FSM Congress News, November 6, 2003

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FSM Congress News, November 6, 2003

PALIKIR, Pohnpei (FSM Congress): November 6, 2003 –
Congress approved funding for the second quarter of
fiscal year 2004 for the operation of the national government, federal
agencies, programs and other activities, before adjourning sine-die Sunday,
November 2.

Before the approval of the second quarter budget for the FSM and after
lengthy discussions on the bill, Chairman Resio Moses of the Health,
Education and Social Affairs Committee, urged Members of Congress to please
honor President Urusemal’s request to Congress and the Department of Finance
and Administration to work together and find sources of funds to accommodate
the financial needs of the College of Micronesia-FSM.

The COM-FSM requested an operations budget of $4.0 million for FY 2004, an
increase of $780,000 over the $3+ million appropriated for the operation of
the College in FY 2003. The basis for the increase included the creation of
a new campus in Chuuk, new programs being developed at the request of
Congress, accreditation for the College this year, and the rapid increase in
student enrollment, according to Senator Moses’ statement.

Other controversial and approved bills pertained to the national election
commissioners, who some Members said should be made subject to review and
consent by the Congress, the moratorium on alien labor and the transferring
of funds originally designated as capital project funds under the expired
provisions of the Compact of Free Association to the current accounts of the
national and state governments for unrestricted use.

As for the moratorium bill, Members agreed to grant the relevant
departments and offices additional time to collect important information
about the status of alien labor in the FSM and about the continued need for
specific categories of alien workers. The latter bill, if approved by the
president, would extend the moratorium from December 31, 2003, to May 31,
2004.

Other bills that passed on the 2^nd and Final Reading pertained to changing
of allottees, modifying the use of funds and reallocating of certain funds
previously appropriated by Congress.

The resolution to authorize the FSM Telecommunication Corporation to incur
debt and to agree to liens or security interests in the assets of the
corporation was also controversial. The resolution, now approved, allows the
corporation to finance the installation of a fiber optic cable from Guam to
its central office in Pohnpei. The project will be financed through a loan
from the U.S. Department of Agriculture Rural Development.

The project will be done by Tyco Telecommunication and was initially
intended to connect, through the use of submarine cables, Australia, Guam,
Japan and the U.S. Seeing the opportunity to pay less and gain more in the
project that is very close to its shores, the FSM Telecommunication
Corporation as well as the Marshall Islands decided to join the project. The
project will cost the FSM $17.4 million, the U.S. Army Kwajalein Atoll,
Reagan Test Site $27.7 million and the Marshall Islands National
Telecommunication Authority $22.2 million, for a total of $67.3 million.

Members of Congress took considerable time to consider and discuss the
resolution. They questioned the status and merit of the Tyco
Telecommunication and wondered if Tyco would be like some other companies
who, once they got what they were looking for from the FSM, turned and just
walked away.

The Committee on Transportation and Communication, which has jurisdiction
on the matter, argued that the project could, in the long run, help the FSM
and its citizens. It will not only decrease telephone costs and Internet
accessibility over time, but it will also increase the clarity of
conversations within and outside of the FSM. The proposed system will also
help education and medical care facilities. It will also help the business
sectors and provide employment opportunities, according to Committee
Chairman Moses Nelson.

The other resolutions approved by Congress included one to congratulate Pope
John Paul II, the pontiff of the Roman Catholic Church and the Head of the
Holy See on his 25^th anniversary as pontiff for the Roman Catholic Church.
The Holy See has a designated ambassador to the FSM.

The pope was praised in discussions on the resolution for actively
campaigning for world peace, especially in view of his health and age.

Other approved resolutions included fishing agreements and a resolution to
shorten the 2^nd Regular Session of the 13^th
Congress to 21 days instead of 30 days.

The meeting of the Economic Policy Implementation Council (EPIC), heavy
rain and power outages interrupted Congress in its 17^th,
18^th, and 19^th day, so bills and resolutions
were finally approved in its 20^th and 21^st day of
the session, with Congress working into the nights and on weekends.