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Released Date - February 03, 2010
PALAU – COMPACT OFFER: M/VARIETY PACNEWS BIZ: Wed 03 Feb 2010
Palau accepts final Compact offer from the United States
03 FEBRUARY 2010 KOROR (MARIANAS VARIETY) ----- Palau accepted the US$250 million Compact of Free Association funding package offered by the United States , ending a year-long review of the agreement.
The package covers year 2010 to 2024.
The US$250 million package however includes subsidy for the U.S. Postal Service, the funding provided to Palau in the Fiscal Year 2010 and resources earmarked for annual contributions to the infrastructure as maintenance matching fund.
The package includes the US$22 million postal service for Palau, Republic of the Marshall Islands and Federated States of Micronesia. From the funding, Palau will only be left with US$4 million while US$18 million will go to the two Freely Associated States.
The package also includes the FY2010 funding which was previously granted amounting to about US$13 million.
The maintenance fund amounts to US$2 million annually. The amount will be US$30 million covering 2010 to 2024. Excluding the other assistance, Palau will be left with a direct financial assistance of US$13. 5 million yearly.
Members of the Palau and the U.S. Compact Review Advisory Group is now in Hawaii to finalize the deal.
“It’s a done deal,” President Toribiong said
Prior to the departure of the Palau group, the president instructed Chief Representative Ambassador Joshua Koshiba to accept the offer.
“I have decided that the time has come for Palau to negotiate a final deal on the Compact Review with the United States in Honolulu on the basis of the last offer,” President Toribiong stated in his letter to Mr Koshiba.
The president said although the package is reduced due to other deductions, Palau will have another opportunity to review the Compact after year 2024.
President Toribiong in his correspondence exchanges with U.S. Deputy Secretary of State Jacob Lew said that its time to finalize the Compact Review.
“I’ll take whatever consequences for my decision,” President Toribiong said.
Mr Lew on his letter to President Toribiong said that failure to close the deal this month will result to a loss of the resources.
“If we are unable to come to closure on this before the end of January, because of the timing of the US budget cycle, these resources may no longer be available,” Mr Lew said.
The review started as early as January 2009.
Palau and the U.S. were loggerheads on the prior offer by the U.S.
Signing of the agreement, President Toribiong said will either be in Palau or Washington D.C…PNS (ENDS) |
