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(July 3, 2008 2: 19: 00 AM CDT) i'd probably take no. 5, and replace the lilypad by any kind of cruise liner. foreign shipping agencies nowadays employ roughly one quarter of the i-kiribati workforce, thus already being the second largest employer after the government.
i don't see the i-kiribati becoming stateless either, they will probably end up in some council housing scheme in brisbane, or as taiwanese or PRC citizens. there will be many countries on the pacific rim which would willingly trade the responsibility for ~100 000 extra citizens for fishing grounds the size of india.