---

Chuuk Government's Overdue Account

PALIKIR, Pohnpei (FSM Information Service): December 2, 1997 - President Jacob Nena informed Chuuk Governor Ansito Walter, on November 26, 1997, that the Defense Financing and Accounting Service Center in Denver, Colorado, is asking for Chuuk State to settle an aggregate outstanding amount of $4,980,44.

The amount owed for aeromedical evacuation authorized by Governor Sasao Gouland on October 1, 1992, of a number of Chuuk patients.

Nena urged that Chuuk State settle its outstanding accounts if it has not done so to prevent further damage to Chuuk's reputation and credibility with its creditors.

"It is unfortunate that you have inherited this unpaid financial obligation, nevertheless, it is an obligation of the State of Chuuk, and it is only fair that it be paid once and for all," Nena stated.

The President also forwarded together with his letter a copy of billings to Governor Walter for information.