamination at AAFB.

The Air Force veteran, who requested anonymity, has been suffering from diabetes mellitus type 2, which the Department of Veterans Affairs confirmed to be service-related.

“Service connection for diabetes mellitus type 2 is granted because the evidence shows a medical opinion that this current condition is related to in-service events or circumstances with residuals evident as shown in treatment records,” states the DVA decision.

“The statement of case issued on this matter found that the veteran was exposed to dioxin while stationed t Anderson Air Force base,” it added.

The decision was based on the medical opinion submitted by a doctor who stated that “the exposure to Agent Orange is etiologically related to the veteran’s current diabetes.”

During the Vietnam war era, Guam was used as storage facility for agent orange, a kind of chemical herbicide used to thin jungles in Vietnam in 1968 and 1969. A CBS News report on June 12, 2005, said Agent Orange was sprayed on Guam from 1955 to 1960s, and in the Panama Canal Zone from 1960s to 1970s.

The first confirmation of Agent Orange presence on Guam was found in U.S. Court of Appeals for Veterans’ ruling in 2005, which concluded that a veteran contracted a disease as a result of his exposure to Agent Orange while stationed on Guam in the late 1960s.

Resistance to Militarism: Guam, Puerto Rico, Diego Garcia

Resistance to Militarism: Guam, Puerto Rico, Diego Garcia

Tues, May 19, 6:30-9:00pm

PANA Institute, 2357 Le Conte Ave, Berkeley, CA

PANA and Women for Genuine Security invite you to:
• Hear updates on Island Peoples’ resistance to U.S. military bases & their struggle for life and land.
• Including book launch of: Island of Shame: The Secret history of the US Military Base on Diego Garcia
• Share food and community
6:30pm dinner. Program starts at 7:00pm. RSVP for dinner to Gwyn Kirk (gwyn@igc.org; 510 652-7511)

Speakers:

DEBÓRAH BERMAN SANTANA
Ethnic Studies professor, Mills College;
Advisor, Committee for the Rescue and Development of Vieques, and Collaborator, Ceiba Alliance for Development (PR community organizations that address the issue of military and ex-military lands);
Author of Kicking Off the Bootstrap: Environment, evelopment and Community Power in Puerto Rico (University of Arizona Press) + many articles on Puerto Rico, resistance to militarism, and environmental justice.

DAVID VINE
Anthropology professor. American University, Washington, DC, and author of Island of Shame: The Secret history of the US Military Base on Diego Garcia.

This explosive new book exposes the other Guantánamo in the heart of the Indian Ocean. Although most don’t know it exists, the U.S. military base on the island of Diego Garcia is one of the most strategically important and secretive U.S. military installations in the world, serving as a launch pad for the wars in Iraq and Afghanistan, a top-secret CIA prison, and a centerpiece for U.S. domination of Middle East oil supplies. Island of Shame also reveals the shocking truth of how the United States conspired with Britain to forcibly expel Diego Garcia’s indigenous people-the Chagossians-and dump them in impoverished exile. (All the author’s proceeds will be donated to the Chagossians).

FAMOKSAIYAN
Organizing for self-determination for Chamorro people of Guåhan/Guam.

DIRECTIONS:
Downtown Berkeley BART. Take University to Oxford. Left on Oxford, right on Hearst, left on Le Conte. Call 415 312 5583 if you need a ride from BART. Parking space in the driveway or on the street.

SPONSORS:
Women for Genuine Security & PANA Institute (Pacific School of Religion) For more information: Deborah Lee (dlee@psr.edu) • www.panainstitute.org
Gwyn Kirk (gwyn@igc.org);, 510 652- 7511 • www.genuinesecurity.org

Related event:
Author David Vine will also speak at Modern Times Bookstore in San Francisco on Wednesday, May 20, 7:00pm.

‘Reclaim Guåhan’ rally gathers strength

‘Reclaim Guåhan’ rally gathers strength

Monday, 11 May 2009

by Jude Lizama | Variety News Staff

THE Guåhan Youth, an umbrella group for the island’s youth and grassroots organizations, will hold a rally that will amplify their collective voice that has been muffled amid rapid changes resulting from the ongoing military buildup and what some people consider “federal interference.” The rally, billed “Reclaim Guåhan: Chule’ Tatte Guåhan,” will be a venue for education, expression and empowerment, featuring honored speakers, poetry, art, film showings and local music among others.

p820reclaim20jackson

Danny Jackson

The overall goal to teach those in attendance about the island’s critical issues and the ability to express various opinions will be highlighted throughout.

The rally is scheduled to be held from 2 to 8 p.m. on May 23 at Skinner’s Plaza in Hagåtña.

“It stems from the $1 million a week put forth by Judge [Frances] Tydingco-Gatewood, which we saw as federal interference on local governance,” stated primary event coordinator Victoria-Lola Leon Guerrero.

She cited such factors as the military buildup, land grabbing and lack of self determination as central reasons that prompted the Guåhan Youth to initiate a rally that centralizes on indigenous people’s self determination and other fundamental freedoms.

“It’s amazing that a lot of it is coming from the youth. People shouldn’t have to resign to hopelessness. The rally is intended to empower future generations to take leadership,” said Leon Guerrero, adding that the Guåhan Youth will show what they are “capable of as a community.”

“It’s frustrating to know that no one has spoken out,” said Leon Guerrero. “We need to focus on our language and culture in order to help stop all of this, and keep it as the land of the Chamorros. We don’t have power as a nation, but it is something that we are entitled to.”

I Nasion Chamoru’s Maga’ Håga, Debbie Quinata, said I Nasion Chamoru is a supporter and that in no way should I Nasion Chamoru take any credit for the upcoming Chule’ Tatte Guåhan rally, which has been materialized and bolstered by the island’s youth movement.

“It’s important for young people to take responsibility for what will be their future. I will not take credit for this ingenious movement,” Quinata said. “It’s a great way to get information out to the community.”

p820reclaim20hemsing

Howard Hemsing and (top) Danny Jackson, two of the most vocal activists on Guam, hold placards during a protest rally at the legislature in this Jan. 3, 2008 file photo. The island’s young people will take over the scene of activism during an upcoming rally in Hagatna. Photos by Paul Blas

She added that “It’s very important to have our young generation take firm grip of the reality of what’s happening on our island. They’re being responsible and forthright.”

Marine Protection as Empire Expansion

http://www.fpif.org/fpiftxt/6103

Marine Protection as Empire Expansion

David Vine and Miriam Pemberton | May 6, 2009
Editor: John Feffer
Foreign Policy In Focus
http://www.fpif.org

At the 100-day mark, the new president has tackled an extraordinarily wide-ranging agenda, but one item will need his attention soon: closing the empire of U.S. bases around the world. One place to start is to reverse the marine protection areas that the last president established in the Pacific.

In a last-minute bid to salvage a legacy, President George W. Bush created three new protected marine areas in the Pacific. Environmental groups like the Natural Resources Defense Council applauded. But the situation is more complicated than it looks.

Why would a president who rarely saw a public land or off-shore site he didn’t want to drill on, and whose climate change policies have done lasting damage to oceans and their inhabitants worldwide, exhibit such concern for marine life in these particular faraway places?

One possible clue: This protective blanket will extend only 50 miles beyond land, rather than the 200 that the law permits. Could it be his real concern was for the land itself rather than for the water around it?

Because these aren’t just any Pacific islands. Two – Wake and Johnston – are home to important U.S. military installations, while a huge area of protected ocean encompassing the Mariana Trench borders U.S. military bases on Guam, Saipan, Rota, Tinian, and Farallon de Medinilla. The islands are right now at the receiving end of a major eastward shift in the U.S. military base infrastructure from concentrating bases and troops in Europe and Okinawa, Japan to concentrations elsewhere in Asia and the Mariana Islands in particular. Guam is set to receive an additional 8,000 Marines and 40,000 civilians on an island where the military already controls one-third of all land.

In designating the protected areas, the White House took pains to say that “nothing” in this action “impairs or otherwise affects the activities of the U.S. Department of Defense.”

Many in Guam are opposed to the expansion of the military’s presence, concerned about increased crime, accidents, violence against women, health and environmental damage, and other forms of social and cultural disruption. And remember too that the islands involved are effectively U.S. colonies without full voting rights and congressional representation and are still on the UN’s list of territories slated for decolonization. Whatever else it may do, the marine monument designation will add a positive environmentalist spin to the permanent U.S claim on these territories as military outposts.

But this spin has a problem. Military bases and regular military operations are notorious for their harmful impact on the environment. Such damage includes the blasting of pristine coral reefs, clear-cutting of virgin forests, deploying underwater sonar dangerous to marine life, leaching carcinogenic pollutants into the soil and seas from lax toxic waste storage and military accidents, and using land and sea for target practice, decimating ecosystems with exploded and unexploded munitions. Guam alone is home to 19 Superfund sites.

It’s hard to imagine that the net result of base-expansion-plus-monument-designation will be good for the surrounding marine life.

In fact, the case of Vieques, Puerto Rico, offers a telling precedent: After locals won a decades-long fight to evict the Navy from their island, the Pentagon was exempted from cleaning up most of the environmental disaster area it left behind when the federal government declared the former base a “wildlife refuge.”

How then can these precious resources really be protected? First, and most importantly, the Pentagon cannot be exempted from environmental regulations. Second, full control over Wake Island and Johnston Atoll should immediately be transferred from the Department of Defense to the Department of the Interior – there’s no reason that the Pentagon should have its own private islands. Third, the people of Guam and the rest of the Northern Mariana Islands should be given full control over the areas above and below the water surrounding its territory in full accordance with international law.

To fulfill the Pacific marine reserve’s promise of environmental protection and conservation, environmental groups initially enthusiastic about the Bush plan must unite with allies on Capitol Hill and a growing movement of those critical of the Pentagon’s expanding reach to press the new administration to reverse this expansion. Those concerned about the environment must make sure that the Pentagon does not use the mantle of environmental protection as a cover for its profligate and environmentally damaging plans to use military bases to control the Pacific. With around 1,000 military bases outside the 50 states – each one a possible environmental disaster area – now is the time when we should be closing and consolidating our overseas bases, not finding new and increasingly stealthy ways to solidify their presence.

Miriam Pemberton is a Research Fellow at the Institute for Policy Studies. David Vine is Assistant Professor of Anthropology at American University, whose book about the military base on Diego Garcia, Island of Shame, will be released in May by Princeton University Press. They are both contributors to Foreign Policy In Focus.

US military may displace 30 Tinian farmers

http://www.saipantribune.com/newsstory.aspx?cat=1&newsID=89101

30 Tinian farmers, ranchers may be displaced by the US military

3 april 2009

By Moneth Deposa
Reporter

A significant number of farmers, ranchers, and hog raisers on Tinian are expected to be displaced if the U.S. military decides to fully utilize the property it leased on the island.

According to the Tinian Legislative Delegation, up to 30 ranchers and farmers-about 80 percent of the island’s agriculture sector-would be affected and the municipality needs to find a site soon for their relocation.

Delegation chair Sen. Joseph Mendiola said final plans detailing what specific part of Tinian will be used for military exercises and training will be presented to the island’s leaders in July.

The U.S. military holds the lease to about two-thirds of available land on Tinian.

“We don’t know yet the final plans for Tinian. Up to this time, we’re still waiting word from the military, which is also coordinating with the municipality and the governor. [There is] no final word yet if all two-thirds of Tinian would be used for their training sites,” he said.

Without the military’s confirmation, the delegation cannot plan for the future of its farmers and ranchers, Mendiola said.

Although the Tinian community is counting on the positive economic impact of the buildup, they are also concerned about possible displacement.

“A lot of farmers and ranchers would be displaced if they [U.S. military] decide to use the entire two-thirds of Tinian,” Mendiola said

The senator said some public lands on Tinian may be identified as new sites for the farmers and ranchers.

If it were up to him, Mendiola said, he prefers that the military use the North Field as an exclusive military training ground.

He added that the island’s airport is close to the U.S. military’s leased property and problems may arise if the area is used for live-fire training and other military exercises.

The transfer of some 8,000 Marines from Okinawa, Japan to Guam starting in 2012 is projected to benefit the CNMI, particularly Tinian.

However, Mendiola said, even the approximate number of U.S. Marines who will be assigned to Tinian is not known yet.

“Even that number is not available to us.we’re still on a ‘waiting game,'” he said, adding that whatever recommendation the CNMI leadership may have for the military would be supported by the delegation.

Hawai’i businesses infest Guam chasing military expansion

Guam offers big payoff for Hawaii investors

Friday, March 20, 2009

Pacific Business News (Honolulu) – by Cathy Cruz-George

HAGATñA, Guam – In January 2007, Maria Miller left Hawaii and moved to Guam to open Horizon Properties Inc., a real estate firm serving the growing number of Hawaii investors buying homes and condominiums in Guam. She now manages more than 250 units.

Her business partner, Eric Watanabe, a 25 percent shareholder in Horizon Properties and president of Hawaii-based Eric M. Watanabe Realty, branched out and opened a Taco Del Mar franchise on Guam.

Guy Akasaki, chairman of Honolulu-based Allied Pacific Builders Inc., bought a Guam general contracting firm that now generates $4 million annually in sales. He also bought $12 million in property that he estimates is now worth $1 million more.

They are among the many Hawaii residents who invested on Guam in the past four years in anticipation of the U.S. military’s plans to move 8,000 Marines, along with 9,000 dependents, from Okinawa to the U.S. territory by 2014.

Starting in the 1970s, dozens of big Hawaii companies opened branches on Guam in response to the growth of tourism and construction, including Bank of Hawaii, First Hawaiian Bank, Sam Choy’s, Roy’s Restaurant, Finance Factors, Matson Navigation Co. Inc., Outrigger Hotels & Resorts and Castle Resorts & Hotels.

The recent wave of Hawaii companies, however, comprises new, smaller players hoping to diversify and grab a share of the military boom.

“Three years ago, I saw signs of the Hawaii economy starting to drop,” Akasaki said. “You anticipate that good times are not always going to be, so you start preparing for a famine.”

Already, 8,000 active-duty military personnel live on Guam, located 3,800 miles west of Hawaii and a three-hour plane ride from Asia. Approximately 1.2 million tourists visit Guam annually, the majority hailing from Japan, Korea and Taiwan.

For Guam’s 170,000 residents to accommodate the population surge by 2014, the island – slightly smaller than Molokai – will require additional homes, roads, schools and other badly needed infrastructure.

The U.S. and Japan governments earmarked $10 billion and $6 billion, respectively, for relocation and building expenses.

“This is the calm before things start taking off,” said Ronald Cannoles, executive vice president and Pacific Islands division manager for Bank of Hawaii on Guam, with $470 million in assets.

Billions in military money

Over the next decade, the U.S. government plans to spend an additional $5 billion for Army, Navy and Air Force expansion on Guam.

Once construction begins in late 2010, between $1 billion and $2 billion annually in federal funding is expected to flow into Guam’s economy, up from an annual average of $600 million in private and public construction, according to the Guam Contractors Association.

Guam’s economic situation is unique, said Nicholas Captain, an Asia-Pacific real estate analyst.

“The military buildup is going to buffer any downsize that the economy has as a result of the fallout from the credit market collapse and the recession in Hawaii and the Mainland,” said Captain, president of the Guam-based Captain Real Estate Group of Cos., and an alumnus of the University of Hawaii.

To fill jobs, the contractors’ association estimates that the industry will need up to 20,000 workers, mainly from Guam, the Commonwealth of the Northern Mariana Islands, Micronesia and the Philippines.

Finding employees will not be “rocket science” for Guam’s construction industry, which experienced a tourism-building boom in the late 1980s before the Japanese bubble burst, said Denny Watts, president of Honolulu-based Watts Constructors.

“Guam has been resilient over the years about taking care of those needs,” said Watts, who opened a Guam branch three years ago and employs about 25 salaried and 100 hourly workers.

John Sage, originally from New Zealand, manages the Guam office of Watts Constructors, which has annual sales of about $60 million. This year, the Guam team finished building a 185,000-square-foot base exchange at Anderson Air Force Base and is almost finished with an $82 million, 200-unit housing project for the Navy.

Guam’s biggest challenge will be to find workers with highly specialized skills, such as military project management and contract administration.

Although Watts plans to fill jobs with local residents, the industry might need Hawaii and Mainland workers to fill the void, Watts said.

More than 600 résumés for jobs on Guam, mostly from the U.S. Mainland, arrived in his Honolulu office in early March in response to a help-wanted ad in a national magazine.

Home prices to rise

Construction workers moving to Guam will provide an “additional boom” to the real estate market as they rent or buy homes, said James Martinez, president of the contractors’ association, which two years ago created the GCA Trades Academy, a skills-training program that guarantees jobs for local residents.

“The downside is these workers are normally transient and would move back or closer to home if the economic situation improves back in the U.S.,” he said.

That is one of Maria Miller’s major concerns, having seen Hawaii residents priced out of the market after home prices escalated.

“I really don’t want to see that happen here,” said Miller, the property manager who looks after homes on Guam for Hawaii-based owners.

Ron Ramos, CEO and principal broker of the Guam branch of Hawaii real estate firm NAI Chaney Brooks, says a military housing market could inflate home prices similar to what happened in Honolulu.

“We have to strike a balance in working with the military,” he said. “There could be a disconnect between what the locals and the military can afford.”

NAI Chaney Brooks, which opened a Guam office in 2007, has been involved in $2 billion in real estate transactions on the island.

The company plans to convert the luxury golf residence LeoPalace Resort into military housing and has joined with Matson Navigation Co. Inc. to secure and develop an industrial park on Guam.

Unlike Hawaii, Guam didn’t recover from the Asian economic downturn until the mid-2000s and its real estate values remained bargain-basement compared to Hawaii’s.

From 2005 to early 2008, Hawaii investors were among the buyers who took advantage of Guam’s territorial status, which enabled them to do a Section 1031 Exchange that allowed them to sell and buy like-kind property without paying capital gains.

“Smart people sold out of the Mainland and Hawaii when those market were peaking,” Captain said. “Guam was coming out of an incredibly depressed time and the real estate prices were extremely low, just a fraction of the prices on the Mainland.”

The median price of a single-family home on Guam increased 19 percent from 2006 to 2007, hitting $196,850.

In 2008, the median home price rose to $215,000, up another 9 percent. The median price of industrial property last year rose 44 percent to $1.3 million.

Despite the growth, real estate sales volume fell 46 percent last year as the worldwide financial crisis worsened.

Sales are expected to fall another 12 percent in the first two quarters of 2009 before rebounding in the latter half of the year.

The real estate numbers mirror Bank of Hawaii’s Guam operations, which saw loan volume grow 20 percent between 2007 and early 2008, as speculative buyers flooded the market. Loan volume has flattened since then.

Bank of Hawaii saw Guam deposits rise 3 percent in 2008 as businesspeople “took a conservative approach to capital expenditures and building up of inventories, watching what will happen in the global economic crisis,” Cannoles said.

Taking too long

First Hawaiian Bank’s Guam division, with $600 million in assets, also saw an increase in loans after the military’s initial announcement three years ago but later noted a slowdown when investors realized the buildup would take longer than anticipated.

“When they initially announced the buildup three years ago, they thought the military was coming sooner,” said Laura-Lynn Dacanay, senior vice president and regional manager for Guam and the region. “Once [Secretary of State] Hillary Clinton signed the agreement with Japan, it gave new momentum.”

Guam’s population growth means increased volume for shipping companies Charlotte, N.C-based Horizon Lines Inc. and Matson Navigation, which together handle 80 percent of containers at Guam’s commercial port in Apra Harbor.

Earlier this year, the companies jointly invested $19 million to install three new cranes at the port.

Horizon also sent five new ships to Guam. Each can carry up to 2,800 20-foot containers.

“Transportation can be a challenge because it’s in the middle of nowhere,” said Mar Labrador, senior vice president and general manager of Horizon Lines for Hawaii, Guam and Micronesia.

“But because of those inefficiencies, Guam is ripe for opportunities, whether it’s improvement of infrastructure or business opportunities. It’s very exciting.”

Hawaii-based companies with Guam operations include:

  • ABC Stores
  • Ace Auto Glass Inc.
  • Bank of Hawaii
  • Belt Colllins
  • Castle Resorts & Hotels
  • NAI Chaney Brooks
  • Finance Factors Ltd.
  • First Hawaiian Bank
  • Outrigger Hotels & Resorts
  • Ohana Hotels & Resort
  • Roy’s Restaurant
  • Sam Choy’s

What’s your advice for Hawaii companies interested in doing business on Guam?

“When you go into a culture, you can’t go in thinking you’re the man. Get to know the network and the connectivity, because the island is very small.”
Guy Akasaki, Allied Pacific Builders Inc.

“There is a lot of competition, but we came here from Hawaii as humbly as possible, so as not to appear like carpetbaggers. We went out of our way to not compete in sales. We were here to help them sell their units as smoothly as possible.”
Maria Miller, Horizon Properties Inc.

“Go to the Joint Guam Program Office’s Web site for the Guam Industry Forum in April (www.guamindustryforum.com). If they’re serious about coming here, consider signing up and attending.”
Ron Cannoles, Bank of Hawaii

“Do your due diligence. Understand the market and the people. When you learn to interact and work with the people there, it will be a lot easier.”
Eric Watanabe, Eric M. Watanabe Realty

“Guam and Hawaii are very similar markets, from the legal and political environment. They’re multicultural, small communities, and relationships are very important. It’s very transparent and word gets out very quickly. Your reputation is very critical in getting off to a good start, with good work behind your name.”
Mar Labrador, Horizon Lines Inc.

“Attend the Micronesia Real Estate Investment Conference, Oct. 2-3. The theme for this year’s event is ‘Micronesia Real Estate: Building Momentum.”
Nicholas Captain, Captain Real Estate Group of Cos.

Guam Residents Unhappy About Relocation of US Marines from Okinawa

Saturday, March 14, 2009

Guam Residents Unhappy About Relocation of US Marines from Okinawa

By Akahata
3-14-09, 10:21 am
Original source:
Akahata (Japan)

Residents of Guam are so reluctant to accept the US Marines to be stationed on the island of US territory in the Pacific, that the Guam governor would sign the ordinance passed by the Guam Legislature to hold a referendum over the planned reinforcement of US forces in Guam, said the speaker of the Guam Territorial Legislature.

Japanese Communist Party member of the House of Councilors Inoue Satoshi heard this while he was visiting Guam on March 8-9 while leading a JCP investigation team in preparation for the upcoming parliamentary discussion on the so-called Guam Agreement recently signed by Japanese Foreign Minister Nakasone Hirofumi and US Secretary of State Hillary Clinton. The agreement, if it comes into force after being approved by both countries, will force Japan to pay the costs for constructing US military facilities on Guam.

Speaker of Guam’s Territorial Legislature Judith Won Pat and representatives of residents’ organizations in meetings with the JCP team proved that the Japanese government’s argument that Guam is welcoming the US Marine Corps (USMC) to be relocated to Guam is false.

In May 2006, the Japanese and US governments reached the final agreement on the realignment of U.S. forces in Japan, which included the relocation of 8,000 US Marines and 9,000 families from Okinawa to Guam as well as Japan’s payment of about 6.1 billion dollars as part of the cost for the USMC relocation project totaling about 10.3 billion dollars.

On February 17, the two governments agreed to remake the roadmap, including the payment of the 6.1 billion dollars, into an official treaty entitled: AGREEMENT BETWEEN THE GOVERNMENT OF JAPAN AND THE GOVERNMENT OF THE UNITED STATES OF AMERICA CONCERNING THE IMPLEMENTATION OF THE RELOCATION OF III MARINE EXPEDITIONARY FORCE PERSONNEL AND THEIR DEPENDENTS FROM OKINAWA TO GUAM.

After visiting the site for the construction of the new USMC facilities, the JCP investigation team met with landowners and residents.

On March 9, after a briefing from Japan’s consul general in Guam, they met and held about two hours of talks with Speaker of Guam’s Territorial Legislature Won Pat.

The Speaker stated that the US Department of Defense has provided Guam with little information concerning the relocation plan and that no public opinion survey has been held on this issue. She expressed anxieties over further contamination from sewage water from the new military facilities as well as possible sexual assaults by the increased presence of Marines.

She referred to Guam’s Governor Felix P. Camacho, who is expected to sign the bill to hold a referendum on the relocation issue.

Specifically on the Japan-US agreement on the USMC Guam relocation, which is expected to be discussed in Japan’s Diet, she stressed that the Diet is called upon to listen to Guam and that she is ready to provide information concerned to any Japanese political parties.

On the USFJ realignment issue, she indicated the possibility that additional units will come to a new US base to be constructed in the Henoko district of Nago City, even after a part of the US Marines are moved to Guam.

The JCP team toured the island guided by a representative of the Chamorro Nations, an organization of aboriginals in Guam.

Upon watching CNN news reports on mass layoffs sweeping Japan, they said that they don’t understand why Japan has agreed to pay so much money for a foreign government instead of stimulating the Japanese economy.

Guam’s landowners association chief Antonio told Inoue that he has not been paid a penny by the military every since his land was taken for use by the U.S. Andersen Air Base. He expressed worries over an additional expropriation of land as a result of the USMC Guam relocation.

JCP Inoue stated, “It is extraordinary for Japan to use tax money for the construction of a military base on foreign territory. I want to convey Guam people’s voices to the Japanese Diet so that the new Guam Agreement will be rejected.”

Northern Mariana Mayor concerned about impacts of military expansion

Northern Mariana Mayor Miffed at Military

500-page plan wasn’t shared with Mayor Valentin Taisakan

By Emmanuel T. Erediano

SAIPAN, CNMI (Mariana Variety, March 12, 2009 )-Northern Islands Mayor Valentin I. Taisakan is disappointed with the U.S. armed forces for not sharing with his office information regarding the military’s plans for the Northern Islands.

Retired U.S. Navy Cmdr. Edward J. Lynch, program manager of the Mariana Islands Range Complex, visited the Northern Islands Mayor’s Office last month to discuss this issue with Taisakan.

The mayor’s office was given the draft environmental impact statement for the Mariana Islands Range Complex, and Taisakan has until March 16 to comment.

But Taisakan said the deadline does not give them ample time to review the 500-page document..

“Nonetheless, it is important that we present our concerns on these issues with hope that they will be given serious consideration,” the mayor said in his letter to Lynch.

Taisakan said he is concerned about the target range on Farallon de Medinilla, harmful or deadly materials, toxic waste and local fishermen deprived of their livelihood source.

[PIR editor’s note: Hawaii’s Kahoolawe island off Maui served as a military target for decades until, under growing pressure, the island was returned to the state and to native Hawaiians for rehabilitation. While segments of the island have been cleared of live munitions at great cost to the military, the island might never be safe for habitation.]

Lynch, during the briefing last Feb. 23, assured the mayor’s office of the minimal effect of the military exercises on the marine resources.

But Taisakan said it is not clear whether the area to be covered by the military activities will extend up to 10 miles, including the existing three miles from the shore, or there will be another 10 miles.

Although he recognized the need for expansion, Taisakan reminded the military of the Covenant provision stating that such expansion “shall not exceed 206 acres.”

Taisakan is also opposed to any use of any machinery, equipment, tools and weaponry that deal with chemical or any materials harmful and deadly to the people and environment.

He noted that Farallon de Mendinilla is one of the best areas to fish and the expansion of military exercises there may restrict or limit fishing activities.

Taisakan also expressed concern about the possibility that more fish may become toxic.

He said some fish species turned toxic after World War II and it was believed that unexploded ammonization sunken ships and other hazardous materials used in the war were the cause.

Marianas Variety: http://icnmi.com