SPECTRUM: The Governor’s Long March

In an article by Alex DeMarban published in the ADN on 23 Jan., an official of the Bank of China’s New York office allegedly assures Alaskans that the Memorandum of Understanding (MOU) Governor Walker is touting as a “contract” will lead to a pipeline being built.

The article cited Mr. Raymond Qiao, managing director of the Bank of China’s New York branch, as stating “. . . there was a long way to go before Chinese entities . . . decide to invest in the project. . . . the project will probably be built . . . to be clear, there are many obstacles that must be overcome before Chinese entities can invest . . . this is still preliminary, subject to business terms, negotiations, legal terms and government approvals from both sides . . . if the parties can do their best to control costs . . ..” In other words, maybe, could be, might, probably, but nothing definite.

The language used makes one wonder if Mr. Qaio may have taken his responses from the playbook used by Exxon, BP and Conoco in convincing the various governors and the Legislature that something might, may, could, possibly happen . . . someday, but first, just one more study?

In the same article, the indefinite nature of the time element was confirmed by Mr. Faquiang, Deputy Consul General, San Francisco, in a comment alleged to have been made to an unnamed reporter “. . . the first step in a long march . . . from many rounds of talks they can reach a mutually beneficial deal . . . ” A reference to Mao’s Long March?

Hardly language that gives one any idea of the time element to money passing hands, but language that lets one know that one should not be expectant of anything happening in the foreseeable future.

Like Murkowski’s, Palin’s, Parnell’s and, now, Walker’s respective pipe dreams, the only thing certain is that the cost to the state will increase and the Chinese will do nothing, but pay lip service to the MOU with interminable delays by continually citing that there is much more to be done before any money passes hands. The only party to put out money will be the State of Alaska to AGDC in a never ending demand for money to keep the deal alive.

Murkowski, Palin, Parnell, and now Walker. History does repeat and the Alaska natural gas pipeline soap opera continues without resolution.

Last legislative session, AGDC hit the state up for $100M to keep things moving forward on the project, which was reduced to $50M by former Senator Mike Dunleavy. Dunleavy’s bill required the $50M saved to be used for needed state services, rather than pay for more promises without substance from AGDC.

Mr. Qaio’s comment about controlling costs is most telling. Governor Walker owes his election in 2014 to the unions. Does Walker think that union labor costs will be tolerated by the Chinese? Already, the Chinese have brought up the potential for Chinese companies providing engineering, materials for the pipeline, and the transportation of the LNG to China.

Of course the “deal” is not a deal, and the information presented to the Legislature earlier this year was speculative and will certainly change, given the language used by Mr. Qaio and Deputy Counsel General Faquiang.

Walker’s long march is just beginning.

Will Governor Walker see the end of this long march? Reelection is necessary for him to make his long march. In his reelection bid, will he try to convince us that he was just doing what was best for Alaskans in his taking of 50% of our PFDs, his trying to impose an income tax and new taxes on fuel and resource development in a recession? Will he claim that the MOU will cure all ills? Of course he will.

Dunleavy and the other Republican gubernatorial candidates have a target rich environment in Walker’s record.