Lawmakers may convene a panel nearly as big as the Legislature itself to tackle the delicate question of how to celebrate the 50th anniversary of Hawai'i's statehood in August 2009.

It's a milestone in Hawai'i's history that demands observance, but also a flashpoint of resentment for a vocal minority of Native Hawaiians who regard statehood as the culmination of an illegal overthrow of their nation by the United States.

We saw a preview of how unpleasant things can get last August when statehood celebrants held an in-your-face rally at 'Iolani Palace, the seat of the old Hawaiian monarchy.

Offended Hawaiian nationalists, who consider the palace sacred ground where Queen Lili'uokalani was held under house arrest after the 1893 overthrow, showed up with loudspeakers to shout them down.

Hoping to avoid a repeat on a larger scale in 2009, the Lingle administration and Legislature want to start planning an appropriate observance now — a daunting challenge reflected in the pained efforts of legislators to avoid conflict by touching every possible base.

The House measure (HB 1352) would establish a commission of 51 members, the same number as the House itself. Panelists would be appointed by Gov. Linda Lingle, who originally proposed the commission, but with stipulations added by the House that she include interest groups including the Legislature, the four counties, the Office of Hawaiian Affairs and Hawaiian cultural groups, young people, academia, labor, religious organizations, the armed forces and the Judiciary.

A Senate bill (SB 1438) would pare the commission down to 25 members, the same as the Senate, with expertise in Hawaiian history, event-planning and building community partnerships. Lawmakers, the counties and other interest groups would join the governor in appointing members.

Whatever preparations are made, the anniversary is bound to become a rallying point with emotions high on all sides.

Some non-Hawaiians resent that the official state holiday observed on the third Friday of August has been downplayed by state officials tiptoeing around Hawaiian sensitivities.

Opponents of the Akaka bill for federal political recognition of Native Hawaiians cite the indifference to Statehood Day to raise bogus fears that the measure could lead to Hawai'i's secession from the Union.

On the other side, Hawaiian activists view statehood observances, especially at 'Iolani Palace, as offensive.

"The so-called statehood celebration is a celebration of theft — the thief celebrates the crime," said James Nakapaahu after last summer's clash.

University of Hawai'i professor Haunani-Kay Trask laid down the issue plainly when she was recently quoted by USA Today as saying in a slightly different context, "As a nationalist, I hate the United States of America."

That notwithstanding, statehood was approved by 93 percent of the 140,000 local residents who voted in 1959, and public opinion surveys show that American citizenship is still cherished by the vast majority — including most Native Hawaiians.

There's little chance that any amount of planning for 2009 can eliminate conflict.

Celebrants should have plenty of opportunity to celebrate, and Hawaiian nationalists should have plenty of room to protest if they choose, but not disrupt.

'Iolani Palace should be avoided as a venue for statehood festivities. Yes, statehood was declared there on Aug. 21, 1959, but the palace was Hawai'i's capitol then, and it isn't anymore. It has a different symbolic significance now that should be acknowledged.

David Shapiro, a veteran Hawai'i journalist, can be reached by e-mail at dave@volcanicash.net. Read his daily blog at blogs.honoluluadvertiser.com.