PACIFIC ISLANDS REPORT

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

By Jaime Espina

KOLONIA, Pohnpei (Marianas Variety, Oct. 17) — Federated States of Micronesia President Joseph J. Urusemal has called for a meeting of the Economic Planning Implementation Council from Oct. 28 to 30 to discuss several issues related to the still unratified amended Compact of Free Association with the United States.

EPIC is composed of the president, state governors and speakers.

In a letter to the governors, Urusemal said, "Given the numerous issues and the importance of the subject materials, I suggest that we allocate no less than three full days to our meeting."

Among the subjects Urusemal has proposed for discussion have to do with the status of the amended Compact legislation, which remains with both houses of the U.S. Congress for review and investigation, and "the anticipated changes from the May 14, 2003 signed package."

Earlier this week, the president, his cabinet and members of the FSM Congress were given a closed-door briefing by the Joint Committee on Compact Economic Negotiation on the status of the amended Compact.

Reports of differences of opinion between the House and Senate versions have led to uncertainty about when will the amended Compact could finally be ratified.

To help bridge the gap between the Sept. 30 expiration of the original Compact funding and the passage of the amended Compact, the U.S. Congress passed a continuing resolution granting the FSM a one-month interim funding.

However, a statement from the Congress information office on the closed-door JCN briefing described Speaker Peter Christian and other members of the national legislature expressing "serious concern and dismay about the language of the continuing resolution."

Also to be discussed at the proposed EPIC meeting are transition and implementation issues surrounding the amended Compact.

Among the transition issues are potential special grant award funding under the U.S. Department of the Interior’s fiscal year 2004 Budget Authority, the temporary use of funds reserved for FSM’s $30 million trust fund contribution and plans for FSM internal approval processes at the state and national levels.

The implementation issues include recommendations for establishing the Joint Economic Monitoring Committee/FSM membership and secretariat functions within the national government, the review and recommendations on proposed revisions to internal finance and budget procedures, plans for finalizing the long-term infrastructure development plan, discussions on the Compact distribution formula and plans for the implementation of the humanitarian assistance program for FSM.

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