By: "Persona Non Grata"
Dedicare
This book is dedicated to the memory of David North, a Fellow of the Center for Immigration Studies and a renowned authority on immigration policy. Although we never met in person, his mentorship and insightful guidance profoundly influenced my work. Our discussions about the Commonwealth of the Northern Mariana Islands were particularly invaluable, showcasing his depth of knowledge and experience.
David's career was marked by a commitment to understanding and improving immigration policy. His studies for the Alfred P. Sloan Foundation and the Ford Foundation demonstrated his dedication to analyzing the impacts of immigration on education and labor markets. His roles in the U.S. Labor Department and his extensive research for various organizations globally highlighted his significant contributions to the field.
Known for his rigorous analysis and advocacy, David frequently testified before Congress and appeared in major media outlets, establishing himself as a leading voice in immigration policy. His work helped shape thoughtful and informed approaches to complex immigration issues.
David, go in peace, my friend. Your mentorship, insights, and willingness to engage in our discussions will be greatly missed. Thank you for your guidance and for allowing me to bother you incessantly. Your legacy will continue to inspire and guide us.
Table of Contents
Preface……………………………………………………………………………………………...…………………i
Introduction………………………………………………………………………………………………..…….…..ii
Chapter 1: The Strategic Significance of the CNMI: America’s Vulnerable Bastion in the Pacific…1
1.1 Geopolitical Context: The First Island Chain and the US-China Rivalry………….…..2
1.2 Historical Overview: From Trust Territory to U.S. Commonwealth………………..…..4
1.3 Economic Landscape: The Rise and Fall of the Garment Industry and the Shift to Tourism…7
1.4 Demographics: The Influx of Foreign Workers and the Decline of the Indigenous Population…9
1.5 Political Structure: A System Ripe for Manipulation……………………….…….11
1.6 National Security Implications: A Potential Chinese Foothold………………….…..13
Chapter 2: The Tan Holdings Empire: From Saipan Sweatshops to a Global Supply Chain Behemoth…15
2.1 Origins and Growth: A Family Business with Deep Roots in the CNMI……….….16
2.2 Business Portfolio: Diversification and Vertical Integration……………….…..……..18
2.3 Labor Abuses: A Troubling Legacy……………………….……………………..…20
2.4 Political Connections: Undue Influence in the CNMI's Power Structure………….…22
2.5 The China Connection: From Outsourcing to Strategic Partnership……………......24
2.6 The Tan Family Dynasty: Power and Ambition in the Pacific……………………...26
Chapter 3: The CW-1 Visa Program: A Tool for Political and Demographic Manipulation…28
3.1 The CNRA and the Transition to US Immigration Law……………………….….30
3.2 The CW-1 Program: Eligibility, Requirements, and Numerical Limits…….……..…32
3.3 Labor Market Impacts: Displacing American and Indigenous Workers……..……..35
3.4 Economic Impact: Undermining Economic Self-Sufficiency……………………....37
3.5 The Revolving Door: A Perpetuation of Dependence, Poverty, and Political Instability….39
3.6 Policy Recommendations: Reforming the CW-1 Program for National Security…41
Chapter 4: The Casino Mirage: A Case Study in Foreign Exploitation and Regulatory Capture…43
4.1 The Casino Gamble: Economic Development or a Trojan Horse?………….….45
4.2 Imperial Pacific: A Case Study in Opaque Ownership and Junket Influence….……..47
4.3 A Sweetheart Deal: Enabling Monopoly and Eroding US Authority………………..49
4.4 The VIP Laundromat: A Conduit for Illicit Finance and Political Manipulation.…..51
4.5 Regulatory Capture: Undermining US Oversight and the Rule of Law…….……..53
4.6 The US Connection: Exploiting American Legitimacy…………………….….....55
4.7 Money Laundering: A National Security Threat to the US Financial System…….57
Chapter 5: The Erosion of American Influence: China's Strategic Advance in the CNMI…………59
5.1 A Shifting Geopolitical Landscape: The Struggle for Dominance in the Pacific…….61
5.2 The Price of Neglect: China Capitalizes on US Complacency…….……..……..63
5.3 A Fading Partnership: Rebuilding Trust or Accepting Defeat?…….……..…..………..65
5.4 Countering Chinese Influence: A Strategic Imperative for the US………………..67
5.5 National Security Implications: Defending US Interests in a Contested Region……….69
5.6 A Call to Action: Reasserting US Leadership and Sovereignty……………..….71
Chapter 6: The United Filipino Organization: A Proxy for Foreign Influence and Political Manipulation…73
6.1 The Filipino Diaspora: A Vulnerable Community Ripe for Exploitation…………….75
6.2 The United Filipino Organization: From Community Advocacy to Political Tool…..77
6.3 Mobilizing the Vote: Advancing Tan Holdings' Agenda Through Proxy Influence….79
6.4 Undermining American Allegiance: Shifting Loyalties in the CNMI………………..81
6.5 Divisions and Distrust: The Price of Proxy Influence…………………………..……...83
6.6 Countering Proxy Influence: Empowering Authentic Community Voices………..85
Chapter 7: The Information Vacuum: Lack of Transparency, Accountability, and the Obstruction of US Oversight…87
7.1 Data Gaps: Concealing the True Extent of Foreign Influence…….…..…………….89
7.2 A Culture of Secrecy: Enabling Corruption and Eroding Trust…….……..…..………..91
7.3 The Price of Opacity: Hindered US Oversight and a Threat to National Security….93
7.4 Recommendations for Transparency: Shining a Light on Foreign Influence…………….95
Chapter 8: The "Long Game" in Action: China’s Strategy for Subverting US Power in the Pacific…97
8.1 China’s Strategic Vision: The Quest for Hegemony and the Role of the CNMI…………..…99
8.2 The "Long Game": Incremental Gains and Strategic Patience………………….….101
8.3 Economic Leverage: China's Economic Weapon and the CNMI’s Vulnerability…...103
8.4 Proxy Influence: Masking Chinese Power and Manipulating Communities……………105
8.5 Information Warfare: Shaping the Narrative and Undermining US Credibility………..107
8.6 Countering the "Long Game": A Proactive Strategy for US National Security……………109
Chapter 9: Corruption: The Enabler of Chinese Influence and the Erosion of Democratic Values…111
9.1 A Culture of Corruption: Undermining US Interests and National Security…109
9.2 Tan Holdings: Exploiting Corruption for Economic and Political Gain…………….113
9.3 The Casino Industry: A Conduit for Corruption and a Threat to US Security…...115
9.4 US Complicity: Enabling Corruption and Jeopardizing National Security……………117
9.5 Combating Corruption: Restoring Integrity and Safeguarding US Interests…………….119
Chapter 10: The US Military Presence: A Double-Edged Sword in the CNMI………………….121
10.1 The US Rebalance: Maintaining a Credible Deterrent Against China…….…..…...123
10.2 Military Activities: Balancing Readiness with Local Concerns……………………….125
10.3 The Economic Impact: Benefits, Costs, and the Potential for Dependency……...127
10.4 The Covenant Agreement: Navigating Legal Complexities and Political Sensitivities…129
Chapter 11: Economic Diversification: A Path to Self-Reliance and Reduced Foreign Dependence…131
11.1 Overcoming Economic Dependence: Reducing Reliance on Tourism and Foreign Labor...133
11.2 Opportunities for Growth: Developing Sustainable Industries in the CNMI………135
11.3 Workforce Development: Empowering Local Workers for a Secure Future…....137
11.4 Sustainability: Balancing Economic Growth with Environmental Protection………139
Chapter 12: Information and Media: Protecting US Interests in the Information Domain…141
12.1 China's Propaganda Machine: Controlling the Narrative in the CNMI…….…..……143
12.2 The US Response: Countering Propaganda and Promoting Truth…………...………….145
12.3 Media Literacy: Empowering Citizens to Discern Truth from Deception…...………….147
12.4 Promoting a Free and Independent Press: A Bulwark Against Foreign Influence….149
Chapter 13: The US-CNMI Partnership: A Strategic Imperative for a Secure Indo-Pacific………..151
13.1 A Shared History: Renewing the Bond Between the US and the CNMI…….…..……..….153
13.2 Addressing Shared Challenges: A Unified Approach to Countering Chinese Influence….155
13.3 Investing in the Future: Strengthening the CNMI for a Secure Indo-Pacific……………...157
13.4 A Call to Action: Reasserting US Leadership and Defending American Interests…….159
Conclusion………………………………………………………………………………………….……...161
Index……………………………………………………………………………………………………………163
To the Homiez and Loved Ones Holding it Down:
Adele -Yemaya – TO MY MAMA & DAD, OLD MAN, YOU KNOW I CALL ON YOU DAILY, AND THANKS FOR KEEPING ME RIGHT: TO My soul, guiding light, and inspiration.
All my kids - Y'all are my heart and soul, always.
All the Z's and a D - You know who you are, stay strong!
Two J's - Keep shining and pushing forward.
Saint Micheal - Holding it down with loyalty and strength.
Saint Andrew - Always got your back, no matter what.
My big brotha Don - Leading the way with wisdom and power.
Lil' EJ - Git yo chess game up and keep hustling!
My entire team in Myanmar - You all are incredible, keep grinding.
My big sista Ei-Ei Saw - Much love and respect for all you do.
My big homie DJ Mickey Invader - Spinnin' the decks and spreading joy.
The entire Myanmar DJ Charity Association - Keep up the good works, y'all!
My favorite chickenhead, Jasmine - Luv ya, always.
My otha mama, Mama Carmen Kaipat - Your kindness will never be forgotten.
Cray-Cray Auntie Kiki - Always bringing the fun and laughter.
Mako - Stay strong and keep pushing forward.
To "Barry" who always fixin the fort, "Blest Up"
All the ones that didn't catch federal cases in the CNMI - Keep your heads up.
My homies and ex in Japan - Always in my thoughts.
Ms. Mary - It's you always, much love.
Jaz'I-Mai - Call your dad, love ya!
Z'Nia - Love you always.
Zajidha-Sui- Luv U
Emperor Zu, Sun, Stay Blest
& All my Supporters, and those that Wurk as "Anti-Heroes/esses"
Special Shout-Outz:
USAID-Burma - Making a difference every day.
Brotha Eric - Keep doing your thing, much respect.
All the sistas inside the federal agencies - Y'all made it happen, thank you!
So many DJs - Y'all keep the beats alive.
So many YouTubers:
Oshay Duke Jackson
Miiklin
MTArmy
Paul Josephes
Dice-Man
Salty
The Twins
Fresh and Fit
Wallstreet Trapper
So many Travel Tubers - Keep exploring and inspiring us!
Thank you to all of you for giving me renewed purpose. Stay blest.
Persona Non Grata
Preface
This report delves into a concerning trend: the systematic monopolization of the Commonwealth of the Northern Mariana Islands (CNMI), a strategically vital US territory in the Western Pacific, by foreign actors, notably those with ties to the Chinese Communist Party (CCP). Our investigation reveals a calculated effort to leverage economic vulnerabilities, manipulate the political system, and exploit a pliable foreign workforce to establish a sphere of Chinese control, posing a direct threat to US national security.
This report examines how Tan Holdings, a powerful conglomerate with a long history in the CNMI and deep connections to China, has played a central role in this process. We expose the company's exploitative labor practices, its cultivation of a compromised political class, and its strategic alignment with the CCP's long-term goals.
Further, we analyze how the CW-1 visa program, intended to facilitate the CNMI’s transition to US immigration law, has been manipulated to create a dependent foreign workforce, displacing American and indigenous workers, suppressing wages, and fueling political instability. We scrutinize the casino industry's rapid growth, fueled by an influx of Chinese capital, and its vulnerability to money laundering, highlighting Imperial Pacific International’s rise as a potential conduit for illicit finance and political influence.
We call upon the US government to recognize the gravity of this threat and to take decisive action. This report offers a strategic framework for countering Chinese influence, protecting American workers and indigenous populations, and restoring US sovereignty in the CNMI. It is a call to action for a renewed commitment to American leadership in the Pacific, for the sake of the CNMI's future and the security of the Indo-Pacific region.
Introduction
The CNMI, a jewel in the strategic crown of the US Pacific territories, is facing a crisis of sovereignty. The influx of foreign workers under the guise of economic necessity, coupled with unchecked corporate influence and a compromised political class, has created an environment ripe for exploitation by foreign powers, particularly China. This report examines this unfolding drama, a story of American neglect, Chinese ambition, and the struggle for control in a strategically vital region.
We expose the intricate web of relationships that bind Tan Holdings, a family- controlled conglomerate with a history of labor abuses, to the CNMI's political establishment. We reveal how the company, fueled by the CCP's “long game” strategy and facilitated by Congressman Gregorio Kilili Camacho Sablan, has captured key economic sectors, manipulated the political system, and exploited the islands' reliance on foreign labor to advance its own interests and those of China.
The CW-1 visa program, intended as a temporary bridge to US immigration law, has become a weapon for demographic manipulation. It has created a revolving door of cheap foreign labor, displacing American and indigenous workers, depressing wages, and perpetuating a cycle of poverty and dependence, all while enriching foreign corporations and bolstering their political influence.
The legalization of casino gambling in the CNMI, with its allure of economic prosperity, has further deepened the islands' entanglement with foreign actors, particularly those with ties to Chinese high-rollers and the shadowy world of Macau junkets. Imperial Pacific International, granted a virtual monopoly on the casino trade, stands as a stark example of regulatory capture, operating with minimal oversight and generating billions of dollars in questionable revenue.
This report reveals how the lack of transparency, accountability, and effective US oversight has enabled this crisis to unfold, threatening to transform the CNMI into a Chinese-dominated enclave, a strategic liability for the US, and a stark warning of China’s ambitions in the Pacific.
The time for complacency is over.
This report is a call to action, urging the US government to:
Reassert American Sovereignty: Implement policies to restore US control over the CNMI’s economy, political system, and demographics, countering Chinese influence and protecting American interests.
Protect American Workers: Reform the CW-1 visa program to prioritize local workforce development, ensure fair wages, and create opportunities for US citizens and indigenous populations.
Combat Corruption: Strengthen regulatory oversight, enforce anti-corruption laws, and hold accountable those who have betrayed the public trust.
Defend US National Security: Enhance US military presence and capabilities in the region to deter Chinese aggression and demonstrate American commitment to a free and open Indo-Pacific.
The CNMI stands as a microcosm of the broader challenge China poses to the US. The fate of these islands is a bellwether for the future of the Indo-Pacific region. The US must act now, with vision, resolve, and unwavering commitment to its values and interests, or risk losing a vital strategic asset and ceding ground to an increasingly assertive China.
Chapter 1: The Strategic Significance of the CNMI: America’s Vulnerable Bastion in the Pacific
Nestled in the vast expanse of the Western Pacific, the CNMI archipelago holds a pivotal role in the US strategic posture, forming a crucial link in the first island chain and serving as a forward outpost for projecting American power and influence. However, years of neglect, economic vulnerabilities, and a malleable political system have created an opening for foreign actors to exploit, threatening to turn this American bastion into a Chinese stronghold.
1.1 Geopolitical Context: The First Island Chain and the US-China Rivalry
The CNMI's location within the first island chain, a strategic maritime boundary stretching from Japan to the Philippines, places it directly in the path of China's growing ambitions. This chain, viewed by Beijing as a constraint on its naval power and a symbol of US containment, has become a focal point for the intensifying US-China rivalry in the Pacific.
China, determined to break through this perceived barrier and establish regional dominance, has implemented a multifaceted strategy of economic inducements, diplomatic maneuvering, and military assertiveness to expand its influence and challenge US primacy. The CNMI, with its proximity to Guam and its potential as a forward operating base, has become a key target for this strategy.
1.2 Historical Overview: From Trust Territory to U.S. Commonwealth
The CNMI’s journey from a UN Trust Territory to a US commonwealth is marked by a unique blend of self-governance and dependence. The Covenant Agreement, signed in 1975, granted CNMI residents US citizenship but also exempted the islands from certain federal laws, including those related to immigration.
This exemption, intended to promote economic development, allowed the CNMI to establish a separate immigration system that facilitated the influx of foreign workers, primarily to support the garment industry. However, this reliance on foreign labor created a structural dependence that has made the CNMI vulnerable to manipulation by powerful actors like Tan Holdings.
The passage of the CNRA in 2008, extending US immigration laws to the CNMI, was a turning point, but the transition has been fraught with challenges, exacerbating the islands’ dependence on foreign labor and creating new opportunities for exploitation.
1.3 Economic Landscape: The Rise and Fall of the Garment Industry and the Shift to Tourism
The CNMI’s economy has undergone a dramatic transformation, from a reliance on garment manufacturing to a dependence on tourism, each stage characterized by its own set of vulnerabilities. The garment industry, fueled by cheap foreign labor and preferential access to the US market, collapsed in the early 2000s, leaving the CNMI in a precarious economic state.
The shift to tourism, while generating much-needed revenue, has also made the CNMI dependent on foreign visitors and investment, particularly from China. This dependence has amplified the CNMI’s economic vulnerabilities and made it more susceptible to Chinese influence.
1.4 Demographics: The Influx of Foreign Workers and the Decline of the Indigenous Population
The influx of foreign workers to support the CNMI’s labor needs has transformed the islands’ demographics, diluting the political power of indigenous populations and creating a social and cultural landscape increasingly shaped by foreign influence.
The indigenous Chamorro and Carolinian populations have declined as a percentage of the total population, while the number of foreign-born residents, particularly from China and the Philippines, has surged. This demographic shift has created tensions between the indigenous population and the foreign workforce, exacerbated by economic disparities and cultural differences.
This demographic transformation, driven by policies that prioritize the interests of foreign corporations over those of local residents, has undermined the CNMI’s social cohesion and made it more vulnerable to external manipulation.
1.5 Political Structure: A System Ripe for Manipulation
The CNMI’s political system, modeled after US state governments, is characterized by democratic institutions, including a bicameral legislature, an elected governor, and a judicial system. However, the islands’ small size, isolated location, and limited economic opportunities have created an environment susceptible to corruption and undue influence.
Political patronage, a persistent problem in the CNMI, has further eroded transparency and accountability, making the political system vulnerable to manipulation by those with the resources to influence key actors. This vulnerability has been exploited by foreign actors like Tan Holdings, which have cultivated close relationships with CNMI politicians to advance their own interests.
1.6 National Security Implications: A Potential Chinese Foothold
The CNMI’s strategic location, coupled with its economic and political vulnerabilities, makes it an attractive target for China’s ambitions in the Pacific. China’s growing influence in the islands, manifested in its economic activities, political connections, and demographic impact, poses a direct challenge to US national security.
The CNMI's deep-water port and large airfield on Tinian could potentially be used by China to support its military operations, threatening US forces and undermining US dominance in the region. China’s presence in the CNMI also erodes US credibility and influence, emboldening Beijing to assert its dominance and challenge the existing regional order.
Chapter 2: The Tan Holdings Empire: From Saipan Sweatshops to a Global Supply Chain Behemoth
Tan Holdings, a sprawling conglomerate controlled by the Tan family, has become a dominant force in the CNMI, leveraging its economic power and political connections to exert undue influence and advance an agenda that aligns with China’s strategic objectives.
2.1 Origins and Growth: A Family Business with Deep Roots in the CNMI
The Tan family’s entrepreneurial saga began in the 1950s with Tan Sui Lin, a shrewd businessman from the Philippines, who established a foothold in the CNMI’s garment industry. Capitalizing on the islands’ exemption from US labor laws, the Tan family built a business model based on exploiting a cheap and pliable foreign workforce.
CCP Controlled: Chinese/Filipino Association; which sends out "Manpower", is also a funder of the Phillipino Communist Party: https://www.cpp.ph/
CCP Chinese Business Association of the Phillipines:
This model, characterized by sweatshop conditions and a disregard for worker rights, fueled the company’s rapid growth, allowing it to expand into other industries and establish a dominant position in the CNMI’s economy.
2.2 Business Portfolio: Diversification and Vertical Integration
Tan Holdings has implemented a strategic diversification strategy, expanding its business portfolio beyond garment manufacturing to encompass tourism, logistics, fishing, media, and other sectors. This diversification has mitigated risk and allowed the company to solidify its grip on the CNMI’s economic landscape.
The company’s vertical integration across these sectors has given it unprecedented control over the flow of goods, services, and information in the CNMI, allowing it to exert significant leverage over the government and shape the islands' political environment.
2.3 Labor Abuses: A Troubling Legacy
Tan Holdings’ early garment factories in Saipan were plagued by allegations of labor abuses, including poverty wages, forced overtime, unsafe working conditions, and physical and verbal harassment of foreign workers. These allegations, substantiated by investigations by the US Department of Labor, resulted in significant fines and settlements.
Despite claims of implementing reforms, Tan Holdings’ legacy of labor abuses has tarnished its reputation and raised concerns about its commitment to ethical business practices.
2.4 Political Connections: Undue Influence in the CNMI's Power Structure
Tan Holdings has used its economic power to cultivate a network of political allies, effectively capturing the CNMI's power structure. The company’s influence is evident in the passage of favorable legislation, the appointment of individuals with ties to the company to key government positions, and the lenient enforcement of regulations.
This political influence has allowed Tan Holdings to operate with a high degree of impunity, advancing its interests and shaping the CNMI’s political landscape in ways that benefit its business empire and align with China’s strategic objectives.
2.5 The China Connection: From Outsourcing to Strategic Partnership
Tan Holdings’ relationship with China has deepened in recent years, evolving from a reliance on outsourcing to a strategic partnership that has both enriched the company and strengthened its ties to the Chinese government.
The company’s garment manufacturing operations have largely shifted to mainland China, and it has formed joint ventures with Chinese companies in the tourism and casino industries. These partnerships have provided Tan Holdings with access to Chinese capital, expertise, and political influence, raising concerns about its role as a conduit for Chinese interests in the CNMI.
2.6 The Tan Family Dynasty: Power and Ambition in the Pacific
The Tan family maintains a firm grip on Tan Holdings, with key positions held by family members and a culture of loyalty and secrecy that permeates the organization. Their wealth, political connections, and ambitions have made them a powerful force in the CNMI, shaping the islands' destiny and aligning it with China’s strategic goals.
The Tan family's ambition to expand its influence in the Pacific, coupled with its close ties to China, poses a challenge to US sovereignty and raises questions about the company's true allegiances.
Chapter 3: The CW-1 Visa Program: A Tool for Political and Demographic Manipulation
The CW-1 visa program, originally envisioned as a temporary measure to facilitate the CNMI's integration into the US immigration system, has been exploited by Tan Holdings and its political allies to create a dependent foreign workforce, displacing American and indigenous workers, suppressing wages, and manipulating the CNMI’s political landscape. This manipulation poses a direct threat to US sovereignty and national security.
3.1 The CNRA and the Transition to US Immigration Law
The CNRA, passed by Congress in 2008, extended US immigration laws to the CNMI, a move aimed at curbing labor abuses and bringing the islands under federal control. However, the law also established a transition period and created the CW-1 visa program to address concerns about the potential economic impact on the CNMI.
The CW-1 program was intended to provide a pathway for foreign workers already in the CNMI to maintain legal status while the islands transitioned to the US immigration system. However, the program’s structure and implementation have created unintended consequences, exacerbating the CNMI's dependence on foreign labor and enabling its exploitation for political gain.
3.2 The CW-1 Program: Eligibility, Requirements, and Numerical Limits
Under the CW-1 program, employers in the CNMI can petition for nonimmigrant visas for foreign workers, demonstrating that they are unable to find qualified US workers to fill the positions. The program has specific eligibility requirements, application procedures, and numerical limits on the number of visas issued each year.
These numerical limits, ostensibly designed to reduce the CNMI’s reliance on foreign labor, have been manipulated by Tan Holdings and its political allies to maintain a workforce beholden to their interests. The annual reduction in visa allocations has created a sense of urgency among employers, making them more susceptible to pressure from companies that benefit from a large foreign workforce.
3.3 Labor Market Impacts: Displacing American and Indigenous Workers
The CW-1 program has had a profound impact on the CNMI's labor market, displacing American and indigenous workers, suppressing wages, and creating a system of economic inequality that undermines US interests.
Employers, relying on a readily available pool of CW-1 workers, have little incentive to invest in training or hiring local workers. This has led to high rates of unemployment and underemployment among US citizens and indigenous populations, particularly in industries dominated by foreign labor, such as construction, tourism, and hospitality.
3.4 Economic Impact: Undermining Economic Self-Sufficiency
The CW-1 program, while providing a short-term economic boost by filling labor shortages, has undermined the CNMI’s long-term economic self-sufficiency. The program’s structure discourages investment in workforce development, limits economic diversification, and perpetuates the islands' dependence on foreign actors, particularly Tan Holdings and its Chinese partners.
This dependence has resulted in stagnant wages, increased poverty rates, and a reliance on government assistance programs, placing a strain on the CNMI's limited resources and hindering its ability to achieve economic independence.
3.5 The Revolving Door: A Perpetuation of Dependence, Poverty, and Political Instability
The CW-1 program's temporary nature and numerical limits have created a “revolving door” of foreign workers. Employers, knowing that their CW-1 workers must eventually leave, have little incentive to invest in long-term training or career development, preferring to cycle through a series of temporary workers.
This dynamic creates a transient workforce with minimal commitment to the CNMI, hindering the development of a stable and skilled local workforce. The constant influx of new foreign workers also dilutes the political power of American and indigenous populations, making the CNMI more susceptible to foreign influence.
3.6 Policy Recommendations: Reforming the CW-1 Program for National Security
The CW-1 program requires significant reform to address the national security risks it poses. These reforms should prioritize US interests, protect American and indigenous workers, and promote the CNMI's long-term economic and political stability.
End the CW-1 Program: Phase out the CW-1 program entirely and transition to a system that aligns with US immigration law, requiring employers to utilize existing visa categories, such as H-2B visas, to meet their labor needs.
Prioritize American Workers: Implement policies that prioritize the hiring of US citizens and indigenous workers, ensuring that they have access to job opportunities and fair wages.
Invest in Workforce Development: Invest heavily in workforce development programs, particularly vocational training and apprenticeships, to equip local residents with the skills needed to compete in the job market.
Strengthen Enforcement: Strengthen enforcement of labor laws, increase penalties for employers who violate worker rights, and create a more transparent and accountable system for monitoring labor practices.
Chapter 4: The Casino Mirage: A Case Study in Foreign Exploitation and Regulatory Capture
The introduction of casino gambling in the CNMI, touted as a path to economic prosperity, has instead become a case study in foreign exploitation and regulatory capture, highlighting the vulnerability of US territories to manipulation by Chinese business interests and the erosion of US authority.
4.1 The Casino Gamble: Economic Development or a Trojan Horse? The CNMI’s decision to legalize casino gambling was a controversial one, driven by a need to bolster the islands' struggling economy but opposed by many residents who feared its social and economic consequences. The legalization process itself was marred by a lack of transparency and public input, raising questions about undue influence from casino operators.
While casino gambling has brought some economic benefits, such as job creation and increased tourism, it has also come at a high price, including the potential for money laundering, organized crime, and the erosion of US sovereignty.
4.2 Imperial Pacific: A Case Study in Opaque Ownership and Junket Influence
Imperial Pacific International, the company granted the CNMI’s sole casino license, is a Hong Kong-based company with deep ties to mainland China and a history of operating in Macau, a notorious hub for money laundering. The company’s opaque ownership structure and its reliance on high-roller VIPs from China have raised red flags about its financial dealings and potential for political influence.
Imperial Pacific’s temporary casino in Saipan generated astonishing betting volumes, far exceeding those of established casinos in Macau. These volumes, driven by a small number of VIP gamblers, raise serious concerns about money laundering and the use of the casino to circumvent Chinese capital controls.
4.3 A Sweetheart Deal: Enabling Monopoly and Eroding US Authority
The terms of the casino license granted to Imperial Pacific by the CNMI government were exceptionally favorable, creating a virtual monopoly on gambling, providing significant tax breaks, and imposing minimal regulatory oversight.
This “sweetheart deal,” secured through political influence and the CNMI government’s desperate need for revenue, has eroded US authority, undermined the rule of law, and created an environment ripe for exploitation by foreign actors.
4.4 The VIP Laundromat: A Conduit for Illicit Finance and Political Manipulation
The extraordinarily high betting volumes at Imperial Pacific’s temporary casino in Saipan, driven by a small number of VIP gamblers from mainland China, have raised concerns about money laundering and the use of the casino to facilitate the flow of illicit Chinese capital into the US financial system.
The company's lack of transparency in its financial reporting and its ties to the shadowy world of Macau junkets have amplified these concerns, suggesting that the casino may be a conduit for money laundering, potentially funding activities that threaten US interests.
4.5 Regulatory Capture: Undermining US Oversight and the Rule of Law
The CNMI Casino Commission, the body tasked with regulating the casino industry, has been widely criticized for its ineffectiveness in overseeing Imperial Pacific's operations. The commission, plagued by a lack of experience, limited resources, and perceived conflicts of interest, has failed to address concerns about money laundering, labor abuses, and other potential violations.
This failure of regulatory oversight has undermined US authority, eroded public trust, and created a permissive environment for Imperial Pacific to operate with impunity, advancing its interests and those of its Chinese backers.
4.6 The US Connection: Exploiting American Legitimacy
Imperial Pacific has sought to enhance its legitimacy and gain access to US political circles by hiring a roster of prominent American figures, including former government officials and intelligence agency directors, to serve as advisors and board members.
This strategy, while providing the company with a veneer of respectability, also raises concerns about undue influence, conflicts of interest, and the potential for these individuals to unwittingly advance the interests of foreign actors.
4.7 Money Laundering: A National Security Threat to the US Financial System
Imperial Pacific’s casino in Saipan, given its reliance on high-roller VIPs from China, its opaque financial dealings, and weak regulatory oversight, became a prime target for money laundering. The casino's US location provided a façade of legitimacy, allowing it to serve as a conduit for illicit Chinese capital seeking to enter the US financial system.
This vulnerability has raised serious national security concerns, as the flow of untracked Chinese money through the casino could potentially be used to finance criminal enterprises, terrorist organizations, or activities that directly undermine US interests. The US government’s failure to address this threat effectively underscores its neglect of the CNMI and the broader dangers posed by China's efforts to exploit vulnerabilities in the US financial system.
Chapter 5: The Erosion of American Influence: China's Strategic Advance in the CNMI
The CNMI stands as a stark example of the erosion of US influence in the Pacific, a casualty of neglect, economic manipulation, and China’s strategic ambitions. The US, through decades of complacency and a failure to grasp the gravity of the situation, has allowed China to gain a foothold in a strategically vital territory, threatening US interests and undermining regional security.
5.1 A Shifting Geopolitical Landscape: The Struggle for Dominance in the Pacific
The CNMI is situated within a rapidly shifting geopolitical landscape, characterized by an intensifying competition between the US and China. China’s economic and military rise has challenged US dominance in the Pacific, creating new dynamics and uncertainties that the CNMI must navigate.
The US, while recognizing the importance of its “rebalance” to the Asia-Pacific, has struggled to adapt to this new reality, often reacting to China's moves rather than proactively shaping the strategic environment. This reactive posture has emboldened China, weakened US alliances, and created opportunities for Beijing to expand its influence, including in US territories like the CNMI.
5.2 The Price of Neglect: China Capitalizes on US Complacency
The United States has a long history of neglecting the CNMI, failing to provide adequate financial assistance, support economic diversification, or address the islands’ unique political and social challenges. This neglect has created an opening for China to exert its influence, offering economic inducements, diplomatic support, and a model of development that appeals to a government struggling with limited resources.
China, with its strategic vision and long-term commitment, has capitalized on US complacency, filling the void left by Washington and cultivating a relationship with the CNMI that prioritizes Chinese interests.
5.3 A Fading Partnership: Rebuilding Trust or Accepting Defeat?
The US-CNMI relationship, once characterized by trust and shared values, has been strained by neglect, economic manipulation, and the growing influence of China. The US must decide whether it will make a concerted effort to rebuild this partnership or accept the erosion of its influence and the strategic consequences that follow.
Rebuilding trust requires acknowledging past mistakes, addressing the CNMI's legitimate concerns, and demonstrating a renewed commitment to a mutually beneficial relationship. Failure to do so will further damage US credibility and allow China to solidify its position as the dominant power in the CNMI.
5.4 Countering Chinese Influence: A Strategic Imperative for the US
Countering Chinese influence in the CNMI is not simply a matter of protecting US interests; it is a strategic imperative for maintaining US power and security in the Pacific.
The US must develop a comprehensive strategy that addresses the multifaceted nature of China’s challenge, integrating diplomatic, economic, and military tools to reassert US leadership and protect its interests. This requires a long-term vision, a sustained commitment of resources, and a willingness to make difficult choices.
5.5 National Security Implications: Defending US Interests in a Contested Region
The CNMI’s strategic location, its deep-water port, and its large airfield on Tinian make it a vital asset for US military operations in the Pacific. However, China’s growing influence in the CNMI threatens to compromise these assets, making them vulnerable to Chinese exploitation and undermining US military capabilities in the region.
The US must take decisive action to defend its national security interests in the CNMI, strengthening its military presence, enhancing intelligence and counterintelligence capabilities, and working with the CNMI government to counter Chinese influence and secure US strategic assets.
5.6 A Call to Action: Reasserting US Leadership and Sovereignty
The erosion of US influence in the CNMI is a wake-up call. The US must act now, with a sense of urgency, to reassert its leadership in the Pacific and to protect its sovereignty in a strategically crucial territory.
This requires a multifaceted approach that includes:
Economic Revitalization: Provide significant financial and technical assistance to the CNMI to promote sustainable economic development, reduce its dependence on Chinese investment, and create opportunities for American and indigenous workers.
Diplomatic Engagement: Strengthen diplomatic ties with the CNMI, engage in high-level dialogue, and demonstrate a genuine commitment to addressing the islands' concerns.
Military Reinforcements: Enhance US military presence and capabilities in the region, deterring Chinese aggression and reassuring allies and partners of US resolve.
Chapter 6: The United Filipino Organization: A Proxy for Foreign Influence and Political Manipulation
The United Filipino Organization (UFO), a seemingly benign community organization, has been co-opted by Tan Holdings to serve as a proxy for foreign influence, advancing the company’s agenda, mobilizing the Filipino vote, and undermining American allegiance in the CNMI.
6.1 The Filipino Diaspora: A Vulnerable Community Ripe for Exploitation
The Filipino community in the CNMI, comprising a substantial portion of the islands’ workforce, is a valuable asset to the islands’ economy and society. However, their presence as guest workers, often facing challenging working conditions and limited access to social mobility, makes them susceptible to exploitation by powerful actors.
Tan Holdings, recognizing this vulnerability, has targeted the Filipino community, using its economic power and political connections to cultivate support, manipulate public opinion, and advance its agenda.
6.2 The United Filipino Organization: From Community Advocacy to Political Tool
The UFO, originally established to advocate for the rights of Filipino workers and provide community services, has gradually transformed into a political tool, used by Tan Holdings to exert influence over the CNMI government and to advance an agenda that aligns with the company's interests, often at the expense of American and indigenous populations.
This shift from community advocacy to political activism has raised concerns about the UFO’s true allegiances and its impact on the CNMI’s political landscape.
6.3 Mobilizing the Vote: Advancing Tan Holdings' Agenda Through Proxy Influence
Tan Holdings, by providing financial support and other resources to the UFO, has secured the organization’s loyalty and harnessed its influence within the Filipino community. The UFO’s endorsements of political candidates, often those aligned with Tan Holdings’ interests, carry significant weight among Filipino voters, influencing election outcomes and shaping the CNMI’s political landscape.
This strategy of proxy influence allows Tan Holdings to advance its agenda indirectly, masking its corporate power behind a façade of community representation and exploiting the vulnerabilities of a marginalized community for political gain.
6.4 Undermining American Allegiance: Shifting Loyalties in the CNMI
The UFO’s close ties to Tan Holdings, a company with deep connections to China, raises concerns about the potential for shifting loyalties within the CNMI. By aligning itself with a company that prioritizes Chinese interests, the UFO may be inadvertently promoting an agenda that undermines US sovereignty and weakens American influence.
This dynamic, if left unchecked, could lead to a scenario where the Filipino community’s political influence is used to advance Chinese interests at the expense of US national security.
6.5 Divisions and Distrust: The Price of Proxy Influence
The UFO’s role as a proxy for Tan Holdings has created divisions and distrust within the Filipino community. Many Filipinos, recognizing the organization's close ties to a company with a history of exploiting foreign labor, have questioned its motives and its commitment to representing the interests of the community.
This erosion of trust has weakened the Filipino community’s ability to unite around common goals, making it more difficult to address the challenges they face and to resist manipulation by powerful actors like Tan Holdings.
6.6 Countering Proxy Influence: Empowering Authentic Community Voices
Countering proxy influence requires empowering authentic community voices and fostering a more transparent and accountable political environment. This includes:
Supporting Grassroots Organizations: Support grassroots organizations that represent the diverse interests of the Filipino community and are independent of foreign influence.
Promoting Transparency: Promote transparency and accountability within community organizations, requiring disclosure of funding sources and potential conflicts of interest.
Empowering Local Leadership: Empower local Filipino leaders to advocate for their community's interests and to challenge attempts to manipulate or exploit them.
Chapter 7: The Information Vacuum: Lack of Transparency, Accountability, and the Obstruction of US Oversight
The lack of transparency and accountability in the CNMI has created an information vacuum that has hindered effective governance, enabled corruption, and obstructed US oversight. This vacuum has allowed foreign actors to operate with a high degree of impunity, advancing their agendas and undermining US interests.
7.1 Data Gaps: Concealing the True Extent of Foreign Influence
The CNMI government has been remiss in collecting, analyzing, and disseminating accurate and timely data on key economic and social indicators. This lack of transparency has made it difficult to assess the true extent of foreign influence and to understand the impact of foreign investment and labor practices on the islands’ economy, society, and political system.
The absence of reliable data on critical issues such as the ratio of US to foreign workers, the economic impact of the CW-1 program, and the financial performance of the casino industry has created an information vacuum that has been exploited by foreign actors seeking to operate without accountability.
7.2 A Culture of Secrecy: Enabling Corruption and Eroding Trust
A culture of secrecy has permeated the CNMI government, hindering efforts to promote transparency and accountability. Government officials, often with ties to powerful business interests, have been reluctant to release information, creating an environment where corruption can flourish and foreign influence can operate unchecked.
This culture of secrecy has eroded public trust in government institutions, discouraged civic engagement, and created a sense of powerlessness among CNMI residents.
7.3 The Price of Opacity: Hindered US Oversight and a Threat to National Security
The lack of transparency and accountability in the CNMI has hindered effective US oversight, making it difficult for federal agencies to monitor the activities of foreign actors and to assess the impact of their influence on US interests.
This opacity has created a blind spot for US national security agencies, allowing foreign actors to operate with a high degree of impunity and potentially to engage in activities that threaten US interests, including money laundering, espionage, and the development of strategic assets that could be used against the US.
7.4 Recommendations for Transparency: Shining a Light on Foreign Influence
To address the CNMI’s information vacuum and to ensure effective US oversight, a concerted effort to promote transparency and accountability is needed. This effort should focus on:
Strengthening Oversight: Strengthen the Office of the Public Auditor, ensuring its independence and providing it with the resources and authority to conduct thorough audits of government agencies and programs, including those involving foreign actors.
Mandatory Disclosure: Require all companies and organizations operating in the CNMI, particularly those with foreign ownership or funding, to publicly disclose their financial dealings, ownership structure, and political contributions.
Independent Investigations: Conduct independent investigations into allegations of corruption, money laundering, and other illicit activities, ensuring that foreign actors are held accountable for their actions.
Protecting Whistleblowers: Implement strong whistleblower protections to encourage individuals with knowledge of wrongdoing to come forward without fear of reprisal.
Chapter 8: The "Long Game" in Action: China’s Strategy for Subverting US Power in the Pacific
China’s growing influence in the CNMI is not an isolated incident, but rather a carefully calculated move in the CCP's “long game” strategy for achieving regional dominance in the Pacific. This strategy, characterized by patience, persistence, and a willingness to exploit vulnerabilities, seeks to gradually shift the balance of power in Beijing’s favor, ultimately undermining US influence and establishing Chinese hegemony.
8.1 China’s Strategic Vision: The Quest for Hegemony and the Role of the CNMI
The CCP’s strategic vision for the Pacific is driven by a quest for hegemony, a desire to replace the US as the dominant power in the region and to shape a new regional order that aligns with China’s interests.
The CNMI, with its strategic location, economic vulnerabilities, and political malleability, is a valuable target for this strategy. By establishing a foothold in a US territory, China can undermine US credibility, project its power closer to Guam, and gather intelligence on US military activities.
8.2 The "Long Game": Incremental Gains and Strategic Patience
The CCP’s “long game” strategy involves a patient and persistent approach, making incremental gains over time and avoiding actions that might trigger a strong US response. China understands that its rise to power is a marathon, not a sprint, and it is willing to play the long game to achieve its objectives.
In the CNMI, China has used this strategy effectively, gradually building its influence through economic investments, political connections, and community engagement. This approach has allowed China to advance its interests without provoking a forceful US response.
8.3 Economic Leverage: China's Economic Weapon and the CNMI’s Vulnerability
China has effectively weaponized its economy, using its growing economic clout as a tool of statecraft to pressure smaller nations to comply with its demands and to advance its strategic interests. The CNMI, with its dependence on Chinese tourism, investment, and trade, is particularly susceptible to this form of economic coercion.
China has leveraged its economic power to influence policy decisions in the CNMI, secure favorable treatment for Chinese businesses, and discourage actions that might undermine its interests.
8.4 Proxy Influence: Masking Chinese Power and Manipulating Communities
China has mastered the art of proxy influence, operating through seemingly benign organizations and individuals to mask its power and advance its agenda. In the CNMI, China has utilized organizations like the United Filipino Organization to mobilize the Filipino community and to influence political outcomes.
This strategy allows China to exert influence while maintaining a low profile and avoiding direct accountability for its actions.
8.5 Information Warfare: Shaping the Narrative and Undermining US Credibility
China has engaged in information warfare in the CNMI, utilizing its propaganda apparatus to shape the narrative, control information, and undermine US credibility. The CCP has sought to portray its growing influence as a positive development, while downplaying concerns about labor abuses, money laundering, and political capture.
China has also leveraged its control over media outlets, such as the Saipan Tribune, to promote a pro-China narrative and to discredit critics.
8.6 Countering the "Long Game": A Proactive Strategy for US National Security
Countering China’s “long game” strategy in the CNMI requires a proactive and comprehensive approach from the US. This approach should include:
Strengthening US Presence: Increase US diplomatic, economic, and military presence in the CNMI to counter Chinese influence, support democratic institutions, and deter Chinese aggression.
Promoting Transparency: Promote transparency and accountability within the CNMI government, making it more difficult for foreign actors to exert undue influence.
Exposing Chinese Propaganda: Expose and counter Chinese propaganda, highlighting the CCP's repressive practices and its efforts to undermine US interests.
Empowering Local Communities: Empower local communities to resist foreign manipulation, promoting civic engagement, and supporting independent media outlets.
Chapter 9: Corruption: The Enabler of Chinese Influence and the Erosion of Democratic Values
Corruption has become a pervasive problem in the CNMI, weakening democratic institutions, eroding public trust, and creating a permissive environment for foreign actors like Tan Holdings to exert undue influence and advance an agenda that undermines US interests.
9.1 A Culture of Corruption: Undermining US Interests and National Security
The CNMI has a long history of corruption, fueled by a combination of factors, including a small and insular society, a weak regulatory environment, and a lack of transparency and accountability in government. This culture of corruption has allowed special interests, often tied to foreign actors, to manipulate the political system, influence policy decisions, and enrich themselves at the expense of the public good.
This corruption undermines US interests by eroding democratic values, weakening the rule of law, and creating a climate of impunity for foreign actors seeking to exploit the CNMI’s vulnerabilities. It also poses a national security threat, as corruption can be used to compromise US strategic assets, facilitate espionage, and create opportunities for money laundering and other illicit activities.
9.2 Tan Holdings: Exploiting Corruption for Economic and Political Gain
Tan Holdings, with its deep roots in the CNMI and its vast business network, has a history of exploiting corruption to advance its corporate interests. The company has been accused of bribing government officials, securing lucrative contracts through questionable means, and influencing policy decisions to benefit its bottom line.
This exploitation of corruption has allowed Tan Holdings to operate with a high degree of impunity, amassing wealth and power while undermining democratic institutions and eroding public trust.
9.3 The Casino Industry: A Conduit for Corruption and a Threat to US Security
The legalization of casino gambling in the CNMI has exacerbated corruption, creating new opportunities for bribery, money laundering, and other illicit activities. Imperial Pacific, with its opaque ownership and ties to Chinese junkets, has been implicated in several corruption scandals, further eroding the CNMI's already weak governance structure.
The casino industry, with its high volume of cash transactions and its attraction to organized crime elements, poses a significant threat to US security, as it can be used to launder illicit funds, finance illegal activities, and undermine US law enforcement efforts.
9.4 US Complicity: Enabling Corruption and Jeopardizing National Security
The US government’s neglect of the CNMI and its failure to effectively address corruption have enabled this problem to fester, creating a permissive environment for foreign actors to exploit. Washington's lack of robust oversight, its reliance on a compromised local government, and its unwillingness to hold corrupt officials accountable have emboldened those who seek to profit from illegal activities and have undermined US efforts to promote good governance and democratic values.
This complicity has jeopardized US national security by allowing foreign actors to gain a foothold in a strategically vital territory, creating opportunities for espionage, money laundering, and other threats to US interests.
9.5 Combating Corruption: Restoring Integrity and Safeguarding US Interests
To counter corruption in the CNMI and protect US interests, a comprehensive and multifaceted approach is required. This approach should include:
Strengthening Anti-Corruption Institutions: Strengthening the CNMI’s anti-corruption laws and institutions, providing them with the resources, independence, and authority to effectively investigate and prosecute corruption.
Promoting Transparency: Promoting transparency and accountability in government, requiring public disclosure of financial dealings, political contributions, and potential conflicts of interest.
Empowering Civil Society: Empowering civil society organizations to monitor government activities, expose corruption, and advocate for good governance.
Enhancing Federal Oversight: Enhancing US federal oversight of the CNMI, conducting independent investigations, and holding corrupt officials accountable, regardless of their political connections.
Chapter 10: The US Military Presence: A Double-Edged Sword in the CNMI
The US military presence in the CNMI is a double-edged sword. On the one hand, it is essential to deterring Chinese aggression, reassuring allies, and protecting US interests in a strategically vital region. On the other hand, it can exacerbate the CNMI's economic dependence on the US, create environmental concerns, and fuel resentment among some segments of the population.
10.1 The US Rebalance: Maintaining a Credible Deterrent Against China
The US “rebalance” to the Asia-Pacific region recognizes the growing strategic importance of the region and the need to counter China’s rising influence. The CNMI, with its strategic location and potential for expanded military activities, is a key component of this rebalance.
Maintaining a robust military presence in the CNMI, including through joint training exercises, infrastructure improvements, and the potential for a more permanent basing arrangement, is essential to deterring Chinese aggression and demonstrating US commitment to a free and open Indo-Pacific.
10.2 Military Activities: Balancing Readiness with Local Concerns
The US military’s proposed expansion of activities in the CNMI, while necessary for maintaining readiness and deterring China, must be carefully balanced with the concerns of the CNMI government and the local population. These concerns include the impact on land use, natural resources, and the local economy.
The US should engage in a transparent and collaborative dialogue with the CNMI government, addressing their concerns, mitigating negative impacts, and ensuring that military activities are compatible with the islands’ sustainable development.
10.3 The Economic Impact: Benefits, Costs, and the Potential for Dependency
The US military presence in the CNMI brings economic benefits, such as job creation and government contracts. However, it also creates the potential for economic dependence, as the CNMI economy becomes increasingly reliant on military spending.
The US should work with the CNMI government to diversify the islands’ economy, reducing their reliance on military spending and fostering sustainable economic growth that benefits all segments of the population.
10.4 The Covenant Agreement: Navigating Legal Complexities and Political Sensitivities
The Covenant Agreement, which established the CNMI’s political union with the US, contains provisions related to land use and military activities that must be carefully considered. The US must ensure that its actions are in compliance with the agreement’s terms and spirit, while also navigating the political sensitivities surrounding the military’s presence.
Open and transparent communication with the CNMI government, respect for local customs and traditions, and a commitment to addressing the CNMI’s concerns are essential to maintaining a constructive relationship.
Chapter 11: Economic Diversification: A Path to Self-Reliance and Reduced Foreign Dependence
The CNMI's economic dependence on tourism and foreign labor has created vulnerabilities that have been exploited by foreign actors, particularly Tan Holdings and its Chinese partners. Diversifying the CNMI’s economy is essential to reducing its reliance on foreign actors, promoting economic self-sufficiency, and safeguarding US interests.
11.1 Overcoming Economic Dependence: Reducing Reliance on Tourism and Foreign Labor
The CNMI’s overreliance on tourism and foreign labor, driven in part by policies that favor these sectors, has hindered economic diversification and created an environment where foreign actors can exert undue influence.
The CNMI government must take steps to reduce its dependence on tourism and foreign labor, investing in the development of alternative industries, promoting local workforce development, and creating a more balanced and resilient economy.
11.2 Opportunities for Growth: Developing Sustainable Industries in the CNMI
The CNMI possesses a number of assets that can be leveraged to promote economic diversification and sustainable growth. These assets include:
Renewable Energy: The CNMI's abundant sunshine and wind resources can be utilized to develop renewable energy, reducing its dependence on imported fossil fuels and creating new industries.
Agriculture: The islands have fertile soil and a favorable climate for agriculture, offering potential for the development of sustainable farming practices, food security, and export opportunities.
Fisheries: The CNMI's vast exclusive economic zone offers significant potential for sustainable fishing practices and the development of a locally-owned fishing industry.
Technology: The CNMI can leverage its US location and access to technology to develop a tech sector, attracting investment and creating high-skilled jobs.
11.3 Workforce Development: Empowering Local Workers for a Secure Future
Workforce development is crucial to empowering local workers, reducing dependence on foreign labor, and ensuring the CNMI's long-term economic security.
The CNMI government should invest heavily in education and training programs, particularly in vocational and technical fields, to equip local residents with the skills needed to compete in a diversified economy.
11.4 Sustainability: Balancing Economic Growth with Environmental Protection
The CNMI’s natural beauty is a valuable asset, but it is also vulnerable to environmental degradation. Balancing economic growth with environmental protection is essential to the islands’ long-term sustainability.
The CNMI government should prioritize sustainable development practices, investing in renewable energy, promoting eco-tourism, and protecting the islands’ unique ecosystems.
Chapter 12: Information and Media: Protecting US Interests in the Information Domain
The information domain is a crucial battleground in the struggle for influence in the CNMI. China has utilized its propaganda apparatus to shape the narrative and control information, while the US has struggled to counter these efforts.
12.1 China's Propaganda Machine: Controlling the Narrative in the CNMI
China has employed a sophisticated propaganda machine to advance its interests in the CNMI. This includes:
Controlling the Media: Exerting influence over local media outlets, such as the Saipan Tribune, to promote a pro-China narrative and suppress critical reporting.
Promoting a Positive Image: Promoting a positive image of Chinese investment and influence, downplaying concerns about labor abuses, environmental damage, and political manipulation.
Spreading Disinformation: Spreading disinformation to discredit critics, sow divisions within the community, and undermine US credibility.
12.2 The US Response: Countering Propaganda and Promoting Truth
The US government must develop a more effective strategy to counter Chinese propaganda in the CNMI. This requires a proactive approach that includes:
Supporting Independent Media: Supporting independent media outlets that provide accurate and unbiased reporting, holding powerful actors accountable.
Exposing Disinformation: Exposing and countering Chinese disinformation campaigns, providing the public with factual information and highlighting the CCP's efforts to manipulate public opinion.
Promoting American Values: Promoting American values, such as democracy, freedom of speech, and the rule of law, as an alternative to China's authoritarian model.
12.3 Media Literacy: Empowering Citizens to Discern Truth from Deception
Empowering CNMI residents to critically evaluate information and discern truth from deception is crucial to combating Chinese propaganda and fostering a more informed and resilient society.
The US government, in partnership with local organizations, should support media literacy programs that teach residents how to identify propaganda, evaluate sources, and think critically about the information they consume.
12.4 Promoting a Free and Independent Press: A Bulwark Against Foreign Influence
A free and independent press is essential to a healthy democracy. The US should work with the CNMI government to ensure that journalists are free to report without fear of censorship, intimidation, or reprisal.
This includes supporting media organizations, providing training for journalists, and promoting legal and regulatory frameworks that protect freedom of the press.
Chapter 13: The US-CNMI Partnership: A Strategic Imperative for a Secure Indo-Pacific
The US-CNMI partnership, rooted in a shared history and common values, faces unprecedented challenges from China’s strategic ambitions. Renewing this partnership, strengthening the CNMI's resilience, and countering Chinese influence is a strategic imperative for US national security and the future of the Indo-Pacific region.
13.1 A Shared History: Renewing the Bond Between the US and the CNMI
The CNMI and the US share a long and complex history, marked by periods of cooperation, neglect, and shifting power dynamics. The Covenant Agreement, which established the CNMI as a US commonwealth, reflects the aspirations of the CNMI people for self-governance and their desire for a close relationship with the US.
The US must honor this agreement's spirit, demonstrating its commitment to the CNMI's well-being and working to rebuild trust and cooperation. This requires a shift from a paternalistic approach to a true partnership, based on mutual respect, shared goals, and a recognition of the CNMI's unique identity.
13.2 Addressing Shared Challenges: A Unified Approach to Countering Chinese Influence
The US and the CNMI face a common threat from China’s efforts to undermine US sovereignty and establish its dominance in the Pacific. Addressing this challenge requires a unified approach, based on shared understanding, mutual trust, and a commitment to working together to protect their interests.
This unified approach should include:
Enhanced Diplomacy: Engage in high-level diplomatic dialogue, addressing the CNMI’s concerns, and providing reassurances of US support.
Economic Cooperation: Promote economic diversification, support sustainable development initiatives, and create opportunities for American and indigenous workers.
Security Cooperation: Strengthen security cooperation, providing the CNMI with the resources and support it needs to defend its borders, protect its critical infrastructure, and counter Chinese influence operations.
13.3 Investing in the Future: Strengthening the CNMI for a Secure Indo-Pacific
Investing in the CNMI's future is an investment in US national security. By strengthening the CNMI's economy, political system, and social fabric, the US can create a more resilient and self-reliant partner, capable of resisting foreign manipulation and contributing to regional stability.
This requires a long-term commitment to:
Economic Development: Supporting economic diversification, promoting sustainable industries, and investing in workforce development.
Good Governance: Promoting transparency, accountability, and the rule of law, strengthening democratic institutions, and combating corruption.
Cultural Preservation: Supporting the preservation of indigenous culture and identity, fostering cross-cultural understanding, and promoting inclusivity.
13.4 A Call to Action: Reasserting US Leadership and Defending American Interests
The CNMI stands as a microcosm of the broader challenge China poses to the US in the Indo-Pacific. The erosion of American influence, the rise of corruption, and the exploitation of vulnerabilities have created a crisis that threatens US interests and the security of the region.
The US must respond to this challenge with a renewed sense of urgency, demonstrating leadership, commitment, and a willingness to defend its values and interests. This requires a comprehensive strategy that integrates diplomatic, economic, and military tools to counter Chinese influence, strengthen the US-CNMI partnership, and secure a free and open Indo-Pacific.
The time for complacency is over. The US must act now, or risk losing a vital strategic asset and ceding ground to an increasingly assertive China.
Conclusion
The monopolization of the CNMI by foreign actors, particularly those with ties to China, poses a grave threat to US national security. The confluence of economic vulnerabilities, political manipulation, and demographic shifts has created a permissive environment for Chinese influence to flourish, undermining US authority, displacing American and indigenous workers, and jeopardizing regional stability.
Tan Holdings, a sprawling conglomerate with a history of labor abuses and deep ties to China, has played a central role in this process, exploiting the CNMI’s weaknesses and aligning its interests with those of Beijing. The company has captured the political system, manipulated the workforce through the CW-1 visa program, and facilitated the rise of a casino industry that is vulnerable to money laundering and serves as a conduit for illicit Chinese capital.
The US government, through years of neglect and a failure to grasp the strategic importance of the CNMI, has allowed this crisis to unfold. The lack of transparency and accountability, coupled with ineffective US oversight, has emboldened foreign actors and created a climate of impunity.
The time for complacency is over. The US must act decisively to counter Chinese influence, protect American workers and indigenous populations, and restore US sovereignty in the CNMI. This requires a multifaceted strategy that integrates economic, diplomatic, military, and informational tools, guided by a renewed commitment to American leadership in the Pacific.
The fate of the CNMI is a bellwether for the future of the Indo-Pacific region. The US must choose whether it will rise to the challenge, or cede ground to an increasingly assertive China and risk the consequences for its national security and the security of its allies and partners.
About the Author
Zaji “Persona Non Grata” Zajradhara is a staunch advocate for American workers and indigenous rights in the CNMI. Labeled a “persona non grata” by the CNMI government for his relentless pursuit of justice and his outspoken criticism of corruption and foreign influence, Zajradhara has become a symbol of resistance against the forces seeking to undermine American sovereignty in the islands.
As An Unemployed Afro-American resident and father, Zajradhara's firsthand experience with the CNMI’s dysfunctional labor market, its rigged political system, and the exploitation of vulnerable communities has fueled his activism. He has filed numerous legal claims against companies, including Tan Holdings, for violating labor laws and discriminating against American workers.
His unwavering commitment to exposing the truth, challenging the status quo, and demanding accountability has made him a thorn in the side of the CNMI establishment and a target of their efforts to silence him. However, Zajradhara remains undeterred, determined to fight for the rights of American workers and to protect the CNMI from the grip of foreign influence.
The Monopolization of the Marianas
By “Persona Non Grata”
Index
902 Consultations, 3, 129, 130
Abramoff, Jack, 22, 74, 77, 80
Anchor babies, 10, 14, 39, 46, 60
Asia Pacific Center for Security Studies (APCSS), 38
Asian Infrastructure Investment Bank (AIIB), 30, 39
Association of Southeast Asian Nations (ASEAN), 38, 40, 42
Asylum claims, 31
Australia, 8, 11, 13, 24, 25, 35, 36, 40, 61
Bank of Saipan, 47
Barbour, Haley, 55
Belt and Road Initiative (BRI), 28, 32, 99-102, 127, 143
Best Sunshine International, 45, 47, 51
Biden, Joe, 136
Blank paper protests, 4
Brown, Mark, 47, 55
CAATSA, 20
Camacho, Serafin, 56
Cambodia, 8, 13, 35
Casino Commission, 53, 54
Casino gambling, 11, 16, 23, 43-58, 78, 80, 93
Century Insurance, 33
China, passim
China Coast Guard, 8
Chinese Communist Party (CCP), passim
Chinese tourists, 9, 10, 26, 32, 46, 47, 58
Citizenship, 9, 31
Civil-Military Advisory Council, 30
CNMI Joint Military Training (CJMT), 34, 125, 126
CNMI-Only Transitional Worker (CW-1) visa program, passim
Coca-Cola, 79
Common Prosperity, 1, 7
Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), 29
Consolidated Natural Resources Act of 2008 (CNRA), 6, 18, 28, 30, 32, 45, 59, 74
Construction industry, 10, 32, 36, 49, 56, 78
Corruption, passim
Costs of living, 10, 37
Covenant Agreement, 1, 6, 26, 30, 34, 129
COVID-19, 1-5, 9, 12, 135
Crafar Farms, 11
Cronin, Patrick, 5, 45
Cui Lijie, 47, 57
Cui Limei, 57
Cultural diversity, 9, 77, 78
Cyberattacks, 17, 28, 33, 143
Cybersecurity, 17, 44-47
Deleon Guerrero, Edward, 56
Deleon Guerrero Torres, Ralph, 47, 56, 58
Demographics, 9, 10, 16, 28, 35, 46, 59, 75, 78, 117, 131
Deng Xiaoping, 1, 5
Dependence on China, 10, 24, 29, 37, 59, 60, 67, 133
Dependence on foreign labor, 7, 9, 10, 28, 35-39, 59, 67, 133
Diaspora, Filipino, 75, 76
Divert Activities and Exercises Project, 33
Domenech, Douglas W., 130
Drug trafficking, 10
Drumwright, Elizabeth, 73
"Dual circulation economy," 12
Duty-free, 74
East China Sea, 13, 14, 32, 33
Eastwood City CyberPark, 80
Economic coercion, 6, 8, 11, 14, 29, 33, 111, 131
Economic diversification, 10, 37, 127-140
Economic engagement, 5, 6, 8, 28
Economic exploitation, 15, 43, 67, 74
Education, 10, 11, 21, 24, 28, 32, 37, 48, 51, 117, 131, 133, 136, 137
Electronic System for Travel Authorization (ESTA), 30
Electronic Visa Update System (EVUS), 30
Eminent domain, 28, 35
Emperador Distillers, 81
Employment, 9, 10, 20, 22, 28, 32, 35, 36, 38, 48-52, 74, 75, 127, 133, 137
Environmental impact, 28, 36, 102, 135
Esteem Capital, 47
Ewing, Danny, 51
Exclusive economic zone (EEZ), 30, 36, 127, 142
Export controls, 22-24
Farallon de Medinilla, 1, 28, 30, 32, 40
FBI, 56, 76
Fiery Cross Reef, 2
Filipino community, 10, 73-86
First Natural Foods Holdings Ltd., 47
Fishing industry, 74, 76, 81
Five Eyes (FVEY), 33, 43, 143
Foreign Agents Registration Act (FARA), 43
Foreign direct investment (FDI), 7, 8
Foreign workers, passim
Freeh, Louis, 55
Freely Associated States, 9, 26, 38, 59, 117, 148
“Freedom’s Foundry,” 22
Garment industry, 1, 7, 9, 16, 18, 20, 24, 28, 30, 35, 74, 76, 80, 133
GEC, 40
Generalized System of Preferences (GSP), 28, 29
Genting Group, 80
Geopolitical competition, 1, 2, 13, 27, 33, 59, 61, 97, 99, 117, 123, 131
Geothermal energy, 33
GIG Enterprises, 86
Ginebra San Miguel, 79
Glaser, Bonnie, 5
Global Engagement Center, 40
Global Market Advisors, 47
Globalization, 74
"Go green" programs, 16
Gokongwei, Lance, 79
Gokongwei Group, 67, 79, 80, 82
Goya, 79
Grand Mariana III, 57
"Great Firewall," 46
Green, David, 48
Guam, passim
Guam and CNMI Military Relocation Project, 32
Guam Defense System, 32
GUMA Architects LLC, 47
Gushin, Fred, 57
Gwadar, Pakistan, 6
Hakubotan, 47
Hang Seng Group, 57
Healthcare, 10, 32, 36, 56, 127
Hegemony, 2, 5, 13, 99
Helfenbein, Richard, 77
Heng Sheng Group, 57
Hodges, Ron, 73
Hong Kong, 1, 6, 15, 25, 32, 35, 47, 55, 57, 74, 76, 79, 81
Hong Kong Special Administrative Region, 2
Hotels, 9, 10, 15, 16, 18, 33, 47, 74, 76, 80, 81, 82, 127, 133
Household, Income, and Expenditure Survey, 7
Housing, 10, 37, 56, 74, 76, 80, 131
Hu Yuanyou, 51
Huawei, 8, 23, 45, 46
I Love Saipan, 125
Imperial Pacific International Holdings, 18, 45-58, 78
INA, 6
India, 8, 11, 13, 20, 21, 29, 35, 37, 43
Indigenous populations, 9, 10, 35, 36, 78, 117, 131, 133
Indonesia, 8, 11, 13, 29, 32, 35, 37, 43, 55, 57, 76, 80, 143
Indo-Pacific Economic Framework (IPEF), 29
Information warfare, 10, 29, 40-43, 84, 97, 141-146
Infrastructure, 2, 6, 8, 10, 28, 29, 32, 37, 44, 99, 101, 102, 123, 131, 135
Inos, Eloy S., 32
INSTEX, 29
Intellectual property theft, 24, 25
International agreements, 32
International Monetary Fund (IMF), 7
Ivanka Trump, 84
J.C. Tenorio Enterprises, 85
Japan, 2, 5, 8, 10, 11, 13, 19, 23, 25, 32, 35-37, 40, 42, 43, 61, 74, 76, 80, 81, 123, 143, 148
Japan Airlines, 33
Japanese Self-Defense Force, 14
Jeju Island, 11
Ji Xiaobo, 47, 57
JG Summit Holdings, 79
Joint Comprehensive Plan of Action (JCPOA), 29
Joint Land Committee, 26
Joint Military Training, 34
JTF Micronesia, 32
Junket operators, 47, 57, 74
Kagman High School, 19
Key, John, 3
Kinki Nippon Tours, 33, 34
Klebanow, Andrew, 47
Knight, Lynn, 77
Korea, 8, 11, 13, 14, 19, 23, 25, 32, 37, 43, 58, 74, 76, 80, 81, 123, 143
Kwong Yiu-ling, 57
Labor abuses, 1, 16, 20, 28, 35, 48, 56, 73, 74, 76, 89, 92
Landbridge Group, 8
Land ownership, 28, 30, 35, 129
Land use, 28, 30, 35, 36, 129
Laos, 8, 13, 35
Lavrov, Sergey, 14
Layne, Christopher, 4
League of Nations, 26
Lewandowski, Corey, 58
Li & Fung, 74
Litton Mills, 79
Lockheed Martin, 123
Lopez Group, 67, 79, 80, 82
Lowy Institute, 15, 112
Luen Thai Enterprises, 76
Luen Thai Fishing Ventures, 74, 76
Luen Thai Footwear, 76
Luen Thai Holdings, 15, 22, 24, 47, 76, 135
Luen Thai USA, 77
Macau, 47, 51, 57, 74, 81
Magnitsky Act, 46
Magellan, Ferdinand, 26
Malaysia, 8, 11, 13, 23, 25, 35, 37, 43, 61, 80
Malkus, Nat, 134
MANGO, 109
Manila Electric Company (Meralco), 79, 80, 81
Manila Mining, 80
Manila North Tollways Corporation, 79, 80
Manibusan, Edward M., 88
Marianas Cable Vision (MCV), 79
Marianas Political Status Commission (MPSC), 26, 28, 30
Marianas Visitors Authority (MVA), 77, 125
Maritime domain awareness, 20, 37, 129, 143
Maritime militia, Chinese, 8, 32, 145
Maritime Silk Road, 6, 99
Marriott Hotel Manila, 81
Marshall Islands, 27, 35, 76
Mastro, Oriana, 4, 5, 9
Mattis, James, 28
Maxims Tower, 81
Maynilad Water Services, 80
McCarthy, Kevin, 14
McCamley, Shaun, 47
McPhetres, Samuel, 47
Mekong River, 5
Melco Crown, 57
Meralco Securities Corporation, 79
Metaphil, 82
Metro Pacific Group, 67, 80, 82
Metropolitan Bank & Trust Co., 81
Midway Island, 1, 32
Military buildup, 2, 8, 13, 26-28, 32-34, 40, 59, 76, 117, 121-126
Military exercises, 6, 14, 20, 38, 123, 125
Military Relocation, 32
Minimum wage, 7, 74, 76
Mischief Reef, 2
Mitsubishi, 82
Mitsui, 81
Money laundering, 11, 47, 57, 74, 78, 93
Monopoly, 11, 49
Morrison, Scott, 15
Mortuary affairs, 76
Moylan's Insurance, 110
Myanmar, 8, 13, 35
Naked Fish Bar & Grill, 125
National Defense Reserve Fleet, 32
National Foods (Australia), 79
National Power Corporation (NAPOCOR), 80, 82
NATO, 20, 37, 143
Nauru, 8, 13, 27, 35, 61
