Neu: 2002-03-12

Contents of this issue:

1. Bank Unhappy

2. Advisor Gives Evidence



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March 12th, 2002


1. Bank Unhappy:

An offshore bank registered in Niue is considering legal action against
the island government if it withdraws its licence.

Niue's Premier Sani Lakatani announced to the OECD several weeks ago
that it would pass legislation on March 7 repealing the offshore banks
legislation in an effort to get the island state removed from an
international blacklist which was hindering the allocation of
international aid monies.

However the legislation was never presented to the Assembly and today
acting Attorney General Togia Sioneholo told Radio New Zealand
International that draft legislation was withheld at the last minute
because of a legal dispute with one of the offshore banks.

The delay is likely to keep Niue on the blacklist and may have a serious
effect upon current discussions with international agencies for long
term assistance. Premier Lakatani is this week in Cape Town South Africa
talking to European Union officials about a 20 year assistance package.


2. Advisor Gives Evidence:

A US technical advisor Gerald McClurg hired by the Niue Information
Technology Committee (NITC) gave evidence yesterday at the Commission
of Inquiry into email and internet services on Niue. He said he had
visited Niue twice for several weeks and from 1997 shared ideas for
IT development on Niue with his friend Dess Sioneholo who then lived
in Sydney.

The witness said with the assistance of other NITC members he was able
to investigate the technical operations of the Internet Users Society
which manages the dot NU country code top level domain name Mr McClurg
admitted he had not seen any of the internet society's equipment but
claimed a number of areas were flawed..

Under cross examination by the society's lawyer Graham Kohler, Mr
McClurg said he had estimated the income derived from the sale of .nu
domain names but did not have any documentary evidence on the method
used to calculate revenue. He said he was not present on Niue in 1999
when a petition was signed by some Assembly members, village council
representatives and church leaders calling for the dot.NU to be
redelegated to the NITC. The petition was presented to ICANN in Cairo in
2000 but so far no decision has been made on the matter and the society
remains the designated manager.

Legislative Assemblyman Toke Talagi also gave evidence stating he did
not know about the dot NU delegation to the internet society until 1999
and he was part of the NITC committee which he claimed set about to
negotiate a deal with the society to derive cash income from domain
name sales.

Director of Telecom Niue Richard Hipa told the commission, headed by NZ
Judge David Ongley, that despite going to international
telecommunications meetings before 1996 he was unaware of internet
developments and did not know Niue's top level country code was
available. He said Telecoms would find it difficult to operate internet
services because of the costs involved.When questioned about the alleged
run down state of local telephone lines Mr Hipa said Telecoms Niue was
only obliged to provide lines for telephone use not data transfer and
that legally all computer users should apply for a special licence to
use the lines.since the introduction of e mail and internet services to
the island no-one had done so.

The commission hearing continues.

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