Palau considers suing banks

KOROR, Palau-President Kuniwo Nakamura is considering legal action against the Bank of New York and Deutsche Bank for imposing currency bans on Palau because of alleged money laundering.

The two banks claimed that offshore banks in Palau and three other Pacific nations were involved in laundering $7 billion in Russian and South American drug money. Palau, however, does not have any offshore banks.

The Palau National Banking Review Commission, established by Nakamura to investigate the money-laundering allegations, issued a report this week. It declared that “there is no credible evidence that any financial institution in the Republic has engaged or is engaging in activities which would justify the accusations.”

Kiribati birds threatened

TARAWA, Kiribati—Millions of seabirds on Christmas Island may be in danger because of a proposed Japanese space project being planned for 2001.

The HOPE-X shuttle project calls for the construction of roads and new facilities on the island and the lengthening of a landing strip for the shuttle.

Michael Philips of the Kiribati Environment Ministry said the community is concerned that an estimated 5 million to 10 million seabirds on the island may lose their habitat due to the space project.

Pacific free trade area meeting underway

SUVA, Fiji Islands—Officials from the 14 island nation members of the South Pacific Forum regional organization have begun deliberations in preparation for top-level negotiations on a proposed Pacific free trade area.

Forum Secretary General Noel Levi said the officials are reviewing the draft Pacific Regional Trade Agreement, known as PARTA, which will be the subject of formal international negotiations in July.

PARTA calls for preferential trade arrangements among Pacific Island nations.

TB spreading like “bushfire” in PNG

PORT MORESBY, Papua New Guinea —Tuberculosis is increasing in East New Britain and the New Guinea Islands region each year like a “bushfire,” even though every attempt is being made to control it, according to Dr. Guapo Kiagi at Nonga Base Hospital in Rabaul.

He said that five to 10 new cases are reported or detected daily at the hospital and that the number of TB sufferers had tripled in the past five years.

Nonga Base Hospital is the main referral hospital for New Ireland, Manus, East New Britain, West New Britain and North Solomons provinces.

China to assist FSM with vessels

BEIJING, China—President Jiang Zemin and Federated States of Micronesia President Leo A. Falcam have concluded an agreement that provides the FSM with a 600-ton cargo ship from China and a commitment to build a second ship.

During the signing ceremony in China’s Great Hall of the People, Falcam said, “The most critical need of the FSM people is ships. Without them almost half of my people don’t get services; it’s a matter of life and death.”

At the meeting, Micronesia’s president also reconfirmed his country’s “firm commitment to a one China policy,” saying that the FSM fully supported Beijing’s goal of Taiwan’s reunification with the mainland.

Falcam told Jiang that if there is anything the FSM could do with regard to the China-Taiwan issue, “don’t hesitate to call on us.” (Pacific Islands Report)