CPA hires lobbyists at $775/hr to undermine Palacios’ China Pivot policy

A letter leaked to Kandit confirms the Commonwealth Ports Authority agreed to pay Washington, D.C. lawyers up to $775 an hour to work on undermining Arnold Palacios’ pivot away from Chinese tourism and investment. The rogue effort by CPA, which currently is controlled by a board primarily appointed by Ralph Torres, also is a slap to the face of U.S. military and other federal officials who have stepped up their support of the Commonwealth government since Mr. Palacios became governor in January and announced his China pivot.

“[O]ur Firm will prepare and file with the U.S. Department of Transportation (DOT) for an exemption or other appropriate authority to amend DOT Order 2023-8-10 (August 11,2023) which set frequency limits for Chinese airlines for round trip flights, including flights to/from the CNMI (Saipan), to permit additional flights as otherwise authorized by Annex VI to the U.S.-China Civil Air Transport Agreement,” Joanne Young wrote in a letter from her firm, Kirstein & Young PLLC to CPA attorney Robert Torres.

The Biden administration during the pandemic revoked a prior exception that allowed tourists from mainland China to Saipan. The revocation aligned with military and Homeland Security concerns of the risk of espionage and overstays that came with the prior arrangement.

Mr. Palacios has come under fire from the hotel sector, CPA, and the Marianas Visitors Authority to support Chinese investment and tourism, but the governor has maintained his stance. That commitment has begun to produce networks in Washington, D.C., including offices that- and officials who appear to be positioning federal aid and investment in the Commonwealth.

“We anticipate that Joanne Young and David Kirstein will be the partners principally involved in the representation,” the letter signed by Ms. Young states. “Their hourly rates are respectively $775 and $750. Billing rates for aviation associates to keep costs down who may work on this matter range from $475 to $600 per hour. Our objective is to handle the work as efficiently as possible. consistent with the highest quality of representation.”

Mr. Torres, signing for CPA on September 15, agreed to the rates and to CPA making an initial deposit of $25,000 into a trust account in San Francisco.

The spending agreement on the consultant was drawn up a week after CPA punished airlines with a 90 percent increase in landing fees, and a 79 percent increase in terminal rental fees. The fee increases were followed by announcements by an airline of a suspension of a key flight route to Saipan.