July 28, 2021

Fili Sagapolutele, Samoa News, 7/21/21

Pago Pago, AMERICAN SAMOA — Gov. Lemanu Peleti Palepoi Sialega Mauga is hoping that changes in fiscal and economic policies by US President Joe Biden will reenergize the local economy as there are some issues, which need U.S government support to sustain federal incentives of benefit to the territory.

The governor made the statement in his “Executive Summary” of the fiscal year 2022 final budget report to the Fono last week Monday, under the header “Economic Outlook”.

Lemanu told lawmakers that the COVID-19 pandemic continues to devastate global economies including the United States with high unemployment and especially with the new COVID variants that continue to create uncertainty over future economic prospects.

For American Samoa, he pointed out that risks remain with the cannery operation such as the automatic minimum wage increases, the federal 30(A) tax emption status, shrinking fishing grounds and environmental enforcement.

“Rather, it is our hope that the change in fiscal and economic policies by the Biden Administration will reenergize our economic environment,” said Lemanu, who cited what America Samoa needs from the federal government.

Those needs include that the federal government “sustain federal incentives” such as the 30(A) Tax Credit; repeal the automatic hike in federal minimum wage and leave it to local jurisdiction to decide; grant American Samoa a Cabotage waiver allowing foreign carriers to operate between the territory and US airports; reopen high seas fishing; reduce the size of ocean monuments and “establish more economically sensitive enforcement polices” for U.S Environmental Protection Agency and US Coast Guard rules and regulations.

Despite the “uncertainty,” the governor said that meeting demand in production based on existing contracts including niche markets will provide some stability in operations and the guest worker permit program will help meet needed capacity at StarKist Samoa.

Additionally, ASG’s investment in the Hawaiki cable “continues to be an important pillar of our economy with the vision to develop the technology-based industry thereby creating diversification and reducing our sole dependence on the fishing industry.”

According to the governor, excess capacity of Hawaiki cable “must be used by startup business ventures with incentives to lure them from off island. If done right, this will be a spring board to drive job creation.” 

The governor also said that the windfall of federal aid — especially through COVID related money — received by ASG will certainly stimulate the economy and create job growth. “In addition and equally important, the local government will continue its aggressive efforts to establish labor intensive industries to provide employment opportunities for our people,” he pointed out.

Furthermore, the allocation of funding for the increase in payroll compensation will provide economic stimulus by providing more income to help families in the territory.

The increase in payroll compensation referred to by the governor, deals with ASG’s new minimum wage increase to $7.25 per hour, which was effective July 1st — as well as the reclassification of non-educator degree holders hiking their starting salaries — for those with AA degrees, it is $19,000; BA is $28,000 and MA is set at $35,000.

Phill Leon Guerrero, the Guam Daily Post, 7/28/21

The Department of Homeland Security is being asked to resolve what Adelup calls a recent “uptick” in denials of foreign labor visa applications for Guam.

Gov. Lou Leon Guerrero met with an acting under secretary at DHS on the matter, according to an Adelup press release. She is currently in Washington, D.C. as part of her first off-island trip since the beginning of the COVID-19 public health emergency.

 “In our discussion, I stressed the need for an immediate solution to the high rate of application denials for projects both inside and outside the fence and underscored the direct impact to Guam’s economic growth, especially at this pivotal time of rebuilding and recovery. The continued lack of skilled construction labor to complete these projects will result in increased construction, housing, and real estate costs,” Leon Guerrero stated. 

A decrease in approved H-2B visas could also have budgetary impacts for the government of Guam. Fees collected by the local Department of Labor from companies that bring in foreign workers fund operations and job training programs.

GovGuam oversees around 1,500 foreign workers in a normal year, according to Greg Massey, administrator of the department’s Alien Labor Processing and Certification Division. Although more than 1,600 visas have been approved in so far, the budgeted estimate of foreign workers for fiscal year 2021 is 2,300, Massey told The Guam Daily Post.

The island is on track to meet that projection, but the COVID-19 pandemic slowed down the issuance of visas from the Philippines, he said.

The governor said she at her meeting with the federal agency, she was assured the denials were being tracked and that “it is not the intent of the Biden Administration to keep people out of our great nation.”

Leon Guerrero has touted improved rates of approved foreign workers during her time in office.

In her 2020 State of the Island address, she said the island went from “100% denial of H-2 labor certifications to 100% approval of those certifications.” In this year’s speech, her single mention of the subject was: “We delivered on our promise to bring back H-2B workers to meet the needs of our island.”

The governor’s office did not specify how many denials have been issued, or what percentage of applications were not approved by the federal government since her March address.

According to its release, however, the U.S. Citizenship and Immigration Services will assess all rules, regulations, and policies that may have led to the increase in H-2B visa denials.

Kevin Knodell, Honolulu Civil Beat, 7/21/21

A measure that would expand U.S. influence in Pacific Island nations has cleared a key committee in the House of Representatives as lawmakers move to boost America’s competitiveness with China.

The House Foreign Affairs Committee approved the Ensuring American Global Leadership and Engagement Act on Thursday after incorporating several portions of a separate bill on long-term engagement in the Pacific that was sponsored by Hawaii Congressman Ed Case.

The measure would authorize $250 million over the next five years for efforts to address the impact of climate change and increase U.S. security assistance with a focus on tackling illegal fishing and transnational crimes. It also would authorize another $200 million over the next five years to implement an emergency preparedness initiative for the Pacific Islands.

Case welcomed the inclusion of much of his Boosting Long-Term U.S. Engagement in the Pacific Act, better known as the BLUE Pacific Act, which he called a “signature foreign policy package to reassert U.S. global leadership and engagement.”

“This sends a powerful message to our critical Pacific Islands partners and allies that our country values our relationships,” he said in a press release on Tuesday.

BLUE Pacific was a pet project for Case who traveled extensively across the region meeting with officials, diplomats and community leaders across the Pacific Islands while crafting the proposed bill. Case had for years warned that the U.S. government was neglecting its relationships in the Pacific and allowing Chinese interests to fill the void.

Case first introduced the act last year, but it was mostly ignored by Congress as lawmakers focused on the catastrophic impact of the coronavirus pandemic and civil unrest.

However, last year also saw a rise of regional tensions as the Chinese military increasingly clashed with its neighbors over disputed territories. The Chinese government also went on a major diplomatic push that included bringing Kiribati — a Pacific Island nation just south of Hawaii — into its Belt and Road network.

When Case revived the BLUE Pacific Act in May leaders from Palau, the Federated States of Micronesia, the Marshall Islands and other Pacific Islands issued statements in support of the bill urging American lawmakers to approve it.

Diplomats from other regional powers, including Japan, Australia, New Zealand and Taiwan, also expressed support.

Now approved by the Foreign Affairs Committee, the EAGLE Act will go to a wider floor vote.

The Commonwealth Economic Development Authority (CEDA) announces an increase in their Direct Loans to $450,000 for business loans, primarily for new investments that increase economic activities related to tourism, attract new industries (i.e., technology, economic diversification), and/or improve the cost of living for Tinian, Rota, & the Northern Islands). For more info, check out the links below: 

Loan Checklist/Requirements: 
http://developcnmi.com/.../Attachment_F_Application... 
Loan Applications & Other Info:
http://developcnmi.com/loan#home-intro

Jen Judson, Defense News, 7/27/21

WASHINGTON — Consensus is building on Capitol Hill that the Missile Defense Agency needs to provide more clarity on its plans for a missile defense architecture to protect Guam.

The House Armed Services Committee’s strategic forces subpanel, in its markup of the fiscal 2022 National Defense Authorization Act, will require the MDA to provide congressional defense committees a detailed report on its plans for a missile defense architecture for Guam, an acquisition strategy and requirements for funding, according to committee staff.

The MDA has yet to reveal what the missile defense architecture for Guam will look like.

The House committee has asked the MDA for a report on plans for the island for several years, but this time its subcommittee will require a report be delivered with more detail on the planned architecture and what types of threats it could engage.

According to a committee staffer, the MDA never delivered reports asked for in previous years.

The subcommittee is not planning to fence off funding in its policy bill that the MDA would need to develop a Guam missile defense capability, the staffer noted.

The committee has yet to release its markup of the FY22 authorization bill.

The Senate Armed Services Committee did not show its cards on the Guam missile defense architecture in its FY22 policy bill summary released this month and has yet to release the full report on the bill.

But House appropriators plan to cut funding to enhance missile defense in Guam due to the absence of a detailed plan from the MDA.

The agency requested $78.3 million for Guam missile defense, plus an additional $40 million to procure long-lead items in its FY22 budget request, but the House Appropriations Committee would cut it by $55.9 million.

The head of U.S. Indo-Pacific Command requested $231.7 million in additional funding for Guam to move at the desired pace for fielding a system. The ask came in a list of unfunded requirements sent to Congress last month.

“While supportive of the defense of Guam from ballistic, hypersonic, and cruise missile threats, the Committee notes that the report on the defense of Guam from integrated air and missile threats, required by the National Defense Authorization Act for Fiscal Year 2021, has not yet been submitted to the congressional defense committees,” the committee noted in its report.

“Additionally, the lack of detailed information on the budget request, especially the request for $40,000,000 in procurement, is troubling. Therefore, the Committee has denied funding for procurement and reduced the amount recommended for research, development, test and evaluation until the Department submits the required report and adequate budgetary information for the Committee to make informed funding decisions on these efforts.”

MDA Director Vice Adm. Jon Hill said the plan for a Guam missile defense capability includes the use of mature capabilities, which are believed to include the Aegis Combat System and the Terminal High Altitude Area Defense system. The Army deployed a rotational THAAD presence to Guam in 2013, where it has remained.

Hill acknowledged in a a Strategic Forces Subcommittee hearing last month that he had promised a report to Congress by June, “but given the complexity of it, that’s going to take us a little bit longer to get there.”

Developing the desired protection for Guam is on “a very aggressive timeline, given where we are at,” he added.

While House appropriators did provide $75 million in funding for a Homeland Defense Radar-Hawaii, which the agency chose not to fund in its budget request. It is unclear whether there is funding support in the HASC’s FY22 markup.

In hearings over the past several months, lawmakers across the defense committees advocated for providing Hawaii the added protection.

According to SASC’s brief summary, the committee is directing the MDA to provide a report on the capability that the HDR-H would provide against future threats.

Emmanuel T. Erediano, Guam Daily Post, 7/23/21

SAIPAN – Rep. Ivan A. Blanco, the Republican leader in the Commonwealth of the Northern Mariana Islands House of Representatives, died Friday afternoon. He was 45.

Blanco attended a Developmental Disabilities Council meeting at the Aqua Resort Friday morning. The Marianas Variety was told that after lunchtime, the Precinct 3 lawmaker suddenly felt weak, and then became unresponsive. He was rushed to the Commonwealth Health Center where he was pronounced dead at past 1:30 p.m.

One of Blanco's colleagues in the House, Rep. Angel Demapan, described him as “beloved by everyone.” 

The cause of his death was unclear.

“His death is a big loss to the Commonwealth. He was an honorable statesman, a very loving father, and a very devoted husband.”

Demapan added, “I just ask that we keep his family and his soul in our prayers during this very difficult time.”

“He appeared to be a very healthy individual and to get this call today is a shock to everyone,” Demapan said.

“We will miss his service, his tremendous commitment to the community. We will miss that so much because he inspired us to work harder — he inspired the community to become a strong community. Now that we will not have his presence personally with us, we will miss him dearly. We are committed to keeping his legacy alive and that is the legacy of service,” Demapan said.

A Creighton University graduate, Blanco worked with the Office of the National Public Auditor of the Federated States of Micronesia for three years before he became director of the Central Statistics Division of the CNMI Department of Commerce.

He later became the department’s deputy secretary and then the special assistant for protocol and communications of the CNMI Office of the Governor.

In 2016, he was elected as a Precinct 3 House member and was re-elected in 2018 and 2020.

He had earlier announced that he was running for senator in next year’s elections.

Blanco is survived by his wife Carmen and their three children.

Gov. Ralph DLG Torres issued the following statement:

“It is my sorrowful duty to announce officially the passing of the Honorable Ivan Alafanso Blanco, Representative of the 22nd Northern Marianas Commonwealth Legislature, this afternoon here on Saipan.

“Lt. Gov. Arnold I. Palacios and I, along with our families and our commonwealth, extend our deepest heartfelt condolences to his wife Carmen, their children Lilly, JC, +Pierre, Kide, Paige, and the entire Blanco family during this difficult time.

“Congressman Blanco was a true statesman in every sense of the title. He was humble, intelligent, and passionate, and he held a deep love for our islands and the people who call them home, especially his beloved Precinct 3. He was a gifted communicator that brought people together and knew how to make anyone feel welcome. He treated everyone with kindness and respect and worked until his passing day to make a better Commonwealth so that our future generations are blessed with an opportunity to have a better life.

“He lived his life purposefully and with immense joy, lighting up any room with his warm smile and cheerful greetings. He believed in raising the standard of living in the Marianas by developing our economy responsibly, enhancing our infrastructure, and protecting our environment. He believed in the power of our youth to make a difference and empowered them to be leaders in the future. He also believed in collaboration with our Micronesian brothers and sisters to achieve solutions for our communities across our Blue Continent.

“We just lost a true public servant, who served Precinct 3, the island of Saipan, and the Marianas honorably and admirably. We join our colleagues in the Legislature and our entire community in mourning, as we honor his memory and life of service.

“As a mark of solemn respect for the life and service of the Honorable Ivan Alafanso Blanco, Representative of the 22nd Northern Marianas Commonwealth Legislature, I hereby order, that the flag of the Commonwealth, together with the flag of the United States of America, be flown at half-staff at the Juan Atalig Sablan Memorial Building and upon all public buildings, instrumentalities, and grounds within the Commonwealth until the day of his interment.”

‘Deeply saddened’

On Friday evening, Guam Gov. Lou Leon Guerrero and Lt. Gov. Josh Tenorio issued the following statement:

“We are deeply saddened to hear of the passing of NMI Representative Ivan Blanco. I am fortunate to have worked alongside Representative Blanco through the Marianas Working Group, strengthening Guam’s partnership with the NMI,” said Leon Guerrero. 

“He was a true diplomat, whose commitment to service has bridged communities throughout Micronesia.”

“Governor Leon Guerrero and I join the people of the Northern Marianas as they mourn Representative Blanco’s passing. On behalf of the island of Guam, we extend our deepest condolences and prayers to his wife Carmen, his children — Lili, Ivan Jr., Kide, and Paige, and all his loved ones,” added Lt. Gov. Josh Tenorio.

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