First round of Compact negotiations over

United States and Federated States of Micronesia government negotiators met for three days in Honolulu in November to consider renewing several provisions of a 15-year Compact of Free Association that expires in 2001.

The compact, which went into effect in 1986, has provided ongoing US funding for FSM development that totals more than one billion dollars. Funding will terminate if a new agreement is not reached by 2001.

At the conclusion of the first negotiating round, FSM Chief Negotiator Senator Peter Christian and US State Department special negotiator Stayman expressed optimism, and characterised the meetings as “productive,” while acknowledging that “substantial work lies ahead.”

In a joint communique, the negotiators said they had adopted a “Statement of Principles” that includes a US commitment to continue to assist the FSM attain greater economic self-sufficiency and promote development of the private sector.

The two parties also indicated that they are committed to continued security and defense relations and agreed that the FSM must provide more effective accountability of US funding provided under the compact.

Additional negotiating sessions are to be scheduled.

Under the terms of the Compact, which went into effect in 1986, several provisions, particularly those extending US financial and program assistance to the FSM, as well as those relating to certain aspects of the US-FSM security relationship, will be expiring in the year 2001, and therefore must be renegotiated.

Among the topics discussed at this

opening round were the history of the US FSM relationship and the scope of the negotiations. In addition, both countries engaged in a thorough discussion of past US financial and program assistance to the FSM under the Compact to date.

The parties also established a Joint Subgroup on Prior Compact Assistance charged with drafting an accounting of Compact assistance and documenting how such assistance has helped advance the economic self-sufficiency of the FSM.

The “Joint Statement of Principles” specifically stated that both parties were jointly committed to continued security and defense relations as set in TITLE THREE of the Compact of Free Association. It also said the parties were jointly committed to the purpose of TITLE TWO of the Compact of Free Association, which is to assist the FSM in its efforts to advance the economic self-sufficiency of the people of the FSM.

The third principle that was agreed on was that the parties were jointly committed to public sector reform and to promoting policies, measures and mechanisms that advance the development of the private sector in the FSM. The parties were also jointly committed to more effective accountability under the Compact of Free Association.

During the meetings, Christian and Stayman emphasised the strength of the

special relationship enjoyed by their two

countries, and the central role the Compact has played in furthering the mutual interests of the United States and the FSM. The two negotiators expressed pleasure and gratitude with the efforts and accomplishments of the delegations during the opening round of the negotiations. ■