Can China own FSM via Debt Borrow and Unpaid?

I just recently had a little chat with my mom a few days ago. She said that The FSM Government Officials are borrowing money from China to build on certain islands around Micronesia, but in the end the built items have no added value but to put Micronesia into deeper debt with China. This entails that our Government can sell our land to the Chinese to pay back the money borrowed.

Is this true?
Can China legally own FSM even if the people have been handed down the land through family?

Comments

  • There are laws protecting the ownership of lands for indigenous Micronesians. This does not eliminate the fact that the Chinese are known for economic coercion in the Pacific. As the loan lender, the Chinese gain leverage on the sovereignty of the borrower. I hope our Micronesian officials are wise enough not to borrow what we can't repay. It would help if you could be more specific on which official borrowed money to build what on which island.
  • I believe a good lesson is the case of Venezuela. They owe China and Russia hundred of billion from soft loans, etc. as the loans were used to grease the communist/socialist regime under Chavez. Now, under the current President Maduro, who is under pressure to resign, one of the issues that have been disclosed is that Russia and China expect Venezuela to pay--to pay the debts of the past. Apparently, the payment was due last year but it was renegotiated and are now due in March.

    It's reported that Russia has sent a plane to Caracas(?) for the purpose of hauling tons of gold from the vault of the central bank which, probably, will be considered as payment. In addition, this is why the Venezuela government is on the brink of collapsing. Their currency is experience 1000% inflation per year--unheard of in the whole world.

    As one of the used to be the richest countries in South America with its vast oil reserve as well as gold mines, this is what the socialist government had done. They got so much soft loan from China and Russia--so they have to pay their debt with oil. And as such there is no revenue from the exported oil to be used to run the government or support the social services.

    Point: any debts to China will not be written off easily. China government did not become rich and powerful country in the world by being soft or forgiving. It can use the debt as a leverage to get whatever it wants. As such, I think the Micronesian governments who are borrowing heavily from China should take the evolving Venezuela lessons into serious consideration.
  • I think the law in the FSM is that foreigners are not allowed to own land. They can only do long term leases. However, there are ways around this where a foreign investor has a local person or business to "front" their operations in Micronesia or FSM. Similar to a joint-venture but without the expensive $1 million minimum for foreign investment permit.

    There are many foreign businessmen or businesses which have these types of relationships with local businesses or business people in the FSM. And everything is perfectly legal and so far, there has been little to no issues with these types of business arrangements.

  • And please, enough with China bashing already. Instead of bashing China on Micsem, you fake missionaries should go down to West Papua New Guinea and baptize people into Christianity.
  • That coconut is rotten.
  • Uninformed Morton's mom and just as badly uniformed Morton made up an anecdotal scenario during a Facebook chat or over mackerel and uht sukusuk dinner and we are all off to the races. We need to first find out if FSM does in fact has debts (loan that is defaulted on payments) to China and not just grants (no need to pay back) before we start analyzing land ownership by foreign governments.
  • Idiots!!’ Just look at what is going on with Tonga
  • But here is the thing, even if they know China play board, once China offers a lumps sum of dunero to them what y’all think ? It’s I don’t care about the people the islands or anything it’s me me me me Donald’s my president attitude!
  • SIlly Ifana, Donald puts trade tariffs on China and stopping their theft on intellectual property. Its your incumbent democrats that have been bribed by China and anyone with the moolah. How do you think democrats, like Hillary Clinton, out-spend a billionaire like Trump by a large margin in the 2016 campaign? Hussein Obama became president with a $1.8 million net worth, yet he left the presidency with $40 million net-worth. How's that possible with his $400K annual salary? Trump's net-worth has been on a decline since his inauguration and yet he still donates his paycheck to the public. You thought you were a ninja after watching a kung fu movie. But real ninjas are Japanese- not Chinese. Please stop believing everything you watch on TV.
  • Lol that’s funny another trump supporters! Where in the world did Ninja come from? I was warning ⚠️ FSM as a example of
  • Many Foriegners are married to local fsm women and go around law that prohibit them from owning land.
  • Ok let’s get a loan from China and be happily ever after!
  • ifana, thanks for sharing the links. Interesting issue--the China debt. It can easily be gotten by a current administration but if the subsequent governments don't keep track of expenditures and prepare payment plans, it can become a burden to later administrations. I've been hearing for the past many years that China would eventually forgive loans. I think China does not forgive loans.

    That story about Venezuela's debt to Russia and China--which I had mentioned earlier--provides a good example as to what can happen. It seems one of the reasons that Venezuela is unable to provide government services to its peoples including hospital care, medicine, etc. is because it's always short of cash.

    Although it has a lot of oil to export, most of the oil are now sent to China and Russia in order to pay Venezuela's loan that were taken by the former President Chavez. So all the massive oil export does not translate to government revenue.

    And now that Venezuela's Maduro government is teetering on the brink of collapse, the Russia and China are sending our their notices loud and clear--aimed at the Venezuelan people in case a new government takes over. China and Russia expect their loans to be paid--either in oil or in gold or cash. I heard that this was the reason a Russian plane was seen parked at a Venezuela airport--to pick up several tons of gold bars from the National Treasury. I think this move was prevented but it's scary. The big boys (Russia and China) will definitely come after you--not that they need the money but to show to the other borrowers to behave and be nice. Scary.
  • Oh hell yes it can. Sri Lanka, Zambia and Kenya handed over their ports to Chinese control over because they couldn't pay back their loans.
    https://www.google.com/search?q=china+takes+over+port+in+africa&oq=china+takes+over+port+in+africa&aqs=chrome..69i57.8023j0j7&client=ms-android-boost-us&sourceid=chrome-mobile&ie=UTF-8

    The US and any other european power can give china the middle finger and not pay back their loans and debts because they have powerful militaries whereas these others can't because they lack the military F U Card. But don't worry FSM got the COFA and with it assurance and guarantee ofUS Military might and the clause of the COFA that prohibits any other countries from entering Micronesia. The COFA ia a buffer zone so so long has America remains top dog China will not but if and when US goes down China will.
  • It seems like China wants to take over the pacific islands as much as it can for it’s military power? All this is just an assumption but it’s a picture to our officials who wants independent maybe they know they just don’t care about the outcomes in the future when money is offered I suppose.

    Good luck to us

    Cheers
  • Lyon's "Micronesian Official 2" disproves your statement. Especially during these last few weeks before his re-election, he really "cares about the outcomes in the future when money is offered."
  • Absolutely! This is more than possible and it has happened to an Asian country before where the country had to give up their Dock to Chine for payment of Debt.
  • I need to visit Palau to see how is this that I hear there better then most of islands, I’ve visit Alaska last year and mannn, I’ve watch and watch from islands to islands and I’m thinking to myself, ”Cannniries and boats” this small islands or as we call them for chuukese islands the outer islands, why in the ( Fuk in world exuse my )
    Do we not have all this plants or stations or many boats for our islands?
    We could make massive money like “Alaska” doing all types of Fish and help feed the world like Some part of Afaica and sell them to Japanese and Chinese so we don’t need to borrow money from China they pay us for our resources know what I mean? I mean it just don’t make any dame sense!!!!

    WHY???? All this mofo years America has bless us with all this monies I hear where what the Fuk N people is going Onnn? I’m sry I’m getting hot on this topic I think need to go start smoking weed,.... Rasta ?
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