4 Nov 2002

A funding pact between the US and FSM worth 2 billion dollars due to be initialled today

6:52 am on 4 November 2002

A twenty year funding pact between the US and the Federated States of Micronesia, worth nearly two billion US dollars is due to be initialled later today.

Like the Marshall Islands, FSM is said to be agreeing to the new agreement with reservations.

FSM wants the money from both the annual grants and the Trust fund to total 99 million dollars not 91.

It is also concerned that the amount will not be sufficient at the end of the twenty year period.