PACIFIC ISLANDS REPORT

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

By Aenet Rowa

MAJURO, Marshall Islands (Yokwe Online, Sept. 29) - Current levels of funding and support for the Republic of the Marshall Islands (RMI), provided under the existing Compact of Free Association, will be maintained through October 31, until the new Compact is enacted.

On September 25, the United States House and Senate passed a continuing resolution, HJ 69, to fund ongoing Federal activities and programs under the fiscal year 2003 terms and conditions. Included under Section 122, were grants and assistance for the Freely Associated States of the Marshall Islands and Federated States of Micronesia, which would have ended on September 30.

Enactment of the new compact will occur shortly, according to House representatives and RMI officials.

In the Marshalls, the Nitijela has said "yes" to interim Compact approval. Last week, in an address before the Nation's parliament, RMI President Kessai Note presented amendments to Nitijela Resolution No. 123 and Bill No. 160, to provide for the final approval and acceptance of the Compact, as Amended, and provide for the implementation of its provisions into law. The legislation was necessary, he said, since the Nitijela was to be dissolved under the Constitution after September 30. President Note said that these measures will ensure that "our mutual commitments under the Compact of Free Association will not be disrupted by events beyond our control." In Majuro, Monday evening, September 29, the Nitijela voted 19-11 for approval, while two members of the opposition were reportedly missing for the vote.

The Compact of Free Association, as Amended Resolution 2003 provides for approval of the Compact, as Amended, and its subsidiary agreements. The resolution also sets forth important understandings of the Nitijela on issues of concern with respect to the final Compact package. The Resolution provides that if no further action is taken by Nitijela within 30 days after Nitijela commences in January, 2004, this approval will constitute final acceptance in accordance with the Constitution. On the other hand, if Nitijela is not satisfied with the final Compact package at that time, it may take action on the matter, said the President.

The President reassured the Nitijela and people of the Marshall Islands that according to the most recent information available, the Compact would most likely be approved sometime in mid-October and in the interim, the RMI is to receive funding under a continuing resolution for approximately 4-6 weeks.

In a letter to the RMI dated September 26, supplied by the Compact Office, US Negotiator Al Short explained the funding arrangement under the continuing resolution was necessary due to the "press of Congressional business associated with the end of our fiscal year" which would likely prevent final passage by September 30.

"Congress will provide Compact funding based on the Compacts of Free Association, as amended, in a short-term Continuing Resolution. This will allow the U.S. to extend a pro-rata portion of sector grant funding for a one-month period. It is our expectation that Congress will complete action on the amended Compact within the time frame of this short-term extension," said Short.

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