Governor Benigno R. Fitial's STATE OF THE COMMONWEALTH ADDRESS
April 27, 2007

Before I begin my address, let us pause for a moment of silence to remember and honor our fallen service members who have perished in the Iraqi war zone:
Sergeant "Eddie" Chen
Staff Sergeant Wilgene Tudela Lieto
Corporal Derence Weilbacher Jack
Lance Corporal Adam Quitugua Emul
Sergeant Jesse J.J. Castro
Corporal Lee Roy Apatang Camacho
The service and sacrifice of these young men will never be forgotten.
My family and I appreciate the understanding, sympathy, and prayers that gave us strength during the time I was absent from the Commonwealth. With renewed energy and optimism, I am here today to report on the State of the Commonwealth. I will address our three most important subjects:
Relations with the Federal Government
The Commonwealth’s Economy
The Road to Recovery
Last year I reported to you that the CNMI Government was broke. Today I stand before you to report that we are still broke. We have worked hard and we have hard work ahead, but I want to assure you that we are coming back from the serious economic decline we are experiencing. There are no quick or easy fixes, but we have turned the corner and are on the road to recovery.
Relations with the Federal Government

Let me speak first about relations with the Federal Government. For the last several months, this Administration, the Legislature, and representatives of the private sector have been engaged in discussions with Federal Government representatives regarding the proposed application of the Federal minimum wage and immigration laws to the Commonwealth.
These issues have been the subject of much debate – in the media and in the community. I encourage the broadest possible discussion regarding these issues. The future of this Commonwealth will be largely shaped by the Congressional decisions made on these issues.
Before addressing some of the details relating to minimum wage and immigration, let me be clear on the general principles that will continue to guide this Administration in these discussions.

First, the Covenant obligates the Congress to make a careful examination of the relevant facts and policy alternatives before deciding whether, and to what extent, these federal laws should be extended to the CNMI.
Second, Congress should base its decision on the facts that exist today in the Commonwealth – not those portrayed or assumed in Congressional hearings nearly ten years ago.
Third, Congress should request the Government Accountability Office to evaluate the current situation in the Commonwealth and assess the current legislative proposals.
Fourth, preserving the vitality and potential of the CNMI economy is our most important objective in conducting these discussions with federal representatives.
Lastly, this Administration remains convinced that locally elected leaders, rather than federal officials, are more qualified and more responsive to local needs in making decisions regarding the Commonwealth’s economy.
These are the five principles on which this Administration’s actions have been based regarding matters of federal interest.

Minimum Wage Legislation
We are disappointed in the recent Conference Committee report recommending increases in the Commonwealth’s minimum wage level to the federal level. The Committee’s proposal is attached to legislation dealing with the funding of the Iraq War, which Congress passed today and is now on its way to the White House where we understand the President will veto it.
We will continue to work with the Committee on the minimum wage issue. We hope that the Congress will recommend a study by the Department of Labor of the impact on the Commonwealth economy of these periodic increases in our minimum wage at an early point in the process.
Immigration
The more complicated issues relating to the application of the federal immigration laws to the CNMI are far from resolved. Since its reorganization after last November’s elections, the Senate Committee on Energy and Natural Resources has been giving attention to the Commonwealth’s guest worker program.
The testimony presented to the Senate Committee on Energy and Natural Resources in February by the Lt. Governor on behalf of this Administration was widely supported within our community. The Lt. Governor emphasized our serious economic conditions, the importance of the economic tools provided by the Covenant, the effectiveness of our immigration system, and our recent success in eliminating the backlog of labor cases.
We subsequently submitted a supplementary statement to the Senate Committee, which reaffirmed the general principles I have summarized here today. It indicated our recognition of the national security concerns expressed by federal authorities. I made clear that we supported federal involvement to make sure that no persons identified by federal authorities as a risk should be admitted into the CNMI.
We also provided a detailed analysis of the old Murkowski bill, enacted by the Senate in 2000. In our opinion, this legislative proposal is seriously flawed in principle, contains many impractical provisions, and links employment needs with citizenship eligibility in a way that is contrary to established American immigration rules and practices. In short, it is discriminatory, because it would impose restrictions on this local community that have never been imposed on any other community under the American flag.
Section 902 Discussions
I met with Deputy Assistant Secretary Cohen in preliminary Section 902 discussions last month. Our substantive discussions were limited to the subject of immigration. I shared with him the statement we had submitted to the Senate Committee.
We did reach agreement on five basic principles governing federal policy with respect to the application of federal immigration laws. But, as I stated at the time, we may agree on these general principles, but "we have yet to reach agreement on the specific application of those principles." As we all know, "the devil is in the details."
I am not convinced that any immigration legislation should be passed by Congress that singles out the Northern Marianas in a harmful way. I anticipate further discussions with Mr. Cohen in the near future.The Commonwealth’s Economy
Now let’s turn to the Commonwealth’s economy. When I spoke about our economy last year, I set certain objectives and promised actions to address the situation we inherited. I have worked closely with the Legislature. What did we do – and with what success?
ð We produced on time the first unified budget in years.
ð The budget was based on the anticipated revenues of about $198.5 million – a significant reduction from the previous year.
ð We have reduced government expenses – a reduction in overtime, travel, return of leased vehicles, sale of vehicles.
ð We adopted a program of biweekly "austerity Fridays" to reduce government costs.
ð We have reduced government employment by about ten percent.
ð We have adopted a new defined contribution retirement program as a first, very important step in curtailing our very expensive defined benefit retirement program.
ð We constituted the Commonwealth Utilities Corporation as an independent organization free to fix fees that reflected increased fuel costs.
ð We created the Public Utilities Commission to regulate all public utilities in the Commonwealth.
ð We drew down more than $39 million for federal funded CIP projects – more than in any recent year.
As a result of our actions, we completed fiscal year 2006 without adding to our overall deficit. I know that these actions – taken together – called for widespread sacrifice among our people. I recognize that some mistakes were made – and that the sacrifice and burdens often seemed not to be equally shared. I ask everyone in the community to persevere in our common effort to deal with our economic challenges, and to look for ways in which individuals can contribute to the health and vitality of the Commonwealth.
In this regard, I would like to comment on a few of the many volunteer efforts in the Commonwealth that have made our islands a better place. Beautify CNMI has had a contagious impact on all segments of our community. Volunteers from the hotels and local businesses in Garapan have undertaken clean-up duties for individual blocks, one of many activities – such as the ongoing Park to Port Pathway project – aimed at vitalizing Garapan. In the villages, individuals are stepping up to the challenge and offering their services. This is vitally important.

The Current Challenge
Looking ahead to the remainder of 2007, even more stringent measures are needed to address the continued decline in government revenues. Our projected revenue for fiscal year 2007 of $193.5 million has proven too optimistic. We are now estimating revenues of only about $163 million. What brought this about?
More garment factories have closed than anticipated. Unless the U.S. Congress enacts an amendment to Head Note 3(a), even more factories are likely to close before the end of 2007. Factory closures over the past few years have caused garment industry employees to fall from more than 17,000 to less than 6000 now. Total government revenue from all taxes and fees paid by the factories has declined from nearly $80 million in 2001 to an expected $30 million in 2007. The largest single garment factory tax, the Customs user fee, has dropped from $37 million in fiscal year 2001 to an anticipated $11.5 million for fiscal year 2007.
Our visitor industry has suffered from a decline in airline seats from Japan – historically the primary source of our tourists. In 2004 the number of airline seats from Japan to the CNMI was 519,000. It fell to 441,000 in 2005. After the pullout of Japan Air Lines in October 2005, it fell to 311,000 in 2006 and promises to fall further to 204,000 in 2007. The resultant decline in lost revenues from Japanese visitors has had a devastating impact on the Commonwealth’s tourism industry and tax revenues.
As a result, Government collections in the first six months of fiscal year 2007 have fallen from an average monthly collection of $17.26 million in fiscal year 2006 to $14.04 million in fiscal year 2007 – a decline of about 15 percent. This is why the Secretary of Finance announced in February that we were looking at estimated revenue for fiscal year 2007 at about $163 million.
The Members of the Legislature and this Administration are discussing how best to deal with this decline in revenues, both with respect to an amended budget for fiscal year 2007, and in preparing a budget for fiscal year 2008. Fortunately, as a result of the cost reduction measures instituted during 2006, we do not need to generate further reductions in the range of $30 million. During the first six months of this fiscal year, we have spent $15.3 million less than in the comparable months for fiscal year 2006. Based on this reduced level of expenditures, we estimate that the projected shortfall for the remainder of this fiscal year is only $8.6 million. As we speak today, refinancing documents are being finalized in Honolulu regarding CDA bonds, which will produce a substantial reduction in interest costs.
My priorities in discussions with the Legislature are as follows:
ð We are determined that the Government will live within its means and not add to the deficit.
ð We are committed to resuming our employer contribution to the Retirement Fund in fiscal year 2008.
ð We are committed to reducing the large accumulated deficit and intend to apply any revenues over the budgeted amount to meet obligations that have been postponed in previous years.
ð I urge the Legislature to enact Senate Bill 15-76 so that the solvency of the Retirement Fund’s Defined Benefit Plan Program can be ensured and the change to the Defined Contribution Plan can be properly implemented.
ð We are determined to protect those agencies providing essential services and engaged in revenue-gathering activities. The passage of an amended budget for fiscal year 2007 is necessary to ensure that such essential services are provided. I ask the Senate President and the House Speaker to authorize a joint meeting of their respective fiscal committees together with the Secretary of Finance and the Special Assistant for Management & Budget.
ð I recommend replacement of the biweekly "austerity Fridays" at the end of this fiscal year. As you may know, there is a sunset provision that the austerity Friday end at the end of this fiscal year. I ask the Legislature to enact a substitute, and more equitable, program to reduce costs. I propose that Government employees not be paid on all CNMI holidays unless they are required to work, and do in fact work, on those holidays.
Although the Legislature and Administration agree that essential public services must be preserved, we are all concerned with the need to share the burdens widely and fairly. I want even these "essential" agencies to look at their personnel expenses more critically, and to advise me in writing to what extent their costs could be reduced without harming their public missions.
It seems clear, however, that the other government agencies will be bearing the brunt of this cost reduction effort. Looking beyond this fiscal year, we must investigate a more comprehensive restructuring of the way in which we conduct public business. Privatization of government agencies is one such approach. I have appointed a task force to examine the pros and cons of privatizing the management of public health services in the Commonwealth and look forward to receiving its report.
As a last resort, I have asked the Office of Personnel Management to prepare an implementation plan for a reduction in force that would affect all civil service employees. This is a legal requirement that I must follow before I make any decision whether such a reduction in force is necessary. It is my hope that the Legislature and this Administration will work together to achieve the necessary cost reductions before fiscal year 2008 so as to make any reduction in force unnecessary.
Drastic circumstances require drastic actions. The Executive Branch of the Commonwealth Government cannot be expected to bear the full brunt of efforts to reduce government expenditures. I call upon the Legislative and Judicial Branches to acknowledge the seriousness of our economic crisis and to share in the sacrifice necessary to deal with it.
The Road to Recovery
Let me turn now to my third subject today: the road to recovery. Let there be no doubt about it: we are engaged in a substantial transformation of our economy and our community. Our road to recovery must be driven in accord with our vision—our own sense of how to build a more reliable foundation for the future and to enjoy again the benefits of a growing and prosperous economy.
I do not know how long this road may be. But I do know that we must travel it together, step by step, in order to achieve our objectives. My priorities for the next year are the following:
ð Continued effective law enforcement
ð Generating work opportunities for our citizen labor force
ð Improved utility operations and service
ð Continued expansion of the base for our visitor industry
ð Continued effort to secure new investment in the Commonwealth
Effective Law Enforcement

Difficult economic times and profound changes in our community inevitably challenge our ability to enforce our laws fairly and effectively. We need to be sure that public safety is protected. I want to commend our Department of Public Safety for keeping our law enforcement efforts at a high level despite reduced resources available to them. I also want to emphasize the importance of citizen support in reporting crimes, stepping forward as witnesses, and serving as jurors.
I am also proud of the effective response by the Department of Labor and the Director of Immigration during the past year to the challenges presented by numerous garment factory closures. These closures immediately raised issues regarding the fair treatment of the employees and the repatriation of those no longer qualified to remain in the CNMI. Hearings were promptly held; employees were advised of their rights; and the overwhelming majority of the employees were voluntarily repatriated. The Commonwealth experienced no difficulty in dealing with these closures and anticipates no problem with any future closures.
For the first time in a decade, the Department of Labor is committed to addressing its backlog of labor cases. Over a period of six months, the Department has been successful in closing nearly 3200 cases, conducting hearings where required to ensure that both employees and employers "have their day in court." I looked in on these hearings myself, and I have heard from employees, their representatives, and employers that these proceedings have been handled in a fair and professional manner. I know that the Department of Labor has inherited many other problems and I look forward to seeing them addressed in the same efficient manner.
As these hearings are concluded, the burden will fall increasingly on the Director of Immigration and his officers to implement our immigration laws. Our local laws with respect to "illegal" alien workers have in the past been only sporadically – and ineffectively -- enforced. We are in the process of identifying with a high measure of certainty exactly which workers are no longer qualified under Commonwealth law to remain in our community. We are implementing our Commonwealth laws not out of any hostility to – or lack of appreciation for – those alien workers who have come to our community to enjoy economic opportunities not available in their home country. We are doing it because job opportunities today have been greatly reduced as a result of our economic decline; and our priority increasingly must be on employment for local residents.
Cases involving "human trafficking" of alien workers in the Commonwealth have received extensive publicity. Let me be clear: I have "no tolerance" for any such activities. Our local officials who investigate and prosecute these cases have my full backing. The Director of Immigration has implemented new procedures at the airport in an effort to deter those local employers who seek to bring in alien workers for illegal purposes. It does not matter whether the employers are Carolinian, Chamorro, Korean, Chinese, or Japanese. I want each to be prosecuted promptly to the fullest extent of the law.
Violations of the law by government employees – past or present – must be given the highest priority by our law enforcement officers – both federal and local. Highly publicized excesses by former CNMI officials have been extensively investigated by the Office of the Public Auditor. When OPA submits its final reports regarding these matters, I expect the Office of the Attorney General to move promptly and advise me, and the public, of the civil or criminal actions that should be initiated to deal with these self-aggrandizing abuses of the public trust.
Generating Work Opportunities for Our Citizen Work Force
A high priority objective is to provide work for our local resident work force. It is necessary to expand our emphasis on job training and employment of Commonwealth citizens in the private sector. I am looking at government-private sector partnerships aimed at maximizing meaningful opportunities for our citizen work force in the private sector.
With this objective in mind, I recognize that the laws implementing the 20% requirement for local resident employees and effective skills training programs have not been rigorously enforced in the past decade. I have directed the Secretary of Labor not to grant any waivers of the advertising requirements with respect to job vacancies so that citizens will know of all job vacancies. Similarly, there will be no waivers of the 20% requirement. The Department of Labor will also be instituting a new enforcement program to implement the 20% rule – including publication of the names of non-complying companies and persons who appear to be holding full-time jobs at more than one company, and possible other sanctions.
I have asked our private sector employers to expand their training and recruitment efforts aimed at our local residents. In this area, I wish to commend WIA, PSS and NMC. I would also like to acknowledge the funding from the Office of Insular Affairs to support an NMC Tourism Training Curriculum and Tourism staff certification project. Within the past year, WIA has provided funding for a wide variety of projects advancing the skills and training of our local residents.
The Legislature is working on a new omnibus labor bill. Such a bill should reflect our experience under the existing laws extending back to 1983, Public Law 3-66, and the new demands of our changing economy. It is time to schedule hearings and to work together to produce legislation that meets our current needs. Such legislation must continue to provide the basic safeguards of our current guest worker program. At the same time, however, it must bring renewed emphasis on the opportunities and incentives aimed at increasing the participation of local residents in the private sector work force.
Improved Utility Operations and Service
A State of the Commonwealth speech would be incomplete without a discussion of the Commonwealth Utilities Corporation.
As a result of our decisions last year, CUC now pays for its fuel without any subsidies from the CNMI Government. This allows the Government to use this former subsidy – about $2 million per month – for vitally important social and community needs.
Yes, the increase in rates – long overdue – was sudden and painful to most individual users. It did have the beneficial effect of encouraging conservation both in the private and public sector.
In March of this year the Department of the Interior provided $800,000 for Saipan power plant repairs, and they have also approved the reprogramming of $5 million in unused CIP funds to stabilize electricity for economic development. For the Rota power system, the Department granted $250,000, which has been matched by $500,000 in a local appropriation, to be used for the power plant and the distribution system. In addition, the Department awarded three grants in the Operations and Maintenance Improvement Program totaling over $1.2 million. These funds will be used to purchase pre-paid meters, which can be used to pay for electricity in advance just like a telephone card. More money will be used for meter security to stop the theft of electricity. Also, more plant repairs and maintenance, plus linemen training, will increase the reliability of our power supply.
We are completing the pre-qualification stage of the privatization process. We have four international firms interested in the Commonwealth’s power business. As this process continues, and the new appointees to the Public Utilities Commission are confirmed, I am optimistic that we will – after so many years – be moving toward a modernized, efficient, and well regulated utility system for the CNMI.

Support for Our Visitor Industry
As I mentioned earlier, our economic recovery will depend in large measure on our ability to revitalize our visitor industry.. Last year, the Marianas Visitors Authority unveiled the Governor’s Strategic Initiative, an action plan to accomplish this objective.
Actual visitor arrivals for fiscal year 2006 were 443,812 – exceeding the projected figure in the Strategic Plan by 33,312 visitors (7%). However, our projected arrivals for 2007 are, with the exception of Korea, all lower than those targeted in the Strategic Plan. During the first six months of this fiscal year, visitor arrivals for five of the six months have been lower than the comparable month for the earlier year
Only with a significant increase in airline seats from Japan will we be able to meet the Strategic Plan’s goals. Over the last 12 months, this Administration, MVA, the hotels, travel agents, and all of our private sector partners have been working to secure new airlift from Japan. We have met with every single airline flying into or out of Japan. Demand for our islands in Japan remains strong. Two weeks ago I invited Japan Airlines, Continental, Northwest Airlines, and All Nippon Airways to submit proposals to launch immediately new air service to the CNMI from any city in Japan.
I am pleased to report that Continental has committed to a substantial summer charter campaign for the month of August. It will involve a charter flight on each day in August between Osaka and Saipan. The 31 flights will have a total seat capacity of 4,805. This new Continental program was made possible by guarantees negotiated with the agents and marketing support from the Marianas Visitors Authority. We will make every effort to persuade Continental to continue these flights after the August campaign.
While Japan’s numbers have been disappointing, other markets such as Korea, China, and Russia have been more promising. It is essential that the Commonwealth continue to benefit from the special visa programs now in place with respect to China and Russia. The visa programs provide an indispensable advantage for the CNMI in its competition for these growing markets with larger and better financed tourist destinations.
Korea is well on track to exceeding the objectives set out in the Strategic Plan. Korea now comprises 19% of our total tourist market, posting double digit growth since April 2006. Asiana Airlines, the only carrier providing direct service from Korea to the CNMI, last year increased its aircraft seating capacity from 260 seats to 310 seats per flight.
As a result of its investment in the Lao Lao Bay Golf Resort on Saipan, Kumho Asiana (the parent of Asiana Airlines) will increase its flights from Seoul from seven to eleven per week. An additional four flights – all daytime flights – will be added to the schedule beginning on May 27 and we expect additional flights by the end of 2007. I met last week in Korea with the chairman of Kumho Asiana to express my personal appreciation for his commitment to our community.
China is a growing market for CNMI tourism. In fiscal year 2006, China was the third largest market, capturing 8% of the visitor market. From April 2006 through February 2007, arrivals reached 40,400 visitors – 16% more than the earlier comparable ten month period. Promotional activities in China also increased last year. We expect to see continued growth in this market, especially with the recent launch of twice weekly flights from Beijing in December 2006. As of July 2007, flights from Shanghai to Saipan will increase from two to four per week – making a total of eight flights per week from the three cities in China.
The small Russian market may become more important this year. Although visitors from Russia are expected to number only about 3000 this year, their average stay in the Commonwealth is significantly longer than the average Japanese visitor. MVA has become a member of the Russian Union of Travel Industry and has undertaken a number of marketing strategies to encourage Russian travelers to visit the CNMI. Tomorrow, we will be receiving our second charter flight from Russia.

New Investment in the Commonwealth
Now let me turn to new investment in the Commonwealth. During the last year, I have made numerous trips to Japan, Korea, and elsewhere in the effort to attract new investment to the Commonwealth of the Northern Mariana Islands. At a time of economic difficulty – and the uncertainty about possible federal legislation – it is difficult for many investors to make a firm commitment to our community. But we have made considerable progress on implementation of earlier proposals and the promise of new and substantial investments.
I would like to commend the Legislature for enacting a condo bill that will enable investors to construct multi-story buildings and sell condos above the first floor. I ask the Legislature’s support on other investment-friendly legislative proposals now pending, including two constitutional initiatives on Articles XI and XII that will allow longer land leases and will provide needed clarity to current and future investors.
I have already mentioned the acquisition of Lao Lao Bay Golf Resort by Kumho Asiana. The company has plans to construct 100-120 villas on the property – at an approximate cost of $600,000 per villa for a total of about $78 million. It intends as well to work on major renovations and beautification of the Resort, including teahouses on both the West and East Courses. The total investment on this project is likely to reach $100 million. We have already received more than $800,000 in taxes from the sale of Lao Lao Bay. In addition, the Commonwealth, as a shareholder of UMDA, will also be receiving capital gains resulting from this sale.
After recent hearings on Tinian, the Legislature will shortly be considering MRDC’s proposal for a Casino/Golf Resort there. The company will lease 136.5 hectares of public land and Phase I of MRDC’s project will be completed after an initial investment of more than $170 million. The initial phase, expected to take 16-24 months, will culminate in the completion of an 18-hole championship golf course, the first on Tinian.
Two other casinos are being discussed for Tinian. The Bridge Investment Group has acquired 75,000 square meters of private property on Tinian and plans to build approximately 400 rooms. Land is being cleared and construction is scheduled to begin in September. Bridge Investment has signed an agreement with its Chinese travel agent partner that specifies a minimum of 1000 tourists per week from China by 2010 or one year after the projected opening of the hotel.
Another Tinian investor, the Kordish Group, is currently purchasing private land, which it hopes to exchange for the use of public land. The company plans a high scale combination of condos and villas with two 18-hole golf courses, one of which will be a professional course designed to attract competitive golfers on the Asian Tour. The potential investment is estimated at about one billion dollars and it is hoped that the critical land exchange will be completed by the end of 2007.
On Rota the Paupau Hotel is currently being renovated at an estimated cost of $3-4 million. After this renovation, the investor will bring in two 18-seat Cessna-type airplanes to ferry passengers to and from Rota.
Several other projects are under discussion for Saipan.
ð The KSA Group of Korea has plans to build a 350-room hotel north of the Pacific Islands Club at an estimated cost of $350 million. It is also considering the purchase of the nearby Coral Ocean Point Resort.
ð Another company, TS Land Co., is planning to build 600 villas, at an estimated cost of $450 million, on land in Garapan. Once the proposed lease is approved, construction may begin before the end of this year if all the regulatory requirements are met.
ð The World Construction Co., parent of World Resort Hotel, has requested public land for the construction of a golf course near Obyan Beach.
ð There will be a ground breaking next month of a new residential development in Koblerville to accommodate about 875 homestead applicants. The project will consist of two or three bedroom units to be built at an estimated cost of $50 million.
One very different investment was recently announced by World Salvage, Inc., a company engaged in the scrapping of World War II ships. The company will require 250 employees for its operations on Saipan during the first year and will need another 250 employees during its second year. The estimated investment is about $10 million, with the likelihood of another $3 million to build a small dock facility.
PTI continues to invest in the CNMI with a capital budget of close to four million dollars for 2007. In the next few months PTI will spend about one million dollars to repair and upgrade the existing fiber facility between Saipan and Guam.
We have seen growing interest in the Commonwealth as a location for educational institutions, based largely on the unique advantages provided by the Commonwealth’s special visa program for foreign students. Several foreign private schools, and two local private schools, are investigating the development of new educational programs aimed at attracting foreign students to the Commonwealth. The NMC Board of Regents, acting as the CNMI State Licensing Board, has been supportive of this new educational initiative, which seeks to attract substantial investments and to provide a broad range of jobs for local residents.
Two weeks ago, the Board authorized Emmanuel Educational Services, Inc. to establish a private nursing college in the CNMI under the terms of a three-year provisional license. This licensed vocational nursing program can be completed in less than 12 months, following which a graduate can take the state or national licensure examination.
Two other post-secondary schools are being considered by the Board for provisional licenses. The American Mediscience University intends to offer programs in oriental medicine, alternative medicine, and beauty arts and to attract students primarily from China and South Korea. Another private medical university, Loyola Medical School, is expected to apply for a license before the end of 2007.
Looking down an entirely different road, we are in continued discussions with U.S. military authorities about the proposed transfer of troops from Okinawa to Guam. I have met regularly with key military officials on this subject. At the request of the Legislature, I immediately created a Task Force headed by the Lt. Governor, with private sector and public members, to establish liaison with our Guam counterparts, to work with military officials on behalf of the CNMI, and to keep the public informed.
Recognizing the need for expertise in this area, I searched for an adviser who could bring both experience and insight to the work of the Task Force. I was fortunate to locate retired three-star Lt. General "Chip" Gregson, who has served as Commander of the U.S. Marine Forces in the Pacific and as Commander of Marine forces in Okinawa, during which assignment he participated in the initial relocation studies. The Task Force had a very productive discussion last week with General Gregson, who will be serving as my Special Assistant for Military Affairs.
Based on these preliminary discussions, I am confident that the military will be looking carefully at increased training (and related facilities) on Tinian and other islands.
Conclusion
People today are wondering what happened to the promise of better times. I can tell you that I ran on the theme of better times and, despite our present difficulty, I still have not given up hope on the prospect of better times ahead.
Thirty years ago, this small community overcame great obstacles to begin its extraordinary growth as the newest member of the American political family. Look how far we have come. Better times is a hope, an aspiration, a dream, and I have not given up on that hope for the CNMI. I have not lost sight of our aspirations, and my dream is still very much alive.
But realizing the dream will not be possible without help. I am still working on forging a better destiny for our Commonwealth, but I cannot achieve better times by myself. I need the community’s support; I need the Legislature’s support; I need the private sector’s support; I need the support of my friend, the Washington Representative.
I ask for your patience and understanding as we move toward the light at the end of this dark tunnel. I strongly believe that by working together, we will find the energy, the determination, and the commitment to bring our islands back into the light of economic prosperity and a life of abundance. I still have nearly three years left in office, and I will never lose faith in the potential of this great Commonwealth. We will have better times. It is only a matter of time. Thank you.