Government of the Federated States of Micronesia

SNLC Adopts 12 Resolutions

PALIKIR, Pohnpei (FSM Information Service): May 20, 1997 – The
State and National Leadership Conference (SNLC), including the FSM President,
the four state governors, FSM Congress leaders and members of the Speakers
of the State Legislatures, met on May 13, 15 and 16, 1997 at the request
of the FSM President to resolve important issues.

During the three-day conference 12 resolutions were adopted. SNLC Resolution
No. 1997-I-1, relative to the Asian Development Bank (ADB) loan for Water
Supply and Sanitation Project in the four FSM States.

SNLC Resolution No. 1997-I-2, resolving that the State Governments accord
high priority to completion on their requirements in order to execute the
financing arrangements for Early Retirement Program loan with the FSM National
Government who is the borrower of record from the ADB.

SNLC Resolution No. 1997-I-3, resolving that Congress pass a bill which
would re-establish Federated Development Authority (FSA) for the purpose
of Investment Development Fund (IDF) oversight.

SNLC Resolution 1997-I-4, commending the Office of Planning and Statistics
for completing the annual reports for submission to the United States Government
as required by the Compact of Free Association and urged that reports are
submitted in a timely manner.

SNLC Resolution No. 1997-I-4(a), requesting the FSM Congress to appropriate
50 percent of the total amount owed to Trippler Hospital.

SNLC Resolution No. 1997-I-4(b), requesting Congress to enact legislation
establishing a six-member Joint Committee to coordinate preparations for
Compact re-negotiations to commence in November 1999.

SNLC Resolution No. 1997-I-5, requests Congress to enact legislation
allowing the State of Pohnpei to utilize its 1997 block grant’s inflation
adjustments to help in its needs and stating clearly that this is a one-time
adjustment.

SNLC Resolution No. 1997-I-6, requesting the National and State Judiciaries
to work with their respective Executive Branches and to submit appropriate
statutory amendments to their respective Legislative bodies for enactment.

SNLC Resolution No. 1997-I-7, urging the National and State Governments
to study the reform recommended by the Guam Conference of Bankers who called
attention to among other things the need for: (1) loan security and collection
environment; (2) usury laws; (3) small claims court to simplify collections;
(4) borrows allotment not be changed or canceled until their loans are
paid; (5) money laundering reporting requirement law; and (6) foreign investment
regime conducive to investors.

SNLC Resolution No. 1997-I-8, requesting the National Government to
make best efforts to relieve the States of financial burden of supporting
functions of the National Government.

SNLC Resolution No. 1997-I-9, requesting the Department of Transportation
and Communications to spearhead an effort of restructuring the field trip
operations and the possibility of replacing Micro-class vessels.

SNLC Resolution No. 1997-I-10, requesting FSM Congress to amend FSM
law governing the use of Investment Development Fund (IDF) which currently
show these balances: $3.7 million in the Pohnpei sub-account; $3.1 million
in the Kosrae sub-account; $337,000 in the Chuuk sub-account; and $669,000
in the Yap sub-account.

SNLC Resolution No. 1997-I-11, requesting Continental Micronesia, Inc.,
to reduce airfare throughout the Micronesia region, and that the National
Government continue to investigate cheaper air service for the region.

SNLC Resolution No. 1997-I-12, resolving that appropriate assistance
is extended by the FSM Government to the State of Chuuk in ascertaining
the financial viability and status of Westpac, Inc. Chuuk is losing money
it invested in the company which it borrowed under the Medium Term Note
but not generating revenue in return.

Signing for their delegations were President Jacob Nena, FSM National
Government; Governor Vincent Figir, Yap State; Governor Moses Mackwelung
for Kosrae State; Governor Del Pangelinan for Pohnpei State; and Governor
Ansito Walter for Chuuk State.