This is a series of CBSi on the world. I'm John Batchett with my colleague and friend Gordon

Chang at Gordon G Chang and we're very very pleased to be welcoming Cleo Pascal the

foundation for the defense of democracies who has introduced me to this part of the

world so that I begin to believe I know where I am.

This is Palau, part of the chain of islands from Hawaii to the Philippines,

and moving north to Japan.

There are the Marshall Islands, the Micronesian, Northern Mariana's Micronesia,

and then there's Palau, which according to the photographs is gorgeous.

However, right now there's trouble in Palau,

a place where there should never be any unhappiness.

The president is saying that China is attacking with what tourism.

Cleo a very good evening to you how do you attack with tourism what does it look like

good evening to you?

Good evening so this is actually the second wave attack on Palau with PRC tourism. We saw this happen from

about 2010 to 2016 also. Palau is a country that recognizes Taiwan and it has a compact of free association

with the United States which gives the US exclusive defense and security rights and

responsibilities in Palau.

And Palau and waters are contiguous to Philippines waters.

So if you're China, you're looking at Palau,

country of 18,000 people.

It has a deep defense relationship with the US, it recognizes Taiwan, and it's the other side of the Philippines, which you're trying to squeeze.

So you're going to try to undermine it any way you can, and what it did in that first phase 2010 to about 2016 2017 was

...