INTRODUCTION

Aloha and welcome to all of you. I am very pleased to be able to share with you this morning on a subject topic that has such great importance and impact on our local communities in Hawaii: how chambers of commerce have provided tremendous assistance to the local communities in times of need through their own public service programs. I am certain that by the time I have finished, many of you will be surprised to hear how involved chambers of commerce can be in their communities! And, how their outreach programs have improved the lives of so many people in our communities throughout the years.

I am going to start off with, of course, the Chamber of Commerce of Hawaii and its public service role of assisting local communities. The Chamber of Commerce of Hawaii has a lot to be proud of. A complete overview of The Chamber's public service activities would take up to much time so I will focus on only some of the major contributions for this presentation.

The only chamber of commerce chartered by a monarch, the present Chamber of Commerce of Hawaii was approved on October 15, 1850 by King Kamehameha III. We will be celebrating our 150th anniversary in October, 2000.

Money

Let me tell you about something near and dear to most of our hearts – money, and how the Chamber of Commerce had its first impact on the community.

The early Hawaiians didn't require money. They bartered and paid their taxes in the produce or articles that they made. Some of the first stores accepted barter. However, by 1818, Spanish dollars were becoming plentiful in the islands, and by 1850 more than 50 different gold coins and more than 100 silver coins were circulating over the counters of Honolulu's merchants. The relative values of all these different gold and silver coins were being decided by individual merchants. Can you imagine how interesting that would have been? Today, it's worth this much, maybe tomorrow something less.

One of the first acts of the new Chamber of Commerce was to establish a local table of values for the variety of these coins. Hawaii was also getting a lot of business at this time from California because of the gold rush boom. People and goods flowed back and forth between the ports of Honolulu and San Francisco. The new valuation table also fixed gold coins to the rates of San Francisco merchants and brokers, preventing losses in dealings with California. Yet, Hawaii merchants purchasing U.S. goods with King Kalakaua's silver coinage, which had the same weight and fineness as U.S. coins, were only given 86 cents to the dollar.

The Chamber made a number of recommendations towards establishing a unified, sound currency. In 1903, the Kalakaua coins were redeemed into the U.S. and recoined into U.S. silver, which ended the exchange losses.

The Chamber of Commerce of Hawaii changed the nature of Hawaii's population, and gave Hawaii the interracial and intercultural society we have today.

Sugar had grown in Hawaii since 1835, but it was not until the American Civil War in 1861 that Hawaiian sugar made its first real impact on the U.S. market. For many years a high tariff wall had handicapped island growers from selling sugar to the U.S. market. However, during the civil war, sugar was cut off by the southern states, prices rose and Hawaiian sugar exports to the U.S. increased substantially.

When the war ended and sugar was again available from the South, the tariffs were back in place. The Chamber convinced the Hawaiian government to seek a reciprocity agreement with the U.S. for reduced rates of duty on both sides. While it took 20 years and the threat that Hawaii might be brought into the British sphere of influence because of exports to Australia and New Zealand, a reciprocity treaty with the U.S. was finally concluded, thereby reducing the duties of sugar exports into the U.S.

The Chamber of Commerce of Hawaii also sought ways to build the much needed labor force. In 1872, the Chamber formed the Hawaiian Immigration Society to aid in importing labor for the plantations. Ten years later, a new organization devoted exclusively to the labor and supply needs of planters was established – the Hawaii Sugar Planters Association (HSPA). The resulting influx of Japanese, Chinese, Portuguese and Filipino workers gave Hawaii its new multicultural and multiethnic identity for which we are so proud of today. The Chamber's involvement in this business aspect had truly changed the face of Hawaii.

During the years after annexation of Hawaii into the U.S., the Chamber played an important role in developing the new government, and public improvements including: the expansion of the Honolulu harbor, the development of Pearl Harbor, and a transpacific cable.

Another one of the Chamber's most far-reaching and beneficial activities involved public health. Bubonic plague struck Honolulu in 1899 due to the rats on shipping vessels.

The Chamber not only played a leading role in preventing its spread to the neighbor islands through quarantine inspection, disinfection and rat control measures, but also assisted in raising funds to compensate individuals for their losses when the major fire that went out of control destroyed much of Chinatown. Then a group of shippers, connected with the Chamber, began assessing themselves a small tonnage charge on imports to rat-proof the wharves and keep them fumigated. This "rat tax" financed strict waterfront supervision, created a public health emergency fund and provided a source of money to promote industry and business, eventually causing the formation of the Hawaii Visitors Bureau.

In 1923, the Chamber became the Trustee for this fund, which over the first 50 years yielded more than $2 million. The Chamber's Public Health Committee brought health experts to the islands to conduct health studies and make recommendations. They found Honolulu's health standards to be far below those of mainland communities. During the subsequent years, the Chamber was active in improving the control of tuberculosis and other communicable diseases and expanding sanitation efforts, including mosquito control.

The Chamber set up: programs at Palama Settlement, including a public health nurse program; cancer and tuberculosis associations; the first mental hygiene clinic; a blood bank; a united welfare campaign; a convalescent nursing home; school health programs; a cardiology clinic; a coordinating health council; a rehabilitation center and numerous other health services.

Every year the Chamber's public health fund gives grants totaling $100,000 to needy organizations. For the previous 12 months, grants were given to: the Salvation Army; the Kalihi-Palama Health Center; The Leukemia Society of America San Diego/Hawaii Chapter; United Self-Help; American Heart Association of Hawaii; Bobby Benson Center; Domestic Violence Clearinghouse and Legal Hotline; Hawaii Family Support Center; Safe Haven; several health centers; and many others.

The Chamber of Commerce of Hawaii also initiated community actions in other areas.

It worked successfully for safer water, extension of the sewer system, a better police force and for federal construction money. During the Depression years, the Chamber pushed for local implementation of the National Recovery Act, helped with a home modernization program, tried to stimulate the tourist industry and continued to promote local business. When the Pearl Harbor Naval Base was attacked in December 1941, the blood bank that the Chamber had started only months earlier saved many of the injured. Throughout the war, it eased the strain on local businesses by helping merchants understand complex military regulations.

The Chamber of Commerce of Hawaii was asked to be the official liaison with the military and has served over the years in bringing the military and the community together. This has been done through various events held during Military Appreciation Week which is open to the general public, and through many other educational and informational activities, including our annual visit to Washington, D.C. to meet with the top military brass to discuss problems and opportunities.

When Hawaii became a state, which the Chamber strongly advocated for, many of the services that the Chamber had initiated were taken over by the government. A number of its committees, having proved their value, became independent agencies. These include several well known organizations such as: Hawaii Visitors Bureau (now the HVCB); Blood Bank of Hawaii; Retail Merchants of Hawaii; Better Business Bureau of Hawaii; Community Youth Committee; Mental Health Association, Aloha United Way; and Crime Stoppers Hawaii.

The Chamber of Commerce of Hawaii has also established what is known today as the Service Excellence Center. Its activities fall into three main categories on a statewide basis: training and consulting services; the Hawaii State Awards of Excellence; and participation on several groups or task forces to advise various levels of state government. I'll give a brief overview of each of these activities:

The Service Excellence Center offers 11 workshops covering everything from basic process improvement to strategic planning and measuring of performance. These workshops are offered to the general community at a very reasonable price; are designed to fit specific needs of a company; and support the efforts of the training departments of the clients. The Center also offers several surveying tools, both full-service and inexpensive, for employee or customer surveys through "the Pulsetaker" touch-tone automated telephone interviewing system.

The Hawaii State Awards of Excellence

It has been operating for five years and is based on the Malcolm Baldridge National Quality Award Criteria and process. The intent is to deploy use of the criteria into the community and to recognize excellent organizations (for profit and non-profits) as role models for the rest of the community. There are four levels of awards, and only the Hilton Hawaiian Village has reached the third level as of this year. The Service Excellence Center partners with the American Society for Quality and also the Watson-Wyatt's Honolulu office. Going through the improvement process is challenging but very worth it!

The Service Excellence Center has been asked to represent The Chamber of Commerce of Hawaii on the following advisory groups:

• Governor's Workforce Development Council, whose mission is to advise on policies for workforce development to ensure that the education and training we provide to our community leads to the skills necessary to compete in our changing world.

• Governor's Office on Aging, Planning & Policy Committee, whose mission is to prepare Hawaii for the impending large increase in the number of elderly citizens in Hawaii (as the baby boomer generation begins to retire in 2011).

• The "Slice Waste & Tape" (SWAT) team headed by the Lt. Governor is setting up procedures to reduce waste and red tape in our government's bureaucracy that will hopefully make our state more business friendly.

The Chamber of Commerce of Hawaii has also been very active in advocating for legislative reform initiatives through its many committees (see insert: Government Affairs Organizational Structure). Working alongside other chambers of commerce and with other business organizations, recent successes include: tax reform, economic development initiatives, civil justice reform, regulatory issues, environmental issues and much more. All of these reforms will serve to improve the general community.

NEIGHBOR ISLAND CHAMBERS

The Chamber has also seen the formation of other chambers of commerce on the neighbor islands and also within ethnic communities and applauds the fine efforts of these organizations, who in their own right have contributed much to the Hawaii that we see today.

Maui

The Maui Chamber of Commerce established in 1910, with current President Lynne Woods and her dedicated staff and Board of Directors, has been a guiding force in the improving of the county of Maui's economy and its community at large. From the original "Shop Maui First" campaign to build consumer awareness to the "Made in Maui" trade shows, the Maui Chamber has been at the forefront of this county's community. Industry-specific training such as the Restaurant Industry Service Excellence (RISE) and the Retail Industry Training Excellence (RITE) programs were coordinated through the Maui Chamber. Education and Legislative Advocacy are very strong priorities for this chamber — which has served its community well. I'm sure Lynne can add much to this very short list I've given you. And, so have the other county chambers been involved in their communities:

The Hawaii Island Chamber of Commerce serving the Hilo and east-side of the Big Island community since 1898 has been very involved in their community. They support Welfare to Work Opportunity workshops, act as a service center for the U.S. Department of Commerce's Commercial Services division, participate in fundraising events such as the Y2000 Hawaii Island United Way campaign, blood bank drive and much, much more. This chamber also partners with the University of Hawaii at Hilo and other chambers of commerce to support the development and growth of the Hilo community. The Hawaii Island Chamber of Commerce was very supportive of the World Indigenous People's Conference on Education, asking their members to ensure that a special aloha was given to attendees.

The Kona-Kohala Chamber of Commerce, serving the west side of the Big Island, was established in 1968. The Kona-Kohala Chamber of Commerce networks with the Big Island Business Council and many other organizations to develop their common interests together on lobbying legislative issues and other opportunities. The KCCC also provides a resource for the general community by taking inquiries and providing information to both the local community and to mainland/ international callers for relocation and other information. The chamber supports school tours and is often one of the coordinating entities for different events and entourage visits to this side of the Big Island. This chamber has partnered with state agencies to provide specialized training programs for the business community such as the Smart Business Computing Course to help the business community understand computing systems, and also global entrepreneur training to become more involved in global business.

The Kauai Chamber of Commerce has had to face a very challenging economy further hindered by successive hurricanes. Much of their activities have focused on helping their members and the business community at large with legislative advocacy to support airport expansion which will aid tourism, help diversify the economy, and provide more employment for the local community. The Kauai Chamber has been instrumental in forming the Kauai PONO (People Organized for New Opportunities) Coalition of unions and business lobbying for this airport expansion project.

Hawaii is blessed with many ethnic chambers of commerce as well.

The Chinese Chamber of Commerce of Hawaii was founded in 1911. Frances Goo, President, said the annual Narcissus Festival, Bicentennial of 200 years of Chinese in Hawaii, the Narcissus Goodwill Tour to China, Chinese officials here in Hawaii for management training programs and the forum with Guangxi Zhuang Autonomous Region are more recent significant contributions made by the Chinese Chamber of Commerce of Hawaii.

Celebrating 50 years of activities, all of these events encourage cultural exchange and cultural heritage amongst our local communities and abroad. And, The Chinese Chamber of Commerce has been very involved in local community services: Aloha United Way & The American Red Cross and the Palolo Chinese Home center.

The Filipino Chamber of Commerce of Hawaii, established in 1954, has taken a leadership role also in promoting trade between Hawaii and the Philippines, representing a wide cross-section of Filipino business and entrepreneurship, hosting a range of community service programs ranging from business education to business technical assistance as well as civic and community development participation. One of its major local events is the Filipino Entrepreneur of the Year Awards, acknowledging the efforts and successes of the Filipino business community. During its 45 years, the Filipino Chamber of Commerce and its chapters on the neighbor islands have been very involved in their communities, through cooperation with other civic organizations, assisting with education of Filipinos, and most recently with the groundbreaking for the Filipino Community Center to be finished next year in Waipahu.

The Hawaii Hispanic Chamber of Commerce, established in 1992, has just recently celebrated its annual Hawaii Hispanic Heritage Festival, bringing together the local communities to learn about the culture and foods and music of our Hispanic heritage. In addition the chamber has been successful in soliciting the U.S. Hispanic Chamber's Convention and Expo to come to Hawaii for the year 2002!

The Hawaii Korean Chamber of Commerce, established in 1937, has also conducted trade missions to Korea to initiate business and cultural exchange opportunities while supporting local Hawaii Korean business people in their activities.

The Honolulu Japanese Chamber of Commerce, formed in 1900, is the oldest of the ethnic chambers of commerce. This chamber has been very instrumental in public service programs over the years, including organizing a community effort to develop the Japanese Cultural Center of Hawaii for the purpose of preserving and perpetuating the Japanese culture and heritage in Hawaii. This project was directed to preserve the heritage for the younger generation. In the 1970's the Honolulu Japanese Chamber established a Japanese-American Resource Center to provide information and research for the benefit of members and the general public. This effort led to the publication of some literature on the history and values of the Japanese community in Hawaii. Annually the chamber sponsors a major art exhibition to allow local artists to display their talents and as a means for the HJCC and businesses to express their appreciation to the art community for their contribution to the preservation and perpetuation of the culture and the arts. Also annually, the HJCC sponsors a Christmas Gift Drive and Luncheon for the underprivileged children in the community, and in recent years the Susannah Wesley Community Center has been the beneficiary. In addition, the HJCC sponsors an annual Seniors Health Fair for the entire community to learn more and take advantage of the fair and the health services provided.

The Japanese Chamber of Commerce and Industry of Hawaii, formed in 1951, is based in Hilo, and recently celebrated its 38th Annual International Festival of the Pacific this past August, with worldwide participation due to the World Indigenous People's Conference on Education that was held in Hilo. The chamber assisted in the rebuilding of the Tea Ceremony House in historic Lilioukalani Park in Hilo, after vandals burned the tea house down. The chamber also created the "Taste of Hilo", now in its second year, which features the various restaurants in Hilo as well as guest restaurants from the neighbor islands. The proceeds from this event goes to the Culinary Arts students from Hawaii Community College. The Japanese Chamber of Commerce and Industry also works closely with Chancellor Rose Tseng of the University of Hawaii at Hilo in promoting their legislative priorities, by actively lobbying for the University of Hawaii as well as business and community interest in the State and county levels. The Japanese Chamber of Commerce & Industry also provides the venue for cultural exchanges for schools and chambers from Japan, with active sister-city relations with Hawai-cho, Ikaho City, Oshima Island. And, in November, the chamber will be signing a sister-chamber relation with Higashi Hiroshima Chamber of Commerce, in Japan.

The Native Hawaiian Chamber of Commerce, formed in 1974, has as its mission to promote opportunities for Hawaiians in business and to educate on Hawaiian rights issues including: the sovereignty issue, disposition of the settlement for ceded lands, and review of the Office of Hawaiian Affairs and the state Department of Hawaiian Homelands.

The Portuguese Chamber of Commerce was formed in 1979 and has partnered with many other civic organizations to support community programs over the years.

The Vietnamese-American Chamber of Commerce of Hawaii was formed in 1995 primarily to assist Hawaii business people interested in doing business with Vietnam. Along the way, this chamber has engaged in cultural and social activities to educate Hawaii about the Vietnamese culture, and many of its members have worked with the Aloha Medical Mission and other civic organizations including Rotary clubs.

All have made significant contributions to the communities they serve and also to the broader outreach of the general community. Working with government, labor and the broader community — chambers of commerce, through the vision and initiative of their leadership with full membership involvement, can continue to be a strong and influential force in the assisting of positive developments in the communities we live. Our organizations are not only about commerce and money — for over the years our organizations have demonstrated not only a desire but very well executed and determined strategies that have benefited the communities we live in. And that's the key point. This is where we live. For this reason alone, it is absolutely critical for our organizations to assist the local communities through public service. Because this is where we live — and therefore it only makes sense to do so! I hope through this presentation you can see how Hawaii chambers of commerce have been very involved in our communities — and by doing so have strengthened our own organizations because of the value people and businesses see in joining us.

Diane has also asked me to give an overview of what the Chamber of Commerce of Hawaii is now doing with our international business development mission. The Chamber of Commerce of Hawaii is embarking now on a stronger advocacy of business development from past years. The strategic priorities that will and have already been undertaken are to: initiate new business development opportunities, explore new trading arenas, and utilize existing and future contacts.

During 1999 we visited Canada & Panama. In Canada we participated as an exhibitor in the REP CAN '99 trade show, meeting with exhibitors from the U.S. and Canada, as well as key economic development officials from the City of Toronto, the region of York and the Ministry for the province of Ontario to discuss trade exchange possibilities. Also, by participating, our information has been placed on the virtual web site which goes to six regional centers across Canada. In addition, our businesses now can access their business exchange information sites.

In Panama, we met with key foreign trade ministers to discuss establishing the framework for business exchange. We also participated in the "Expocomer 99" trade show held at the Atlapa Convention in Panama City last March to showcase Hawaii business, education and tourism. We are seeking partners to collaborate with. We participated in the Premier World Congress of Chambers of Commerce held in Marseille, France by the International Chambers of Commerce organization. In fact, The Chamber of Commerce & Industry of Apia, Western Samoa was represented by their Vice President, Vaatuitui Meredith.

The opportunities that were presented were many: meet with the International Chamber of Commerce to establish a relationship for future exchanges, "be on the list" so to speak so that we are known to be interested in developing business relationships, seek out potential chamber partners to initiate exchanges of information whereby their business members and our business members might see some opportunities for alliances, direct sales (import/export), franchises, joint ventures. We are also working with the U.S. Department of Commerce to create a "Business Match-Making" trade mission between Canadian companies and Hawaii companies for next year. Focusing on hi-tech, we are supporting the newly formed Hawaii High Tech Association and have met with their Executive Director and one of the Board members regarding attendance at an International Call Center Convention in Virginia, next year. Presentations will be made to attract call center opportunities to Hawaii. We plan to support other organizations' business missions such as those organized by the affiliate chambers of commerce, the Department of Business Economic Development & Tourism and others. The more external outreach we can develop to "plant the seeds" for the future, the more likely the outcome of success will be.

We ensure that our business members get value from all of the above by publishing the chronicles of what we are doing in our Voice of Business monthly publication. Through these articles, information is disseminated regarding direct business contacts, out-of-state economic development contacts, trade mission opportunities to participate in and "business matchmaking" opportunities as they arise. By doing so, our members get the opportunity to benefit as fits their needs. This can be much less expensive for them than traveling individually to several places and/or trying to make arrangements on their own. We believe the international outreach will create one of the key cornerstones to improving our state's economy in the future.

Mahalo for this opportunity to share this with you today!

Special acknowledgments: this speech utilized information from several sources including publications from ethnic and county chambers, "Years of Progress — The Remarkable Story of The Chamber of Commerce of Hawaii" compiled by Maxine B. Sandison (June 1998), and the Island Business Commemorative Issue "40 Years of Statehood Hawaii" (May 1999).