Hawaii Tribune-Herald from Hilo, Hawaii • 3

Hawaii Tribune-Herald, Wednesday, July 16, 20033 StateNation ore rate cuts possible Hawaii report As the Fed drops While interest rates on short-term investments such as one-year CDs tend to closely follow the Federal interest rate, longer term loan rates resist volatility. 9 percent j-30-yeer fixed 7 yyii' mortgage rate 5 tereetrete 7: 1 'One year CD 1 3 'Intent! rite j- 2 ti 4 eeSS5Sm8 "'-y f-T 1 I 2002 Greenspan says interest could fall to even lower levels By Jeannlna Avarta Associated Presa WASHINGTON The Federal Reserve will leave short-term interest rates at the lowest level in more than four decades "for as long as it takes" and might cut them even further to revive the sluggish economy, Fed Chairman Alan Greenspan told Congress Tuesday. Greenspan, In his twice-yearly economic report, made clear that policy-makers are prepared to do whatever they can to help the economy shift into a higher gear and stay there. The economy, weighed down early in the year by falling consumer and business confidence that reflected worries about the Iraq war, has shown disappointing growth so far in 2003. The sluggish growth pushed the unemployment rate to a nine-year high of 6.4 percent in June.

Greenspan expressed hope Tuesday, as many private economists do, that the economy will Report on Oahu base released HONOLULU Mooring a 25-story-tall radar dome and platform a few miles off Kalaeloa in West Oahu would impose only a minor visual impact "comparable to ships passing along the horizon," according to a military report. That assessment of the proposed Sea-Based X-Brand Radar being developed as part of the nation's ballistic missile inter-; cept system was included in an environmental impact state-, ment released by the U.S. Missile Defense Agency last week. The radar platform and recent tests at the Pacific Missile Range Facility on Kauai are part of plans outlined in December by the Bush administration to have a rudimen-; tary missile defense system ready for use by 2005. Under the plan, 20 Standard Missile-3 interceptors would be placed aboard three Navy ships with Improved ver-! sions of the Aegis system that uses radar to detect and track hostile missiles and cue on-board weapons to intercept them.

This sea-based system was outlawed under the 1972 Anti-Ballistic Missile Treaty, but President Bush gained the flexibility of testing it when the United States withdrew from the treaty last summer. The plan also calls for the development of ground-based missile interceptors. FBI arrests prominent lawyer SAN FRANCISCO Federal agents arrested a promi- nent plaintiffs' attorney Tuesday at the luxury home he allegedly helped pay for by bilking poor tenants and disabled i children of more than $2 million. Agents from the FBI and Internal Revenue Service arrested Nikolai Tehin, 56, in San Francisco without inci- Jdent, according to federal prosecutors who charged him with XjnaH fraud and money laundering. Tehin allegedly operated a Ponzi scheme in which he fun-neled settlement funds owed to families of children hurt or killed by doctors' malpractice and paid clients in a slumlord case an alleged deceit required because he had already iA spent the housing settlement on "an extravagant lifestyle," according to an FBI affidavit.

Those expenditures included a $237,000 mortgage pay ment on his six-bedroom, seven-bath San Francisco man- sion and repairs to his 73-foot yacht. He appeared in federal court Tuesday and was released signing a $3 million bond Last month the Hawaii Supreme Court indefinitely suspended him from practicing in the state, he had been registered since 1981. Case election challenge dismissed pick up momentum in the second half of this year as low interest rates and President Bush's latest round of tax cuts take hold. "We could GREENSPAN very well be embarking on a period of extended growth," Greenspan said. He indicated that the Fed probably would use its primary tool, a reduction in the short-term federal funds rate, in any further revival effort rather than resort to such alternatives as buying longer-term securities.

That disappointed the bond market, some economists said. To nudge along the economic recovery, Greenspan and his Federal Open Market Committee colleagues reduced the funds rate on June 25 by one-quarter percentage point to 1 percent, a 45-year low. The funds rate is the interest that banks charge each other on overnight loans, the Fed's main lever for influencing economic activity. The Fed "stands ready to maintain a highly accommodative stance mously and voters in January selected Case, a Democrat from Hilo, to fill her seat. Rep.

John Larsen, said Tataii's charge was "frivolous" and without merit. "Rep. Ed Case won a special election with 44 candidates on ballot on Jan. 4, 2003, by an overwhelming margin," said Larsen, the ranking Democrat on the House Administration Committee. Because Mink was in the hospital during the final weeks of her primary campaign, Tataii argued state election officials should have disqualified her as a candidate, leaving him as the only Democrat on the ballot.

The HaWaii Supreme Court twice denied Tataii's claim, and he appealed to the U.S. House of Representatives. In dismissing Tataii's petition, the House Administration Committee determined Congress could not overturn primary elections. Federal law only covers general and a Bali nightclub in October, there's been "new attention paid to the Pacific beyond Hawaii and Guam," he said. Finin was among scholars who spoke on a panel debating the effects of America's war on terrorism on the Pacific during a conference examining the challenges to security in the Pacific.

Hundreds of delegates and politicians from 45 Asia-Pacific region governments are attending the three-day conference, which began Tuesday and is hosted by the Honolulu-based Asia-Pacific Center for Security Studies. Osborne, an Australian consultant and policy analyst, said the probability of terrorism growing in the Pacific is real. But the threat is colored in the United States by romantic perceptions from idealistic trav man saves life Bag stolen as HONOLULU A Marine's After five months, House rejects claim against lawmaker By Samantha Young Stephens Washington Bureau WASHINGTON After five months, the House on Tuesday dismissed a challenge to the election of Rep. Ed Case, D-Hawaii, with one lawmaker calling it a "frivolous" complaint. The House formally rejected Honolulu consultant Steve Tataii's claim that he should have been named the Democratic candidate in last November's general election for Hawaii's Second Congressional District following the death of Rep.

Patsy Mink. Tataii lost the Sept. 21 Democratic primary election to Mink, but she died seven days later. Under state law, Mink's name remained on the ballot for the general election. She won posthu jumped into the waters off Waimea Bay's diving rock to save 2003 ibility in the past in finding ways to moke a profit even at low Interest rates, he said, "With the target funds rate at 1 percent, substantial further conventional easings could be implemented if the FOMC judged such policy actions warranted," Greenspan said.

At the Fed's last meeting in June, Greenspan said Fed policymakers discussed at some length the possibility of using alternatives for influencing interest rates beyond the Fed's conventional lever of adjusting the funds rate. tion, said election officials "rigged" the election. As part of his contest, Tataii gave the committee a peti- tion of more than 200 people who said they voted for him. Case, who did not respond to complaint, said Tuesday the facts of the matter were straightforward and he had "nothing to add." "Any election contest is a serious one and needs to be fully considered," Case said. "The committee on a bipartisan and unanimous basis considered this contest without merit." Tataii submitted his petition Jan.

3 1 to the House Administration Committee. He said he was not contacted during the tion. He was alerted by a reporter his case would be dismissed. Tataii said he would respond to the committee's report, but acknowledged his fight likely has drawn to the end. "I won't run again," Tataii said.

"I have sacrificed years and I'm financially devastated." "deputy sheriff," in the region, policing the area and ensuring American-friendly stability. Henderson suggested the formation of a Pacific peacekeeping force which got some interest from audience members that would serve as body similar to the United Nations and temper the spread of instability and interna-: tional crime. But he said Australia and other Pacific mini-superpowers whose jurisdiction could be reduced with such a body may be averse to such a group. The Asia-Pacific Center for Security Studies, established in .1995, is a regional study and research facility that reports directly to the U.S. Pacific Command.

Its non-warfighting academic focus addresses regional security issues and concerns. 2000 2001 SOURCE: Binkntt.oom of policy for as long us it takes to achieve a satisfactory economic performance," Greenspan said in testimony to the House Financial Services Committee. Some economists had believed that the Fed would not move the funds rate lower than 0.75 percent, saying interest rates lower man that would make if difficult for money market mutual funds to meet expenses and still pay returns to investors. Greenspan disagreed with that notion, saying: "I think that is mistaken." Financial firms have demonstrated considerable flex- special elections, according to a July 9 committee report. "That's completely baseless," said Tataii, who watched the proceedings live CASE on the Internet at 4 a.m.

Tuesday Hawaii time. "The primary is the inception of any election. Elections just don't happen by themselves," Tataii said. The House also rejected arguments by Tataii that Hawaii election officials and Democratic party leaders are "incompetent and corrupt." "Though he alleges that the special election was rigged, he offers no proof of vote tampering, nor does he argue that he would have won the special election had there been no alleged vote rigging," the report states. Tataii, who registered nine votes in the January special elec el brochure images of the region as largely peaceful.

The United States is "ignoring the issues that currently exist," he said, adding that the instability of some island nations increases the risk of the terrorism's growth. But Finin said the United States is beginning to understand the Pacific's security concerns. "The sense of imagery began to fade," after the terrorist attack in Bali, he said. John Henderson, a professor with New Zealand's University of Canterbury, said America's recently-piqued interest in the Pacific could be partly attributed to the willingness of some Pacific nations to back the U.S.-led war in Iraq. He said Australia which supported and participated in the war is acting as America's Firefighters credit Marine vacation in Hawaii after serving U.S.

may be more active in Pacific security ing the 16-year-old Pupukea boy life on Monday. The youth was taken to Wahiawa General Hospital, fire said. After the commotion of rescuing the boy, Gwynn and his Heather Lenhart, realized that someone had stolen her backpack, which contained a camera, identification, money, credit cards and a key to their rented motorcycle. "It's really hitting home right now. It's disheartening," Gwynn, 21, said Monday night from the Sunset Beach fire station, where they were temporarily stranded.

"They could have picked someone else to steal from. I just don't understand a thief." Gwynn arrived in Hawaii on Sunday aboard the USS Bon-homme Richard. The ship had deployed Jan. 17 for Iraq. Flood warning system eyed HONOLULU Recent deaths caused by flooding in Hawaii streams have prompted an examination into the possibility of setting up a statewide flood warning system.

Officials with the U.S. Geological Survey, the National Weather Service and the state Department of Land and Natural Resources have formed a working group to discuss the possibility of implementing the statewide system. The network would better alert authorities and residents about potential flash floods, which have killed more than 30 people in Hawaii since 1970. Floods and flash floods are the No. 1 weather-related killer J- the United States, according to the National Weather Service-While flash floods are not unique to Hawaii, the islands do have their own set of conditions to consider, including streams that are steep, narrow and pack a lot of water from intense rains, said Barry Hill of the U.S.

Geological Survey's Pacific Islands Associated Press valuables were stolen as he Cpl. Quentin Gwynn, on in the war in Iraq, with sav tives. "It provides an additional tangible reminder of the incredible life she led and the impact she had, not just on MINK Hawaii and the rest of the United States but the world," Case said. When lawmakers approved the bill last month, they described Mink as a trailblazer who advocated for the less fortunate. Sen.

Daniel Akaka, D-Hawaii, issued a statement calling Mink's legacy "a forceful reminder of the energy, dynamism, and integrity one person can bring to public service." The bill had the backing of the entire Hawaii delegation. Mink is most often remembered for authoring Title IX, a land-mark law banning schools from discriminating against women. In 1972, she ran for Pres I I But since the terrorist attack on Bush signs bill to create Mink post office pgtCilitV Will be a I fRePresenta" ident of the United States, advo- Facility will be a As terrorism fears increase, region gets more attention By MaryVorsino Associated Press HONOLULU As fears of terrorist growth in unstable Pacific countries increase, the United States is expected to play a more active role in providing security, to the region, a policy analyst said Tuesday. The Sept. 1 1, 2001, terrorist attacks were not "a defining moment in the U.S.-Pacific Island history," said Gerard Finin of the Pacific Islands Development Program at the East-West Center in Honolulu.

eating for the environment, child care, workers' rights and equal opportunity. Mink's husband John asked Case to offer a bill naming the Maui post office after his wife in a community where she began her political career as student body president of Maui High School. The Maui County Council also supported the resolution, Case said. In Memory The family of the late Jesse I. Yamamoto wishes to thank Dr.

Thomas M. Green and his staff; the Hilo Medical Center nurses laboratory staff; and Michael Une for their generous care and time spent for Jesse. Jesse "JetcM" We will love you forever. Daddy, Mommy, A "A-liSfe 0 ri T-- rt nw 4. a 'tangible reminder says successor By Samantha Young Stephens Washington Bureau WASHINGTON President Bush has put the finishing touch on naming a Maui post office after the late Rep.

Patsy Mink, D-Hawaii. The post office in Mink's hometown of Paia will now be known as the "Patsy Takemoto Mink Post Office Building," after Bush signed a postal bill into law late Monday. -1 think the location is entirely appropriate because it's down the road from where she was bom and raised," said Rep. Ed Case, D- Hawaii. Case, who authored the bill to honor the woman he succeeded ki Congress, said the post office would memorialize the first minority woman elected to Congress.

Mink ,74, died Sept 28, 2002 after 24 years in the House jkuy uuv i-y rra 4 From J.lf IS V-vV Kalkodo Sushi Bar Open for Lunch S0 RtBdy Parker Contemporary Island Mask 7-9 PM 60 Keau St. In historic Joientown Hilo Open 7 Day. a WaJ, II One block from Bayfront Reservation! at the comer of Waianuenue Q6 1-2558.