The second consultative group meeting between donors and the FSM Government was held at the Asian Development Bank in Manila with the Honorable Asterio R. Takesy, Secretary of External Affairs, heading the FSM delegation to the meeting chaired by the ADB Vice President, Mr. Peter Sullivan. The donors reviewed the policy reform programs initiated by the FSM Government and congratulated the Government for its impressive progress in implementing courageous reforms to reduce the size and cost of the public sector and to encourage the growth of the private sector. At the same time, donors raised concern on the need for the Government to implement the reforms according to the planned timetable, to further analyze end prioritize the public rector investment program and to promote productive activities in the private sector. The donors also pointed out the social cost of the reform programs and the need to carefully monitor these social costs through the maintenance of adequate statistics. Coordination of donor programs was also stressed with assistance from the Asian Development Bank. The next Consultative Group Meeting is slated for mid-1997.

The Department has informed all diplomatic missions accredited to the FSM and relevant international organizations that, as of November 8, 1996, Vice President Jacob Nena has become Acting President of the Federated States of Micronesia as the President, H.E. Bailey Olter, continues to be out of his office for medical treatment. Until the President resumes his post, the acting capacity of Vice President Nena continues for a maximum of 180 days, which was made possible by Congressional declaration on November 8, 1996, as provided under FSM law. Such declaration provides for the President to resume his duties within the 180 day period, otherwise, the Acting President takes over the balance of the current President's term which is about two and half years.

Acting President Jacob Nena is heading the FSM's delegation to the World Food Summit in Rome, November 12-22, 1996, with the rest of the delegation members consisting of Mrs. Lerina Nena, Secretary Eliuel Pretrick and Mrs. Kesia Pretrick, Ambassador Resio S. Moses and two support staff.

The FSM Government is hosting an Inter-Country workshop on Review of the Preliminary Draft Training Manual on Communication and Counseling Skills, suggested to begin on November 27-30, 1996. Similar workshops have been held in the Republic of Palau and the Republic of the Marshall Islands.

The Department forwarded a congratulatory message from Acting President Jacob Nena to Prime Minister Ryutaro Hashimoto on the occasion of the latter's re - election as Prime Minister of the Government of Japan, while External Affairs Secretary Takesy sent a similar message to reappointed Foreign Minister Ikeda.

The Department reported to the Acting President on the results of the US/FSM Joint Committee Meeting (JCM) on Security and Defense held at the US CINPAC Headquarters at Camp H.M. Smith in Honolulu on October 10, 1996. Discussion topics included Coast Guard activities in the FSM; training opportunities in pharmacy, dental and hemodialysis; Tripler Army Medical Center support to the FSM; Civic Action Team; recruitment of FSM citizens in the US Armed Forces; planned humanitarian assistance for excess property, and disaster response. The meeting went very well with the FSM taking turn to host the next JCM meeting sometime between October and December 1997.

The Department of External Affairs Secretary Takesy headed the FSM delegation to the annual South Pacific Commission's Conference in Saipan which was held from October 30th to November 1st. The highlight of the meeting was the streamlining of staffing and reorganization of the Commission.

The Department has submitted two nominees to a training workshop on "Participatory Needs Assessment" scheduled to be held in Suva, November 18-December 4, 1996.

The Department has, received from the Government of the People's Republic of China two possible set-ups of the COM-FSM Multipurpose Facility, which will be financed through an interest-free loan from the Government of PRC. A Feasibility Study Team will be dispatched to the FSM as soon as a selection is made by the FSM Government.

The Department transmitted a proposal to the Embassy of Japan in Kolonia from the Ponape Agriculture and Trade School to be considered under the Japan Supply of Technological Literature Scheme.

The Government of the Republic of Korea is donating various athletic materials worth a total of USD 20,000, in response to a request from the FSM Government. The Department has communicated FSM's appreciation for the donation to the Korean Embassy in Suva.

The FSM has submitted the nomination of Mr. Sintaro Ezra from the Philatelic Bureau of the FSM Postal Service to attend training on operation of a philatelic agency to be held in Suva under the sponsorship of the Forum Secretariat.

Ambassador Resio S. Moses is to head the FSM delegation to a meeting of States Signatories to the Comprehensive Test Ban Treaty, scheduled for November 19, 1996, at the UN Headquarters in New York.

Funding is being sought from the Australian Embassy in Kolonia for an FSM citizen who has been accepted to take up studies in Women's Health at the University of Melbourne.

Consultations between the FSM Government and Chinese Embassy has led to agreement on use of the grant from the PRC Government for one pilot project in agriculture in the State of Pohnpei. If successful, similar projects can be extended to the other states in the Federation. A Feasibility Study Team has, therefore, been requested to visit Pohnpei. The FSM Department of R&D is coordinating the project with Pohnpei State.

The Eighth Meeting of the Parties to the Montreal Protocol and the Fourth Meeting of the Conference of the Parties to the Vienna Convention are scheduled to be held in San Jose, Costa Rica, from November 19-27, 1996. The FSM Government will be represented by the FSM Alternative Energy and Sustainable Development Planner, Mr. John Mooteb.