The Foreign Service Journal, November 2006

The collapse or weakening of any microstate would create a political vacuum, opening a large area to undesir- able and potentially harmful external forces — from exploitative corporations in natural resource extraction to criminal and terrorist elements. Terrorist elements, in particular, would welcome a Pacific without borders, where the open seas allow for easy smuggling of goods and people. The islands are increasingly used for the transshipment of narcotics, and airport security measures are less sophisticated than elsewhere. The precarious nature of the Pacific island-states’ economies also creates a strong need for revenue, leading to income-generating activities of a dubious nature: unregulated ship registrations; the development of poorly supervised offshore financial centers with their inherently unregulated transactions; and the selling of passports. These activities can provide would-be terrorists with the necessary infrastructure for moving arms and people around the globe. These concerns are not just hypothetical. Shipping companies use flags of convenience to avoid heavy taxes and stringent inspections that would condemn their ves- sels to the wrecker yards. While the vessels’ real owners can hide behind a wall of secrecy created by dubious own- ership structures, the crews are cheap foreign labor, with no rights. As a result, the ships and the crews are vulner- able, easy targets for clever terrorists. A few examples from Tonga illustrate this danger. On Jan. 3, 2002, the Israeli Navy seized the Tongan-flagged KarineA , which was carrying 50 tons of weapons and munitions that Israel claimed were destined for the Palestinian Authority in Gaza. In 2003, three vessels fly- ing the Tongan flag were caught in the Mediterranean moving weapons, explosives and men for al-Qaida. In the same year, U.S. officials investigated a shipping company named Nova, incorporated in Delaware and Romania, after two of its Tongan-flagged vessels were used to smug- gle suspected al-Qaida operatives. The establishment of offshore banking facilities within the microstates is another area of concern. Notwith- F O C U S N O V E M B E R 2 0 0 6 / F O R E I G N S E R V I C E J O U R N A L 41 SERVING THOSE WHO SERVE AMERICA S I NCE 1 9 7 1 2006 represents our 36 th year helping to maintain America’s fleet of vehicles throughout the world. All of us at D & M consider it an honor to have worked with all of you through these years. We are aware of the importance of your official and private vehicles, forklifts, generators, tools and equipment. We look forward to continuing this service in a professional manner. We are here to help, just ask! Gary Vlahov www.dmauto.com (516) 822-6662; FAX: (516) 822-5020; E-mail: info@dmauto.com