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CI Times Weekly | Current Issue 439|23 March 2012

The far north: eyeing up Penrhyn
Will the Americans return to Penrhyn?

If the Americans are considering what they might do to re-position themselves strategically in Polynesia, they might consider some assistance to government or supporting some commercial venture in relation to Penrhyn island, the most northern island in the Cook Islands, which they formerly exercised some claim to.
Strategically this would give the Americans a presence in Polynesia between Samoa, where China has a strong presence, and Tahiti where the French are firmly entrenched.
Chinese fishing interests are rumoured to be considering the establishment of a commercial venture on Penrhyn, so this would surely reawaken American interest in Penrhyn.
All Chinese fishing activity in the northern Cook Islands should be of interest to the Americans as part of their overall monitoring of Chinese activities across the wider Pacific and especially within Polynesia where Chinese interests are expanding and intensifying.
Penrhyn was once considered being under American jurisdiction along with its northern neighbours Manihiki, Pukapuka and Rakahanga. It was only in 1980, that the US formally relinquished all claims to these northern islands.
Whereas local Cook Islanders are still cautious about China’s long term intentions, a relationship with the Americans, given their past involvement and familiarity with Cook Islanders, would be far easier to adapt to.
Americans are no strangers to Cook Islanders. During World War II, the Americans built a large, near international length airstrip at Penrhyn and today, this combined with Penrhyn’s deep water harbour, make the island a strategic economic asset in the north. Penrhyn is also within 10 degrees of the equator. Ideal for launching vehicles into outer space. More recently, the Americans funded the establishment of a (now defunct) marine research centre in Penrhyn.
The airstrip at Penrhyn requires sealing and the airport requires new facilities/buildings, lights and an upgraded radar system.
During WWII the Americans also built the large airstrip at Aitutaki island. The Americans had a base at Aitutaki and during their stay, developed a close relationship with the islanders. Today, Aitutaki airport has been upgraded but further upgrades are required before regular international air services can be established.
While the Chinese have had a noticeable presence in Fiji, Samoa and Tahiti for more than 100 years, the Chinese presence in the Cook Islands is presently virtually non-existent except for families which are descended from early Chinese visitors. It has been estimated that today, around a quarter of Cook Islanders have Chinese blood.
Chinese involvement in the Cook Islands has to date been restricted to short term, government projects at the lower end (up to $14 million in value) and has not yet evolved further into the establishment of permanent commercial enterprises or settlements as in Fiji and Tahiti.
There is however, one Chinese owned and operated commercial, fish processing plant being planned for Rarotonga which will employ 60 locals and pump up to $8 million into the local economy. The scale of this operation will be larger than any local operation in this sector. The size of the investment means the Chinese owners/operators will not require any local partner under the present Business Investment Regulations. How it will impact initially on other local fish processing plants in terms of competing for local labour that is already in short supply, is not known. Whether this will lead to the flood gates being opened up to more Chinese businesses, it is also not known.
Herein lies an important lesson for the Chinese. Grow the relationship slowly. Involve locals as partners in private sector enterprises to ensure an integrated relationship which builds trust and that income is retained in-country. Ensure the security and sustainability of produce through ongoing research and sound conservation measures and practices.
Priority for the Cook Islands would be a commercial partnership where employment is created for locals and there is the opportunity for exports of local produce. Employment to arrest depopulation and exports to reduce the costs related to imports and provide new income streams.
Another priority for government is to sustain the Cook Islands ability and uniqueness to produce high quality and high nutritional produce by training more Cook Islanders in research and development.
The main island of Rarotonga has a direct air link with Los Angeles once a week by way of a subsidized Air NZ flight however, Penrhyn, being closer to Hawaii than Rarotonga, would be an ideal launching pad for the export of fish and other sea food from the northern group by air to the US market. - Charles Pitt

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