Cover Story
Guam & Saipan
The Military Means Business In Depressed Micronesian Economies
For the past century, Guam has provided the American military with a location for bases within U.S. jurisdiction, which is also virtually in Asia. It has only been during the past two decades that tourism has become a significant competitor to the military in Guam’s and Saipan’s economies. However, tourism has taken disastrous hits since September 11, 2001, and now Guam’s old staple, military spending, is once again on the rise.
The end of the Cold War brought a downsizing of U. S. military activity globally, including on Guam. Approximately 7,800 acres of land were identified for return to the Government of Guam. The most significant parcel returned was 1,800 acres which, until March 1995, had been Naval Air Station Agana. Now known as Tiyan, the land is adjacent to the Guam International Airport.
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In the mid-1990s, the military reevaluated its strategy and Guam again came to be valued for its position in the Western Pacific, especially since the loss of bases in the Philippines and increasingly difficult community relations in Okinawa. The military is once again investing in its Guam and Northern Marianas facilities. Since 2000, the military construction budget for Guam has totaled over $300 million, including $75 million for fiscal year 2003.
The current budget includes $17.6 million for an upgrade of the fuel storage and hydrant system at Andersen Air Force Base. "We provide an air bridge," says 1st Lt. Kim Melchor, Air Force public affairs officer. "We are a strategic stopping point for aircraft to refuel in this part of the world."
The U.S. Marine Corps is acquiring 1,541 acres that had been part of the Andersen South housing annex. It is to be used for urban warfare training for units from Okinawa and elsewhere in the Pacific. "This is a very important training base for us," said Gen. James Jones, Marine Corps commandant. "We believe that many of the battles of the 21st century will be fought in urban areas."
Another welcome development for Guam’s economy is the home porting of three of the U.S. Navy’s Los Angeles-class fast-attack submarines in Guam. The USS City of Corpus Christi will arrive in Guam in next month; the USS San Francisco before the end of the year; and the third, yet to be designated, is scheduled to arrive in 2004. Each sub has a crew of about 135 men, with an aggregate salary for the three vessels of about $6 million.
Meanwhile, in the Commonwealth of the Northern Marianas, the live-fire bombing range at Farallon de Mendinilla is the only such U.S.-operated range in the Pacific and is considered vital to keeping crews battle-ready. In response to a lawsuit brought by a stateside-based environmental organization, a U. S. District Court judge found the Navy in violation of the Migratory Bird Treaty Act and halted bombing at the range in March. On June 6, the U.S. Court of Appeals permitted the bombing to resume.
Recognizing the importance of the military to the economy, the Saipan Chamber of Commerce and the Guam Chamber of Commerce have taken steps to promote the islands to military decision makers.
Guam’s chamber has compiled a "white paper" enumerating the advantages the island offers the military. Similarly, the Saipan Chamber of Commerce’s Web site, www.saipanchamber.com, contains a page for armed forces members, with information about Saipan, including special discounts on products and services.
Sailors on leave spend $200 per day and a carrier visit is worth US$1 million daily to local economies.
As of December 2001, there were 3,763 active-duty Navy personnel and 2,058 active members of the Air Force stationed in Guam. About $50 million is turned over to the local government yearly from the income tax paid by federal employees working in Guam.
Indications are now that, as a U.S. territory within a few short hours flying time from most Asian population centers, Guam and Saipan’s roles with the military will only increase.
