FLASHBACK February 3, 1999-2003

CNMI CIP share cut[/B]

Because of the failure of the Northern Marianas to use millions in infrastructure grants, President Bill Clinton has cut down 51 percent to $5.6 million next year’s funding for Capital Improvement Projects in the commonwealth. Under the White House proposed budget for Fiscal 2000, the reduction in the annual appropriation of $11 million provided to CNMI under the Section 702 of the Covenant will be funneled to Guam to unburden it from the cost of hosting Micronesians. This more than doubled the current level of capital improvement grants Washington extends to Guam from $4.6 million to $10 million, a move the US envisions to ease the financial impact spawned by the immigration of citizens from the Freely Associated States.

In a quick response to a call for reforms from leading U.S. apparel firm Liz Claiborne, the CNMI Legislature is eyeing the creation of an independent monitoring group that will help put in place a code of conduct for the local garment sector and clamp down erring factories. Senate President Paul A. Manglona is set to file a bill, called CNMI Independent Garment Factories Monitoring Foundation Act of 1999, setting out the mechanism for the proposed watchdog for local garment manufacturers to safeguard their workers and ensure compliance with labor laws. Describing the measure as critical, Manglona said lawmakers will consult with various government agencies as well as the Saipan Garment Manufacturers Association before tackling the proposal on the floor. The move followed a meeting last Monday between members of the House of Representatives and the Senate and Paul R. Charron, chairman and chief executive officer of the New Jersey-based company, in which they discussed issues affecting the global clothing trade, including human rights.

Enron protests CUC decision[/B]

One of the top bidders on the controversial Saipan power project has protested the decision by the Commonwealth Utilities Corporation to scrap the 80-megawatt plant and throw out its proposal despite receiving the highest scores in the evaluation conducted by independent experts. Enron Mariana Power cited lack of good faith and alleged bias by the government-owned corporation against the company which it said resulted in CUC’s “arbitrary and capricious breach” of the terms in the request for proposal implying fair and equal treatment of each bidder. As remedy, the Houston-based industrial giant is seeking reinstatement of the mothballed power plant and selection of Enron as the top bidder, or reimbursement of at least $750,000 incurred by the company in bidding for the much delayed project, according to its lawyer.

A Taipei-based airline company has indicated intention to provide air transportation service between Taiwan and the Northern Marianas beginning summer this year, Ports Authority Executive Director Carlos H. Salas disclosed yesterday. Mr. Salas said Mandarin Airlines have written CPA signifying its plan to ferry Taiwanese passengers between Taipei and Saipan using 737-800 aircraft on a charter schedule beginning either May or June this year. The aircraft can accommodate more than 120 passengers. Discussions between Ports Authority and airline officials started last week although Mr. Salas admitted that negotiations for the possible entry of the Taiwanese carrier into Saipan are still in the early stage.

Answers sought in shuttle disaster[/B]

Remnants of the space shuttle Columbia and its crew remained strewn across east Texas and Louisiana Sunday, as authorities probed possible causes for the tragedy that pierced a crystal blue sky and stung deeper into an already shaken sense of security. A white streak flashed across the sky high over Texas as the shuttle appeared to break off into separate balls of light Saturday, killing all seven astronauts aboard and spraying wreckage over hundreds of miles of countryside. The catastrophe occurred 39 miles above the Earth, in the last 16 minutes of the 16-day mission as the spaceship re-entered the atmosphere and glided in for a landing in Florida.

WASHINGTON (AP)—President Bush sadly informed the nation Saturday of the worst space tragedy in 17 years, saying “The Columbia is lost. There are no survivors.” He consoled the families of the astronauts in a telephone call. Then in an address from the White House Cabinet Room he said of the seven-member crew, “We can pray that all are safely home.” Bush said the tragedy “brought terrible news and great sadness to our country,” but he pledged to make sure their lives’ mission continued. “Our journey into space will go on,” he said. The nation’s flags, starting at the White House, were lowered on Bush’s orders.