National Perspective : HAWAII BRIEFING

STAR WARS: The state of Hawaii and the Sierra Club have filed suit in federal court to block “Star Wars” rocket launchings from the island of Kauai for fear that they could harm the environment.

“We are dealing here with a situation involving extremely dangerous chemicals and old propellants,” said state Atty. Gen. Warren Price, who warned of potentially “catastrophic results.”

The Army plans to launch 40 missiles from the Pacific Missile Range Facility starting next spring as part of the Strategic Defense Initiative. The 18-ton Polaris missiles, the largest ever launched from the range, would be aimed at Kwajalein Atoll, serving as targets to test missile-tracking technology.

The Army Strategic Defense Command contends that the launchings create no significant threat to the environment, given proper safety precautions. But opponents say that the project could harm residents, endangered species, native burial sites and the Earth’s ozone layer. The launching safety zone overlaps a popular beach.

The suits against Defense Secretary Dick Cheney demand that an environmental impact statement be done before the project proceeds. The Army must respond by early January.

A BREAK FOR FISH: Most local residents long ago gave up on going to Hanauma Bay, a stunning turquoise half-moon on Honolulu’s eastern shore that had become a victim of its own popularity.

Roughly 10,000 people, most of them tourists, jammed the marine preserve every day, snorkeling in its calm, shallow waters and feeding the fish everything from frozen peas to Oreos.

This summer, city officials decided that enough is enough. New rules, designed to cut the number of visitors to 2,000 a day, prohibit commercial tour buses and vans from dropping groups at the park. The city is also closing the beach at night and one morning a week to give the fish a break.

Outraged tour operators challenged the rules in court, contending that they discriminate against Japanese tourists, who tend to travel in groups. But their bid failed, and now residents are venturing back.

HONOLULU STOCK EXCHANGE: Hawaii does not get much respect, except as a place for sun and fun. Local officials hope a new agreement with the American Stock Exchange will help change that.

Amex is studying the feasibility of creating a securities trading facility in Honolulu that would attract investors from Japan and the rest of Asia.

Concerned about over-dependence on tourism, government leaders have been trying for years to position Honolulu as a financial center. Earlier talks with the Pacific Stock Exchange failed to pan out, but Philip Steele, Amex senior vice president for special projects, says this is a different ball game.

“There’s a whole range of new products (financial instruments) developing that are internationally oriented,” he said by telephone from New York. “We are hoping to introduce them through Hawaii to Japanese investors.”

Hawaii is well suited for a joint venture between Amex and an Asian securities firm, he said, because of its location and the fact that a Honolulu exchange could operate during Tokyo’s trading hours. The state is putting up $200,000 and Amex will contribute staff and travel expenses for the study, which will take more than a year.