U.S. - Pacific
Marshalls Sign, FSM Signs Later
FSM Slowed by Immigration
Marshall Islands and U.S. officials signed the amended Compact of Free Association in Majuro at the end of April, hailing the agreement for ushering in a new era of cooperation and accountability. Foreign Minister Gerald Zackios and U.S. State Department negotiator Albert Short signed the new 20-year deal worth about $3.1 billion to the Marshall Islands. The Federated States of Micronesia, like the Marshalls, initialed the Compact late last year, but worried about a possible reduction in immigration privileges for FSM citizens demanded by the U.S. This delayed their signing until May 15, when FSM Ambassador to Washington Jesse B. Marehalau and U.S Ambassador to the FSM Larry Dinger signed the Compact amendments and subsidiary agreements. The Marshall Islands Compact was held up while waiting for the FSM signing so that both Compacts can be formally submitted to the Congress.
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Last January President Bush included funding for both compacts, including Kwajalein rental payments, in his fiscal year 2004 budget submitted to the Congress. The new Marshall Islands Compact includes funding for grants and a trust fund of more than $800 million, and an agreement for the extension of use of Kwajalein Atoll valued at about $2.3 billion.
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“We are charting a course toward greater budgetary self-reliance for the Marshall Islands,” Short said.
Kwajalein landowners, however, have vociferously stated their objection to the extension of use of the missile testing range to 2066.
Dinger expressed his hope that the amended Compact with FSM would build upon the very close relationship enjoyed by the two nations and provide a bright future for Micronesia. The agreement will inject about $1.8 billion into the FSM in grants and funding for a new government trust fund. The agreement expires in 2023.
