The State of the Washington Office

Editor’s Note: The following is the official text of the speech that Resident Representative Pedro A. Tenorio delivered before a Joint Session of the 15th Northern Mariana Islands Legislature on April 21, 2006, at the Pedro P. Tenorio Multipurpose Center.

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Although this day is set aside by the joint resolution of our Legislature for me to report the activities of my office for last year, standing here before you today, and with our Commonwealth faced with so many problems and issues, I find it more appropriate to report in some detail my recent activities in our nation’s capital, among them our joint effort requesting the U.S. Congress for emergency financial assistance for our government operations and critically needed capital improvement projects.

It is always great to be in our Commonwealth, and a blessing to be home once again to see old friends and families. I look forward to discussing with our leaders and with you, ways and means to improve the quality of life of our communities.

Last year is history. For those of you that are interested in last year’s activities, please refer to my written Annual Report. I have provided copies to the members of our Legislature and the Administration. There are also limited copies being provided to the general public here today.

I want to thank the Governor for his commitment and support in allowing me to do my job in Washington. I appreciate even more importantly the acknowledgement that my Office in our Nation’s Capital is constitutionally charged to address issues affecting the relationship between our Commonwealth and the government of the United States. At the same time, there are numerous issues affecting federal relations and local self-governance which will require our Governor and our Legislature to be in Washington, D.C., so I wish to remind you all to be prepared for a number of long trips to our Nation’s Capital one of these days.

Communication and trust are keys to achieving our goals. I maintain daily communication with the Office of Insular Affairs, the Senate Energy Committee, the House Resources Committee, and Congresswoman Madeleine Bordallo. I have built solid relationships with them based on honesty, cooperation, a desire to solve problems realistically and rationally, a focus on the well being of our people, and an understanding that each of us has a role to play. These same qualities and a genuine spirit of cooperation and transparency must be maintained by all of us elected leaders.

As I reported in my inaugural address, the political climate in Washington is extremely volatile right now. Unfortunately our islands are frequently represented negatively in national and international news. For example, here is a copy of an article about the CNMI from a recent issue of MS Magazine. The front cover reads “Sex, Greed, and Forced Abortions in Paradise.” The “Paradise” it refers to is Saipan. It does not matter that there are misrepresentations, misquotes, and untruth in the article; it is in writing and is on newsstands all across America and probably elsewhere. The black eye that we receive from such press coverage is devastating, to say the least. It negates almost all of the honest efforts that we have tried to do to ensure that our quest workers are treated fairly and humanely. It neutralizes the fact that CNMI and U.S. labor laws are being enforced properly, and ignores the fact that we have come a long way from the time that there were widespread labor problems in our garment industry. I read it several times, and I was appalled and shocked. The article is not only about prostitution and illegal abortion clinics in acupuncture shops on Saipan. It is also about our government’s and some business sectors’ alleged insensitivity to protection of basic and fundamental human rights. I strongly recommend that not only should we, elected officials, read this article, but our people and those businesses involved in employing quest workers. In the end, we must collectively do something positive to demonstrate our utmost concerns about all these damaging allegations and correct them if they are indeed true.

Articles like this are often circulated on Capitol Hill by our critics before they are even published.

With all of these negative reports, the positives of our culture and the good deeds and actions of many of our people, including the sacrifices that our young men and women are providing while serving in the U.S. Armed Services, go un-noticed and unrecognized. The lobbying scandal that plays itself out daily in Washington has seriously tainted us in the eyes of many members of Congress. We are in a grave predicament of losing our credibility and integrity as a people after working so hard to rebuild them. In our Nation’s Capital our issues are being treated like political footballs which are easy to pass on, but no one wants to hold on and carry them the distance for a touchdown. Today my job is 10 times harder than it was a year ago. It would be easy for me to sit back or lay low and pray for the scandal to blow over, for the last of the indictments to be made, and all the sentences be handed down. However, we all know that you did not give me the mandate to sit and be complacent, and hope for the best. I am dedicated to forwarding our issues, improving our standard of living, and advancing our Commonwealth, because these are the orders that you, the voters gave me, and I intend to listen to you despite the growing challenges of my job and the dim prospects of making real progress.

I ask that our Governor and our Legislature continue to maintain and improve on the labor and immigration reforms currently in place. Fair and compassionate laws must be enacted, and not those that are detrimental to our guest workers. Our partnership with the federal government in addressing and in enforcing our laws in these areas are vital and necessary, and I ask the federal representatives here to share their information on these and other types of violations with our local government. Everyone should be diligent, and when they see a law being violated, or a worker mistreated or abuse, it should be immediately reported to the appropriate authorities. Diligent and consistent enforcement of our laws is our best weapon in defending ourselves against the negative effects of bad press and scandals.

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Before I report further on my activities in Washington, I want to commend the Enterprises Group, headed by former Chief Justice Joe Dela Cruz and his group of local business men and women and experts, and those members of our Legislature who have developed proposals to increase our local minimum wage.

I realize that any notion for increasing minimum wage especially in these tough economic times is unpopular and untimely. But a wage system that is locally enacted and responsive to the economic and financial realities of our Commonwealth is much more preferable and advantageous than the imposition of a federal minimum wage system that has no relevance to our economic environment. There is always a possibility that a federally enacted wage system will be forced upon the CNMI by the U.S. Congress, regardless of who olds the majority in Congress. Our inability to enact our own wage increase pursuant to authority provided in the Covenant might speed up the process of a federal takeover of our minimum wage.

Now that I have described the environment in Washington, let me now describe my approach in dealing with it.

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The most important piece of legislation that I have been so passionately pursuing is the CNMI Delegate Bill, House Resolution Number 873. This bill has been introduced twice in the last two years, toward the end of the 108th Congress and early last year at the beginning of the 109th Congress. Both bills were favorably reported out of the House Committee on Resources, the second one just last May. Though both bills have had broad bipartisan support, the timing for a floor vote has suddenly turned really for the worst, and the current bill, H.R. 873 is considered by the majority leadership to be “radioactive.” There is a pervasive fear, by our strongest supporters in Congress, that bringing this bill to a vote will initiate discussions on partisan and political topics that have nothing to do with the bill. The lobbying scandal linking our Commonwealth with convicted lobbyists is the unspoken culprit, hideously threatening our hope for a voice in Congress. Because the bill is about fairness and supports the basic tenets of American democracy, I have difficulty accepting that the fear of discussion on unrelated topics would derail this bill, yet again.

Upon returning to Washington, after the Inauguration, I wrote to the leadership of both the Republican Majority and the Democratic Minority asking them to not only bring the bill to the floor for debate and a vote, but to keep the debate focused on the issue of representation. Though I have the support of the Delegates from Guam, American Samoa and the Virgin Islands, this strategy has not yet succeeded. The negative political fallout is appropriately the “radiation” contaminating our islands.

In a few months time, the clock will run out on the 109th Congress, and if our Delegate Bill has not passed, we will have to start all over again next January with the 110th Congress. The reality is that there is an important national election later this year. As we all know, opposing parties are re-arming themselves with anything that will promote their agenda. Sadly, the CNMI is again being victimized by what should be a perfectly normal process of American democracy, an election. Whether or not the majority changes, I will keep our quest for a voice in Congress alive. I do not want to sound pessimistic nor mislead you, but I must be realistic.

I believe that being realistic is important. Not too long ago, I appeared before the Senate Committee on Energy and Natural Resources and testified that our economy and financial outlook is sick, and on the verge of collapse. This was based on information provided by the Governor’s Office, the Public School System, the Commonwealth Ports Authority, the Mayors of Rota, and Tinian, to name a few. At the end of my testimony I provided Congress with list of three items that could help us overcome our economic problems.

The first thing they can do is to approve Head Note 3 (A) of the Harmonized Tariff Schedule and reduce the amount of local value that is added to the garments made here in the CNMI. At the end of the hearing, Chairman Domenici indicated that he would push the Senate Finance Committee to pass this amendment. These are great words of encouragement, and with the assistance of the Governor’s Office I continue to feel positive that we have a good, although guarded confidence of seeing this amendment pass this year. If the requested amendment is enacted into law, it will slow down our revenue loss but only temporarily, and this is not enough as we know.

The second item I outlined for the Committee is the Cover Over of taxes collected by the U.S. Treasury that rightfully belong to the CNMI and should have been handed over to us already. Work on this began with Governor Babauta and we are continuing it today. I can make no promises as to when we will see this long over due revenue, but I will say that we now have more allies and supporters than we use to, and we are a few steps closer. This issue requires active participation by our Governor, and as I had requested several times, immediate discussion should be conducted with Mr. Dave Cohen’s office of Insular Affairs under the framework of Covenant Section 902 to start the official process of consultation. Any amount of recovery from these consultations and final agreement will obviously help our government’s financial troubles.

The third item I provided to the Chairman is direct financial assistance form the Federal Government. On the basis of information received from the Governor’s Office, I requested on March 7th, $140 million from the various appropriations subcommittee. This was an unprecedented move, as never before has a Resident Representative from the CNMI made such a request. But in my desperation to fully alert the Congress of our suffering economy and dismal prospects for generating funds locally, I had to try everything possible. Let me explain. Every year the various Appropriations subcommittee establish a “members” only deadline for requesting earmarks for special projects to be attached to the appropriations bills. That deadline was March 7th. Utilizing official forms my staff acquired from friends on the hill, and indicating that the CNMI is not yet represented in Congress I made these requests as if I were a member of Congress. (I apologized later to the overall Chairman of the Appropriations Committee, Congressman Jerry Lewis from California for this rather unusual act. As there is no other practical alternative to focus our concerns to Congress given the limited timetable for submission of requests, I made the decision that it is best to not ask permission, and just do it, but then apologize after the fact).

The good news is, some of the subcommittees have treated my requests as a member’s requests, not questioning my status. This in and of itself, is noteworthy. So far, no one has questioned my actions. My follow up meetings have been very positive and I feel that we might get some relief for our economic and financial problems from this unprecedented approach to request congressional assistance.

I will caution that we don’t count our chickens before they are hatched, as it will take a long time before the bills will actually become law, and it will probably be after the midterm elections. If you want to see a complete list of my requests please visit my web site at www.resrep.gov.mp.

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The last remaining issue that I am actively working with Congress is Submerged Lands rights of our Commonwealth.

After several years of discussions and consultation, and after so much funds and human talents and resources were expended on our quest for a quiet title to submerged lands right extending 200 miles in all four directions from our islands, we are back to square one on this issue.

Recently, the U.S. Supreme Court decided not to consider our most recent appeal on submerged lands claim against the United States. This was after the Federal District Court here on Saipan ruled and the 9th Circuit Court of Appeals upheld the position that the CNMI currently has no rights to the submerged lands surrounding our islands. Our claim was for ownership and control of the complete 200 mile EEZ, or 240 thousand sq. miles of ocean and marine and mineral resources located within submerged lands that the CNMI is claiming as its own.

Now that the Supreme Court of the United States has made a decision, it is now time for the CNMI to look at this issue practically and realistically. The federal government has a definite policy position on the issue of submerged land, and that is that the CNMI is entitled to only that domain that is granted to other territories and state, a three mile ownership. I am lead to believe that any more discussion or Covenant Section 902 Consultation to increase entitlement beyond three miles will be fruitless. It is time to direct our effort to something that is achievable and practical, and consistent with our political agreement.

We must think of ourselves in partnership with the federal government. The federal government has the right and the responsibility to defend and patrol these waters. Their claim over these waters and submerged lands relates to federal sovereignty, foreign affairs, defense, security and law enforcement. Our concern is economic, and I have begun exploring mechanisms that will provide us an interest and a share in any economic activity in these waters and submerged land.

We have known for sometime that the waters and submerged land surrounding our islands are rich in natural resources. In 1996, the U.S. Congress, under the Magnuson-Stevens Fishery Conservation and Management Act, granted the U.S. Territories, including the CNMI, a role in negotiating agreements with foreign fishing companies, and a portion of any permitting fees, or fines and penalties collected under such agreements. Using this as precedent, I have begun work on new legislation that would give us a role in negotiating rare minerals mining or other natural resource collection agreements, and a share in any fees, royalties, or payments made under those agreements. All of my initial conversations with Members of Congress, committee staff, and administration officials have been very positive and supportive.

But we must first get Senate Bill 1831, the CNMI submerged land bill, approved. This bill gives us full control over the 3 miles of submerged land seaward from our islands shores. This is exactly what the other territories and coastal states have. The U.S. administration supports this bill, as it gives us parity.

Once this bill is approves, I know that we can re-visit the submerged land issue with other territories and coastal states and ask that each receives a grant for a greater area of control. So far, everyone is agreeable to this approach, but our submerged land bill, S. 1831 which is currently before the Senate, must be approved first.

Unfortunately, Governor Fitial and I disagree over how to proceed with the submerged land issue and the bill before the Senate. His predecessor, former Governor Babauta requested Senator Pete Domenici, the Chairman of the Senate Energy and Natural Resources Committee, that Senate Bill 1831 be introduced, and it was introduced and a public hearing was held, but just recently Governor Fitial has requested Chairman Domenici to have the bill withdrawn from consideration.

Our Governor hopes that a larger grant can be provided through negotiation with the federal government. We all want a larger grant, and I wish that I can be more positive and confident that our wish could be accomplished. But we must be realistic, and as I said earlier, neither the Bush Administration nor the U.S. Congress is willing to give up control over a large submerged land area than the other territories currently have.

Governor, I sincerely believe that your request for a grant greater than the three miles being provided under the current Senate bill 1831 will not be possible. Withdrawing the current bill in the Senate which will grant the CNMI the same rights as Guam and other territories will set the CNMI back from actually managing its own marine resources, maybe for years.

I consider this issue to be a paramount importance to our people, that I take this opportunity right here in front of our constituents to ask you to reconsider your request to withdraw the U.S. Senate submerged land bill for the Commonwealth. I believe that it is much better and more meaningful to have three miles of ocean and submerged lands resources and rights than to have nothing at all.

I also ask that our Legislature support me fully in my work on this issue. Because without our combined support, Congress will simply not act.

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I wish I had more accomplishments to report. At times it is the smallest steps that make the biggest impact in the long run. The groundwork that we lay today will bring rewards in the future.

These are interesting times in Washington, times that challenge a man’s beliefs and convictions. Though I admit that I get frustrated sometimes, in general my resolve is strengthened, and my dedication re-enforced because of the unique challenges that we face as one people.

Lastly, I want you to know that I share our communities’ concerns and anxieties over what is happening with our economy and our serious financial problems, and the damage that they are doing to the basic livelihood of all our people. We have high hopes for a bright future, but that has to wait until we can get our acts together.

In these extremely difficult times, we are asked to make sacrifices, and I share the belief that we must all sacrifice. I know that our Governor and our Legislature are confronting these difficult challenges with determination and resolve, and we are all hoping for the best. But sacrifices that we are all being asked to share in the interest of protecting the survival of our government, and as a matter of new public policy, must be fully explained and understood by our people. We should all work together to lessen the serious economic hardships that are confronting all of us every day.

I want to thank President Mendiola and Speaker Babauta, and you, my fellow Americans, for this opportunity to report on my activities and hope that each of you has the opportunity to read my written report. I am always available for questions.

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Pedro A. Tenorio is the Resident Representative of the Commonwealth of the Northern Mariana Islands to the United States.