5 Aug 2002

The Marshall Islands say new funding Compact with the US might not be ready by deadline

11:30 am on 5 August 2002

The chief Marshall Islands compact negotiator, Robert Muller, says American efforts to rewrite the entire Compact of Free Association between the two countries could mean a finished document may not be ready in time

Guaranteed US funding to the Marshalls under the present Compact expires next year and a new package needs to be intoduced into Congress within the next two months.

If it is presented later than that, it will not be approved in time to be included in budget calculations for the fiscal year 2004 which begins on October 1st, 2003.

Negotiatons have been going on for more than a year on a new agreement, but now the US team is proposing major changes to the text of funding assistance provisions as well as significant changes to subsidiary agreements such as postal and disaster services.

On top of this, the US wants to amend the entire Compact, from the Preamble through to its' final provision.

The Marshall Islands hopes the next formal negotiations will begin in August.

The last round of formal talks was held in February this year.