by WorldTribune Staff, July 25, 2025 Real World News

Arnold I. Palacios, governor of the Commonwealth of the Northern Mariana Islands (CNMI), a U.S. territory near Guam, died suddenly late Wednesday night after reports that a “medical incident” led him to collapse in his office in Saipan.

Palacios, 69, was evacuated by military helicopter to the Guam Regional Medical Center where he passed away.

Further details regarding the specific medical condition or cause of death have not been publicly released.

Palacios was a fierce defender of the U.S. territory and fought against Chinese penetration of the Pacific islands, Cleo Paskal, Senior Fellow for Indo-Pacific at the Foundation for Defense of Democracies and a Sunday Guardian columnist, wrote in a post to LinkedIn.

CNMI “urgently needs a major federal investigation into corruption and Chinese penetration,” Paskal wrote.

“Gov. Palacios consistently and publicly requested investigations into corruption in CNMI, including into the Chinese casino that ran BILLIONS of dollars into the U.S. economy and the hundreds of millions of ARPA funding that was disbursed during the administration of the previous governor, Ralph Torres.”

Paskal added: “How many governors say to the federal government: ‘my books are open, come look at everything’? What was the response? Recently the FBI closed a years long investigation into Torres (who is now likely to run again).”

CNMI is the only place in the U.S. where Chinese can arrive without a visa.

“This has raised serious security concerns. In the past couple of years, dozens of senators and representatives have written to Homeland expressing concerns,” Paskal wrote.

In February, Stars and Stripes reported on how Chinese nationals are sailing from Saipan to Guam in an attempt to seek asylum or illegally obtain work.

“The lure for Chinese to make the trip is a no-visa policy that permits them to enter Saipan, part of the Northern Mariana Islands, a U.S. commonwealth separate from Guam, and stay up to two weeks,” the report said.

Saipan’s congressional delegate, Republican James Moylan, said he’s concerned about more sinister motivations. The Chinese nationals, he said, could be involved in drug or human trafficking, cybersecurity breaches, or threats to national security.

“While we understand there are those who are entering the island to seek better opportunities for themselves and their families, when it comes to an ongoing migrant influx which has now spanned over a few years, there are certainly apprehensions when considering that bad actors could exist,” Moylan told Stars and Stripes.

In 2023, the woman who ran the CNMI DMV and a Chinese citizen were convicted of selling at least 50 fraudulent driver licenses to foreign nationals “who lacked lawful immigration status,” the U.S. Justice Department reported. “The going rate was $1,700 for a new license.”

Hundreds of Chinese, at least, “have been illegally traveling the short distance by boat from CNMI to Guam, where some have been found on U.S. military bases,” Paskal noted.

“At one point, the Chinese casino in Saipan ran over $2 BILLION a month on just a few tables, with almost exclusively Chinese high rollers,” Paskal wrote. Former CIA director James Woolsey was on the board and advisors included former Mississippi Gov. Haley Barbour, former FBI director Louis Freeh, and former Pennsylvania Gov. Ed Rendell, according to Bloomberg.

The FBI “took documents” but “so far nothing,” Paskal added.

In testimony before the House Committee on Natural Resources in 2023, Palacios stated:

Across the Pacific and over the course of decades, the CCP’s influence has grown, particularly through economic aid, commerce, and infrastructure. There are signs seemingly everywhere of “friendship projects” sponsored by the People’s Republic of China (PRC) in the islands. The CCP moves both quickly and methodically to fill perceived voids in American assistance and to capitalize on the social and economic vulnerabilities of Pacific Island communities.

The Northern Marianas economy continues to struggle, and the government remains in deep fiscal distress. These are conditions that make the commonwealth acutely vulnerable to CCP exploitation. When I came into this office, I announced the position of my administration that we would pivot away from the commonwealth’s overreliance on Chinese investment, and seek to strengthen our relationships with our federal partners and allies in the region. I worried
about the instability of the Chinese markets in light of shifting geopolitical currents. I also worried about the commonwealth’s potential exposure to national security concerns.

Again and again, the CCP has demonstrated its capacity to exploit the vulnerabilities of the islands in order to amplify the presence and power of the PRC and undercut American influence and security in our region. The CCP fully recognizes the strategic importance of America’s territories and allies in Micronesia. To counter CCP aggression, America must stand as a beacon of shared commitment and respect, and deliver on its promises to take care of its citizens and friends. Congress can do more to support the Pacific Islands and protect national security by recognizing our unique challenges, expanding engagement and direct assistance, and making changes in federal policies that impair our development.

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  a U.S. territory near Guam, Died suddenly: Governor of Saipan, who fought Chinese penetration, WorldTribune.com