An open letter to Cinta

In the summer of 1998, at your behest, I stood on the beach near Susupe as dusk fell, and spoke with a gathering of 60 or so, former Pagan Island residents.

At the time, I knew nothing about pozzolan. Frankly, as I’m sure you recall, I was thinking in terms of a fish hatchery and market distribution center to make the resettlement of Pagan, fiscally practical…not that I was ever in the fish hatchery or market distribution center business but rather, if you will, as an investment banker, I was in the “effective use of capital to solve other people’s problems” business for 18 years.

You had asked me to make my comments public following what started out as a casual, lunch time conversation between you and I earlier that same day. I considered the concerns that you raised regarding the plight of the displaced Pagan Islanders legitimate and deeply felt. I sympathized. So to the gathering of former Pagan residents late that afternoon, I proctored the concept of an “Enterprise Free Zone” where the traditional cultures of the native Chamarro and Carolinian could be enriched and protected from a “Light-industrial Zone” which in turn, would financially feed the “EFZ.” I had in mind a Williamsburg, Virginia vignette wherein buildings and the native way of life could be preserved inside a living time capsule for posterity. The distinction between the Pagan model and its Williamsburg counterpart was the reality of cash flow. In the instance of Pagan, it would come from revenues generated by the “Light Industrial Zone,” not from the EFZ per se, given that the volume of visitors to the island would not be enough to support a tourist-based economy.

As I’m certain you recall, toward the end of my comments, a few boisterous souls shouted,” When are you are going to make this happen?” I had no plan to make it happen. Heck, I thought it was just lunch time chatter. But now I’ve returned (in essence) five years later with a plan. I call it The Pagan Island Resettlement and Reclamation Project. The people of Pagan asked for it. Now it’s here but this is the part I’m having difficulty with. Why does this disturb you so? Have you seen our plan? It’s been on the www.azmarinternational.com website since January of this year. Its genesis began that evening on the beach in Susupe. However, as you know, It really began to take shape upon receipt of a list of recommendations sent to me in 2002 by Mayor Valentine I. Taisakan. I’m sure you remember. You were given a copy of the letter, along with the permit submitted to MPLA, that grew out of it. A permit listing every detail included in the Mayor of the Northern Mariana Islands letter. Might I ask who else has done such a thing? Who else has come along in the past 20 years and laid out a specific plan to help the people of the islands in so many ways? You accuse me of trying to be all things to all people. I’m trying to make something work for the benefit of the vast majority. I don’t know why you do not want to see that.

Jesse Palacios, before becoming acting Director of Commerce, and his brother Glen, per my request, kept you in the Azmar loop throughout 2003, meeting with you on several occasions. You and I directly shared many e-mails. Many were passionate and endearing. The one in which you spoke to me of the death of your father was most memorable. You are a skilled writer. All these remain in our company archives. Still, you never once raised any concern about the terms and conditions specified in our permit, though I had asked on several occasions for your input.

You speak out now in terms of protecting the Pagan Island environment. There have been numerous environmental impact studies done since World War II on Pagan. The most recent was by J.G. Sablan and others wanting to do exactly what Azmar International wants to do in terms of removing the pozzolanic ash. Please tell me how you would go about restoring the environmental beauty of Pagan without first removing the ash? In order to be approved, why would our EIS vary from those that have already been approved? And strip-mining…come on, please. You know as well as I that no one, least of all Azmar, has ever entertained the notion of “strip-mining” Pagan. First of all, why go to the additional expense? The product we need is covering the surface.

For 20 year, Pagan’s pozzolanic ash has brought exactly “zero” revenue into the CNMI coffers. In fact, again as you know, MPLA has forgiven millions in debt related to Pagan. I submitted not in secret as you contend, but openly, not only to MPLA but to more than 25 key political figures throughout the CNMI in January of this year, a complete, professional business proforma with a thorough cost analysis and profit distribution profile. It’s a make-sense plan, a plan wherein all stand to benefit greatly from Azmar’s long-term development of Pagan. I am proud of that model. I stand by it. Apparently you believe that the 7 percent royalty stated therein is laughably small. I contend that the only thing laughable is your perception of the cost of doing business. It is essential that you and everyone throughout the CNMI understand that pozzolan is not gold. There is no well established market for it. If you don’t believe me, ask John Sablan who has been trying to peddle it for years. It has been decades since end-users have seen or even heard of high-grade pozzolan. Professional sales people such as those we have at Azmar, steeped in international business trade, have to “make the market.” That takes time and a considerable infusion of initial capital. We may otherwise get lucky, but as we understand the market right now, we won’t be “profitable” until the second half of the second year. Sure we make money in the long run. And that’s what Azmar is here for… the long run.

At one time you were thought to be a friend and an ally. I don’t want to conclude that you now have some other agenda you wish to fulfill that has little to do with Pagan but frankly, you leave many people including myself who hear your words with little other choice.

Whatever your reasons might be, you obviously don’t like what Azmar has put forth. Perhaps there was something I inadvertently overlooked. I would still love to hear your ideas! Glen Palacios is here in Phoenix at the moment but he’ll be back on-island next week. Sit down with him and show him your plan. Cinta, you know me well enough to know that I prefer working with people to achieve common goals, not against them. My door remains open to you. Please take advantage of it. Let’s try and work together for the betterment of all.

Ken Moore

Azmar International