Momentum is picking up for renewing Compacts of Free Association with Palau and the Marshall Islands, both western Pacific nations considered key to United States security in the Pacific region.
Palau and US leaders signed a memorandum of understanding for a third Compact of Free Association agreement in Los Angeles on Wednesday.
Palau & U.S. Representatives Sign Compact Assistance Memorandum
— Jay Hunter Anson (@JHX_1138) January 12, 2023
Representatives of the United States of America and the Republic of Palau today signed a preliminary memorandum to continue the free association between the two nations. #Palau pic.twitter.com/cMJhPY0cvh
With the signing of the MOU by Palau Finance Minister Kaleb Udui Jr and US Special Presidential Envoy for Compact Negotiations Joseph Yun, Palau is the first of the three freely associated states to commit to a framework for the ongoing negotiations.
The Marshall Islands was reportedly also slated to sign a separate MOU with the US the same day as Palau, but that was delayed by a review of a final draft of the MOU by the Marshall Islands Compact Negotiating Committee (CNC).
However, following reported Cabinet authorisation on Tuesday to approve the Marshall Islands-US MOU, Foreign Minister and chief negotiator Kitlang Kabua (below) was scheduled to depart Majuro Wednesday night for a signing ceremony with Yun on Thursday in LA.
Opposition members of parliament were critical of the haste to sign the MOU, which is not a final agreement, but sets out parameters of the continuing negotiations as US and island negotiators work to hash out details.
Photo: Provided
'A huge step'
Nitijela Speaker Kenneth Kedi called the Marshall Islands-US MOU a "huge step in moving to complete a Compact of Free Association that will work for both the US and the Marshall Islands."
The draft MOU between the Marshall Islands and the US contains agreement on seven areas of specific funding, while stating the US will continue to provide programmes and services to the Marshall Islands as are currently provided in the existing Compact and through the Federal Programs and Services Agreement. The current US grant agreement expires on September 30 this year.
The most significant amount of funding contained in the MOU is a new, $US700 million contribution to a "repurposed" trust fund.
The Compact Negotiating Committee review meeting, held initially Monday morning before the Nitijela (parliament) session, was continued Tuesday, forcing Nitijela to recess until Wednesday to give CNC members more time for their review.
According to CNC participants, Tuesday's meeting was "contentious." But most appeared prepared to move ahead with the MOU. Later on Tuesday, Foreign Minister Kabua briefed Cabinet on the draft MOU with the US, which reportedly gave its okay for her to sign the agreement.
"A couple of months back I said there was light at the end of the tunnel," said Speaker Kedi Wednesday. "But now, we are near the end of the tunnel."
Washington sees the extension of funding packages under compacts of free association with the Marshall Islands and neighbors Federated States of Micronesia and Palau as a hedge against expanding Chinese diplomatic influence in the Pacific island region.
