Identifier
Created
Classification
Origin
09KOLONIA91
2009-06-12 06:12:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Kolonia
Cable title:  

GOVERNOR EHSA'S PRESS CONFERENCE HIGHLIGHTS POHNPEI STATE'S

Tags:  PGOV PREL EAID FM 
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INFO RUEHC/DEPT OF INTERIOR WASHINGTON DC
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UNCLAS SECTION 01 OF 02 KOLONIA 000091 

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E.O. 12958: N/A
TAGS: PGOV PREL EAID FM
SUBJECT: GOVERNOR EHSA'S PRESS CONFERENCE HIGHLIGHTS POHNPEI STATE'S
QUEST FOR ASSISTANCE, NO MATTER THE SOURCE

(U)
UNCLAS SECTION 01 OF 02 KOLONIA 000091

SENSITIVE
SIPDIS

DEPT FOR EAP/ANP
INTERIOR FOR OIA

E.O. 12958: N/A
TAGS: PGOV PREL EAID FM
SUBJECT: GOVERNOR EHSA'S PRESS CONFERENCE HIGHLIGHTS POHNPEI STATE'S
QUEST FOR ASSISTANCE, NO MATTER THE SOURCE

(U) 1. Summary. In a recent press conference, Pohnpei State
Governor John Ehsa highlighted his government's attempts to seek
assistance from various sources, including both Taiwan and the
People's Republic of China (PRC). He also praised the Compact
Infrastructure Sector grants while simultaneously complaining of
their insufficiency. End summary.

Pohnpei Governor Holds Rare Press Conference
--------------

(U) 2. Pohnpei State Governor John Ehsa held a press conference
on June 5 at the state's executive office. Ehsa is the first
Governor to hold press conferences, and this was his third such
event since assuming office in 2007.

(U) 3. In his opening statement, Ehsa said that Pohnpei did not
escape the global financial crisis, but he's thankful for the
Infrastructure Sector Grants available under the Amended
Compact, referring to that money as "Pohnpei State's own
economic stimulus package." He noted that three schools are
under construction and should be completed by January 2010.
Bidding began on three other schools and construction will start
soon. These projects have "created jobs and a boost into the
economy." Moreover, Ehsa said he also intends to ask the
Department of the Interior for one million dollars under the
Compact Maintenance Fund. Since maintenance funds do not have
to go to the National Government for approval, Ehsa claimed that
his "absolute control" of the funds allows him to get the job
done faster.

(U) 4. Ehsa reported that two projects utilizing bio-gas were
successfully implemented, thanks to a grant from the People's
Republic of China (PRC). The projects use methane from
composted pig waste to provide electricity and cooking fuel. He
seeks to install similar facilities in all residences that have
pig pens, and a large majority of Pohnpean residences raise
pigs. He said each bio-gas unit will cost about $8,000, and he
has asked the United Nations Development Program (UNDP) to help
him find funding.

(SBU) 5. Ehsa also reported that the PRC's pilot farm project
has been successful. He asked the PRC Government to extend the
program for another year. [NOTE: "Success" is not a term
officials at the PRC Embassy would use. In previous

conversations with post personnel, they indicated their
intention to shut the farm down, citing the lackadaisical work
standards of local employees and crop theft. End note.] This
is the second time his government has asked for an extension to
the pilot farm project.

(SBU) 6. The Governor has also courted Taiwan for commercial
assistance and other aid despite the national government's
official recognition of the People's Republic of China. In
fact, Ehsa traveled to Taiwan earlier this year to discuss
opening a trade office in Taipei, which created some tensions
with the Chinese Embassy in Pohnpei and the national government.
Highlighting his efforts, Ehsa announced that Taiwan will
assist Pohnpei by building additional hydroelectric plants. He
said that Taiwanese engineers identified potential sites to
build five such plants. Ehsa claimed that the total capacity of
the facilities will be 10 megawatts. Since Pohnpei's normal
consumption is 7 megawatts per day, the state's future capacity
will exceed its current power needs.

(U) 7. Ehsa also reported on new business opportunities. He
said that Hong Kong entrepreneur Eric Hotung is interested in
financing a 3-5 star hotel in Pohnpei. Ehsa also claimed that
the Shangai Deep Sea Company wants to open a tuna processing
facility in Pohnpei, creating about 500 local jobs. [NOTE:
Ehsa did not elaborate on how this compares to a similar
investment plan by the American company Oceania that was blocked
by the previous Governor's administration. Nor did he explain
how to resolve the potential conflict with Luen Thai, a company
that already operates a tuna processing facility in Pohnpei.
End Note.]

(U) 8. The Governor's statement elicited about eight questions
from the audience. One person asked if the overtures to Taiwan
violated the FSM's one-China policy. Ehsa responded that the
relationship with Taiwan dealt strictly with trade and private
sector development, unaffected by the diplomatic relationship
with the People's Republic of China. Moreover, he claimed that
the Pohnpei State Constitution allows him to conduct business
with Taiwan. Another questioner asked the Governor to comment
on local complaints regarding his extensive travel abroad. Ehsa
said that without travel he wouldn't have been able to make the
accomplishments he made. Ehsa added that he had to travel to
seek outside financial assistance to achieve his development

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plans. Ehsa complained that Compact funds are not sufficient to
develop the state.

Limited Audience, but First Live Broadcast
--------------

(U) 9. Attendance at the conference demonstrated the paucity of
media in Pohnpei state. Bill Jaynes of the Kaselehlie Press, a
biweekly newspaper, attended, as did Dave Arthurs of the Calvary
Christian radio station. Martin Jano also attended. Jano
published the Da Rhong (What's The News) newspaper until about
two years ago when he ran out of money. Bermin Weilbacher, who
runs the "Bernmin News Network" (BNN) also attended. BNN is a
website containing Weilbacher's comments on local news. Pohnpei
State Radio's presence did give the event an air of importance,
however. It was the first time the station broadcast one of the
Governor's conferences live.

(U) 10. Members of the diplomatic corps actually outnumbered the
members of the press, at least initially. Two representatives
from the Chinese Embassy showed up, but left about half way
through the conference. The press officer from the Japanese
Embassy was there, as was Embassy Kolonia's Pol/Mil Assistant
and DOI Representative.

Comment
--------------

(SBU) 11. Economic issues dominated the Governor's press
conference. The Governor seeks to play both sides against one
another by seeking aid from both Taiwan and the PRC. While his
comments may betray Pohnpei's dissatisfaction with the
Federation (to wit: the Governor's apparent belief that his
state constitution overrides the federal government's primacy in
foreign affairs),the Governor's greatest motivation appears to
be economic benefit, not constitutional crisis. Ehsa displays a
sincere interest in furthering his state's development.

(SBU) 12. However, it is noteworthy that the only foreign
investment and/or private sector development mentioned involved
two planned projects that may or may not take place. The
Governor failed to mention any present-day foreign investment,
tacitly acknowledging that such business ventures are
practically nonexistent. The Governor focuses on obtaining
foreign assistance, not foreign investment, a strategy that
encourages more dependency than development. End comment.
DOUGLASSWD