Posted on: Thursday, July 18, 2002
Pacific islands talks face deadline
By Susan Roth
Advertiser Washington Bureau
WASHINGTON — Concerns about money and immigration continue to dog negotiations on the Compacts of Free Association, officials from the Federated States of Micronesia and the Republic of the Marshall Islands told Congress yesterday.
Micronesia and Marshall Islands negotiators told members of the House Resources Committee they feel the United States has been negotiating in good faith over financing for economic development.
"But significant challenges remain to be overcome," Peter Christian, Micronesia's chief negotiator, said at the oversight hearing. "While the gap has narrowed considerably, with concessions on both sides, we've not been able to agree to the U.S. offer."
The compacts the United States signed with the two countries in 1986 recognize their independence, provide them with critical economic development aid and allow their people to freely immigrate to the United States.
Negotiating time on new compacts is running out. U.S. payments under the current compacts to the tiny Pacific countries won't end until Oct. 1, 2003, but Guam Delegate Robert Underwood said new agreements must be approved by Congress before it adjourns this fall.
That's because budgeting for fiscal 2004 will begin later this year. Unless the compacts are approved by then, there is a possibility Congress could cut off aid to Micronesia and the Marshalls.
In 1998, U.S. money accounted for 54 percent of Micronesia's government revenues and 68 percent of the Marshall Islands' government revenues, according to the General Accounting Office, the investigative arm of Congress.
Under the most recent U.S. proposals, offered in May, the United States would provide $3.4 billion over the next 20 years — about $2.3 billion for Micronesia and about $1.1 billion for the Marshall Islands. That money pays for annual grants, extended federal services and contributions to trust funds that would provide financing after 2023.
The Marshall Islands proposal also includes money to extend U.S. military access to Kwajalein Atoll from 2017 through 2023. Other program assistance would amount to about $1.1 billion for both countries over 20 years and would include $189 million previously authorized for access to Kwajalein through 2016, bringing the total to about $4.7 billion.
The proposal also would impose new reporting requirements on how the two countries use the money, a response to congressional and administration outrage about millions wasted over the past 15 years of the compacts.
Christian and Gerald Zackios, minister of foreign affairs for the Marshall Islands, said they would agree to certain new accountability procedures. Zackios said, "We are very close to an agreement."
Both are concerned by new U.S. demands to discuss new restrictions on immigration.
Albert Short, the State Department's chief compact negotiator, told the committee that "In the wake of Sept. 11, we want to change some migration parts of the compacts."
The right to migrate is part of the compact and is not one of the areas up for negotiation, Underwood said.
Short said the compacts will continue to provide islanders with visa-free entry to the United States. But he said the United States wants to review "certain aspects" of the arrangement, including technology for passports. Discussions on this issue will resume tomorrow, Short said.
