PACIFIC ISLANDS REPORT

Pacific Islands Development Program/East-West Center
With Support From Center for Pacific Islands Studies/University of Hawai‘i

HONOLULU (Pacific Islands Report, Nov. 21) – The renegotiated Compact of Free Association between the United States and its Pacific partners is on its way to President Bush for final signature.

The U.S. House of Representatives yesterday approved Senate amendments to the measure, which spells out U.S. relationships with the Republic of the Marshall Islands and the Federated States of Micronesia for the next 20 years.

According to Guam Congresswoman Medeleine Bordallo, the measure passed the House by a vote of 417 to 2.

"Compact II," which extends U.S. funding to the two Pacific countries for the next 20 years, provides about $3.5 billion. The agreement, which also allows the U.S. to continue using Kwajalein Atoll as missile tracking site, is meant to gradually wean the Marshalls and the FSM off of U.S. support over the course of 20 years – a goal that some close observers have called wishful.

The House action yesterday followed Senate approval of the measure, with some amendments, two weeks ago.

Bordallo said it is expected that Bush will sign the compact soon.

"We can now say with certainty that the legislation will become law, and that includes our provisions for Compact-impact assistance, both Compact-impact reimbursement of $30 million each year and Compact-impact reconciliation" Bordallo said. "This is a very good day for Guam."

Guam, Hawaii and the Commonwealth of the Northern Marianas are to share $30 million a year in "compact impact" reimbursements, double the amount paid under the earlier compact to help offset the cost of providing services to migrating residents of the Marshalls and the FSM.

Copyright © 2003 Pacific Islands Report. All Rights Reserved